Background and Relevance
Coca-Cola, a globally recognized beverage company, recently adjusted its pricing strategy in Mexico following a significant increase in the Impuesto Especial sobre Producción y Servicios (IEPS) tax. This move has direct implications for consumers, retailers, and the broader beverage industry.
Price Adjustments by Coca-Cola
In response to the IEPS hike implemented at the end of 2025, Coca-Cola has reduced prices on certain beverage formats. Retailers in Mexico City reported that the company lowered prices by up to 15% on selected products.
Specific Price Changes
- Coca-Cola 2.5 litros reusable container
- Previous price: 40 pesos
- Current price: 34 pesos
- Percentage change: 15%
- Coca-Cola 3 liters disposable container
- Previous price: 50 pesos
- Current price: 44 pesos
- Percentage change: 12%
Retailers, like Rosario and Carlos, confirmed these adjustments. Rosario explained that the price reductions were part of a promotional effort to offset the impact of the initial price increase. Carlos noted that these new prices would be in effect until further notice, providing relief to consumers who previously sought cheaper alternatives or different flavors due to the high cost.
IEPS Increase and Its Impact
In December 2025, this newspaper reported that Coca-Cola raised its prices by up to 20% due to the IEPS increase approved for the year. This price hike triggered a 3.97% quinquennial increase in the national inflation rate for soft drinks during the first half of January, marking the largest such increase in 12 years since 2014.
As part of the 2026 Economic Package, lawmakers approved an increase in the so-called “healthy tax” (IEPS) on flavored beverages, including regular soft drinks and industrialized juices. The tax rate will rise from 1.6451 pesos per liter in 2025 to 3.0818 pesos per liter in 2026.
For the first time, beverages with natural or artificial sweeteners—such as light, zero, or diet versions—will have an IEPS of 1.50 pesos per liter. Initially, the finance secretariat proposed a rate of 3.0818 pesos per liter, which was later reduced.
Industry Anticipation and Response
The Mexican Beverage Association (MexBeb) anticipated that the IEPS adjustments would lead to a roughly 15% increase in soft drink prices. Coca-Cola’s recent price reductions demonstrate the company’s response to these expectations and aim to mitigate consumer concerns.
Key Questions and Answers
- What was the IEPS increase and when did it take effect?
- How did Coca-Cola react to the IEPS increase?
- Which Coca-Cola products saw price reductions?
- Why did Coca-Cola implement these price adjustments?
The IEPS, a tax on beverage production and services, increased from 1.6451 pesos per liter in 2025 to 3.0818 pesos per liter in 2026. This change was approved and implemented at the end of 2025.
Coca-Cola responded to the IEPS increase by reducing prices on certain beverage formats, offering temporary relief to consumers.
The price cuts affected the 2.5-liter reusable container and the 3-liter disposable container, with reductions of 15% and 12%, respectively.
Coca-Cola aimed to alleviate consumer burden resulting from the IEPS-driven price increase, making their products more accessible while maintaining market competitiveness.
