Businessweek

Coca Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, and distributes Coca-Cola trademark beverages. The company operates in territories in the following countries: Mexico—a substantial portion of central Mexico, 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—most 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 Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), waters, and still beverages (including juice drinks, coffee, teas, milk, value-added dairy and isotonic). Product and Packaging Mix: The company sells approximately 121 brands and line extensions of beverages. Its brands include Coca-Cola, together with its line extensions, Coca-Cola Light and Coca-Cola Zero; Ciel (a water brand from Mexico and its line extensions), Fanta (and its line extensions), ValleFrut (and its line extensions), and Sprite (and its line extensions). The company produces, markets, sells, 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 mainly made of polyethylene terephthalate, which the company refers to as PET. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. The company offers both returnable and non-returnable presentations. In addition, the company sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which the company refers to as fountain. The company also sells bottled water products in bulk sizes, which refer to presentations equal to or larger than 5 liters, which have a much lower average price per unit case than its other beverage products. Mexico and Central America: The company’s product portfolio consists of Coca-Cola trademark beverages. In 2008, the company incorporated the Jugos del Valle line of juice-based beverages in Mexico and subsequently in Central America. In 2012, the company launched FUZE Tea in the division. South America (Excluding Venezuela): The company’s product portfolio in South America consists mainly of Coca-Cola trademark beverages and the Kaiser beer brands in Brazil, which the company sells and distributes. Venezuela: The company’s product portfolio in Venezuela consists of Coca-Cola trademark beverages. In 2011, the company launched Del Valle Fresh, an orangeade in Venezuela. During 2012, the company launched two new presentations for its sparkling beverage portfolio: a 0.355-liter non-returnable PET presentation and a 1-liter non-returnable PET presentation. Strategy The company’s goal is to maximize growth and profitability to create value for shareholders. Its efforts to achieve this goal are based on: transforming commercial models to focus on customers’ value potential and using a value-based segmentation approach to capture the industry’s value potential; implementing multi-segmentation strategies in major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels; implementing well-planned product, packaging and pricing strategies through different distribution channels; driving product innovation along different product categories; developing new businesses and distribution channels; and achieving the full operating potential of commercial models and processes to drive operational efficiencies throughout the company. Seasonality Sales of the company’s products are seasonal, as its sales levels increase during the summer months of each country and during the Christmas holiday season. In Mexico, Central America, Colombia and Venezuela, the company ach