Mexico’s Femsa Turns to Pricing, Cost Controls to Counter Soda Tax

July 25, 2014

07/25/14 The Wall Street Journal

Coca Cola BottlesMexican beverage and convenience store conglomerate Fomento Económico Mexicano SAB  increased its operating profit during the second quarter despite a weak Mexican economy and new taxes aimed at trimming waistlines.

Femsa, which owns Latin America’s biggest bottler of Coca-Cola Co. products as well as the Oxxo convenience-store chain, said Friday that pricing and packaging strategies, together with efforts to contain costs and boost efficiencies, helped drive revenue growth in the period.

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Wilson Center’s Mexico Institute Announces “Don Eugenio Garza Lagüera” Scholars

July 2, 2013

Photo4Cooperatively organized by Georgetown University, Monterrey Tec, and the Wilson Center, this program brings professors and doctoral students from Monterrey Tec’s Graduate School of Administration (EGAP) to Washington, DC for a month each year. During their stay in Washington, the scholars conduct research at Georgetown University and participate in Wilson Center activities.The program is named in honor of the memory of Eugenio Garza Laguera, longtime Chairman of the Board of Monterrey Tec and Chairman and CEO of FEMSA, who received the Woodrow Wilson Award for Corporate Social Responsibility in 2008.

The four scholars and their research projects are:

Dr. René Cabral Torres
Associate Professor, EGAP
While in D.C. Dr. Torres will be examining subnatioinal public debt in Mexico.

Dr. Eduardo Rodriguez-Oreggia
Director, Doctorate in Public Policy EGAP, EdoMex
Dr. Rodriguez-Oreggia will be conducting research on poverty amongst the working class in Mexico.

Ph.D. Candidate Soledad García Ayala
Soledad will be examining the determining factors for poverty and income inequality at the national level.

Ph.D. Candidate Franco Jair Gonzalez Quiroga
Franco will be researching the linkages between private sector innovation and economic growth in Mexico.

Mexico’s Coca-Cola Femsa Takes Consolidation Drive to Brazil

July 2, 2013

brazil flag -- brick wallAP, 7/1/2013

Mexican soft drink bottler Coca-Cola Femsa SAB is looking to drive more consolidation in the Coca-Cola Co. bottling system by moving its acquisition spree to Brazil, Latin America’s biggest economy and largest consumer market.

After having snapped up several regional bottlers in Mexico over the past two years, the company has agreed to pay $448 million in cash for Rio de Janeiro-based Coke bottler Companhia Fluminense de Refrigerantes. Coca-Cola Femsa Chief Executive Carlos Salazar called the deal an important step in the Coke system’s consolidation process, telling analysts during a conference call Monday that the acquisition also highlights the strategic significance of the Brazilian market, which is one of Coke’s top-five markets for volume consumption worldwide.

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Mexico’s Femsa: from convenience stores to pharmacies

May 16, 2013
OxxoFinancial Times, 5/15/2013

Mexico’s revamped retail industry has seen its greatest transformation at the level of mom-and-pop stores: where disorganized, dingy and poorly-supplied grocery stores were once common in metropolitan areas, there are now brightly-lit, well-stocked and strategically located convenience stores. Now another retail segment faces a similar revolution: pharmacies. And the company likely to lead this turmoil is, again, Fomento Económico Mexicano, or Femsa.

Femsa owns Oxxo, Mexico’s leading convenience store chain. It now wants to replicate a business model that has allowed it to open more than 10,500 convenience stores across the country in 30 years and generate nearly $7.1bn in annual revenue, by running and expanding a small-size pharmacy retail chain. Femsa – which is also the largest publicly-traded Coca-Cola bottling company in the world – recently completed the purchase of Farmacias Yza, one of the leading pharmacy chains in southeastern Mexico. This week, it announced a second acquisition, of Farmacias FM Moderna, based in the state of Sinaloa on the Gulf of Carifornia.

