MEXICO CITY — Mexicans are among the biggest soda drinkers in the world, so residents of the southern city of Ciudad Altamirano were hit hard when Coca-Cola, and then Pepsi, closed their distribution centers amid drug gang extortion demands.

To paraphrase an old “Saturday Night Live” routine, it’s “No Coke, no Pepsi” for the city in the steamy southern state of Guerrero.

“Soft drinks form a part of our diet. People drink them in their homes, so imagine when the two main distributors in the whole region practically leave,” Guerrero state security spokesman Roberto Alvarez said Wednesday. “It’s huge.”

PepsiCo Mexico said in a statement: “Our bottler Grupo Gepp made the difficult decision to suspend their operations in Ciudad Altamirano because the necessary conditions to distribute its products did not exist. PepsiCo respects the decision.”

Alvarez said the government was still investigating exactly why the plant closed, but added: “We are not ruling out that criminal groups have been pressuring (the company) to extort money from them.”

That was apparently the reason why the Coca-Cola plant there closed in March. Coca-Cola FEMSA said that in January, employees in Ciudad Altamirano “began receiving constant threats and attacks by organized crime,” a phrase that usually refers to drug cartels.

Advertisement

At the time, FEMSA complained of “a lack of rule of law and the prevalence of impunity” in the area, which has long been dominated by the Knights Templar cartel.

“When Coca-Cola closed its operations, the only company that remained was Pepsi Cola, and they obviously became the target of the criminal groups,” Alvarez said.

A Ciudad Altamirano store owner said the local drug gang is allowing two trucking companies to bring in soda from two nearby cities at 50 percent higher prices. Local stores can only buy from those firms. If they try to bring in their own soda from outside, it is confiscated at gang checkpoints on highways leading into the city.

The store owner said the gang apparently got some of the excess profit from selling the trucked-in soda. The owner asked his name not be used for fear of reprisals from the gang.

He said there was an atmosphere of “pain and despair” in the city because the cartel has been extorting money from local business for years in the form of protection payments. For example, taxi or van drivers might be forced to pay a dollar or two a day to operate. Payments are larger for bigger businesses.

Copy the Story Link

Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.

filed under: