Friday, May 04, 2007

Even Better than the Real Thing?

When I was a kid my family used to go to Mexico every year. I fondly recall drinking Coca-Cola from glass bottles during these visits. Coke in Mexico just seemed to taste better than Coke in the US. Apparently, beyond the glass bottle, Mexican Coke differs from US Coke in that Mexican Coke uses cane sugar while US Coke uses high-fructose corn syrup. The differences between Mexican and US Coke has created a market for "bootlegged" Mexican Coke in US Latino communities -- something the Coca-Cola company has frowned upon. In spite of this, the competition between US Coke and Mexican Coke is heating up. Bay Area COSTCO's are now carrying Mexican Coke. I think this market is fascinating. Coca-Cola is now competing with Coca-Cola. I am curious to know how large is the market for Mexican Coke in the US and how Coke USA will respond to evidence of the size of this market.

I think we can count all this as a benefit from NAFTA.

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