of small-format stores in Mexico primarily under the trade name, OXXO. As of December 31, 2013, FEMSA Comercio operated 11,721 OXXO stores, of which 11,683 are located throughout the country, with a primary presence in the northern part of Mexico, and the remaining 38 stores are located in Bogotá, Colombia. In 2013, a OXXO store carried 3,091 different store keeping units in 31 main product categories. Store Locations With 11,683 OXXO stores in Mexico and 38 OXXO stores in Colombia, FEMSA Comercio operated the small-format store chain in Latin America as of December 31, 2013. 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 grow in a cost-effective and profitable manner. Competition OXXO stores face competition from small-format stores, such as 7-Eleven, Super Extra, Super City, and Círculo K stores. 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 the weakest sales months for OXXO 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, and Nicaragua. The company’s refrigeration business produces vertical and horizontal commercial refrigerators for the soft drink, beer, and food industries, with an annual capacity of 510,840 units as of December 31, 2013. Acquisitions In January 2013, Coca-Cola FEMSA closed the transaction with The Coca-Cola Company to acquire a 51% non-controlling majority stake in Coca-Cola Bottlers Philippines, Inc. In May 2013, FEMSA Comercio through one of its subsidiaries, Cadena Comercial de Farmacias, S.A.P.I. de C.V. (CCF), closed the acquisition of Farmacias YZA, a drugstore operator in Southeast Mexico. CCF acquired Farmacias FM Moderna, a drugstore operator in the western state of Sinaloa. In August 2013, Coca-Cola FEMSA closed its acquisition of Companhia Fluminense de Refrigerantes, a family owned franchise that operates in parts of the states of São Paulo, Minas Gerais, and Rio de Janeiro in Brazil. In October 2013, Coca-Cola FEMSA closed its acquisition of Spaipa S.A. Industria Brasileira de Bebidas, a family owned franchise in Brazil, with operations in the state of Paraná and in parts of the state of São Paulo. In December 2013, FEMSA Comercio, through one of its subsidiaries, purchased the operating assets and trademarks of Doña Tota, a quick-service restaurant operator in Mexico. 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, 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 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
fomento economico mexica-ubd
General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, NL 64410
Phone: 52 818 328 6000
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