Coca Cola FEMSA is planning to harness the potential of Latin America and make an aggressive expansion in the region, by backing dairy products.
Jose Castro, director of investor relations at the company, at an annual meeting with the media, said that after the acquisition of Blue Star Panama in March, the company will build a new plant in Panama and by the end of the year will have defined its business plan for achieving their expansion plans.
The Mexican Corporation Coca-Cola FEMSA announced it has completed the acquisition of Panama's "Grupo Industrias Lácteas", parent company of "Estrella Azul", "Conservas Panameñas" and "Plásticos Modernos".
This is Coca Cola's first foray into the milk and dairy industry, which is one of the largest and most dynamic segments of the non-alcoholic beverages market in Latin America.
Over the past 12 years, at least 10 of the country's largest industrial companies were acquired by foreign capital.
Rafael E. Berry, in his analysis in Panama America, details how from 2000 to date some of the largest Panamanian industries were acquired by foreign groups, including the National Brewery ($ 260 million), Cervecería Baru Dairy Industries ($ 220 million), and others like the largest manufacturer of bottles and companies from the food sector.
The Costa Rican company announced expansion plans in Honduras, the Dominican Republic and Panama.
The arrival of firms Lala, Femsa and Casaluque into the regional market influenced the company´s decision. Jorge Pattoni, manager of Dos Pinos, preferred not to talk about the type of investments to be made but said the company will not be sold and will further strengthen to compete in the regional market.
The sum amounts to the 5% tax collected from the sale of shares from BAC to AVAL Group and from Industrias Lacteas to Coca-Cola FEMSA.
An extraordinary income of approximately $ 105 million could be received by the Panamanian government from the sale of shares of the two large firms. These funds would pay the initial installment of the Metro line.
The Mexican group Coca-Cola Femsa has signed a preliminary agreement to acquire all the shares of Grupo Industrias Lácteas.
This agreement includes a commitment of exclusivity in negotiations, subject to government approvals, authorizations and a complete corporate legal, financial and operational audit.
This transaction will allow the Company to enter into the category of milk products, one of the most dynamic segments in scale and value in the industry of non-alcoholic beverages in Latin America. It is also an attractive opportunity for growth in the beverage market in Panama.
The dairy produce company will invest between $60 and $80 million in this project, according to Panama America.
Frank Tedman, head of operations for the company known for its Estrella Azul ("Blue Star") brand, told the newspaper that the factory's design and layout had been finalized and the methods chosen for processing the milk.
He indicated that Industrias Lácteas is now awaiting authorization from Panama's National Environment Authority (ANAM in Spanish) to begin the works planned.
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