Coca-Cola Femsa to ramp up beverage bottling capacity in Brazil

2 March 2015 (Last Updated March 2nd, 2015 18:30)

Mexico-based soft drink bottler Coca-Cola Femsa is planning to expand its operations in Brazil by investing approximately $200m.

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Mexico-based soft drink bottler Coca-Cola Femsa is planning to expand its operations in Brazil by investing approximately $200m.

The move comes despite 2014 not being a good year for the industry in Brazil, which saw a slump in beverage consumption.

The investment will be used in the development of packaging with various sizes such as minipets and family-sized bottles, reported Folha de Sao Paulo newspaper.

Coca-Cola Femsa also plans to invest in logistics, new production lines, plant automation and expanded distribution in Minas Gerais and Parana, where its operations are largely focused.

"We will keep the focus on developing packaging with different sizes, like minipets and family size bottles, providing the most attractive price to consumers."

Commenting on the investment, Coca-Cola FEMSA Brazil top executive Jose Ramon Martinez was quoted by the newspaper as saying: "We will keep the focus on developing packaging with different sizes, like minipets and family size bottles, providing the most attractive price to consumers."

The $200m investment, along with the new tax regime for beverages that will be put into force on 1 May, might be able to stabilise the company's 2015 outlook, added Martinez.

The company did not plan to invest considering taxes, but the law could eliminate several uncertainties over the next three years, the executive said.

Coca-Cola Femsa produces, markets, sells and distributes Coca-Cola trademark beverages. It offers sparkling beverages, such as colas and flavoured sparkling beverages; and waters and still beverages, including juice drinks, coffee, teas, milk, value-added dairy, and isotonic drinks.

The company also distributes and sells the Kaiser beers. It markets and sells its products through distribution centres and retailers in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil and Argentina.


Image: Coca-Cola Femsa produces, markets, sells and distributes Coca-Cola trademark beverages. Photo: courtesy of the Coca-Cola Company.