Introduction
Mexico is a leading consumer of bottled beverages and pre-packaged snacks. According to PepsiCo, even if the per capita consumption rate of salty snacks for Brazil, India or China is doubled, their consumption levels will be much below those of Mexico (Forbes, 2014). Mexico is still a developing nation but it has a growing middle class. Middle class equals more disposable income which has led PepsiCo to further invest and expand business in Mexico (Forbes, 2014).
Sabritas
Sabritas was founded in 1943 by Pedro Antoinio Mercos Noriega in Mexico City, Mexico as Golosinas y Productos Selectos. In 1966, following the merger of Frito Lay and Pepsi, Sabritas was purchased by the new company, PepsiCo. The name Sabritas is a contraction
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of Sabrosas y Fritas, which translates in English to Tasty and Fried. Sabritas is the most loved snack brand in Mexico with an 80% market share. It is renowned for the quality, variety and flavors of its products in Mexico and is also the name brand for its own line of potato chips (PepsiCo, n.d.). PepsiCo plans to invest an additional $5 billion in Mexico and has announced four key focus areas: infrastructure, community development, relationship with local farmers and innovation and brand building (Forbes, 2014). Mexican Snack Food Tax Mexico began taxing junk food in 2014 in response to the obesity and diabetes epidemic.
Mexico has the highest obesity rate in the world at 32.8% and 9% of the population has diabetes (Forbes, 2014). The tax increases the price of foods high in saturated fat, sugar and salt. The tax is paid by the consumer at the time of purchase. If companies like Sabritas are to maintain profit margins, the time is right to introduce new snack foods that contain fewer calories, fat, sugar and salt but it might be a difficult sell. According to José Daniel Pérez, an account director at consumer research firm Kantar Worldpanel, light products are traditionally shunned in Mexico (Guthrie, 2014). Compared to other countries, light options are underdeveloped in Mexico. However, companies will have to get past the general negative connotation that foods labeled light carry in Mexico (Guthrie, …show more content…
2014). Quinoa Quinoa is a pseudo grain, consisting of seeds, and is not a member of the grass family so it does not contain gluten.
It is a welcome addition to meals in Mexico, where it has gained enormous popularity and taken on characteristic Mexican flavors (Graber, 2012). Creating a quinoa chip will help further PepsiCo’s desire to partner with local farmers as quinoa is grown in Mexico. Adding a quinoa chip to the product line will also help meet their innovation goal. A quinoa chip could be baked rather than fried which would help the company’s bottom line as the consumer might not have to pay the current tax on consumption. A quinoa chip could be manufactured with less sugar, salt and fat thereby meeting the standards as set by the Mexican government. A quinoa chip will never be a health food item but in a country that values snacks, it could be viewed as a healthier
alternative. Mexico Economic and Political Overview According to the World Bank GDP Ranking for 2014, Mexico ranked 15th at $1.28 trillion. This puts Mexico in a good position behind Australia (12th), South Korea (13th) and Spain (14th). Each of the three countries ahead of Mexico produced a little over $1.4 trillion (World Bank, n.d.). Additionally, the World Bank forecasts a steady upward GDP growth trend for Mexico of 3.2% for 2016 and 3.5% for 2017 (World Bank, n.d.). According to the World Bank Group’s Doing Business report, Mexico ranked 38th overall out of 189 countries. Mexico also ranked 65th in starting a business and 59th in trading across borders (Doing Business, n.d). Mexico has had strong economic growth in recent years and many of its fiscal policies have seen movement in beneficial directions. Latin America Monitor’s Mexico report (2015, Jul) reported the Mexico’s inflation rate has remained around 2-4% year over year to date, although, with the recent decline in oil prices, it did foresee a slight increase in projected inflation as oil is a major export for Mexico (p.3). According to The Latin American Monitor’s Mexico report (2015, Dec), the government has taken steps to reduce expenditures for 2016 to reduce dependence on oil tax revenue and the Mexican peso has been holding at consistent levels (p.2). Conclusion With the current obesity epidemic in Mexico, the time is right to introduce lighter snack food options. Partnering with PepsiCo under the Sabritas label is the right move as they are well positioned and committed to growing in Mexico. Using quinoa, a plant native to Mexico, should help ease any concerns about taste or quality and will also appeal to those who must eat a gluten-free diet. Although snack foods are not required for a balanced diet, they are a convenient and tasty way to eat on the go or when spending time with friends. With the increasing popularity of snack foods, introducing healthier choices is a good idea.