Water, rather than beer

Colombia is a market with an enormous growth potential. Especially sales of water and juices have been growing three to four times faster than sales of carbonated beverages in Latin America, it was reported.

Coca-Cola FEMSA plans to spend USD 65 million on launching new juices from its recently acquired Mexican juice maker, Jugos del Valle, distributing iced teas, and expanding its soft-drink distribution network.

The company has six plants in Colombia that produce Coca-Cola brand soft-drinks and other beverages, as well as a water bottling plant producing the Manantial brand, which used to compete with Brisa.

According to media reports, Coca-Cola FEMSA sold USD 631 million worth of beverages in Colombia last year.

However, it remains to be seen how the beverage business will be affected by the global economic meltdown that has hit Colombia particularly hard. Deutsche Bank reckons that the Latin American boom is over. While the Colombian economy has grown an average of 5.3 percent annually between 2004 and 2008, it is forecasted to grow only 0.5 percent this year.

Coca-Cola FEMSA is the largest coke bottler in Latin America and operates in Mexico, Argentina, Brazil, Central America and Venezuela.

FEMSA will also start exporting Mexican beer brands, Sol, Tecate and Carta Blanca to Colombia, it was reported.

Perhaps SABMiller should have stuck with the Agua Brisa business after all?