Voters in two California cities rejected measures that would have imposed the nation's first penny-per-ounce taxes on businesses that sell soft drinks and other sugary drinks in an effort to boost municipal revenue and fight obesity.
In El Monte, California, 76.8 per cent of voters said no, while in Richmond, California, 66.9 per cent opposed the measure, according to final results from Tuesday's U.S. election.
Calls to tax sugary drinks have gathered steam as more cities and states struggle to close budget gaps and American waistlines continue to expand.
The American Beverage Association - which represents PepsiCo Inc., Coca-Cola Inc., Dr Pepper Snapple Group Inc. and other beverage companies - has spent millions of dollars to beat back soda taxes around the country. The ABA has a strong record of defeating soda tax efforts.
In September, New York City passed the first U.S. ban of oversized sugary drinks.
