Pepsi is pulling 2-liter bottles and 12-packs of its products from Philadelphia grocery store shelves over the city's new tax on sweetened drinks.
The company says it wants to offer products and package sizes working families can better afford.
The 1.5-cent-per-ounce tax on sweetened and diet beverages is imposed at the distributor level. If fully passed on to the consumer it amounts to $1.44 on a six-pack of 16-ounce bottles.
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The company's decision affects sodas including Pepsi and Mountain Dew and other sweetened drinks like Gatorade and Lipton Iced Tea.
Democratic Mayor Jim Kenney's office says the industry was trending toward smaller sizes well before the tax passed.
Earlier this month, Purchase, New York-based PepsiCo Inc. cited the tax when announcing layoffs of 80 to 100 workers at distribution plants serving Philadelphia.