The challenge
Mexico had very high sugary drink consumption and rising obesity and diabetes.
The case
In January 2014 Mexico, one of the world's largest consumers of sugary drinks, added a one-peso-per-liter excise tax, roughly a 10% price increase. Researchers using household purchase data found purchases of taxed drinks fell by an average of 6% in the first year and by 12% by December 2014, with the largest falls in low-income households. Purchases of untaxed drinks, mainly bottled water, rose.
Why it worked
A simple, visible tax changed buying habits, especially among poorer households who face the highest diabetes risk.
Sources
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