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Zinczenko shares his personal story about how fast-food restaurants such as Taco Bell and McDonald’s led to a weight problem during his high-school years. He claims that the ease of accessibility and lack of healthy alternatives make it all too easy to fall into the cycle of unhealthy eating. Zinczenko also contends that the lack of nutrition labels on fast-food products leaves the consumer in the dark about what he or she is actually consuming. At the time Zinczenko wrote his article, fast-food restaurants were not willingly disclosing nutritional values of their products. Today this has changed. Fast-food companies, including McDonald’s, have put the full nutritional information of their products directly on the packaging and wrappers. All other fast-food establishments either post it on the menu board (Panera), offer easy access to pamphlets containing all nutritional information of their menu in store, or have it easily accessible online (Taco Bell, KFC). I am sure that this is a helpful step forward toward educating the public as to what they are consuming, but has this new knowledge to consumers had a dramatic change toward ending obesity? No. People have always known that eating a Big Mac and fries with the giant soft drinks that McDonald’s and other chains offer is not healthy; putting the nutritional labels on these items has done little to nothing to stop people from eating these high-calorie meals. This again leads back to the point that people as consumers need to be more accountable to themselves and stop blaming others for what they willingly choose to put in their
United States and Mexico has a lot of differences and similarities between the two cultures. United States is different from Mexico because in Mexico the epidemics of obesity in adults are growing at a faster rate and has surpassed the United States. In Mexico the health condition rates are 32.8% compare to United States 31.8% of people who are overweight. One of the biggest problems with Mexico’s obesity rates comes from their “traditional high calorie foods that are fatty and fried.” (Grillo, I. 2009, August 29). Mexico consumes more “Coca Cola products than anywhere else in world. There are a total of 635 eight ounces a bottle per person each year.” (Grillo, I. 2009, August 29). Most citizens in Mexico said that “in many villages...
We all know that chips are not the greatest thing to be eating all the time. Most chips are high in sodium, they have high fructose corn syrup and they contain a high percentage of fat. You mix that all together and you have a perfect combination of a very addicting snack. People of all ages; children, teenagers, adults, all consume or have consumed this product at one point. It is a tasty snack, and they have a variety of flavors to choose from. Think of the most absurd flavor you can possibly imagine, and I assure you they have that kind of flavored chips. It is a very accessible snack. You can find chips everywhere. In gas stations, super markets, vending machines, airports and even schools. It is also very inexpensive. For a good size bag the cost will not be more than a dollar and fifty cents. What’s not to like right? It all sounds great but what we neglect to see or to put attention is that it is great for now, but how about in the long run?
When we hear discussions or read articles about drug wars, killings, and illegal immigration into the United States, many of us immediately think of Mexico. As a nation, Mexico is a much greater country than these commonly referred to issues. Mexico is a country with a broad history, deep family culture, and an economy fueled by oil and tourism. The United States Department of State (USDS) offers a broad range of information on countries outside the US, including Mexico. I found a wealth of information about Mexico through the USDS Background Note provided on their website located at www.state.gov. I will outline for you the key information found in this report, and others, related to the Mexican economy, culture, and more.
Nutrition is an important aspect affecting the Hispanics health. Hispanic foods vary depending on their countries of origin but main ones include, rice, beans, and tortillas. Lard is used to prepare the food. On the other hand, assimilation and acculturation has led to changes in the traditional Hispanic diets, making processed and fast food more common. Fast foods both American style such as hamburgers and Mexican such as tacos de fajita are enjoyed by many(De Paula, Lagana & Gonzalez-Ramirez,2009).This has resulted to obesity being a major problem for the Hispanic population. This h...
Quinoa’s importance has evolved tremendously since its first appearance during the early Incan Empire. Quinoa has boosted the Peruvian Economy extraordinarily and is only continuing that streak. The Ancient Incan Empire was one of the first to discover Quinoa. In Ancient times, the quinoa production was quite low compared to what it is today, because they kept it within their empire for the most part. Quinoa back then was not exported to a variety of civilizations, whereas it is in modern times Quinoa is a product from the Andes Mountains that is a gluten free grain (Cooking with Quinoa). In modern times it has been a major economic boost for Peru, because they have exported so much of it that the income rate of cash has gone up significantly, and changed Peru’s economy drastically. Which is a major food product in Peru, and has boosted their economy, around $23 million in one year (Quinoa Selection). This staple crop has been a major impact on the Andean economy, especially Peruvian economy.. While Quinoa has been grown in Peru since ancient times, in the modern world, it has become more economically significant to the Peruvian economy.
