Market Soft Drinks

About South American Beverage Companies

Posted on January 12, 2023 (Last modified on January 14, 2023) 2 min read  • 313 words
About South American Beverage Companies
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Recently, I’ve been curious to find out what products are available in South American supermarkets. In particular, I’m looking into soft drinks and beer.

Coca-Cola FEMSA

Coca-Cola FEMSA, known as $KOF, is a Mexican beverage company headquartered in Mexico City, Mexico. The company manufactures and distributes Coca-Cola beverages primarily in Latin America, including Mexico, Central America, Colombia, Venezuela, and Brazil. It regularly acquires regional beverage suppliers; in 2018, it acquired a supplier in Guatemala and Uruguay.

KOF sales ratio (figure is taken from [1])

Currently, Mexico and Brazil account for almost 80% of the total volume. Therefore, it is important for the company to be able to grow in Mexico and Brazil.

Percentage of volume by country (figure is taken from [2])

The types of beverages sold fall into the four major categories shown below.

  • Carbonated soft Drinks
  • Non-Carbonated Soft Drinks
  • Energy and Sports
  • Bottled Water

And KOF has the leading market share in Carbonated Soft Drinks and Non-Carbonated Soft Drinks in Mexico.

Compañía Cervecerías Unidas S.A.

$CCU is a Chilean producer of diversified beverages. Originally based in Chile, the company expanded beyond Chile to Uruguay, Paraguay, Bolivia, and Colombia during the 2010s. The sales are composed as follows:

  • Chile business segment 60% of sales
  • International business segment (including Argentina, Bolivia, Paraguay and Uruguay) 27.3%
  • Wine business segment, including domestic market and exports in Chile and Argentina, 10.0%
CCU sales portfolio (figure is taken from [4])

The average annual growth rate (GDP) of the Chilean economy between 2010 and 2021 is about 3.3%. It should be noted that this is positive but not necessarily very high.

CCU has a strong competitive position in Chile.

I like coffee and butterflies.