Antonio Hernandez

Antonio Hernández requested an update on the Health division's business performance in Mexico and Chile, including recent news on new formats in Chile and the differing trends between the two countries.

Answer

José Antonio Fernández Garza-Laguera, CEO of Fomento Económico Mexicano, reported that the Health division in Chile is gaining market share and growing across all channels, including a new discount pharmacy chain, despite a competitive environment. For Mexico, he acknowledged the need to fix the operation, citing store closures and security impacts in regions like Sinaloa. He noted strong growth in Colombia and market share/profit gains in Ecuador for the Health division.

Antonio Hernández from Actinver requested an update on FEMSA's health business, specifically in Mexico and Chile, inquiring about recent developments like a new format in Chile and the contrasting performance trends between the two countries.

Answer

José Antonio Fernández Garza-Laguera, CEO of Fomento Económico Mexicano, reported that in Chile, the health business is gaining market share across all channels, including a new discount pharmacy chain, and is growing in the income statement despite a competitive market. He noted opportunities in new categories like health and beauty, elderly care, and pet care. For Mexico, he acknowledged the need for significant improvements, including store closures, despite growth in Colombia and Ecuador, stating that Mexico's operation needs to be fixed.

Antonio Hernandez with Actinver asked if Coca-Cola FEMSA has a specific target for non-caloric sweetened beverages as a percentage of total sales going forward, and how the company views competition in that segment.

Answer

CEO Ian Craig stated that Coca-Cola FEMSA does not have a specific target for non-caloric sweetened beverages as a percentage of total sales. However, he highlighted Coca-Cola Zero as a 'silver bullet' for category health and brand equity, noting its double-digit growth even in a soft macro environment. He pointed to Brazil's 28% mix of Coca-Cola Zero as an example of significant headroom for growth in Mexico, where the mix is currently around 4%. Ian Craig added that the company holds a leadership position in this segment, and the focus is more on growing the mix and total category rather than significant share gains from competitors.

Antonio Hernandez asked if Coca-Cola FEMSA has a specific target for non-caloric sweeteners as a percentage of total sales and how the company views competition within this segment.

Answer

CEO Ian Craig stated that there is no specific target for non-caloric sweeteners as a percentage of total sales, but highlighted Coca-Cola Zero as a 'silver bullet' for category health and brand equity. He noted that Brazil's Coke Zero mix is 28% and still growing, while Mexico's is around 4%, indicating significant headroom for growth. In terms of competition, Coca-Cola FEMSA holds a leadership position in the non-caloric segment, with the primary focus being on growing the mix and the total category rather than solely on share gains.

Antonio Hernandez inquired about regional performance within Mexico, specifically asking if the Southeast was under more pressure, and whether month-to-month trends were consistent across regions.

Answer

CEO Ian Marcel Craig García confirmed that the performance in Mexico is not uniform and agreed that the Southeast region is facing a tougher environment, partly due to the completion of major infrastructure projects. Executive Jorge Alejandro Pereda added that monthly performance is mixed across all geographies, cautioning against linear extrapolation and noting that upcoming comps will become easier in markets like Colombia and Guatemala.