Coca-Cola FEMSA reported that it began testing new product categories as distribution opportunities.
Indeed, the company seeks to increase its income by introducing new categories, products and presentations that better satisfy the needs and preferences of its consumers, maintaining its anchor products and improving its profitability.
In order to respond to different lifestyles, Coca-Cola FEMSA has developed new and innovative products and has expanded the offer of low-calorie beverages by reformulating existing products to reduce added sugar in its formula and expanding its portfolio, in addition to offer smaller presentations.
As of December 31, 2020, approximately 38.8% of its brands were low-calorie or no-calorie beverages and it continues to expand its portfolio to offer more options to its consumers so that they can meet their hydration and nutrition needs.
As for Brazil, The Coca-Cola Company can establish a long-term strategy for that country.
If, after evaluating the performance in Brazil, The Coca-Cola Company considers that Coca-Cola FEMSA is not part of this long-term strategic solution, then this Mexican company will sell its franchise in Brazil to The Coca-Cola Company or whoever it appoints. at market price.
This market price will be determined by independent investment bankers hired by each of the parties, each absorbing their expenses according to the determined procedure.
Considering the performance of its business in Brazil, that The Coca-Cola Company authorized four acquisitions of bottlers of the Coca-Cola system in Brazil from 2008 to 2017, as well as its participation in the acquisition of Jugos del Valle’s Brazilian operations, Leão Alimentos, Laticínios Verde Campo and AdeS’s business in Brazil, Coca-Cola FEMSA considers that this provision is no longer applicable.
So Coca-Cola FEMSA is generally open to strategic alternatives in relation to the integration of Soft Drinks and Beer.
The Coca-Cola Company, FEMSA and Coca-Cola FEMSA may explore these alternatives according to the market, when appropriate.
Additionally, this FEMSA subsidiary continues to take important steps on all its strategic fronts, from portfolio management to sustainable development.
In Brazil, the company continued to complement its beer portfolio, while in other markets it began to test new categories as distribution opportunities.