Soda Ban

Starbucks Prepared for Soda Ban Decision — By Doing Nothing

Sometimes, ignoring the law is the best move

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New York Mayor Michael Bloomberg seemed confident that limiting the sale of sugary drinks larger than 16 ounces would be good for city residents'  health and that such a ban could be adopted nationwide. That was on Sunday. On Monday, a state judge blocked the rule, just a day before it was supposed to go into effect. The challenge was brought by the American Beverage Association (otherwise known as Big Soda) and others. The judge called the rule arbitrary and capricious. "The loopholes in this rule effectively defeat the stated purpose," New York Supreme Court Justice Milton Tingling wrote.

Many smaller businesses, as well as McDonald's (MCD) and Dunkin' Donuts (DNKN), had been prepared to follow the new restrictions. Not Starbucks (SBUX), though.

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