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
Youths with Down syndrome working at Mexican coffee shop
The first coffee shop staffed by.
Police rape allegations fuel protests in Mexico City
A recent string of alleged police.
Mexican berries exported to China
After having reached exports amounting to.
Querida Familia Latina, the letter of solidarity from Latinx leaders
Actresses America Ferrera and Eva Longoria.
AMLO places his name on Mexico’s public school’s fifth-grade History Books
Mexican President Andrés Manuel López Obrador.
Hurricanes are named after HURACÁN the Mayan god of wind, fire, and storms
When he becomes furious, nobody can.
Would you like to know all about the ‘Yucatan Green Gold Era’ ?
Sotuta de Peón, once one of.
Real Estate company from Monterrey to invest 254.3 million USD in Mérida
The Monterrey company ‘Misión Obispado’ will.
Teotihuacán, the secrets buried in the ancient underworld
Mexican archaeologist Sergio Gómez discovered the.
AMLO opposes prosecuting Mexican ex-presidents
Mexico President Andrés Manuel López Obrador.