The biggest financial blunder one can do in their personal life is typically junk food-related. That late night fast food run, pizza order or tub of ice cream always sounds like a great idea at the time, but it ends up thinning out the wallet and plumping your waist line. That’s why this week in financial blunders we focus on business struggle in the world of junk food.
Coca Cola and the Mexican job market will both take hits in the name of healthy living. If you love Coca Cola you’ve probably heard of its Mexican counterpart, the aptly named “Mexican Coke.” The main difference between Mexican Coke and the Coke you’d find in the USA is the type of sugar used: Coke in the states uses high fructose corn syrup while Mexican Coke uses cane sugar, giving the Mexican Coke a brighter, fuller taste. Many in the states (and Mexico) love the taste, but may be scavenging for more soon, as Mexico has just passed a junk food tax similar to initiatives that former New York Mayor Michael Bloomberg once tried to start in his city. According to Slate, Mexico’s one peso-per-liter tax on sugar-filled drinks is meant to curb obesity in the country with the most soda drinkers. The initiative has already shown Coca Cola with a hit in shares, and their concern is growing because they control 75% of the drink market in the country. Even worse, groups against the tax have worries that the tax could eliminate 20,000 jobs in the industry.
Like two siblings who never learned to get along, McDonalds and Burger King are fighting again. Just over a week ago, Heinz announced that Bernardo Hees would be taking the helm of H.J. Heinz Co. Hees used to be the chief executive of Burger King, which upset one of Heinz’s big suppliers, McDonalds. As a result of brand pride or kid-like squabbling (whichever you prefer), McDonalds announced they would no longer be carrying Heinz in their stores. It’s a confusing tactic if it’s not personal, and it’s surely a hit to Heinz.
It wouldn’t be a sibling rivalry if the little brother didn’t fight back: Earlier this week, Burger King announced a returning burger on their menu. The “Big King” burger is two beef patties between three buns, with pickles, cheese, onion and special sauce on a sesame bun. If it doesn’t sound familiar already, it looks strikingly similar to McDonalds’ Big Mac and contains 40 less calories. There has been no official comment confirming these two events are connected, but it’s entertaining nonetheless.
That’s all we have in the world of financial blunders this week. If you can think of another story please comment below!