Mexico‘s Coca-Cola FEMSA reduced the proportion of low-calorie or no-calorie beverages in 2021 compared to 2020.
In order to respond to consumers’ different lifestyles, the company has developed new products, and expanded its low-calorie and no-calorie beverage offerings by reformulating its existing products to reduce added sugar in its formula and broadening its portfolio, as well as offering smaller presentations.
As of December 31, 2021, approximately 35.5% of Coca-Cola FEMSA’s brands were low-calorie or no-calorie beverages, while that same indicator was 38.8% in 2020.
Overall, the company says it continues to expand the portfolio to offer more choices to its consumers to meet their hydration and nutrition needs.
Under its contracts with The Coca-Cola Company, the company can use standard or refined sugar, artificial sweeteners and High Fructose Corn Syrup (HFCS) in its products.
Sugar prices in all countries where Coca-Cola FEMSA operates, except Brazil, are subject to local regulations and other market entry barriers that, in certain countries and in certain cases, cause the company to pay higher prices than those paid in international markets.
In recent years, international sugar market prices have experienced great volatility.
Across the Coca-Cola FEMSA Territories, the average U.S. dollar price of sugar, taking into account hedges, increased approximately 13.8% in 2021 compared to 2020.
Coca-Cola FEMSA
In Mexico, the company purchases sugar from, among other suppliers, PIASA, Beta San Miguel and Ingenio La Gloria S.A., all sugarcane producers.
To date, the company owns 36.4% and 2.7% of the capital stock of PIASA and Beta San Miguel, respectively.
Coca-Cola FEMSA acquires the HFCS of Ingredion Mexico and Almidones Mexicanos, known as Almex.
Sugar prices in Mexico are subject to local regulations and other barriers to market entry, which in some cases cause the company to pay higher prices than international market prices.
As a result, prices in Mexico do not correlate with international market prices. In 2021, sugar prices increased approximately 7.5% compared to 2020.
