Associated Press Reports Philly Will Approve Sugar Tax On Sodas

In a Thursday morning article, the Associated Press reported that the Philadelphia City Council is expected to approve a 1.5 cent-per-ounce tax on sugary and diet beverages.

The only other city with a sugar tax on sodas at this point is Berkeley, California. Similar proposals have been defeated in cities and states across the country, including two previous attempts to pass such a law in Philadelphia.

Related Link: San Francisco Not So Sweet To Beverage Investors

The beverage industry had launched a campaign against the tax, but lost a recent court ruling that sought to keep San Francisco from requiring warning labels on soda advertisements. The major soda companies are expected to sue if the Philadelphia tax gains approval.

The Coca-Cola Company (NYSE: KO) was down 1.58 percent at $44.30 in Thursday pre-market trading.