ILSI Seeks Help of a U.S. Health Agency to Address Issues Hurting Beverage Industry

Published Date : Jun 30, 2016

This year has hit the soft drinks manufacturers badly with talks about the implementation of soda tax to curb the sales of these sugary drinks that are responsible for obesity among young adults. A recent decision taken in Philadelphia to impose the soda tax to restrict the consumption of these soft drinks has further added to the woes of the industry giants such as Pepsico and Coca-Cola. Both these soft drink manufacturers have registered a steady decline in the sales of their products. Following the decision to implement soda tax in Philadelphia, investors are selling off the shares of these companies. The growing awareness about obesity and the diseases caused by it including type II diabetes has kept consumers from the sugary soft drinks.

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The soft drinks market has received further blows from San Francisco and Mexico. While Mexico has already implemented soda tax since 2014, a number of cities across the U.S. are planning to add such taxes on the sales of soft drinks. In San Francisco, last year a law has been passed that mandated the soft drinks brands to include the potential negative effects of the sugar drinks in their ads. In March 2015, the World Health Organization released a new sugar guideline with Director General Margaret Chan stating that the sugary drinks were responsible for child obesity, especially across developing nations. 

However, the industry-funded International Life Sciences Institute has been accused of taking help of a U.S. health agency to let the beverage industry cultivate political sway with the regulatory body. It will be interesting to observe that how the soft drink industry will refute the allegations while maintaining the sales of the products that have been termed unhealthy by one and all.