A Sweet (and Sour) Deal

False Alarm of the Day

On an earnings call with analysts last week (1), the head of Arca Continental SAB (2) said that the Mexico-based Coca-Cola bottler could 'move to more fructose,'(3) which is cheaper than cane sugar.(4)

--Matt Phillips and Roberto A. Ferdman, Quartz, November 3, 2013

1. Four days before the earnings call, Mexico's Congress approved a tax on soft drinks aimed at fighting rampant obesity. 2. Led by CEO Francisco Garza, Arca Continental is Latin America's second-largest Coca-Cola bottler. 3. This apparent threat sent American fans of "MexiCoke"--sweetened with cane sugar instead of the high-fructose corn syrup used in the U.S.--into a state of outraged despair. 4. Turns out, the Coke sold in Mexico has long been sweetened with a mix of corn syrup and natural sugar. The MexiCoke that Americans know is only sold here--for a premium ($3 to $4, versus $1 to $1.25 for a regular can). Its future is secure.

[Illustration by Alvaro Dominguez]

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