News

MEXICO: Pepsi complaints of Coke practices grow stronger

Most popular

Stoli Group’s AC/DC Thunderstruck Tequila- Comment

As Irish whiskey comes of age, so do its problems

Why water has become more important than wine

Interview - Mark Sandys, Diageo's head of beer

MORE

Since filing a complaint in April against Coca-Cola with the Mexican anti-monopolies watchdog, the Federal Competition Commission, PepsiCo is claiming to have more than 400 signed affidavits from Mexican store owners who claim to have witnessed agreements in which Coke has provided coolers and paid out cash bonuses in exchange for the stores exclusively selling its products.Pepsi and two further local soft drink companies Aga and Mundet are all accusing Coca-Cola of blocking them out of the market through exclusive agreements with retailers. Pepsi is also blaming the tactics used by the world's number one beverage company for its steady decline in market share.Coca-Cola's distribution network of trailers and bicycles reaches more than 900,000 points of sale and market research group, AC Nielsen has said Coca-Cola sales account for 71.5% of Mexico's soft drinks market. In the US the capita consumption of Coke is 100 litres, in the northern Mexican city of Monterrey alone the per capita consumption is 165 litres a year.Joseph Bormann, corporate analyst with Fitch in Chicago said: "Coca-Cola has clearly been able to ingrain itself into the Mexican mentality, it has done a better job reaching the Mom 'n' Pop stores and for many people in Mexico that is the only access they have."Coca-Cola has dropped a court appeal challenging a decision by the Federal Competition Commission stopping a planned merger with Cadbury Schweppes in Mexico. Coca-Cola spokesman Rodrigo Calderon told the press the company has offered to enter into talks with the anti-monopolies watchdog in an attempt to come to a settlement over Pepsi's complaints.


Related Content

The Coca-Cola Co's US$5.1bn acquisition of Costa - Analysis

The Coca-Cola Co's US$5.1bn acquisition of Costa - Analysis...

The Coca-Cola Co's Diet Coke revamp offers new meaning in a modern age - Comment

The Coca-Cola Co's Diet Coke revamp offers new meaning in a modern age - Comment...

How The Coca-Cola Co can make a success of Coke Life II - Comment

How The Coca-Cola Co can make a success of Coke Life II - Comment...

PepsiCo CEO lays ground for North America cola war as Pepsi loses out to Coca-Cola

PepsiCo CEO lays ground for North America cola war as Pepsi loses out to Coca-Cola...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?