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
President Biden Calls Fox Reporter a ‘Stupid Son of a Bitch’ After Question About Inflation (Watch Video)
President Joe Biden calls reporter a.
UN asks Mexico to strengthen protection for journalists after murders of Lourdes Maldonado and Margarito Martínez
The UN asked Mexico to reinforce.
Aeroméxico cancels Mérida-Mexico City flight 824 due to lack of passengers
The outbreak of COVID-19 among the.
“We Tour 2022” kicked off at Mérida’s Palacio de la Música
The “We Tour 2022” is a.
AMLO’s government accused of cutting down 20,000 trees in Quintana Roo to build the Maya Train
According to CR Comunicación, the Federal.
Omicron hinders the economic recovery of Yucatan (SEFOE)
The Secretary of Economic Development insisted.
Low temperatures will return to Yucatan on the weekend
Cold front number 24 will arrive.
Vacancies open on the Maya Train as personnel did not return to work after Christmas break
VALLADOLID – After Christmas vacations, the.
Perfume line with a regional flair
Scents inspired by the Yucatán peninsula.
According to the City Council, the Mérida Fest was no reason for the increase in infections
The Mérida Fest ended on Sunday,.