Replies to post #2082 on NewAge Inc (fka NBEVQ) (NBEVQ)

[takethemoneyrun]

BrewMoney-What do you see as the best markets to grow in the non carbonated drink space? More Kombucha, flavored water, etc...?

[NewJerichoMan]

As DCDude pointed out to me yesterday, it effects every beverage with sugar or an artificial sweetener in it. All Zing and Marley products are effected. Probably Kombucha, too. It's a tough and comprehensive law, which is surprising that it came out of Philadelphia.

Proposition V in San Fran (and similar law in Berkeley) aren't as comprehensive (don't effect diet sodas for instance).

[downthehatch]

I wish you were correct.

https://billypenn.com/2017/01/03/philly-soda-tax-the-big-list-of-drinks-that-are-and-arent-taxed/

From this list, that lists many beverages that are taxed, and the few that are not, I'm not sure. I am guessing our Xing Teas and Marley energy/coffee drinks will be taxed, based on having some sweetener. Not sure about the Bucha, as it is not clear whether the sugar in Bucha is a natural result of fermentation, or is added. It may well be there is some sugar/sweetener added, in which case it would be taxed.

The Aspen Pure water would not be taxed, but not sure it is even distributed in Philly.

The good thing is that since our beverages are already premium priced, 1.5/oz will not have as big an impact as it would on a beverage that only sells for .03-.05/oz, like Coke. Our Bucha is priced at nearly .20/oz, so an extra .24 on top of the $2.99 price is not as big a percentage hit as it is on a can that is .50, that goes to .66, as part of a six pack.