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Mexico's Coca-Cola Femsa scraps plans to acquire US operations

Published 17 May 2017

Coca-Cola Femsa, a joint venture between Coca-Cola and Mexican bottler Fomento Economico Mexicano (Femsa), has scrapped plans to buy several territories in the US.

The decision was taken after thorough analysis and negotiations with The Coca Cola Company

Coca-Cola Femsa expects to evaluate other acquisitions run by Coca-Cola’s Bottling investments Group.

Last year Coca-Cola Femsa stated that it is evaluating the idea of acquiring certain territories in the Bottling Investments Group.

The company was keen on investing in California last year, but soon changed plans because of the arising risk of increasing sugar taxes and rising labour costs.

In the recent times, Coca-Cola also reported lowering profits as people were shifting towards healthy food and beverage choices.

Coca-Cola Femsa CEO John Santa Maria said: Coca-Cola Femsa will remain focused on a disciplined approach to capital allocation and the creation of long-term value for our shareholders.

“In this sense, we will continue looking at and assessing other attractive opportunities that will allow us to strengthen our position as a global multi-category beverage company.”

Recently, Coca-Cola Femsa Philippines withdrew from a petition for the remove tighter regulations on the entry of high fructose corn syrup (HFCS) in the country.

Image: Coca-Cola FEMSA drops plans to invest in the US. Photo: Courtesy of The Coca-Cola Company.