Blog: Andy MortonMexico's uncomfortable truth - soda before toilet paper

Andy Morton | 2 May 2014

Before the government introduced a new sugar tax this year, Mexico's soft drinks industry was one of the world's biggest.

Despite January's duty hike, it's still pretty huge, largely because - no matter the price - Mexican's won't give up their soda.

What they are willing to give up in its stead was put in stark relief by Coca-Cola FEMSA CFO Héctor Treviño Gutiérrez this week. Consumers, he said, hit by across-the-board price jumps on household staples, are “prioritising” soft drinks.

“They are not spending as much on other things like toilet paper."

Analysts, I hear, are unsure what this means for the bottom line.

Sectors: Soft drinks

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