Pepsi CEO takes on sugar tax

 

A Bay State lawmaker who has proposed extending Massachusetts’ sales tax to candy and soda compared sugary beverages to cigarettes yesterday as the boss of PepsiCo was in town to address business leaders and told reporters that would be bad policy.

“It’s irresponsible not to look at taxing sugar beverages and candy because of their link to obesity,” said Newton Rep. Kay Khan, whose bill is being reviewed by a House committee. “Companies are making millions by putting this out to people. It’s like cigarettes. It’s not good for people’s health.”

PepsiCo CEO Indra Nooyi’s company boasts 19 billion-dollar brands, including Pepsi, Mountain Dew, Seven-Up and Diet Pepsi.

Nooyi, who was speaking at a Boston College Chief Executives’ Club lunch, called obesity “a broad issue” that involves much more than sweetened beverages.

Khan agreed that obesity is a complex issue, but said doctors have seen dramatic improvements when consumption of sugary drinks is reduced.

“This is one piece of it,” said Khan. “We could think about taxing Doritos, but this is a good place to start.”

Doritos is another PepsiCo brand.

“We do a nice job of exempting food from the sales tax,” said Khan. “But sugar beverages and candy are currently exempt and they’re not food.”

MayorThomas M. Menino, who has cracked down on sweetened beverages on city property, did not return calls seeking comment.

Introduced by New England owner Robert Kraft as “one of the greatest managers on the planet today,” Nooyi spoke mainly about the importance of corporate talent management and development as company leaders face the challenges of a global economy and a looming talent shortage.