Coca-Cola FEMSA executes beverage distribution pilot programs

Coca-Cola FEMSA reported that it is executing pilot programs to test the distribution of leading alcoholic beverages and consumer brands in Mexico and Brazil, as well as the distribution of leading brands of spirits and other alcoholic products in Colombia and Panama.

Accordingly, the company hopes that these pilot programs will allow it to evaluate and learn from new buyers and consumption occasions, and gather the knowledge necessary to strengthen its value proposition for retailers and consumers in the future.

Additionally, Coca-Cola FEMSA expects this to complement its reach, joint consumer value proposition, and provide partners with a unique advantage in communicating with target consumers.

Coca-Cola FEMSA

As these are currently pilot tests, more details will be provided in due course.

All this, the company said, is consistent with the improvement of its cooperation framework with The Coca-Cola Company and its multi-category strategy focused on the consumer,

On the other hand, after a favorable decision by the Brazilian tax authorities, Coca-Cola FEMSA has been entitled to claim the tax payments made in previous years in Brazil, resulting in a non-recurring positive effect on its third quarter results, affecting mainly other operating income and other expenses.

The total amount of non-recurring tax effects in Brazil in the operating income for the third quarter of 2021 is 620 million pesos compared to 1,609 million pesos during the same period of the previous year. This results in an unfavorable net amount of 989 million pesos for the third quarter of 2021.

In another aspect, on August 11, 2021, the company announced that its subsidiary in Brazil, reached a joint agreement with Coca-Cola Andina, to acquire the Brazilian brand of craft beer Therezópolis.

Finally, on September 16, 2021, the company announced that its subsidiary Spal Indústria Brasileira de Bebidas S.A. and the Coca-Cola System in Brazil had signed an agreement to distribute Estrella Galicia beers in the country.

This agreement is consistent with the long-term strategy of the Coca-Cola System to complement its beer portfolio in Brazil.