Even though caffeine is a drug, why does it seem like caffeinated drinks and foods are cheaper than alcoholic beverages or tobacco products?

[smahala1991]

Just a thought. I've noticed a pack of cigarettes here is over $5 usually and a can of beer is like $2.50. So why is a two liter of soda 99 cents most places if caffeine is considered a drug as well?

[meowcow]

Being defined as a "drug" has nothing to do with the price. A drug is simply a chemical that induces a physiological effect, so most of what you eat is technically classified as a drug. We use the term to refer to the pure form of a compound that induces the effect, rather than the food containing the chemical.

The reason why booze and tobacco are more expensive is simple. Taxes.
Alcohol is not expensive to make. You can get rubbing alcohol (70%) for a few dollars for a 1L bottle. Even though making alcoholic beverages is more laborious, it's mostly automated these days except for fine spirits. That still does not justify the high price.

But once the government takes in their tax share, it becomes expensive. About 50-60% of the price you pay is tax. Hence at duty free shops, alcohol is about half the price.

[smahala1991]

A lot of smokers where I live go for those 99 cent two in a pack cigar like things that are like peach and grape flavored. That was never popular in my hometown. But here it is.

[Nomad69]

Cocaine to Columbia is like Caffeine to north America. Its probably cheap to make that's why. Creatine is like a cheap steroid too. Caffeine has such low doses a high dose of caffeine can rival cocaine

[maurkay]

Caffeine is just addictive. It doesn't neccessarily harm your body as much as cigarettes, and it doesn't make you drunk like alchohol.

[orphan]

sugar is more addictive.

[Mustachekitteh]

They want people unhealthy and overweight as possible. So they will spend more money on losing weight and health care.

[Anpu23]

It has to do with special taxes, both alcohol and tobacco have a unique tax.

[06CuriousMind]

because it isn't as addictive and the ingredients makes it a lot easier to make

[anonman32]

because nobody lobbies to raise the taxes on these things.

[AllThatSweetJazz]

It's not priced based on being a drug, why would that make sense?

[smahala1991]

Caffeine by the FDA standards is a drug

[AllThatSweetJazz]

Yeah... so?

[smahala1991]

So if caffeine beverages can be 99 cents why can't a can of beer or a pack of smokes?

[AllThatSweetJazz]

But why is it priced based on being a drug? Why would you think they should cost the same?

[smahala1991]

I would think the higher prices would be due to the fact they want to keep people from purchasing it. But I'm asking for your opinions and facts not my own. It's just a curiosity question

[AllThatSweetJazz]

It's priced by how much it costs to make it and then marked up depending on where you buy it and what the demand is for it.

e. g Red Bull isn't that expensive to make and ship, but it's the popular energy beverage so they mark it up because people will still buy it. I can get it at the cornerstone for $11 a litre which is really high compared to other energy bevs, but I went to concert last week and at the bar paid $20 a litre for the same product.

I can buy a bottle of vodka that's about $1.50 a shot. But if I order a highball at a bar it might cost me $10 for essentially the same thing. It's about availability, supply, demand and sometimes taxation and trade tariffs.

[AssJacket]

Because of excise taxes.

[smahala1991]

What do you think would happen if they lowered taxes on it

[AssJacket]

It would be cheaper. However, excise taxes usually go towards paying for infrastructure (at least in the United States). So, things like roads and bridges may get a bit more sketchy.

[smahala1991]

I thought that's what traffic fines and lottery/gambling money was for.

[ColinHarvey]

Not in every state. Most states use block grants and infrastructure grands at obscene promises to federal lawmakers, the state liqueur commission in my home state uses liqueur tax to pay salaries and stings, and for the prison system.

If the taxes were cut not much would happen. Economically these items purchases are unaffected in a depressed economy, and often with tax increases are purchased in further. If an announcement of policy change was made, one might see a large group of people buying more liqueur. That being said, the industry would have more room to pull profit.

Cigarettes are a different story - generally economists believe that cigarettes would be more popular like the Cheyenne cigars that are taxed under cigar regulation. Others assume they would be less popular because of the rammifications of value being associated to certain brands.

[AssJacket]

That too.

[ColinHarvey]

Haha - it's not taxed.

[April10]

Is it a drug though?