As the war on drugs rages in Mexico, certain cartels are facing financial distress. The costs of transporting illicit substances through the country have risen significantly as the Mexican authorities clamp down on the illegal trade. The authorities have mobilized thousands of troops throughout the country and enacted curfews, while drones patrol the skies. The cartels have also made expensive contributions to aid funds for the victims of the recent earthquakes, and opened soup kitchens to feed the poor in an attempt to shore up their poor public perception.
These significant cost increases have mostly been passed on to customers in the United States, repressing demand for cocaine and marijuana. Facing increased costs and decreasing demand, the cartels have decided to diversify their income streams.
The cartels are believed to own a large percentage of lime and avocado farms in Mexico. The war, combined with an unusually cold spring, has decreased production, sending prices skyrocketing. The Knights Templar cartel is expected to integrate vertically and open new “Mellisacado” fast food chains, leveraging two core ingredients: limes and avocados. Surprise surprise. This move is expected to shore up the criminal organization’s finances, especially given the popularity and profit margin of guacamole stuffed burritos. Chipotle, the restaurant the cartel is expected to imitate, has seen its stock price triple this year on record earnings and a strong growth outlook.
“These businesses are expected to operate legitimately within the Mexican legal system” stated Luis Alonzo, a Partner at law firm Sullivan & Cromwell.
