English

Coca-Cola FEMSA reduces its sales volume 2.5% in 2020

The Mexican company Coca-Cola FEMSA reported this Thursday that its sales volume fell 2.5% at an annual rate in 2020.

Above all, this indicator had a negative trend due to confinement and social distancing measures as a result of the Covid-19 pandemic.

This decrease was partially offset by growth in Brazil and Guatemala.

In general, Coca-Cola FEMSA produces, markets, sells and distributes Coca-Cola brand beverages through standard bottler agreements in the territories where it operates.

With this, Coca-Cola FEMSA is obliged to purchase concentrate for all Coca-Cola brand beverages from affiliates of The Coca-Cola Company (TCCC).

In this regard, the price may be unilaterally determined from time to time by TCCC in all those territories.

Coca-Cola FEMSA is also obliged to buy sweeteners and other raw materials only from companies authorized by TCCC.

Coca-Cola FEMSA

The company competes primarily in terms of:

  • Price.
  • Packing.
  • Effective promotional activities.
  • Access to outlets and sufficient shelf space.
  • Customer service.
  • Product innovation and product alternatives.
  • The ability to identify and satisfy consumer preferences.

Other indicators

While Coca-Cola FEMSA’s revenues decreased 5.6% in 2020, comparable revenues decreased 1.0%, impacted by the unfavorable effects of mixing and converting the currency into Mexican pesos.

These factors were partially offset by pricing and revenue optimization initiatives at our operations.

On the other hand, operating income decreased 0.7%, while in comparable terms it increased 4.4 percent.

Better PET prices, revenue optimization initiatives and efficiencies in operating expenses allowed Coca-Cola FEMSA to mitigate the unfavorable effects of mixing, higher concentrate costs and the depreciation in the average exchange rate in most of its currencies applied to cost. of raw material denominated in US Dollars.