FEMSA

Fomento Económico Mexicano, S.A.B. de C.V.
Public
Traded as BMV: FEMSA
NYSE: FMX
Industry Beverage, Retail
Founded 1974
Headquarters Monterrey, Mexico
Area served
 Latin America and The Philippines
Key people
 José Antonio Fernández
(Chairman)
Carlos Salazar Lomelín
(CEO)
Revenue Increase Mex$ 311.5 billion (2015)
Increase US$ 18.1 billion
Increase Mex$ 23.2 billion (2015)
Increase US$ 1.3 billion
Total assets Increase Mex$ 409.3 billion (2015)
Increase US$ 23.8 billion
Number of employees
 246,158
Divisions
Website www.femsa.com/

Fomento Económico Mexicano, S.A.B. de C.V., doing business as FEMSA, is a Mexican multinational beverage and retail company headquartered in Monterrey, Mexico. It operates the largest independent Coca-Cola bottling group in the world and the largest convenience store chain in Mexico. It is also the second largest shareholder of Heineken International.

FEMSA reported revenues of US$19.2 billion for 2014, making it the fifth largest company of Mexico.[1] It has operations in Latin America and the Philippines, mainly through bottling plants. It is well known in Mexico for its convenience store chain Oxxo, its previously owned Cuauhtémoc Moctezuma Brewery (exchanged in 2010 for a 20% stake in Heineken), and for being the owner of the C.F. Monterrey, a Mexican First-Division football team.

FEMSA is listed on the Mexican Stock Exchange since 1978 and in the NYSE through ADRs since 1998. It is a constituent of the IPC, the main benchmark index of the Mexican Stock Exchange, and of the S&P Latin America 40, which includes leading, blue chip companies from Latin America.

Origins

FEMSA's roots can be traced back to the foundation of Cervecería Cuauhtémoc in 1890 by Isaac Garza de la Garza (married to Consuelo Sada Muguerza), Francisco G. Sada Muguerza, Alberto Sada Muguerza, José Muguerza Crespo, José Calderón Muguerza, and José María Schneider. Cervecería Cuauhtémoc was close to bankruptcy when its founders were forced to leave the country, after the brewery was taken over by Villistas and Carrancistas during the Mexican Revolution in 1910.

By 1936, the Garza and Sada families owned two interrelated groups, the Cervecería Cuauhtémoc and the Vidriera Monterrey. In 1936 both families decided to reorganize their stock holdings through the creation of Valores Industriales S.A. (later known as FEMSA) as a holding company to control both families' shares, especially Cervecería Cuauhtémoc and FAMOSA (Fábricas Monterrey, S.A.).

In 1988, after restructuring the company's debt, FEMSA (Fomento Económico Mexicano, S.A. de C.V.), the main subsidiary of VISA, was constituted by Eugenio Garza Lagüera, bringing together the beer, packaging, soft-drink and retail companies.

FEMSA Divisions

FEMSA is divided into four business units:

Coca-Cola FEMSA

FEMSA owns 47.9% of the world's second largest bottler of Coca-Cola, Coca-Cola FEMSA, S.A. de C.V. (NYSE: KOF), which operates in nine countries covering the metropolitan area of Mexico City, southeast Mexico, Central America and South America.

Coca-Cola FEMSA is the anchor bottler of Coca-Cola and its related soft drink products in much of Latin America. The company is an important part of the Coca-Cola System. Coca-Cola FEMSA distributes about 10% of the worldwide production of Coca-Cola products. This makes it, after Coca-Cola Enterprises the second largest Coca-Cola bottler in the world.

The company is owned 47.9% by FEMSA, 28.1% by The Coca-Cola Company and the remaining interest trades on the New York Stock Exchange and the Mexico City Stock Exchange.[2] The company is headquartered in Monterrey

The company is the bottler of Coca-Cola in half of Mexico (including Mexico City, Oaxaca, Tabasco, Guanajuato, Querétaro, Veracruz, Puebla and Michoacan) the Buenos Aires region of Argentina, São Paulo and other areas of Brazil, greater Guatemala City, Guatemala, most of Colombia, and all of Costa Rica, Nicaragua, Panama, Venezuela and the Philippines.

In 2015, the company distributed 3.4 billion unit cases of soft drinks. A unit case is 24 8-oz. servings (roughly 5.678 liters). The company also distributes beer and bottled water in some of its territories.[3]

On December 19, 2006, Coca-Cola FEMSA announced its attempt to buy out Mexican juice producer Jugos del Valle. It was acquired in 2007.

