Intended and unintended consequences of a proposed national tax on sugar-sweetened beverages to combat the U.S. obesity problem.

Monthly data derived from the Nielsen Homescan Panel for calendar years 1998 through 2003 are used to estimate the effects of a proposed tax on sugar-sweetened beverages (SSBs). Most arguments in describing the ramifications of a tax fail to consider demand interrelationships among various beverages. To circumvent this shortcoming we employ a variation of Quadratic Almost Ideal Demand System (QUAIDS) model. The consumption of isotonics, regular soft drinks and fruit drinks, the set of SSBs, is negatively impacted by the proposed tax, while the consumption of fruit juices, low-fat milk, coffee, and tea is positively affected. Diversion ratios are provided identifying where the volumes of the SSBs are directed as a result of the tax policy. The reduction in the body weight as a result of a 20% tax on SSBs is estimated to be between 1.54 and 2.55 lb per year. However, not considering demand interrelationships would result in higher weight loss. Unequivocally, it is necessary to consider interrelationships among non-alcoholic beverages in assessing the effect of the tax.

U.S. Consumer Demand for Plant-Based Milk Alternative Beverages: Hedonic Metric Augmented Barten's Synthetic Model.

Consumers in the U.S. increasingly prefer plant-based milk alternative beverages (abbreviated "plant milk") to conventional milk. This study is motivated by the need to take into consideration varied nutritional and qualitative attributes in plant milk to examine consumers' purchasing behavior and estimate demand elasticities which are achieved by a new approach combing hedonic pricing model with Barten's synthetic demand system. The method of estimation is enlightened from the common practice of companies differentiating their products in multidimensions in terms of attributes. A research dataset was uniquely created by associating the products' purchase data from Nielsen Homescan dataset with exclusive first-hand nutritional data. Estimations began with creating a multidimensional hedonic attribute space based on the qualitative information of different types of plant milk and conventional milk available to consumers and then calculating the hedonic distances by Euclidean distance measurement to reparametrize Barten's synthetic demand system. Estimation results showed that the highest own-price elasticity pertained to soy milk which was -0.25. Three plant milk types had inelastic demand. Soy milk exerted substituting effects on all types of conventional milk products and vice versa. Soy milk, rice milk and almond milk entertained complementary relationships between each other and four types of conventional milk were strong substitutes within the group.

Consumers preferences on nutritional attributes of dairy-alternative beverages: hedonic pricing models.

Dairy products, especially milk play a crucial role in assuring dietary quality for U.S. households. However, due to taste, nutrition, health and environmental concerns, households increasingly prefer to consume dairy alternative beverages instead of conventional milk in the U.S. This work is motivated by the need to take into consideration of intrinsic characteristics and differences of such characteristics when analyzing the changes of consumers' purchasing behavior of and willingness to pay for dairy alternative beverages and conventional milk products. After aggregating and organizing the purchase data of Nielsen Homescan and first-hand nutrition data, this study estimates both linear and semi-log hedonic pricing models. The results show that consumers exert the highest weights and assign highest evaluation on such qualitative characteristic as nutritional attributes which include calories, protein, fat, vitamin A and vitamin D in which protein is the most valued attribute and other characteristics such as package size, multi pack and brand. The hedonic pricing order and value of these qualitative characteristic are indicative of consumers' purchasing behavior and thus provide essential information for manufacturers to better differentiated their products and develop products catering to consumer's preferred attributes.