Coca-Cola Blames Philly Layoffs On Soda Tax

PHILADELPHIA (CBS) — Coca-Cola says it’s eliminating forty positions in Philadelphia resulting from a drop in gross sales, which it blames on the sweetened beverage tax, however the mayor’s workplace is skeptical.

Coke posted a narrative on its web site quoting the native bottler as saying gross sales are down 32% within the metropolis because the tax took impact on January 1st. The corporate declined an interview request concerning the figures.

Lauren Hitt, a spokeswoman for Mayor Kenney, notes that Coke this week introduced 1200 lay-offs, nationally, due to an eleven% drop in gross sales throughout the nation within the first quarter.

“There’s no proof,” she says, “to recommend this isn’t simply a part of that.”

She additionally notes the beverage business is actively engaged in litigation towards the town to repeal the tax and “has repeatedly seemed for alternatives to scapegoat it.”

The soda tax has already raised $19 million this yr, with collections steadily rising each month.

Ultimately, the town tasks, it can increase $ninety one million a yr for expanded pre-Okay, group faculties, and a rebuild of metropolis parks, rec facilities, and libraries.

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