Fomento Economico Mexicano, S.A. de C.V., also known as FEMSA (FMX), is one of Latin America's largest beverage companies exporting to the U.S., Canada, Europe, and Asia. Headquartered in Monterrey, Mexico, FMX operates through Coca-Cola FEMSA (KOF), FEMSA Cerveza, and FEMSA Comercio. Coca-Cola FEMSA (around 47% of total revenue) produces and distributes carbonated beverages in Latin America. Indeed, it is the largest Coca-Cola bottler in Latin America and the second largest Coca-Cola bottler globally, in terms of sales volume. FEMSA Cerveza (25% of total revenue) produces and distributes various brands of beer. The company operates several breweries in Mexico and exports its products to 60 countries worldwide, with North America being the most important market. FEMSA Comercio (28% of total revenues) operates a chain of retail stores, the Oxxo convenience stores, which are located in Mexico. Currently, Oxxo is the largest convenience store chain in Latin America with over 5,000 stores in Mexico.
The company uses low risk investment to promote growth. Growth in the last few years has come from diversification into non-gasified drinks.1998-2008 total sales have had an annual compounded growth of 16%
The company perates in the U.S., Mexico, Guatemala, Nicaragua, Cost Rica, Panama, Colombia, Brazil, Venezuela and Argentina.
Obesity and diabetes in Mexico have prompted the Mexican government to keep a closer eye on Soft Drink companies. Government health campaigns further serve to deter Mexican away from highly caloric drinks.
The demand for these have increased as a result of the regulation increases regarding highly caloric drinks. The promotion of healthier options will soon become a determinant in market share.
Spending patterns have shifted given the economic downturn. Despite this brand loyalty still remains strong. This has also prompted the appearance of low cost carbonated options like Big Group from Ajegrou