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
Mexico against breast cancer
National science has taken gigantic steps.
Maya women of the 21st century
Nowadays, a large number of women.
Join the International Day of Moon Observation at the Planetarium of Mérida
In order to join the International.
Yucatecan scientists create environmentally friendly vehicle
In order to generate efficient and.
The 5 cenotes you can’t miss in your nest trip to Yucatan
In addition to its rich archaeological,.
Yucatan is searching for “Miss Earth 2019”
“Miss Earth Yucatan 2019 is a.
Celestún, love at first sight
Whoever rejects the hypothesis of love.
Scientists say the Maya Kept Jaguar Zoos for Centuries
A chemical analysis of excavated bones.
Mexico forced to ask for help from the UN Refugee Office before imminent Honduran caravan
Mexico says it will ask the.
Top news from Cancun Travel Mart
Cancun Travel Mart, one of Mexico’s largest tourism.