As per media reports, Mexican bottler Femsa Comercio, who also
Coca-Cola FEMSA S.A.B. de C.V.
The Coca Cola Company
) is geared to expand its Oxxo convenience stores with the
intention of increasing penetration in South America.
Femsa has reportedly allotted $400 million toward the
expansion and improvement of its retail units in 2013.
Oxxo is a primarily-franchised chain of convenience stores in
Mexico, wholly-owned by Femsa. The company has over 10,601 stores
located across Mexico and Colombia, including a substantial
number of new stores totaling 1,040 in 2012.
It operates with the help of 13 strategically-located
distribution centers. The Mexican spread was strategized to
support Oxxo's business operation. Management has
plans to extend the retail spread outside Mexico.
Femsa delivered robust double-digit revenue growth and
operating income in the recently-concluded fourth quarter of
Femsa has been diversifying its operations and has recently
increased its focus on selling prepared foods. Management reveals
that the company will consider further expansion into the
processed food segment.
The company seems to be on an expansion spree both
geographically and in terms of product diversification. Coca Cola
FEMSA stepped beyond Latin America with a 51% interest in the
Coca Cola bottling operations in the Philippines. Again Femsa
Comercio forayed into the drugstore business through the
acquisition of a controlling stake in Farmacias Yza in Southeast
In Jan 2013, Coca-Cola FEMSA entered into a definitive
agreement to acquire another Mexico-based Coca-Cola bottler Grupo
Yoli, S.A. de C.V. for $700 million. The deal also added 2
bottling facilities and 20 distribution centers owned by Grupo
Yoli to Femsa's asset base. The deal will extend Coca-Cola
FEMSA's reach to the state of Guerrero as well as in parts of the
state of Oaxaca - the two markets in which Grupo Yoli primarily
The Coca-Cola Company has ownership interests in many other
bottling operations, including
Coca-Cola Enterprises Inc.
Coca-Cola Hellenic Bottling Company S.A.
), and Coca-Cola Amatil Ltd. Currently, Coca Cola Femsa carries a
Zacks Rank #3 (Hold).
COCA-COLA ENTRP (CCE): Free Stock Analysis
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COCA-COLA FEMSA (KOF): Free Stock Analysis
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