Snapshot Statistic #1-7: A Peek at The Scale of the Food Industry

0908_62obesitythumb1From: Taxing the Rich—Foods, That Is – BusinessWeek.

Late last year, New York Governor David A. Paterson proposed an 18% sales tax on non-diet soda and sugary juice drinks for the fiscal year starting in April. Such a tax, he says, would raise $404 million this year and $539 million in 2010, to be used for fat-fighting public health programs

Snapshot Statistics:

1 – In New York State alone, an if 18% of the total retail value of non-diet soda and sugary juice drinks is $404 million, then the overall retail sales are $2.24 billion dollars for this year and  $2.94 billion for 2010.

6 more remarkable statistics after the jump.

2 – If the tax rate is the same for both years, then the NY Governor’s office predicts an increase in retail sales of these unhealthy drinks of 33% in 2010.

3 – If we assume that the inflation rate will be 5% during the year, then that means the volume increase in consumption will be an astounding 27% year over year.

4 – New York’s state population is approximately 19 million people. so the per capita spending  on unhealthy drinks will be $118.13 in 2009 and $157.60 in 2010. That is an average for every man, woman, and child in the state. Figure more, much more, for many people, since some people clearly spend less. That also works out to

5 – So the per capita tax burden on unhealthy drinks will be $28.25 in 2009 and $28.37 in 2010. That is an average for every man, woman, and child in the state.

6 – Less clear is the calculation of nutritionless calories consumed, but here is a back of the envelope calculation. Where I live, a typical supermarket price for a 2 liter bottle of soda is $1.50. If we estimate that soda is priced similarly in NY, then we can calculate that the per capita calorie consumption in NY State from drinking sugar water will be 224 calories per day  in 2009 , and in 2010 it will be 299 calories per day.

7 – With a recommended daily calorie intake of no more then 2000 calories per day, then every man, woman and child in NY is drinking at least 11% of his or her calories needs with no nutritional value gained, and next year will drink at least 15%.

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