FEMSA sold 478,513 refrigerators last year, 28% of which were sold to Coca-Cola FEMSA and the rest to other clients.
In addition, this business includes manufacturing operations for food processing, storage and weighing equipment.
The company’s refrigeration business manufactures vertical and horizontal commercial refrigerators for the soft drink, beer and food industries, with an annual capacity of 568,785 units as of December 31, 2019.
Its 2020 capital spending budget for Other Businesses is expected to total $ 103 million and will be allocated to its auxiliary logistics and refrigeration businesses.
Meanwhile, The Coca-Cola Company participates in certain advertising and promotion programs, as well as Coca-Cola FEMSA’s investment program in refrigeration equipment and returnable bottles.
Leading Consumer Company in Latin America
Contributions received by Coca-Cola FEMSA for advertising and promotional incentives are recognized as a reduction in selling expenses and contributions received for the investment program in refrigeration equipment and returnable bottles are recorded as a reduction in the carrying amount of refrigeration equipment and returnable bottle items.
For the years ended December 31, 2019 and 2018, the contributions due were 2,274 and 3,542 million pesos, respectively.
FEMSA: your profile
The company participates in the following businesses:
Above all, in the beverage industry, through Coca-Cola FEMSA, the world’s largest franchise bottler of Coca-Cola products by volume.
In the retail industry, through FEMSA Comercio, made up of the following divisions: (1) the Proximity Division, which operates the OXXO small-format chain, (2) the Fuel Division, which operates the station chain OXXO GAS Retail Service and (3) Health Division, which includes pharmacies and related operations.
In the beer industry, through Heineken Investment, which is the second largest shareholding in Heineken, one of the world’s leading brewers with operations in more than 70 countries.
Finally, in other auxiliary businesses, through its Other Businesses (as defined below), which include logistics services, specialized distribution, refrigeration at points of sale, food processing equipment and plastic solutions.