Coca-Cola to Invest US$6 Billion in Mexico Amid IEPS Hike

The Coca-Cola Company will invest US$6 billion in Mexico, President Claudia Sheinbaum announced following a meeting with Henrique Braun, COO, Coca-Cola. This marks one of the largest beverage-sector investment commitments disclosed under the current administration, but so far neither the president nor the company have provided details on the timeline or allocation of the capital. The announcement comes as Mexico implements higher excise taxes on sweetened beverages and prepares to co-host the 2026 FIFA World Cup.

President Sheinbaum said Mexico reached a record US$40.871 billion in foreign direct investment in 2025, a 10.8% annual increase. “This means more confidence in our country. We maintain the economic model of the Fourth Transformation: development with social well-being,” she said.

The investment announcement coincides with the enforcement of an increase in Mexico’s Special Tax on Production and Services (IEPS) on sweetened beverages. The quota rose from MX$1.6/L to MX$3.08/L. In addition, beverages with noncaloric sweeteners are now subject to a new excise tax of MX$1./L. 

Braun noted the tax increase presents a challenge. The manager said the company will rely on promotions, price-pack architecture, and revenue growth management strategies to mitigate the impact. “It is a market where we have a system that has worked for years tremendously aligned, building the foundations of revenue growth management, and allowing us to play with the impact of taxes across different packages, prices, and channels. In the past we faced difficulties in different markets and the system managed to overcome them with solid foundations; that is what we are doing in Mexico,” he stated.

Ian Craig García, CEO, FEMSA, said the strategy will focus on affordability and expanding returnable packaging to maintain household penetration. “We are confident that we will address both the opportunities and challenges, including the impact on our consumers and customers from the excise tax increase in Mexico,” he said. Additionally, Coca-Cola announced in October that it will reformulate products to reduce calorie content by 30%, beginning with larger and family-size presentations, with a one-year timeline to cover all formats.

The 2026 FIFA World Cup will serve as a growth catalyst for the company. “There is one point that helps us in 2026, the fact that Mexico will host the World Cup event. It is the largest event in the world in terms of engagement with consumers and customers,” executives underscored. Coca-Cola, a FIFA partner, will lead the tour of the original World Cup trophy in Mexico. The trophy will arrive at Felipe Angeles International Airport and travel to Guadalajara, Leon, Veracruz, Chihuahua, Queretaro, Monterrey, Puebla, Merida and Mexico City.