Despite the IEPS in Mexico, Coca-Cola expects good growth in Mexico
Coca-Cola anticipates continued growth in Mexico despite the government's increase in the soda tax (IEPS).
Coca-Cola is optimistic about its growth prospects in Mexico despite the government's recent increase in the soda tax (IEPS). During a conference call discussing last quarter's results for 2025, CEO James Quincey expressed confidence in the company's ability to stabilize prices against inflation and fiscal measures introduced by the Mexican government. Quincey remarked on the importance of being realistic and prudent but emphasized that Coca-Cola is committed to pursuing growth with effective strategies and execution to drive long-term revenue increase.
The company anticipates experiencing some impact from these fiscal measures at the beginning of the year; however, they believe that any potential negative effects will be mitigated by the second quarter of the year. Plans being implemented in Mexico aim to adapt to the new fiscal landscape while maintaining strong market performance. Coca-Cola's leadership indicates that the company's focus on long-term growth will help navigate through the challenges posed by increases in the soda tax.
As for specific strategies in Mexico, Coca-Cola is putting emphasis on aligning its operations and marketing to enhance customer engagement. The incoming CEO, Henrique Braun, shared insights on how Coca-Cola aims to navigate the changing regulatory environment and consumer preferences to sustain its growth trajectory in the competitive beverage market in Mexico.