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Soda Taxes In Mexico
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Soda Taxes In Mexico

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Pepsi reported that its global sales quarterly profits went up everywhere except in Mexico. Coca-Cola also indicated its beverage volume has dropped in the country.  Mexico has the most per-capita consumption of Coke products in the world.

Both soft drink companies blame the soda and junk food tax on the dismal sales.  The Mexican tax adds about 7 cents (one peso) to a litre of sugared beverages and 5% of the cost to foods with 275 calories or more than 100 grams of sugar.

Several cities in California will vote on soda taxes in November.  Since January, the American Beverage Association has been active lobbying against the tax.  They have spent $7.7 million to counter the tax in San Francisco, far above the $391,000 supporters have spent during the same time period.  The beverage industry is promoting calorie reduction in its drinks, as well as spending more marketing dollars on promoting lower-sugar beverages and smaller beverage formats.

 

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