Background and Relevance of Coca-Cola’s Representative
Patricio Caso Prado, the representative of Coca-Cola Mexico, has taken a significant step towards addressing public health concerns related to obesity and diabetes. Coca-Cola Mexico has committed to reducing the calorie content in their regular beverages by 30% following an agreement with Mexico’s Secretary of Health. This move aims to reformulate products and lower the tax on beverages with non-caloric sweeteners.
Coca-Cola’s Call for Industry-wide Participation
Caso Prado emphasized the importance of a collective effort from the entire food and beverage industry to achieve the goal of reducing diabetes and obesity levels. He stated, “From the Mexican Coca-Cola industry, I would like to call on all other companies in the food and beverage industry to undertake equally clear commitments like ours.”
The diputado Ricardo Monreal Ávila supported Coca-Cola’s call, advocating for a thorough review of the national food policy and production processes affecting public health. He urged, “Let this be an example to review all food policies, food production processes that affect the health of the population, and the elimination of those causing serious problems like diabetes, hypertension, and other diseases.”
Tax on Sugary Drinks and Industry Response
The Mexican Chamber of Deputies recently approved the Impuesto Especial sobre Producción y Servicios (IEPS) on sugary drinks, increasing the tax from 1.64 to 3.08 pesos per liter by 2026. Simultaneously, beverages with non-caloric sweeteners will now pay a tax of 1.50 pesos per liter, down from the initial proposal of 3.08 pesos following negotiations between the Secretary of Health and refreshment companies.
Coca-Cola’s Commitment and Gradual Reformulation
Coca-Cola Mexico has pledged to reduce calorie content in 70% of its beverages by 2027. The reformulation process will be gradual, considering the need for research, development, and adjustments in industrial processes and production chains. Over the past decade, there has been a significant increase in low-calorie or non-calorie beverage offerings and consumption, with such products now accounting for 11% of total beverage consumption.
Caso Prado highlighted that the implementation of these commitments will take a year for adaptation, with periodic evaluations by the Secretary of Health.
Key Questions and Answers
- What is the main objective of Coca-Cola’s commitment? The primary goal is to reduce the calorie content in regular Coca-Cola beverages by 30% to combat obesity and diabetes.
- Why is industry-wide participation crucial? A collective effort from the food and beverage industry is essential to effectively address public health concerns related to obesity and diabetes.
- What is the newly approved tax on sugary drinks? The Mexican Chamber of Deputies approved increasing the IEPS on sugary drinks from 1.64 to 3.08 pesos per liter by 2026. Beverages with non-caloric sweeteners will now pay a tax of 1.50 pesos per liter.
- How will Coca-Cola implement its calorie reduction commitment? The reformulation process will be gradual, considering research, development, and adjustments in industrial processes and production chains. The company aims to have 70% of its beverages reformulated with fewer calories or sugars by 2027.
- What is the significance of this move for public health? This initiative, along with the tax on sugary drinks and industry-wide participation, aims to reduce obesity and diabetes levels by promoting healthier beverage options.
