Food & Beverage

Pepsi pulls 12-packs, 2-liters from shelves over 'soda tax'

Bottles of Pepsi-Cola on sale in San Francisco.
Getty Images

Pepsi is pulling 2-liters and 12-packs of its products from Philadelphia grocery store shelves over the city's new tax on sweetened drinks.

The company says in a statement it wants to offer products and package sizes that working families can better afford.

The 1.5-cent-per-ounce tax on sweetened and diet beverages is imposed at the distributor level. If fully passed onto the consumer, it amounts to $1.44 on a six-pack of 16-ounce bottles.

The company's decision affects sodas like Pepsi and Mountain Dew, and other sweetened drinks like Gatorade and Lipton Iced Tea drinks.

Mayor Jim Kenney's office says the industry has been trending toward smaller sizes well before the tax passed. Earlier this month, Pepsi cited the tax when announcing layoffs of 80
to 100 workers at distribution plants that serve the city.