la FEMSA also competes with low-price producers, such as the producers of Big Cola. In Brazil, Coca-Cola FEMSA competes against AmBev, a Brazilian company. In Argentina, Coca-Cola FEMSA’s major competitor is Buenos Aires Embotellador S.A. (BAESA), a Pepsi bottler, which is owned by Argentina’s principal brewery, Quilmes Industrial S.A., and indirectly controlled by AmBev. Venezuela: In Venezuela, Coca-Cola FEMSA’s major competitor is Pepsi-Cola Venezuela, C.A., a joint venture formed between PepsiCo and Empresas Polar, S.A. FEMSA Comercio FEMSA Comercio operates the largest chain of small-format stores in Mexico primarily under the trade name OXXO. As of December 31, 2014, FEMSA Comercio operated 12,853 OXXO stores, of which 12,812 are located throughout the country, with a presence in the northern part of Mexico, and the remaining 41 stores are located in Bogotá, Colombia. In 2014, a typical OXXO store carried 2,744 different store keeping units in 31 main product categories. Store Locations With 12,812 OXXO stores in Mexico and 41 OXXO stores in Colombia, FEMSA Comercio operated the largest small-format store chain in Latin America as of December 31, 2014. OXXO stores are concentrated in the northern part of Mexico, but also have a growing presence in the rest of the country. Other Stores FEMSA Comercio also operates other small-format stores, which include soft discount stores with a focus on perishables and liquor stores. Business Strategy A fundamental element of FEMSA Comercio’s business strategy is to utilize its position in the small-format store market to improve in a cost-effective and profitable manner. Seasonality OXXO stores experience periods of high demand in December, as a result of the holidays, and in July and August, as a result of increased consumption of beer and soft drinks during the hot summer months. The months of November and February are generally the weakest sales months for OXXO stores. Competition OXXO stores face competition from small-format stores, such as 7-Eleven, Super Extra, Super City, and Círculo K stores. Other Business The company’s other business consists of the following smaller operations that support its core operations: The company’s logistics services subsidiary provides a range of logistics and vehicle maintenance services to Coca-Cola FEMSA, FEMSA Comercio, and third-party clients in the beverages, consumer products and retail industries. It has operations in Mexico, Brazil, Colombia, Panama, Costa Rica, Nicaragua, and Perú. The company’s refrigeration business produces vertical and horizontal commercial refrigerators for the soft drink, beer and food industries, with an annual capacity of 535,800 units as of December 31, 2014. Environmental Matters The company is subject to the Ley de Aguas Nacionales de 1992 (as amended, the 1992 Water Law), enforced by the Comisión Nacional del Agua (National Water Commission). In Coca-Cola FEMSA’s Mexican operations, it established a partnership with The Coca-Cola Company and ALPLA Fábrica de Plásticos, S.A. de C.V., a supplier of plastic bottles to Coca-Cola FEMSA in Mexico, to create Industria Mexicana de Reciclaje, a PET recycling facility located in Toluca, Mexico. Coca-Cola FEMSA’s Venezuelan operations are subject to various Venezuelan federal, state and municipal laws and regulations related to the protection of the environment. The most relevant of these laws are the Ley Orgánica del Ambiente (Organic Environmental Law), the Ley Sobre Sustancias, Materiales y Desechos Peligrosos (Substance, Material and Dangerous Waste Law), the Ley Penal del Ambiente (Criminal Environmental Law), and the Ley de Aguas (Water Law). Coca-Cola FEMSA’s Argentine operations are subject to federal and municipal laws and regulations relating to the protection of the environment. The majority of these are regulations concerning waste water discharge, which are enforced by the Secretaría de Ambiente y Desarrollo Sustentable (Ministry of Natural Resources and Sustainable Development) and the Organismo Provincial para el Desarrollo Sostenible (Provincial Organization for Sustainable Development
fomento economico mexica-ubd
General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, NL 64410
Phone: 52 818 328 6000
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