US Popcorn Risk to Stay Out of Mexican Cinemas
Cinepolis de Mexico – the fourth largest cinema chain in the world – buys around $10m of kernels from Kansas, Missouri and Iowa to sell popcorn, "palomitas", in its theaters. But the origin of Cinepolis popcorn could change very soon.
Alejandro Ramirez, founder of Cinepolis, explained that the devaluation of the peso as an aftermath of Donald Trump’s campaign had already led the company to look into importing from Argentina to reduce costs; further negative impact could follow if Trump decides to renegotiate the trade deal between Mexico and the US (Nafta).
“We import all of our corn for movie theatres from the US thanks to the fact that there’s free trade,” Ramirez told Bloomberg. “If that wasn’t the case – if we go to pre-Nafta tariff levels – then it would be cheaper to bring it from Argentina.”Read more
The company spends $40m a year on US goods, including screens, projectors and $6.5m of cheese from Wisconsin, which is melted over nachos.
Mexico is the largest US popcorn market and accounts for almost a third of all exports. The biggest consumer of popcorn remains the US, where an estimated 28bn quarts are consumed annually.
As reported in The Guardian.