How Retailers Are Adjusting To The Sugar Drink Tax

A new year means new local regulations for retailers and CPG manufacturers to follow. From cities banning plastic water bottles to implementing a single-use bag ordinance, it’s up to the companies to ensure they follow the new regulations.

One trend that is starting to gain national attention is the “Sugar Drink Tax“. This tax has the goal of encouraging shoppers to buy fewer sugary drinks by charging a tax per oz. For some shoppers, it feels like they are taking part in an economics experiment gone wrong and for others, it is the extra motivation needed to stick to their New Year’s resolution. Regardless your stance, this puts the retailer in a tricky situation.

Some retailers such as Costco and ShopRite are taking a unique approach and clearly breaking out the new pricing on shelf tags ensuring their customers they are still providing competitive prices and are not price gauging. In some cases, grocers are pointing shoppers to their stores outside the city tax ordinance.


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As retail continues to evolve retailers will continue to utilize the shelf tag in nontraditional ways to pass on pertinent information to the shopper. From taxes to nutritional facts this is just the beginning.

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Seth Nagle, Senior Marketing Manager at RW3 Technologies understands the power of innovation but also its limitations. Attending Salve Regina in New England, starting his career in Silicon Valley, and now living in Austin, Texas; Seth provides a unique tech perspective to a complex CPG and Retail Grocery Industry that is in constant disruption.