Pepsi Reportedly Pulling Larger Products From Philly Shelves

With the city's beverage tax in place, some interesting results have cropped up.

Recently, Pepsi said it would lay off 80 to 100 people in the Philadelphia area due to the 1.5 cent per ounce of sugar drink tax.

But the city said funding for pre-K school has increased thanks to the tax.

Now, the Pepsi is reportedly pulling six packs, 12 packs, and 2-liter bottles from stores in the city.

According to CBS Philly and 6ABC, the soda giant is looking to strip those products from shelves.

The company says it wants to offer products and package sizes working families can better afford, according got CBS Philly.

A store owner in the city shared a letter from Pepsi with 6ABC, with the letter saying the tax has caused people to buy fewer taxed drinks, specifically larger sizes as the 1.5 cent per ounce tax can make those prices increase dramatically.

While sales of larger items such as 2-liter bottles are waning, the mayor's office said smaller products are doing well, citing a Philadelphia Inquirer story.

“This data shows that this tax is not causing the economic apocalypse the soda industry is claiming. In fact, it shows the tax is working exactly as it should,” City Communications Director Lauren Hitt said in a statement. “Consumers are switching to smaller sized soda which is better for their health and still supports soda industry jobs and desperately needed investments in quality pre-k, neighborhood public schools and parks, rec centers and library renovations.”

According to the Inquirer, Pepsi will be replacing 2-liter bottles with 1-liter bottles and Coke is marketing smaller products because it says that's what customers are seeking.

Image via Rex Sorgatz, Flickr Commons