Businessweek

Coca-Cola FEMSA, S.A.B. de C.V. operates as a franchise bottler of Coca-Cola trademark beverages worldwide. The company is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V. The company operates in territories in various countries, including Mexico – a substantial portion of central Mexico (including Mexico City, and the states of Michoacán and Guanajuato) and the southeast and northeast of Mexico (including the Gulf region); Central America – Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), and Panama (nationwide); Colombia –majority of the country; Venezuela – nationwide; Brazil – the area of greater São Paulo, Campinas, Santos, the state of Mato Grosso do Sul, part of the state of Minas Gerais, and part of the state of Goiás; and Argentina – Buenos Aires and surrounding areas. Products The company produces, markets, and distributes Coca-Cola trademark beverages. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), waters, and still beverages (including juice drinks, coffee, teas, and isotonic). Out of approximately 120 brands and line extensions of beverages that the company sells and distributes, its primary brands include Coca-Cola, Coca-Cola Light, and Coca-Cola Zero. Its other primary brands include Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), and ValleFrut (and its line extensions). It produces, markets, and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of various returnable and non-returnable presentations in the form of glass bottles, cans, and plastic bottles primarily made of polyethylene terephthalate. Presentation sizes for the company’s Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. In addition, the company sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refer to presentations equal to or larger than 5 liters. In Mexico and Central America, the company’s product portfolio consists of Coca-Cola trademark beverages. The company has incorporated the Jugos del Valle line of juice based beverages in Mexico and subsequently in Central America. The company’s product portfolio in South America (excluding Venezuela) consists primarily of Coca-Cola trademark beverages and the Kaiser beer brands in Brazil. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Acquisitions In 2011, the company acquired with The Coca-Cola Company, through Compañía Panameña de Bebidas S.A.P.I. de C.V., Grupo Industrias Lacteas (also known as Estrella Azul), a Panamanian conglomerate that participates in the dairy and juice-based beverage categories in Panama. Sales and Distribution Mexico: In Mexico, the company sells a majority of its beverages at small retail stores to consumers who might take the beverages for consumption at home or elsewhere. It also sells products through the ‘on-premise’ consumption segment, supermarkets, and other locations. The ‘on-premise’ consumption segment consists of sales through sidewalk stands, restaurants, bars, and various types of dispensing machines, as well as sales through point-of-sale programs in concert halls, auditoriums, and theaters. Brazil: In Brazil, the company sells through supermarkets. Also in Brazil, the delivery of its finished products to customers is completed by a third party. Territories other than Mexico and Brazil: The company distributes its finished products to retailers through a combination of its own fleet of trucks and third party distributors. In majority of its territories, the company sells through small retailers, with low supermarket penetration. Suppliers Mexico and Central America: The company’s major suppliers include Graham Packaging Mexico, S.A. de C.V.; Indorama Ventures Polymers Mexico, S. de R.L. de C.V.; M. & G. Polímeros Mexico S.A. de C.V.; DAK Resinas Ameri