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FEMSA’s José Antonio Fernández Carbajal named one of world’s top 30 CEOs by Barron’s

March 25, 2013

taxes accounting businessBarron’s, 3/23/2013

During Fernández’s tenure, FEMSA has grown from a $1.2 billion Mexican beverage company into a $36 billion Latin American powerhouse. It operates the world’s largest Coca-Cola bottler and the region’s fastest-growing retailer, the Oxxo convenience-store chain. When it became clear that global giants were transforming the beer industry, this pragmatist sold the beer business that his wife’s family founded in 1890, to Heineken, in a lucrative deal that gave FEMSA a 20% stake.

As a child, Fernández was called Diablo, a common nickname for hyperactive kids. He still has energy to spare. After two FEMSA security guards were killed in a drug shootout, he sought new ways to make the city of Monterrey safer, focusing more on community and social programs to improve prospects for youth. He also teaches an engineering course at his alma mater, the Tecnológico de Monterrey.

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Harvard Business Review names Mexico Institute Board Co-Chair and FEMSA CEO the Best CEO of the Year

January 4, 2013
José Antonio Fernández Carbajal

José Antonio Fernández Carbajal

Harvard Business Review, January-February 2013

For years, people have bemoaned executives’ zealous focus on short-term results, which often leads CEOs to make moves that undermine their firms’ long-term prospects and, some say, act irresponsibly. But all the talk won’t change anything if the business world doesn’t adopt a new way of measuring performance. Three professors from France’s Insead believe they have the answer: an innovative scorecard that evaluates CEOs on the basis of the results they delivered over their entire tenures in office. It incorporates three metrics: industry-adjusted shareholder returns, country-adjusted shareholder returns, and increase in market capitalization over that time frame.

Read more in the Harvard Business Review…

The Harvard Business Review review recognized José Antonio Fernández Carbajal as the top CEO in Mexico. Fernández Carbajal is the head of FEMSA, the 5th firm on Expansión’s list of the largest Mexican companies.

Read more from CNN Expansión

Indigenous Groups Protest Mexico’s Biggest Wind-Energy Project

October 18, 2012

Fox Business, 10/17/2012

Mexican fishermen and indigenous groups from the southern state of Oaxaca protested Wednesday in front of the Mexico City offices of participants in a wind-energy project that would be one of the largest ever in Latin America, targeting Coca-Cola bottler and convenience-store operator Femsa (FMX), the Inter-American Development Bank and the Danish government, among others.

The few dozen protesters called for the cancellation of the Marena wind-farm project in a windy area of Oaxaca known as Tehuantepec on the grounds that construction and operation of the 132 windmill towers would hurt the livelihoods of local residents by damaging a delicate ecosystem in which fishermen eke out a modest living.

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Mexico-Bound Monarch Butterflies Film to World Premiered at the Smithsonian in Washington, DC on September 24

September 25, 2012

Sacramento Bee, 9/24/2012

Every year, the migration of the beautiful Monarch butterflies from Canada to Mexico occurs in the fall as they look for warm weather. Inspired by this incredible natural migration that has mesmerized scientists and admirers for decades, Canadian-based film and television company SK Films is proud to present a spectacular insight to this mysterious migration through the film “Flight of the Butterflies in 3D” at its world premiere to be held at the Smithsonian Museum of Natural History in Washington, D.C. on September 24, 2012. Watch the trailerand be amazed by the compelling story of a courageous scientist’s 40-year search to find the secret migration destination of monarchs.

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Mexico’s Coca-Cola Femsa profit rises 6 percent

July 20, 2011

Reuters, 7/20/11

Mexico’s Coca-Cola Femsa (KOFL.MX) (KOF.N), the largest Coke bottler in Latin America, reported a 6 percent rise in second-quarter profit as higher sales offset rising costs of raw materials.

“Our performance was supported by volume growth across all of our divisions and our ability to implement pricing initiatives over the past several months throughout our main markets,” Chief Executive Officer Carlos Salazar said in a statement.

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FEMSA expands business in Brazil (in Spanish)

October 22, 2010

Reforma, 10/22/2010

Coca Cola FEMSA (KOF) finished the third trimester with the acquisition of the Matte Leao brand and its 16 bottling plants in Brazil.

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