Image credits: Mike Mozart
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Weekly Roundups

Fightback against Label Reform and Junk Food Ban for Minors

By Jan Hogewoning | Thu, 09/03/2020 - 15:56

The industry of ‘junk’ food and beverages is under siege from two sides. On the one hand, the deadline for the implementation of new labels for processed goods is nearing and one soda giant is digging in its heels to halt it. On the other hand, new legislation may ban the sale of ‘junk’ food and beverages to minors at the national level. Often overlooked is the impact this could have on revenues of little neighborhood shops that generate considerable income from the sale of these goods.

 

Legislation against 'junk' foods and beverages

On Wednesday, during his morning press conference, Mexican President Andrés Manuel López Obrador rejected the for substantial tax hikes on junk food and soda, Bloomberg writes. This proposal was drawn up by senators from his own party. He stated nothing about his party’s plan to ban the sale of these products to children.

Coca-Cola FEMSA, the Mexican giant and the world’s second-largest Coca-Cola bottler, has filed an amparo against the reform to NOM-051. The reform, which is to go into effect on Oct. 1, forces companies to display more nutritional information on their product labels and warnings in the case of high levels of sugar, fats and particular artificial ingredients. The company has stated that it expects a hit in revenues as a result of these new guidelines.

 

North American collaboration to confront threat of animal disease

To strengthen the prevention, control and eradication of pig disease, the respective agricultural sanitary authorities of Mexico, Canada and the US have agreed to create a working group named Swine Health of North America. The working group would actively collaborate with industry players.

At the same meeting, the Ministry of Agriculture and Rural Development (SADER) proposed to its Canadian and US counterparts to work together to adapt international guidelines regarding animal health to the needs of the region. It suggested a faster alert system to report in real time the denial of shipments with sanitary issues to ensure that they do not disembark at other ports in the region.

SADER is launching an online course named AUTOSIM, which will strengthen the system of opportune detection, control and eradication of animal diseases that are currently not present in Mexico. The course is directed to veterinarians and is expected to raise awareness of exotic animal diseases.

 

Cabinet reshuffling

Víctor Toledo is leaving the Ministry of Environment and Natural Resources (SEMARNAT). This follows weeks of tension after the leak of an audio recording in which he criticized the supposed contradictions and power struggles within the president’s cabinet. María Luisa Albores, the current head of the Ministry of Well-Being, is set to be his successor.

 

Food and beverage companies high in popularity rankings

In the eighth edition of the ranking of 100 companies and business leaders with the best reputation in Mexico, organized by consulting company Merco, four of the Top 5 companies were food and beverage producers. The top company with almost maximum ratings was baking giant Bimbo, followed by beer giant Grupo Modelo, supermarket conglomerate Walmart and Nestlé in fifth place.  

 

 

The data used in this article was sourced from:  
SADER, El Economista, Bloomberg, Mexico Business News
Photo by:   Mike Mozart
Jan Hogewoning Jan Hogewoning Journalist and Industry Analyst