Discover incredible Insider Deals that will make your life a little bit easierMexican soldiers stand guard outside an Oxxo grocery shop near the Tamaulipas Chamber of Commerce, where its president Julio Cesar Almanza was killed, in Matamoros, Mexico, Tuesday, July 30, 2024. On Monday, the head of the business chambers' federation in Tamaulipas state, across the border from Texas, gave television interviews complaining about drug cartel extortion in the state.
The company said it had long had to deal with cartel demands that its gas stations buy their fuel from certain distributors. But the straw that broke the camel’s back came in recent weeks when gang members abducted two store employees, demanding they act as lookouts or provide information to the gang.
In a statement Monday, Femsa said its stores in Nuevo Laredo remain closed this week “due to acts of violence that put our colleagues' safety at risk." That means drug cartels are distorting parts of Mexico's economy, deciding who gets to sell a product and at what price — and in return they are apparently demanding sellers pass a percentage of sales revenue back to the cartel.
Of the companies that reported how much they had to spend on security measures, 58% said they spent between 2% and 10% of their total budgets on security; 4% spent at least a tenth of their total outlays on security measures.
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