By Amy Guthrie
MEXICO CITY--Mexican industrialists defended the role that
packaged food and beverage companies play in the national diet
Monday amid rising concerns about belly fat.
Mexico's latest national survey on health and nutrition showed
in 2012 that seven out of 10 adults in the country are either
overweight or obese, while diabetes and other chronic illnesses are
on the rise, sparking debate among politicians about steps the
government could take to address a growing public health
crisis.
Proposals on the table include a special 20% tax on sweet, fizzy
soda--the beverage already carries sales tax--or extending the 16%
sales tax to all processed food. Any such expansion in food taxes
is expected to be folded into the federal government's fiscal
reform proposal, due for unveiling in September, as the oil-revenue
reliant country seeks to expand its tax base.
Leaders at industrial chamber Concamin representing makers of
products such as deli meats, dairy goods and bottled beverages
argued Monday that nutritional education, portion control and
exercise are the keys to trimming fat, not fiscal remedies.
Mexico's food and non-alcoholic beverage industry represents
more than 12% of gross domestic product and employs over 800,000
Mexicans, according to Concamin.
Raul Riquelme, head of Concamin's health commission and head of
institutional relations at processed food giant Alfam (ALFA.MX),
said the country's food industry is committed to finding solutions.
"Obesity and excess weight is a subject that worries all of us
Mexicans," he said.
According to a paper published earlier this year by Mexico's
National Academy of Medicine, low-income households make purchasing
decisions based on consuming the most calories for the least amount
of money, even if the nutritional content of the food is poor.
Meanwhile, the cost per calorie has fallen dramatically over the
past two decades with the proliferation of packaged cakes and salty
snacks.
"There's no such thing as junk food, just junk diets," said
Felipe Gomez, head of a regional food makers chamber in the state
of Jalisco. Even so-called junk food has carbohydrates and calories
that the body needs, Mr. Gomez noted.
The industrialists worry that a bigger tax burden on processed
food will foster growth in black market foodstuffs, possibly posing
a threat to public health. Raul Picard, a Concamin leader and owner
of a chocolate company, argued that vice taxes on products like
alcohol and tobacco have had little impact on consumption in
Mexico. Instead, he said, the taxes led to a proliferation in
contraband goods of questionable origin.
The most-targeted attack on big food comes from Marcela Torres,
a senator with the National Action Party who has proposed a 20% tax
on sugary soda. The move is aimed at slashing consumption by 26%
while accruing close to $2 billion a year for the treasury. Mexico
is the biggest consumer of carbonated beverages after the U.S.,
according to Euromonitor data.
Ms. Torres said in an interview that a coalition in Congress,
including herself, will refuse to support the government's fiscal
reform unless it addresses the country's obesity crisis via tax
measures.
Emilio Herrera, who represents the soft drink bottlers'
association, said in a separate interview that if Ms. Torres'
special tax were passed, and if it reduced soda consumption as
aimed, the industry could lose thousands of jobs. The collateral
impact would be worse, Mr. Herrera warned, as Mexican soda bottlers
are the country's biggest purchasers of domestic cane sugar and
around three-quarters of soda is sold via small mom-and-pop shops
that treat the product like their "spinal cords."
Already taxes on soda supply the Treasury with more than $1.5
billion a year in revenue, Mr. Herrera said, arguing that an
additional tax might only lead consumers to migrate to other sweet
beverages, such as flavored water, that gives them similar
satisfaction and likely the same caloric intake.
Currently soda accounts for around 5.5% of Mexicans' daily
calories, Mr. Herrera said, citing studies showing that while
caloric intake has held steady in recent years, lifestyles have
become increasingly sedentary in Mexico.
The industrialists promised that various big food companies are
working to reformulate products, expand their offerings of healthy
options and promote items in smaller package presentations. At the
same time, "the industry is always going to place products based on
consumer demand, and this is a country geared toward consumer taste
for high calorie and sugary content," said Rodrigo Alpizar, head of
social responsibility at Concamin.
Since the industrialists view exercise as crucial to Mexico's
battle of the bulge, Alpizar said they plan to spend around
$500,000 to establish a new outdoor park in Mexico City.
The bustle of life in and around the congested Mexican capital,
where a fifth of the population resides, strains eating and
lifestyle decisions, consumers here say.
"We all go out to work and eat the first thing we see," said
Patricia Juarez, a nurse, student and mother of two who says she's
away from home sometimes 16 hours a day. "If you have time to
exercise, fine. If not, just be chubby," she said after polishing
off a torta sandwich slathered in heavy cream and mayonnaise a few
steps from Mexico City's main avenue, Reforma.
Write to Amy Guthrie at amy.guthrie@wsj.com
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