Coca-Cola FEMSA completes Brazil Franchise Buy

Coca-Cola FEMSA completes Brazil franchise buy
Coca-Cola FEMSA completes $364.1 million acquisition of Coca-Cola Brazil franchise Remil
June 27, 2008: 06:54 AM EST

NEW YORK (Associated Press) - Coca-Cola FEMSA SAB de CV, the largest Coca-Cola bottler in Latin America, said late Thursday it completed the purchase of Coca-Cola Co.'s Refrigerantes Minas Gerais Ltda. franchise territory for $364.1 million.
Coca-Cola FEMSA said the deal will expand its footprint in Brazil by more than a third.
Founded in 1948 in Belo Horizonte, Remil sold 114 million unit cases of sparkling beverages, water, still beverages and beer in 2007. The franchise serves the cities of Belo Horizonte, Contagem, Curvelo, Divinopolis, Governador Valadares, Ipatinga, Juiz de Fora, Lavras, Leopoldina, Mariana, Montes Claros, Janauba and Petropolis.
Coca-Cola FEMSA's operations in Brazil, including both of its franchise territories, will now represent about 30 percent of the Coca-Cola bottling system in Brazil.
Mexico's Coca-Cola FEMSA produces and distributes Coke, Sprite, Fanta and other Coca-Cola drinks in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil and Argentina. The company has 30 bottling facilities in Latin America and serves over 1.5 million retailers.
Coca-Cola Co. owns a 31.6 percent stake in the company.
www.cocacola.com

Coca-Cola Franchising

Interesting franchise story, some don't realize that Coca-Cola is also a franchise company. By shipping their prized syrup to franchisees who mix the ingredients with water and carbonation, they decrease shipping and distribution costs while increasing their management's effectiveness through franchise owner operators in different parts of the world.

The Coca-Cola Company (NYSE: KO) is the world's largest beverage company,largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.

The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500.