New Seattle Soda Tax May Drive ‘Jones Soda’ Back to Canada
Maybe it's because most of them never studied Economics, or business, or ever had any exposure to business in their lives. Seattle leaders have come up with another brainchild that has people across the country shaking their heads. Either way, the new Seattle soda tax is likely to drive one of the most famous and popular companies across the border.
It's rather ironic that Jones Soda, known worldwide for their quirky flavors and iconic bottle label pictures, came to Seattle in 2000 after unfavorable business conditions in Vancouver B.C. made it unprofitable to operate.
Now, 17 years later, the brainchild (some say brain lapse) of Seattle officials including Mayor Ed Murray, is likely to drive the company back across the border.
MyNorthwest.com and other sources are reporting CEO Jenifer Cue is strongly considering moving back to Vancouver or Canada in general because of the crippling new soda tax passed in Seattle.
Under the guise of closing the gap between less affluent children and those better off, it's really a revenue grab, hints Cue. It will create unfavorable business conditions, and is part of what she calls an anti-business sentiment coming from City Hall.
While Jones sells very well, it is considered a higher priced product, which the tax will hurt even more. Consumers will be driven to generic cheaper priced products, hurting not only Jones, but even Pepsi, Coke and other national brands.
While Jones has national sales that will help offset the tax, Cue said "It would be better if we were in Canada right now than in Seattle."
The tax, 0.175 cents per ounce, is expected to also drive vendors, distributors and bottlers outside the city, offsetting the idea for the tax in the first place.
Yet another example of how many politicians obviously flunked or never studied basic economic principles. Maybe somebody should pitch Jones to move their company here to the Tri-Cities?