As of October this year, the U.S. country will begin one of the phases of implementation of the new front labeling on food and non-alcoholic beverages, under the Labeling Law NOM-051 of the Ministry of Health.
One of the arguments that support the amendments to the Standard is the situation of health and welfare of citizens in the country. According to data from the National Health and Nutrition Survey (ENSANUT) 2018 (to date, the latest report released), 35.6% of children between 5 and 11 years old are overweight and obese. Meanwhile, children and young people between 12 and 19 years old report 38.4%, according to the Guatemalan Association of Exporters (Agexport).
As a result of a decline in demand from some trading partners, Guatemalan exports of processed food and beverages decreased by 10% during the first quarter of the year compared to the same period in 2018.
Figures from the Bank of Guatemala report that from January to March 2019, Guatemalan exports of processed food and beverages totaled $292 million, 10% less than the amount reported in the same period of 2018.
In the first nine months of 2018, countries in the region imported non-alcoholic beverages for $327 million, 3% less than the same period in 2017.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics]
Explore data in the interactive display.
Regional Imports Decline
Between January and September 2017 and the same period in 2018, the value imported into the region fell 3%, from $337 million to $327 million.
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.
Panama's business sector asked President Varela to partially veto Law 570, which establishes an 8% tax on imported and domestically produced sugared beverages.
The rejection of the business sector comes days after the National Assembly approved, in third debate, the bill 570, which establishes an 8% tax for sugared beverages of national production and imported and 10% for syrups and concentrates.
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.
In the first quarter of the year, countries in the region imported $106 million worth of non-alcoholic beverages, and 40% of the total was purchased by companies in Panama and Guatemala.
Figures from the information system on the Alcoholic Beverages Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In the first quarter of the year, purchases of bottled water in Central America totaled $6.2 million, registering a reduction of 3% compared to the figures reported in the same period in 2017.
Figures from the information system on the Bottled Water Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The beverage concentrate production plant that Coca Cola has started building in Liberia, Costa Rica, will measure 34,000 square meters and is scheduled to start operating in January 2020.
The plant will be located within the Zona Franca Solarium, in a plot of land measuring 103,000 m2. The factory will produce 90 compounds that are used for beverages that are exported to Central America, the Caribbean, Chile, Mexico, Brazil and Argentina, the Costa Rican Coalition of Development Initiatives said in a statement.
The Mexican company Coca Cola FEMSA has announced an agreement to acquire Comercializadora and Distribuidora Los Volcanes, for $125 million.
According to a statement issued by the Mexican company, the transaction was made through the subsidiary of FEMSA, Compañía de Inversiones Moderna.The company added in a statement that the operation will be on a free cash and debt basis, and has "the objective of raising opportunities to expand its business in Latin America."
The beverage manufacturer Livsmart has expanded capacity at its plant in El Salvador, which will increase production in order to be able to export to Honduras and Nicaragua.
According to representatives of the drinks company Livsmart, with the new investment made in the plant located on the highway between San Salvador and Sonsonate, the value rose to $33 million, and the production lines increased from 12 to 14.
90% of the $300 million that the countries in the region exported as non-alcoholic beverages were destined for the same Central American market.
Figures from the information system on the market for non alcoholic beverages in Central America complied by the Business Intelligence Unit at CentralAmericaData: [Figure caption = "Click to interact with graphics"]
In Costa Rica, changes in consumer trends have led beverage companies to expand their product portfolios with juices and soft drinks with low calorie content.
Companies such as Florida Bebidas, Coca Cola and Dos Pinos have started to expand their range of carbonated and non-carbonated beverages to include low-calorie products, with the aim of meeting a demand that has been growing in recent years.
Between January and September 2016 the Central American countries exported 550,000 tons of soft drinks at a value of $230 million, led by Guatemala, with $93 million.
Figures from the information system on themarket for non alcoholic beverages in Central Americacomplied by the Business Intelligence Unit at CentralAmericaData: [Figure caption = "Click to interact with graphics"]
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...