Beta San Miguel sold more sugar to the soft drink company
The company Beta San Miguel sold more sugar to its parent Coca-Cola FEMSA in 2020 compared to 2019.
In Mexico, Coca-Cola FEMSA buys sugar from Beta San Miguel and PIASA, both sugar cane producers in which, as of April 8, 2021, it had a stake of 2.7 and 36.4%, respectively.
Coca-Cola FEMSA purchased 1,023 million, 655 million and 651 million pesos in sugar from Beta San Miguel in 2020, 2019 and 2018, respectively.
Also in that chronological order, the company bought 2,123 million, 2,728 million and 2,604 million pesos in sugar.
Likewise, until 2018, Coca-Cola FEMSA bought cans from Promotora Mexicana de Embotelladores (PROMESA), a cooperative of Coca-Cola bottlers, in which, as of April 8, 2021, it had a 35.0 percent stake.
In addition, Coca-Cola FEMSA buys soft drinks in cans from Industria Envasadora de Querétaro (IEQSA), in which, as of April 8, 2021, it had a 26.5 percent stake.
The company bought 226 million, 682 million and 596 million pesos in soft drinks from IEQSA in 2020, 2019 and 2018, respectively.
Under its agreements with The Coca-Cola Company, Coca-Cola FEMSA may use unrefined or refined sugar, artificial sweeteners, and HFCS in its products.
Sugar prices in all countries where it operates, except Brazil, are subject to local regulations and other market entry barriers that, in certain countries, often make us pay for this produc above international market prices.
Furthermore, in recent years, international sugar prices experienced significant volatility.
Across its territories, its average sugar price in US dollars, taking into account its financial hedging activities, decreased by approximately 9.2% in 2020 compared to 2019.
Coca-Cola FEMSA is the largest franchise bottler of Coca-Cola brand beverages in the world in terms of volume.
The company operates in the territories of the following countries:
- Mexico: a substantial part of central Mexico, the southeast and northeast of Mexico.
- Costa Rica.
- Colombia: most of the country.
- Brazil: an important part of the states of São Paulo and Minas Gerais, the states of Paraná, Santa Catarina and Mato Grosso do Sul and part of the states of Rio de Janeiro, Rio Grande do Sul and Goias.
- Argentina: Buenos Aires and surrounding areas.
It also operates in Venezuela through its investment in KOF Venezuela.