Exploring the supply chain of the soft drinks industry to enhance health policies : Lessons from Argentina

The objective of this article is to propose a descriptive analysis of the SSB’s industry and its evolution during the last decade in Argentina to identify key supply-side determinants that could affect consumption patterns, using them to estimate own and cross price elasticities of demand from suppl...

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Autores principales: Maceira, Daniel, Espínola, Natalia Micaela, Palacios, Alfredo Daniel, Mejía, Raúl
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2018
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/165350
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Sumario:The objective of this article is to propose a descriptive analysis of the SSB’s industry and its evolution during the last decade in Argentina to identify key supply-side determinants that could affect consumption patterns, using them to estimate own and cross price elasticities of demand from supply side. The data of soft drinks industry in Argentina was used from Euromonitor International over the period 2005-2015. An econometric model is estimated using the discrete choice model of demand under uncertainty with differentiated of products. Results reveal that the own-price average elasticity of demand for soft drinks at the brand level is -1.019 in Argentina, and that second or supermarkets own brands have greater own-price elasticities than leading brands with added sugar. The demand of low calories drinks responds more to changes in its own prices than the demand of regular drinks. The results highlight key aspects in the design of health policies that go beyond the traditional analysis from the point of view of the consumer demand. To understand the supply chain of the soft drinks market offers tools that serve as a medium of promoting informed fiscal policies to encourage healthier diets.