Quick Take
A campaign funded by some of the country’s biggest soft drink companies to defeat Measure Z, a proposed sugary drink tax in the City of Santa Cruz, has spent more than $1.2 million so far, according to campaign finance reports filed this week. With less than two weeks before the Nov. 5 election, supporters of the measure had reported spending only $43,000.
Some of the biggest soft drink companies in the country have spent more than $1.2 million to defeat Measure Z, a proposed City of Santa Cruz sugary drink tax on the Nov. 5 ballot. The Campaign for an Affordable Santa Cruz, sponsored by the American Beverage Association and funded by Dr Pepper, Red Bull, Pepsi and Coke, has outspent supporters of the tax by a scale of more than 38 to 1.
In campaign finance reports that were due Thursday, the Campaign for an Affordable Santa Cruz reported receiving an additional $385,000 in donations from those four companies and spending an additional $922,792 in the period between Sept. 22 and Oct. 19:
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- Keurig Dr Pepper, based in Plano, Texas, kicked in another $65,758, bringing its total donations to defeat the tax to $210,938.
- Pepsico Inc., based in Purchase, New York, donated an additional $135,327.50, bringing its total to $434,102.50.
- Red Bull North America, based in Santa Monica, gave an additional $6,429.50, for a total of $20,624.50.
- And The Coca-Cola Company, based in Atlanta, donated another $177,485 to bring its total commitment to defeating the tax to $569,335.
Meanwhile, the Committee for a Healthier Santa Cruz, which is campaigning for a “yes” vote on Measure Z and is led by City Councilmember Shebreh Kalantari-Johnson, reported receiving only $3,640 in donations between Sept. 22 and Oct. 19. That included $1,000 from the Democratic Women’s Club of Santa Cruz County and $1,000 from Santa Cruz Mayor Fred Keeley.
But the American Heart Association in a separate filing reported donating $20,000 to the campaign, which would more than double the total amount the committee has raised since forming.
The campaign reported expenditures of $9,309 in the most recent reporting period, and $43,556 to date.
The Campaign for an Affordable Santa Cruz reported paying hundreds of thousands of dollars to campaign consulting and communications firms, including Washington, D.C.-based Polaris Strategies and Resonance Campaigns LLC, Los Angeles-based Avalon Strategies, Santa Barbara-based Rodriguez Strategies and San Francisco-based Bearstar Strategies.
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It also spent money on research, video production, printing and postage, as well as expenses at the Hyatt Place and Rio Sands hotels in Santa Cruz and Aptos, respectively, and on advertising across digital platforms, Hulu, Facebook, Google, the Santa Cruz Sentinel and Good Times Santa Cruz.
The two campaigns’ donations and spending follow the trend that emerged in their first campaign finance filings that were due Sept. 21, in which the American Beverage Association-backed committee raised $850,000 and spent roughly $765,000, while supporters of Measure Z had raised only $15,693 and spent $34,247.
If adopted by voters, Measure Z would enforce a 2-cents-per-fluid-ounce tax on the distribution of most sugar-sweetened beverages, raising an additional $1.3 million per year for the city’s general fund.
Supporters of the tax argue that making it more expensive to buy unhealthy products will cut down on their use and improve public health.
In opposing the tax, the American Beverage Association has argued that it would be “regressive,” placing a disproportionate burden on lower-income people.
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FOR THE RECORD: This story has been updated to correct total donation numbers for the campaign to defeat Measure Z.
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