Flat beverages are helping overall sales at Coca-Cola Co. and PepsiCo Inc. stay fizzy in Mexico despite a tax on sodas, Reuters reports.
As Mexico moved toward implementing a soda tax to combat soaring rates of obesity and diabetes three years ago, the beverage industry fought back hard, warning that sales in the world’s No. 2 consumer of sugary drinks could take a hit.
But more than two years later, PepsiCo and Coca-Cola have found ways to prosper in Mexico thanks to alternative beverages and resilient demand, a Reuters review of corporate filings and executive comments shows.
On Thursday, PepsiCo Chairman and Chief Executive Indra Nooyi described the nation, the biggest for net revenue after the United States, as “one of the brightest stars” in Latin America amid turmoil in Venezuela and Brazil.
“We feel good about our business in Mexico,” she said in the company’s second-quarter earnings call.
PepsiCo’s shares popped to record highs on Thursday after its earnings of $1.35 a share beat analyst estimates.
After the tax was implemented in January 2014, beverage sales volumes declined for one quarter in Pepsi’s case and two quarters for Coke.
Since then, both have posted consistent growth in volumes in Mexico. Coca-Cola and PepsiCo both declined to comment.
Growth in other drinks the companies produce, like bottled water and juice, has contributed to that resilience. General economic growth in the country has also helped.
To read the entire article click here.
more recommended stories
ABC says García Luna’s arrest was just a matter of time
ABC News says Mexico’s former security.
Playa Hotels & Resorts names new Vice President of Revenue Management
FT. LAUDERDALE, FL (December 13, 2019) –.
Chinese migrants found hiding in appliances at Mexico-U.S crossing
Eleven Chinese migrants were discovered hiding.
Chichén & Machu Picchu join in brotherhood
VALLADOLID (Times Media Mexico).- The union between two.
Mexico, the biggest looser in the USMCA
The U.S. daily The Washington Post.
Worse winter travel growth for Mexico in six years
The growth of winter tourism in.
Pyrotechnics cause fierce fire in Celestun
A voracious fire was registered in.
Mexico quantifies development co-benefits of Climate Action
The study analyzes co-benefits resulting from.
Immigrant from El Salvador waiting U.S. asylum hearing is murdered in Mexico
MEXICO CITY (Reuters) – A Salvadoran.
After a year in power, Andrés Manuel López Obrador is failing to contain violence
When Mexico’s president, Andrés Manuel López.