“During the past six years, Coca-Cola FEMSA's Mexican operation has been distinguished by two parallel characteristics – aggressive growth in both per capita consumption and productivity.”
John Santa MarÍa OtazÚa, Chief Operating Officer-Mexico
 
 
 

MEXICO    During the past six years, Coca-Cola FEMSA's Mexican operation has been distinguished by two parallel characteristics – aggressive growth in both per capita consumption and productivity. In the Valley of Mexico and the Southeast Territories, per capita consumption increased from 300 and 210 in 1994 to 417 and 240 in 1999, respectively, and annual unit cases per employee increased from 22 and 22 to 36 and 26. Combined, these improvements have driven Coca-Cola FEMSA's Mexican operating profit growth of 13.5% on an annually compounded rate.(1)

The Company has also continued to invest in its Mexican operations, investing approximately US$560 million in capital expenditures since 1993, resulting in considerable efficiencies and cost savings. In addition, consolidation of bottling plants is expected to continue in the future, helping the Company to adapt to the changing market environment while removing cost from our operations.

Systems    Coca-Cola FEMSA continues to augment information systems, working to fully integrate the entire operation. The Company has focused on an integrated systems approach. These systems work to link all aspects of our business from purchasing to customer service and help the Company to better understand the markets that we serve, as well as, improving production and distribution efficiencies.

Marketing    Coca-Cola FEMSA continues to take more responsibility for joint marketing efforts with The Coca-Cola Company. In 1999, efforts in this regard again culminated in the Christmas parade through the center of Mexico City. The Christmas parade was attended by an estimated three million spectators, and approximately one million people visited the 90-foot Coca-Cola Christmas tree and Christmas fair at the entrance of Chapultepec Park in Mexico City.

In the Southeast, the centerpiece of the Company's aggressive consumer activation program is the traveling Coca-Cola Fair, regularly attended by thousands of consumers.

Future Growth   Coca-Cola FEMSA is now looking at ways to utilize its world class distribution system to expand profitably. The Company considers flavored soft-drinks and bottled water as significant opportunities for growth within its existing territories.

Coca-Cola FEMSA has begun to redefine itself for the next 10-20 years, basing its strategies on new technologies, customer knowledge, and becoming even more efficient in the utilization of its assets.

(1) Includes operating profits from the Tapachula Franchise, acquired in November 1997.
 
 
   
 
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