The future looks bright for Latin America

March 27, 2003
/ Print / Reprints /
ShareMore
/ Text Size+
Despite economic setbacks, the Latin American market continues to stabilize, allowing domestic food and beverage companies the opportunity to take a deeper look at their internal operations for cost improvements. Maintaining and upgrading product quality remained a focus, as did the introduction of prepared, ready to eat products. However, many of the top Latin American processors mirrored their U.S. counterparts by growing through acquisitions. Ceval Alimentos, traditionally a meat processor, incorporated Santista Alimentos' soy processing operations, increasing its production capacity by 40 percent. South America's largest soft drink bottler made two bottling acquisitions in Venezuela: Coca-Cola and Hit. Many Latin American processors also entered into joint ventures to extend their market reach. Brazil's Brahma invested $150 million in Pepsi's market and also signed a joint venture with Gessy Lever to form the new Ice Tea Do Brasil.

Aided by a stronger Mexican economy, FEMSA, Mexico's largest integrated beverage producer of beer and soft drinks, as well as a major bottler of soft drinks in Argentina, experienced strong volume growth. Through its subsidiary FEMSA Cerveza, the company holds 45.2 percent of Mexico's beer market with brands such as Sol, Tecate and Dos Equis. FEMSA's portfolio of beer brands is exported mainly to the U.S. and selected Latin American, European and Asian countries.

Another FEMSA subsidiary, Coca-Cola FEMSA, accounts for 24 percent of all Coca-Cola sales in Mexico and 35 percent of all Coca-Cola sales in Argentina. According to Jos¿ntonio Fern?ez Carbajal, chief executive officer of FEMSA, the company's core beverage operations are positioned to benefit considerably from favorable demographic trends in Mexico. The population of people aged 18 or older has grown at an annual rate of 3 to 4 percent, outpacing the comparable growth rates in other countries.

Like its U.S. counterparts, FEMSA is particularly sensitive to both the consumers it serves and the retailer customers it works with to ensure growth. "...We acknowledge that consumer satisfaction is the most effective way to ensure long-term success, and that brand creation is fundamental to achieve consumer preference," said Carlos Salazar, CEO of FEMSA Cerveza. "Similarly, we view the retailer as the most important link in the distribution chain in order to insure availability of our products."

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Fabulous Food Plant: Paramount Citrus

Learn more about this fabulous food plant in Food Engineering's article, found here.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

THE MAGAZINE

Food Engineering Magazine

Food engineering magazine 2014 april cover

2014 April

Catch a preview of the Powder and Bulk Show in this April 2014 edition of Food Engineering. Also, be sure to check out a coffee stick making a real stir and a major advancement in the the pet food industry.
Table Of Contents Subscribe

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Food Master

Food Master Cover 2014Food Master 2014 is now available!

 

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.pnglinkedin_40px.png