UPDATE 1-Mexico’s Femsa’s 2nd-qtr profit jumps 28 pct on retail unit

7/24/15 Reuters

Mexico consumes more Coca Cola per capita than any other country
Mexico consumes more Coca Cola per capita than any other country

Mexican retailer and bottling company Femsa on Thursday said its second-quarter profit rose 28 percent, driven by growth in its retail division which now includes a new venture into gasoline stations.

The company, which co-owns Coke bottler Coca-Cola Femsa and operates the Oxxo chain of convenience stores, reported a profit of 3.872 billion pesos ($247 million), compared to 3.018 billion pesos in the same quarter a year earlier.

Revenue grew 6 percent to 75.12 billion pesos.

In its retail division, sales increased by 31.4 percent as the company incorporated its new Oxxo gas operations and 258 net new Oxxo stores.

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Shuttered Coca-Cola Facility Highlights Mexico’s Broader Security Problems

08/12/14 By Nathaniel Parish Flannery. Forbes

Coca Cola BottlesOn July 30 Coca-Cola FEMSA, Latin America’s largest coke bottler shuttered a facility in the Pacific Mexican state of Guerrero, which is home to Acapulco, a city that recorded the country’s highest murder rate in 2013. On August 4 assailants stopped and burned four Coca-Cola trucks on roads near the town of Arcelia.

In 2013 Guerrero’s problems with crime attracted global attention after a group of citizen police patrols including one composed of all women emerged to enforce local law and order in different towns in the state. Overall, Guerrero is one of Mexico’s most problematic states in terms of violence and security. When I visited Acapulco last summer, it was then the most violent city in Mexico.

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

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

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

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

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

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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