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Arca Continental’s sales depend more than 10% on Wal-Mart in the US

Wal-Mart is the only customer that represents more than 10% of Arca Continental (AC) sales in the United States.

In turn, Arca Continental’s sales in that country comprise 19% of the total sales of this Mexican company.

Wal-Mart typically does not enter into long-term operations in connection with the supply of its products.

Consequently, the loss of Wal-Mart as a customer could adversely affect AC.

In general, the United States market is predominantly marked by sales through convenience stores and supermarkets.

For AC, the United States region includes the beverage business of Coca-Cola Southwest Beverages (CCSWB) and the snack business of Wise and Deep River.

CCSWB has seven production plants (including a new production center that began operations in March 2010 in Houston, Texas), 30 CEDIs, and 24 production lines.

For its part, Wise has a production plant located in Berwick, Pennsylvania; same that integrates nine production lines and 34 CEDIs.

On November 9, 2020, a long-term strategic agreement was signed with one of the largest maquiladoras in North America, thus achieving a substantial expansion in manufacturing and distribution capabilities.

Profile

Arca Continental is a company dedicated to the production, distribution and sale of beverages under the brands owned by The Coca-Cola Company, as well as salty snacks under the brands Bokados in Mexico, Inalecsa in Ecuador, as well as Wise and Deep River in the United States.

With a history of more than 95 years, AC is the second largest Coca-Cola bottler in America and one of the most important in the world.

In its Coca-Cola franchise, the company serves a population of more than 123 million in the northern and western regions of Mexico, as well as in Ecuador, Peru, the northern region of Argentina, and the southwestern region of the United States.

Arca Continental 

Considering all the countries in which it operates, the consolidated net sales of the second quarter of 2021 reached 45,808 million pesos and accumulated to June of that year 86,282 million pesos, an increase of 6.7 and 5.4% (16.5 and 10.9% without exchange effect ) respectively, compared to the same period of the previous year.

FIGURES FOR THE UNITED STATES

At the same time, the sales volume during the second quarter of 2021 continues with a positive trend, closing with an increase of 10.7%, excluding jugs, driven by an increase of 34.4 and 29.3% in water and still carbonated, respectively. In the year, at a consolidated level, the volume grew 5.8%, not including jug

In the United States, the company announced plans to double the content of recycled material in plastic packaging.

By the end of 2021, recycled PET (rPET) will reach 50% of every new plastic bottle produced, becoming the first bottler to use rPET across the entire plastic packaging portfolio.