For the past few months of travel I've been inspired by the Latin American free market system. It's composed of individuals engaged in business endeavors of their own determination and very reminiscent of what you found in the United States during the mid 20th century. The physical landscape is a unique collection of creativity represented by the ingenuity of those who own and operate their business. It's robustly diverse and noticeably different than the homogenized corporate aesthetic of today's first world economies.
But then came Mexico.
To be clear, the majority of this country looks and feels like much of South American but within minutes of my arrival in Acapulco, I began to notice an overwhelming presence of red and yellow signs promoting the sexually charged letters - OXXO. Upon inquiry, I was told the branded logo represents a chain of convenience stores selling highly processed snacks loaded with salt, sugar and fat along with the standard issue 'behind the counter' cigarettes and alcohol. Think 711.
The longer I stayed in town, the more I noticed these stores - many of them concentrated in low income, high density areas of the city.
Then I moved on to Querétaro. Same story but worse given the logo's visibility within the city's beautiful historic center (UNESCO Heritage Site). Now I'm in the magical old town of Guanuajato (UNESCO) and it's more of the same with two to three stores on the same block.
So what's going on and why is the issue worth a post?
From a foreigner's perspective, this appears to be an obvious and collaborative effort to destroy small family markets (Tienda's) that are ubiquitous within the Latin American economic landscape. These are individually owned and operated stores selling groceries, fruits and vegetables from local suppliers. Like every small business, they must generate a weekly profit to keep their doors open and there is little room for error.
This is not the case with a chain like XOXO because it's driven by investor capital. In fact, there's no need to show one Peso of profit as long as they can raise or inject liquidity to stay solvent. This allows OXXO stores to unfairly monopolize the market with an overwhelming physical presence and sell products at rates that are significantly lower than locally owned competitors. Eventually, the competition has no choice but to terminate its operation and seek employment elsewehere-often impossible. Ownership claims this is not the case and there is room for everyone, but the business record proves definitively otherwise. Just ask the former competitors of Starbucks, Walmart and/or McDonalds among many others. Further, the profits generated by OXXO end up in their corporate home of Monterey instead of circulating within and fueling the local community as is always the case with Tiendas. This is a critical point that's never discussed and purposely suppressed.
Could it be the heavy weight power of XOXO's owner FEMSA (Mexico's Coca Cola Bottling Company) and their connections to those in power who have an ability to enact or change policy? Based on the facts before us, it's very apparent this Mexican company does not care about destroying the livelihood of their fellow citizens. Why? Because their true God, Greed and Avarice, will not allow them to consider reason, compassion and/or empathy at any level. It's all about profit, power and ultimately, control over others. So in the end, a tiny minority of shareholders make decisions that affect the livelihood and individual sovereignty of millions.
Democracy at work or Corporate Tyranny in charge? You decide.
Support Local. Boycott Tyranny!
"Greed is the lack of confidence of one's own ability to create". Vanna Bonta
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