With both obesity and fiscal austerity on the rise, makers of unhealthy foods are a tempting target for taxation. While companies like Coca-Cola and McDonald's are most obviously in the sights of the food police, the rest of the food industry may be vulnerable as well.
Beverage company stocks may remain a sweet investment even if recently proposed soda levies are enacted. Companies such as Coca-Cola and PepsiCo have been diversifying into healthier product lines, which should help reduce the impact of soda taxes on their bottom lines.
Soda is the latest target of sin taxes, and New York City is at the forefront, but a recent study says soda consumers there are more than twice as likely to be low-income and almost three times as likely to be minorities. A regressive soda tax falls more heavily on the heads of New York's poor.