On 29 June 2011, was announced that FEMSA will merge to the bottling division of Grupo Tampico, agreeing to pay 9.3 billion pesos (790 million dollars) in stock for the Coke bottling operations of Grupo Tampico.[4] In September 2011, Coca-Cola FEMSA acquired Grupo Cimsa, a Coke bottler in Morelos, Mexico, Guerrero and Michoacan.[5]

FEMSA Comercio

FEMSA Comercio operates OXXO, the leading convenience store chain in Mexico and a growing portfolio of other small-format retail chains in Latin America, as well as a network of retail service stations for fuel, lubricants and car care products in Mexico.[6]

Investment in the Beer Industry

On January 11, 2010, the Dutch brewing company Heineken International purchased FEMSA Cerveza, the beer operations of FEMSA, in a stock swap that left FEMSA a 20% owner in the Heineken overall.[7][8][9]

FEMSA Cerveza previously owned Cervecería Cuauhtémoc Moctezuma, the second largest brewer in Mexico, just after Grupo Modelo, that produces well-known Mexican beers like Tecate, Sol, Dos Equis, Indio, and Kloster.

Since January 2006, FEMSA also owned 68% of FEMSA Cerveja Brasil, a South American brewery founded in 1982 in Brazil as "Cervejarias Kaiser."[10] By 2005 the brewery had 8.7% of the market share in Brazil with annual production of 2,500 million litres. The brand was bought by Molson in 2002. Following the sale to FEMSA, Molson retained 15% of the company along with a seat on the board.[11]

FEMSA Negocios Estratégicos

FEMSA Negocios Estratégicos (formerly known as FEMSA Insumos Estratégicos) provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients.[12] It is subsequently divided into:

FEMSA Logística

FEMSA Logística is in charge of the primary distribution (from production points to warehouses) of both Coca-Cola FEMSA and Heineken, as well as product delivery from warehouse to sales location for FEMSA Comercio. It is also in charge of repairing and maintaining all of FEMSA's motorized vehicles. FEMSA Logística functions through operational bases, relief bases and cross-docks, and warehouses that are strategically located throughout the country, and currently expanding into South America. It also provides logistics services to third parties.

Imbera

Imbera, formerly known as Vendo de México, S.A. de C.V. (VENDO), is the #1 global commercial refrigeration manufacturer in the world. With state-of-the-art facilities in Mexico, Colombia, and Brazil, Imbera exports to 45 different countries and maintains alliances in Argentina, Turkey, Pakistan, and the Philippines. In addition, Imbera serves its clients and partners via sales offices in 8 countries and provides top-of-the-line equipment maintenance in 9, including the US and Canada.[13]

Plásticos Técnicos Mexicanos (PTM)

PTM provides solutions and develops plastic transformation projects tailored to FEMSA Enterprises and third-party clients in terms of materials handling, automobiles, and food/beverages. Their modern capacity includes the different plastic manufacturing processes: blowing, injecting, heat forming, and extrusion.[14]

Cascade Investments LLC

On December 20, 2007, Cascade Investments LLC, whose main partner is Bill Gates, announced it will invest $390 million in FEMSA. FEMSA's President Jose Antonio Fernandez said in a statement about the news: "This type of decision on the part of large investment funds is a show of recognition and confidence in our company's performance."

Lácteos Santa Clara

In July 2012, FEMSA announced that it had purchased Lácteos Santa Clara, one of the largest dairy bottlers in Mexico.[15]

See also

References

  1. ↑ "Top 10 del Ranking 2014". CNN Expansión. Retrieved 2014-06-26.
  2. ↑ "FEMSA - Corporate Structure". Retrieved 2016-03-30.
  3. ↑ FEMSA.com
  4. ↑ Elinor Comlay (29 June 2011). "Mexico's Coca-Cola FEMSA open to more deals". Reuters.com. Retrieved 30 June 2011.
  5. ↑ Guthrie, Amy. "Mexico's Coca-Cola Femsa to buy bottler Cimsa". MarketWatch. Retrieved 2015-04-12.
  6. ↑ "FEMSA Annual Report 2015". Retrieved 2016-03-30.
  7. ↑ FEMSA Press release - FEMSA Agrees to Exchange Beer Operations for 20% Economic Interest in Heineken
  8. ↑ FEMSA Press release - Mexican Antitrust Commission approves FEMSA's strategic transaction with Heineken
  9. ↑ "Heineken agrees Mexican beer deal". BBC News. January 11, 2010. Retrieved May 2, 2010.
  10. ↑ FEMSA Press release - FEMSA Acquires Controlling Stake in Brazilian Brewer Kaiser
  11. ↑ Molson Coors Press release
  12. ↑ "FEMSA Negocios Estratégicos". Retrieved 2016-03-30.
  13. ↑ "Imbera Cooling". Retrieved 2016-03-30.
  14. ↑ "PTM". Retrieved 2016-03-30.
  15. ↑

External links

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