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Business Owner On Sugary Drink Tax: 'I Don't Believe People Had All The Information'

By Andrea Flores

BOULDER, Colo. (CBS4) - Jamba Dunn, CEO of Boulder's Rowdy Mermaid Kombucha, says the fermented tea beverage has more health benefits than meets the eye.

"The end result is a ferment that has live probiotics in it," Dunn said. "It's good for the body, it's good for the gut."

On Tuesday, Boulder city residents voted in favor of ballot measure 2H, imposing a 2-cent per ounce tax on sugary drinks. The tax applies to any drink that has more of 5 grams of sugar per 12 ounces.

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(credit: CBS)

"My father died of Type 2 diabetes, so I wanted to create an alternative to soda," Dunn said. "It's ironic that we ended up being swept up in the poor writing of this legislation."

But with 7 grams of sugar, Dunn says he'll soon be pulling his popular "Smokey Badger" beverage off the shelves of local stores.

City Attorney Tom Carr says it's still unclear how the tax will be put into action.

"It's a tax on the distributor who sends it down the chain of commerce into Boulder, and we'll have to figure out how to tax distributors because it's not something we do right now," said Carr.

Healthy Boulder Kids, the grassroots coalition behind the tax, considers the win a major victory for the community.

"Boulder stood up for our kids," said Angelique Espinoza with Healthy Boulder Kids. "We understand the health threats posed by unhealthy sugary drinks, especially on low-income families."

Retired nurse Jan Beezley, voted in favor of the tax, and says it sends an important message to the public.

"Water is good," Beezley stated. "Drink water."

Dunn says other healthy alternatives, like coconut water and kombucha, may not have been considered when the measure was drafted.

"I don't believe people had all the information they needed to make an accurate vote," said Dunn.

The Sugary Drink Tax doesn't go into effect until July 1, 2017.

Andrea Flores is a reporter for CBS4. Follow her on Facebook and Twitter @AndreaFloresTV.

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