Under the brand name of Topo Chico, Coca-Cola began to commercialize in the Costa Rican market a carbonated drink with alcohol, which belongs to the category known as "hard seltzer" or "spiked seltzer."
For now, the drink will be imported from Mexico, but Coca-Cola does not rule out producing it locally in the future.
In Costa Rica, Topo Chico Hard Seltzer will compete directly with "Adam & Eve", a product of the same category that is marketed since 2019 by Florida Ice, Farm & Co (Fifco).
Although public places have been closed for most of the year, in Central America for the quarantine period the demand for soft drinks, beer and snacks did not contract, as families increased consumption from their homes.
Soda, beer and snacks were no longer consumed in restaurants, movie theaters, stadiums and other similar spaces, but, due to the confinement measures decreed because of the covid-19 outbreak, demand shifted from public places to homes.
Once the Honduran economy begins to return to normal, as isolation and mobility restrictions are relaxed, it is estimated that household demand for flavored soft drinks will have decreased by 2%.
Through a demand/income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project the variations that the demand of Honduran households for different goods and services will undergo as the most critical phases of the spread of covid-19 are overcome and the measures restricting mobility in the country are lifted.
Given the health crisis, the food and beverage sector would be partly affected by the drop in the production of soft drinks and alcoholic beverages and the decline in sales of fish and seafood preparations.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies, depending on the country, sector or economic activity, during the coming months.
Given the crisis in the region, businessmen in Guatemala report that smuggling of Mexican products has increased, while in Panama, beer producers attribute the rise in illegal trade in alcoholic beverages to the dry law.
With the spread of Covid-19, governments in Central America have decreed mandatory quarantines and have also restricted the movement of consumers at certain hours.
As Central American economies ease the restrictions that have been placed on the spread of covid-19, sales of bottled water are forecast to decline by at least 2%.
Using a demand/income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, variations in household demand for different goods and services can be projected as the most critical phases in the spread of covid-19 are overcome and mobility restrictions are lifted in the countries of the region.
As a result of the tax reform implemented in February 2019, Nicaragua tripled the tax burden on imports of all types of beverages, and nine months later, businessmen are still waiting for the government to review the collections.
On February 27, 2019, the amendment to the Tax Concertation Law was approved, which consisted of raising from 1% to 2% the income tax for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the livestock sector has reported considerable increases in its production costs.
In Guatemala, 12% of consumers are interested in wines, and almost half of them are between 21 and 30 years old, and have a high level of purchasing power.
An analysis of consumer interests and preferences in Guatemala, compiled by CentralAmericaData's Trade Intelligence Unit, provides interesting results on the preferences and tastes of people who are interested in the different varieties of alcoholic and non-alcoholic beverages. [GRAFICA caption="Click to interact with graphic"]
Businessmen in Nicaragua denounced that because of the tax reform approved by the Ortega regime, the tax burden on imports of all types of beverages has tripled.
Representatives of the Nicaraguan Chamber of Industries (Cadin) explained that before the tax reform that was approved last February came into effect, importers paid the tax on the total cargo of beverages in each import, but now it was ordered that this must be applied on the retail price of each of these products.
Embotelladora La Mariposa in Guatemala, Distribuidora La Florida in Costa Rica and Femsa in Panama are three of the companies in Central America that report the highest figures for purchases of all types of beverages.
An analysis of CentralAmericaData's Trade Intelligence unit provides details on the companies according to sector, main activity, volume and value of their imports, exports and other relevant data.
XAGRO, announces the expansion of the company's spirits blending plant in Nueva Guniea, Nicaragua.
Caribbean Coast, Nicaragua, November 7, 2018 – XAGRO, a market leader in providing custom blends of coconut water with alcohol for specialty spirits companies announces the expansion of the company's blending plant.
XAGRO has been custom blending coconut water with alcohol for specialty spirits companies for the past 3 years using Caribbean Coconuts which are harvested from natural plantations along the coast of Nicaragua.
According to the Acodeco, the economic group formed by Cervecería Nacional and its subsidiaries Distribuidora Comercial, Refrescos nacionales and Financiera Pasadena committed "monopolistic practices by preventing the permanence and entry of its only direct competitor."
From Acodeco's statement:
May 9, 2018.Through the Judgment of November 30, 2017, the Third Superior Court of Justice of the First Judicial District of Panama, confirms Judgment No. 109-15 of December 22, 2015 of the Ninth Civil Circuit Court, by which it is declared that the Economic group conformed of CERVECERÍA NACIONAL, S.A. AND ITS SUBSIDIARIES DISTRIBUIDORA COMERCIAL S.A., REFRESCOS NACIONALES, S.A. AND FINANCIERA PASADENA, S.A. (merged with Refrescos Nacionales, S.A. the latter surviving), committed relative monopolistic practices, pursuant to the provisions of articles 5 and 14 numeral 4, both of Law 29 of February 1, 1996, now articles 7 and 16 numeral 4 of Law 45 of October 31, 2007.
In 2015 foreign sales of drinks produced in the country have recovered from the fall seen in 2014, standing at $168 million.
An article on Elsalvador.com reports that "...Sodas and carbonated drinks are the main export product in the sector. The latest annual growth was 37.6%, equivalent to an additional $36.8 million, according to the latest industry ranking made by the Salvadoran Association of Industrialists (ASI). "
The Costa Rican company increased its sales by 2% compared to 2014, thanks to the dynamism of flavored alcoholic beverages in the US, foods in Guatemala, and beers, wines and spirits in Costa Rica.
Flavored alcoholic beverages, especially in America, and increased profitability in beer, wine and distilled drinks in Costa Rica and food in Guatemala, boosted Costa Rica Florida Ice & Farm's operating income in 2015, reaching $179 million, 13% more than in the previous fiscal year.
In the last ten years the consumption of natural nectars and juice drinks went up 60%, though carbonated soft drinks still dominate the market.
Reports indicate that the distribution of beverages in 2014 increased by 43% over the past 10 years, with soft drinks having grown the most, reporting an increase of 99% and soft drinks 35% in the period in question, according to the Superintendency of Tax Administration (SAT).
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