NEW YORK – Last week, PepsiCo reported that its global sales quarterly profits went up everywhere except in Mexico. Coca-Cola also indicated its beverage volume has dropped in the country, which has the most per-capita consumption of Coke products in the world, according to the Associated Press. Both soft drink giants attribute the dismal sales to Mexico’s tax on junk food, including soda.

The Mexican tax adds about 7 cents (one peso) to a liter of sugared beverages and 5% of the cost to foods with 275 calories or more than 100 grams of sugar. While several California cities will vote on soda taxes this November, Hugh Johnston, CFO for PepsiCo, said he didn’t think such junk food taxes will become commonplace.

Last week while speaking with investors and reporters, PepsiCo CEO Indra Nooyi said the California measures are “discriminatory taxes. ... We will make our case and hope the voters are sensible enough to look at the right answer.”

Since January, the American Beverage Association spent $7.7 million to counter the tax in San Francisco, far above the $391,000 supporters have spent during the same time period. The beverage industry also points out calorie reduction in its drinks, as well as more marketing of lower-sugar beverages.