FEMSA Announces an Increase in the Price of FEMSA Cerveza's Domestic Beer Products
MONTERREY, N.L.--(BUSINESS WIRE)--Jan. 4, 2000--Fomento Economico Mexicano, S.A. de C.V. (NYSE:FMX) ("FEMSA"), announced today that its largest subsidiary, FEMSA Cerveza, S.A. de C.V. increased the price of its domestic beer products, effective Jan. 1, 2000.
The average increase in the price of beer ranges between 14% and 16%, depending on the different beer brands and portfolio of presentations on each particular region in Mexico. "The decision to raise prices in January is consistent with FEMSA Cerveza's objective over the past few years, to recover the real price of beer in the domestic market, which as of December 1999 still lagged 12% in average compared with 1990, and 25% in average compared with 1982," said Alfredo Martinez-Urdal, chief executive officer of FEMSA Cerveza.
FEMSA is Mexico's largest strategically integrated beverage company with exports to the United States, Canada and numerous countries in Latin America, Europe and the Far East. Founded in 1890 and with headquarters in Monterrey, Mexico, FEMSA operates through the following subsidiaries: FEMSA Cerveza, which produces and distributes name brands of beer such as Tecate, Carta Blanca, Superior, Sol, XX Lager, Dos Equis and Bohemia; Coca-Cola FEMSA, one of two "Anchor Bottlers" for The Coca-Cola Company in Latin America, which produces and distributes soft drinks including Coca-Cola, Coca-Cola Light, Sprite, Fanta and Quatro; FEMSA Empaques, which supports the beverage operations by producing beverage cans, glass bottles, crown caps, labels, cardboard, commercial refrigerators and serves third party clients throughout the Americas; FEMSA Comercio, which operates OXXO, Mexico's most extensive chain of convenience stores; Desarrollo Comercial FEMSA, which operates OXXO Express, which operates convenience stores adjacent to gasoline stations and FEMSA Logistica, which provides logistics management services to some of FEMSA's subsidiaries, as well as to third party clients.