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Latin America next for Coca-Cola bottler consolidation? - report

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For a just-drinks analysis of the consolidation landscape for Coca-Cola bottlers in Latin America, click here

Three of the four largest Coca-Cola bottlers in Latin and South America have opened initial talks about a possible merger, according to local reports.

Could Coca-Cola FEMSA be part of the next consolidation move in the bottler arena?

Could Coca-Cola FEMSA be part of the next consolidation move in the bottler arena?

In a move that echoes the creation of the Coca-Cola European Partners entity earlier this month, Coca-Cola FEMSA, Arca Continental and Coca-Cola Andina have begun examining a merger or an asset purchase, Chilean newspaper Pulso claimed yesterday. The report cites sources close to one of Andina's controlling families.

According to analysts at Nomura this morning, Coca-Cola FEMSA accounts for 41% of sales in the Coca-Cola system's Latin America footprint, with Arca holding 14%. Andina is the third largest bottler in the region, Nomura says, with 8% of sales. A combination of the three would result in a division with 5.6bn unit case sales and sales of US$19bn per year, Nomura estimates.

The analyst also said today that all three are controlled by family structures: Coca-Cola FEMSA is 50%-owned by the FEMSA conglomerate, Arca is 70% controlled by families, and 51% of Andina is held by five families. The Coca-Cola Co owns 15% of Andina, 9% of Arca, and 28% of Coca-Cola FEMSA.


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