Canada has a problem with obesity and a solution should be established. Junk food is easily accessible and because of this, low-income families are more likely to buy bigger quantities of it due to lower costs. Obesity can lead to diseases and serious illnesses, some of the most likely illnesses to get from obesity include Type 2 Diabetes, Uterine Cancer, and Gallbladder Disease. While these illnesses and diseases are bad, the population of people that have them can be decreased by decreasing the amount of sugary, carbonated, and high sodium foods humans consume. Junk food should be taxed because it will decrease consumption and reduce obesity rates as well as incidence of diseases, while the revenue generated by these taxes can be used to
Out of the millions of ways to spend twelve hundred dollars yearly, American’s are found to spend this amount of money in the fast food industry. The working class, lower class, and children are mainly attracted through fast food marketing methods. These methods enable continuous growth within the fast food industry, and allow for it to be a staple for these socioeconomic groups. The nutritional value is not a top priority for both parties because it is inexpensive, made quickly, and taste good. These socioeconomic groups are vital towards the success of the fast food industry. It is producing billions of dollars in revenue from disadvantaged consumers, endangering meanwhile their health. They widely use the cradle-to-grave marketing strategy
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
The process of being healthy turns to be important factor which everyone is wishing to be live with. there are many ideas and techniques performed to encourage healthy and one of the solution is to impose taxes on junk food and soft drinks. the solutions may have a good influence towards junk food and soft drinks consumers but in this essay the thorough impact of the solution will be detailed.
As we know, Government’s policies often will result in the change of price on agricultural products accordingly affect people’s dietary under their budget constrains; in order to promote healthy food to the public, government should set up price floor on certain agricultural products, such as corn and soybean. In the book The Omnivore’s Dilemma, Michael Pollan raises the concern of obesity as a health risk to our nation. According to the surgeon general, “obesity today is officially an epidemic; it is arguably the most pressing public health problem we face, costing the health care system an estimated $90 billion a year (102)”. Cheap corn price is the main culprit that leads to this nationwide obesity. Food industries are willing to transform cheap corn into value-added consumer products, such as McDonald’s chicken nuggets and Big Macs, in order to maximize profits. This will make our dietary contains much more calories than before. In addition, the byproduct from corn, such as high-fructose corn syrup, has become the leading source of sweetness in food industries since it can provide same level of sweetness with a low cost. Simultaneously HFCS improves the taste of the foods, thereby increasing our consumption on those high calories foods. All these factors eventually lead us to a Republic of Fat. Government’s policies have put a very negative repercussion on people’s dietary. Because In 1970s, the US government embraced a cheap-food farm policy and dismantled the prevent overproduction policy (103). After that, American farmers were producing far too much corn, which directly causes the price of corn decreased in the next few years. As a result, the price of unhealthy foods and drinks decrease significantly since
Useem, M. (2008). New Ideas for This Pepsi Generation. (cover story). U.S. News & World Report, 145(12), 49.
Secondly, fast food offers greater perceived monetary value in comparison with slow food products. Fast food, prepared with inexpensive chemical enhancers, gives marketers the advantage of low production costs, and consumers the illusion of monetary value. Additives including artificial colours, flavours, and sweeteners enhance the taste and presentation of food giving the illusion of freshness mimicking flavours, and tastes of fresh products. Furthermore, Preservatives such as Benzoate (BHT, BHA, and TBHQ), Sodium Nitrite, and Nitrate used to preserve colour and flavours, and hydrogenated and Partially Hydrogenated shortening creates an appealing cost effec...
Frito-Lay North America competes for shelf space in grocery and convenience stores with their snack products, which include Fritos, Lay's, Doritos, Cheetos, and Tostitos (Marshall, Solomon, & Stuart, 2012). Frito-Lay North America began when the Frito Company and the H.W. Lay Company merged in 1961, then later in 1965, Frito-Lay, Inc. merged with Pepsi-Cola Company creating PepsiCo, Inc. (Marshall et al., 2012). Frito-Lay North America faces serious competition from giant multinational companies in the snack food industry (Marshall et al., 2012). Frito-Lay North America is also troubled with a more recent movement of consumers to seek out healthier alternatives to snack foods (Marshall et al., 2012). Frito-Lay North America decided to develop