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Beverages Sales in Mexico before and after Implementation of a Sugar Sweetened Beverage Tax

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  • M A Colchero
  • Carlos Manuel Guerrero-López
  • Mariana Molina
  • Juan Angel Rivera

Abstract

Objective: To estimate changes in sales of sugar sweetened beverages (SSB) and plain water after a 1 peso per liter excise SSB tax was implemented in Mexico in January 2014. Material and Methods: We used sales data from the Monthly Surveys of the Manufacturing Industry from January 2007 to December 2015. We estimated Ordinary Least Squares models to assess changes in per capita sales of SSB and plain water adjusting for seasonality and the global indicator of economic activity. Results: We found a decrease of 7.3% in per capita sales of SSB and an increase of 5.2% of per capita sales of plain water in 2014–2015 compared to the pre-tax period (2007–2013). Conclusions: Adjusting for variables that change over time and that are associated with the demand for SSB, we found the tax was associated with a reduction in per capita sales of SSB. The effectiveness of the tax should be evaluated in the medium and long term.

Suggested Citation

  • M A Colchero & Carlos Manuel Guerrero-López & Mariana Molina & Juan Angel Rivera, 2016. "Beverages Sales in Mexico before and after Implementation of a Sugar Sweetened Beverage Tax," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-8, September.
    • Handle: RePEc:plo:pone00:0163463
    DOI: 10.1371/journal.pone.0163463
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    1. M Arantxa Colchero & Juan Carlos Salgado & Mishel Unar-Munguía & Mariana Molina & Shuwen Ng & Juan Angel Rivera-Dommarco, 2015. "Changes in Prices After an Excise Tax to Sweetened Sugar Beverages Was Implemented in Mexico: Evidence from Urban Areas," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-11, December.
    2. Colchero, M.A. & Salgado, J.C. & Unar-Munguía, M. & Hernández-Ávila, M. & Rivera-Dommarco, J.A., 2015. "Price elasticity of the demand for sugar sweetened beverages and soft drinks in Mexico," Economics & Human Biology, Elsevier, vol. 19(C), pages 129-137.
    3. Vartanian, L.R. & Schwartz, M.B. & Brownell, K.D., 2007. "Effects of soft drink consumption on nutrition and health: A systematic review and meta-analysis," American Journal of Public Health, American Public Health Association, vol. 97(4), pages 667-675.
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    1. Leider, Julien & Powell, Lisa M., 2022. "Longer-term impacts of the Oakland, California, sugar-sweetened beverage tax on prices and volume sold at two-years post-tax," Social Science & Medicine, Elsevier, vol. 292(C).
    2. Tonatiuh Barrientos-Gutierrez & Rodrigo Zepeda-Tello & Eliane R Rodrigues & Arantxa Colchero-Aragonés & Rosalba Rojas-Martínez & Eduardo Lazcano-Ponce & Mauricio Hernández-Ávila & Juan Rivera-Dommarco, 2017. "Expected population weight and diabetes impact of the 1-peso-per-litre tax to sugar sweetened beverages in Mexico," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-15, May.
    3. Julio C. Arteaga & Daniel Flores & Edgar Luna, 2021. "The effect of a soft drink tax in Mexico: evidence from time series industry data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 349-366, April.
    4. Lluc Puig-Codina & Jaime Pinilla & Jaume Puig-Junoy, 2021. "The impact of taxing sugar-sweetened beverages on cola purchasing in Catalonia: an approach to causal inference with time series cross-sectional data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(1), pages 155-168, February.
    5. Lisa M Powell & Julien Leider, 2022. "Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-10, January.
    6. Cuadrado, Cristóbal & Dunstan, Jocelyn & Silva-Illanes, Nicolas & Mirelman, Andrew J. & Nakamura, Ryota & Suhrcke, Marc, 2020. "Effects of a sugar-sweetened beverage tax on prices and affordability of soft drinks in Chile: A time series analysis," Social Science & Medicine, Elsevier, vol. 245(C).
    7. Ahmed Mohammed Alqarni, 2020. "Saudi Smokers' Behaviors After a 100% Tax Increase," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(1), pages 150-150, March.
    8. Paola Bergallo & Valentina Castagnari & Alicia Fernández & Raúl Mejía, 2018. "Regulatory initiatives to reduce sugar-sweetened beverages (SSBs) in Latin America," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-17, October.
    9. Elena Ye. Chernyakova & Anna F. Bogatyreva & Ekaterina A. Yastrebova, 2023. "International Experience in Taxation of Sugar-Sweetened Beverages [Международный Опыт Налогообложения Сахаросодержащих Напитков]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 12, pages 65-73, December.
    10. Christina H Buckton & Chris Patterson & Lirije Hyseni & S Vittal Katikireddi & Ffion Lloyd-Williams & Alex Elliott-Green & Simon Capewell & Shona Hilton, 2018. "The palatability of sugar-sweetened beverage taxation: A content analysis of newspaper coverage of the UK sugar debate," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-15, December.
    11. Elena Ye. Chernyakova & Anna F. Bogatyreva & Ekaterina A. Yastrebova, 2023. "Международный Опыт Налогообложения Сахаросодержащих Напитков," Russian Economic Development (in Russian), Gaidar Institute for Economic Policy, issue 12, pages 65-73, December.
    12. Law, Cherry & Cornelsen, Laura & Adams, Jean & Pell, David & Rutter, Harry & White, Martin & Smith, Richard, 2020. "The impact of UK soft drinks industry levy on manufacturers’ domestic turnover," Economics & Human Biology, Elsevier, vol. 37(C).
    13. Hannah G Lawman & Sara N Bleich & Jiali Yan & Michael T LeVasseur & Nandita Mitra & Christina A Roberto, 2019. "Unemployment claims in Philadelphia one year after implementation of the sweetened beverage tax," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-10, March.
    14. Powell, Lisa M. & Jones, Kelly & Duran, Ana Clara & Tarlov, Elizabeth & Zenk, Shannon N., 2019. "The price of ultra-processed foods and beverages and adult body weight: Evidence from U.S. veterans," Economics & Human Biology, Elsevier, vol. 34(C), pages 39-48.

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