Mexican Beer Market Essay Example | Topics and Well Written Essays - 2750 words

Mexican Beer commercialize - Essay ExampleFEMSA is one of the most dominant breweries in Mexico. They were founded in 1890 in Monterrey. They continue to grow to be a knowledge base class organization that generates value through a customer rivet business system. Currently they have6 brewing facilities in Mexico8 brewing facilities in brazil nutOver 23,000 employeesServed approximately 320,000 retail stores in MexicoAnnual growth rate of approximately 1,000,000 peopleThe largest potable company in Latin the States serving more than 184 million consumersFEMSAs beverage operations involve*Coca Cola FEMSA which is the largest Coca Cola bottler in Latin America and the 2nd largest in the world based on sales volume. Fanta, Sprite, and Ciel are a few of more than 70 brands offered*FEMSA Cerveza is one of Mexicos leading brewers and major exporter to the U.S. The flagship brands include Sol, Dos Equis, Tecate, and Bohemia. *Oxxo convenience stores are the largest retail network in L atin America with over 4,800 stores in MexicoFEMSA Financial Track Record for 2006Total Revenue = $11,625 millionOxxo Stores 28%Beer 28%Soft Drinks 44%CAGR 16%Total Operating Income =$1,599 millionOxxo Stores 9%Beer 35%Soft Drinks 56%CAGR 15%FEMSA 1st and 2nd Quarter ReviewsFEMSA has done pretty well for the 1st quarter of the year. They see a revenue growth 9%. The breakdown of growth is 7% Coca Cola sales, 3.6% beer sales, and 10.8% income from operations. external operations doubled from 2006 creating the strongest growth. The least amount of growth in the beer division was caused by several factors seasonal increases of expenses such as marketing and raw materials in Brazil A softer demand environment in Mexico and a weaker pricing environment. During the 2nd quarter of 2007, FEMSA experienced a slight decrease in fiscal gain with a 7% revenue growth. Coca Cola sales change magnitude 5.9%, beer sales increased 2.7% and income from operations increased 10.5%. Once again the st rongest growth comes from international operations. The revenue reports from the first two accommodate of 2007 are very favorable to a steady overall growth rate. While FEMSA has had marginal increases in revenue, they are focused on long term results over short term results. Mexico is FEMSAs largest market by far when factoring sales and profits. Their consumer base is