FEMSA takes over another Coca-Cola bottler
On 26 June 2008 Coca-Cola FEMSA, the largest Coca-Cola bottler in Latin America, announced that it has successfully closed a transaction with The Coca-Cola Company to acquire its Refrigerantes Minas Gerais Ltda. (“Remil”) franchise territory. The transaction valued at USD 364.1 million, is subject to the customary approval of the antitrust local authorities.
Founded in 1948 in Belo Horizonte, Remil sold 114 million unit cases (646 million litres) of sparkling beverages, water, still beverages and beer in 2007, says FEMSA. The company´s net revenues for 2007, under Brazilian GAAP, were approximately BRL 721 million (USD 450 million).
With the purchase of Remil, FEMSA controls 29 percent of the Coca-Cola volume sold in Brazil says rating agency Fitch.
This is the second time Remil is changing hands. In 2000 it had been bought by the Coca-Cola Company. Looks like the Coca-Cola Company does not want to dabble in bottling its own products any longer. That´s why it sold Remil to another bottler, FEMSA, in which The Coca-Cola Company, incidentally, owns a 31.6 percent stake.
Coca-Cola FEMSA Brazil was incorporated in May of 2003, when FEMSA acquired 100 percent of the largest franchise in the Coca-Cola system in Latin America (PANAMCO). In January 2007, in partnership with The Coca Cola Company, Coca-Cola FEMSA acquired Jugos del Valle with whom it hopes to attain a strong presence in the non-carbonated beverage markets of Mexico and Brazil.
Having taking over the struggling brewer Cervejarias Kaiser from Molson Coors in 2006, FEMSA is also involved in Brazil´s beer business. Remil has been brewing the Kaiser brands, plus Bavaria and Sol for some time.
