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.
Source: reuters.com
Comments
more recommended stories
Tulum’s “La Calma” Ecoresort master plan rejected by SemarnatOn September 12th, the environmental organization.
Organ donation culture increases in YucatanSeptember 17, 2018 (ACOM) .- The.
New air route Merida-VillahermosaViva Aerobus, Mexico’s ultra-low-cost airline, with.
Criminology expert warns about possible increase of organized crime activity in Yucatán“Poverty levels in the state of.
Canadian and American citizens visited SSP facility in MéridaCanadian and American citizens residing in.
Progreso Yucatecan terminal will expand its capacityThe Energy Regulatory Commission (Comisión Regulatoria.
Spanish-speaking worker fired after refusing to help English-speaking customers at Taco Bell in FloridaA Spanish-speaking Taco Bell worker in.
Magical towns of Quintana Roo prove to be profitable tourist destinationsThe magical towns Bacalar, Tulum and.
Mexican scientists use natural fireflies process to evaluate anticancer agentsExperts from the National Autonomous University.
“Huaxim” Yucatecan endemic tree is key for the “livestock of the future” national programYucatecan cattlemen contributed with their experiences.
Leave a Comment