FEMSA is a leading company in Latin America. It controls Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world, and Femsa Comercio, operating OXXO, the largest and fastest growing chain of small-format stores in Latin America with over 15,225 stores. In addition, these operations are supported by Strategic Business Processes and Information Technology, designed to drive the business units development through high quality products and services such as refrigeration, distribution and information solutions. FEMSA is also a significant investor in Heineken, one of the world’s leading brewers.
We have two main sub-holding companies:
- Coca-Cola FEMSA: the largest public Coca-Cola franchise bottler of Coca-Cola products in the world
- FEMSA Comercio (operating OXXO): the largest and fastest growing chain of small-format stores in Latin America
FEMSA and The Coca-Cola Company have been long-term strategic partners since Coca-Cola FEMSA was created in 1993.
FEMSA is the majority shareholder of Coca-Cola FEMSA, with 47.9% ownership of the outstanding capital stock and 63.0% of the voting rights. The Coca-Cola Company owns 28.1% of Coca-Cola FEMSA's outstanding capital stock and 37.0% of the voting interest. Public shareholders own the remaining 24.0% of the outstanding capital stock (with limited voting rights).
On April 30, 2010, FEMSA announced the closing of the transaction pursuant to which FEMSA agreed to exchange 100% of its beer operations for a 20% economic interest in the Heineken Group.
On April 30, 2010, José Antonio Fernández Carbajal, our Chairman and Chief Executive Officer, started to serve as a member of the Board of Directors of Heineken Holding, N.V. and the Supervisory Board of Heineken N.V. Javier Astaburuaga Sanjines, our Chief Financial Officer, also serves on the supervisory Board of Heineken N.V.
Under the Corporate Governance Agreement, FEMSA is entitled to nominate two representatives to the Heineken Supervisory Board, one of whom will be appointed as Vice Chairman of the board of Heineken N.V. and will also serve as a representative of FEMSA on the Heineken Holding N.V. Board of Directors. FEMSA's nominees for appointment to the Heineken Supervisory Board were José Antonio Fernández Carbajal, our Chairman and Chief Executive Officer, and Javier Astaburuaga Sanjines, our Chief Financial Officer, who were both approved by Heineken N.V.'s general meeting of shareholders. Mr. José Antonio Fernández was also approved to the Heineken Holding N.V. Board of Directors by the general meeting of shareholders of Heineken Holding N.V.
In addition, the Heineken Supervisory Board has created an Americas committee to oversee the strategic direction of the business in the American continent and assess new business opportunities in that region. The Americas committee consists of two existing members of the Heineken Supervisory Board and one FEMSA representative, who acts as the chairman. The chairman of the Americas committee is José Antonio Fernández Carbajal, our Chairman and Chief Executive Officer.
In Mexico, the small grocery store network is highly fragmented and presents economic opportunity for a well-managed store chain such as OXXO. For the last decade, the OXXO chain has enjoyed more than 17% annual compound growth in the number of OXXO stores, totaling over 15,225 in 2015.
Today the OXXO chain is one of the largest customers of Coca-Cola FEMSA.
As part of the Heineken transaction, OXXO stores will continue to benefit from the existing relationship under which FEMSA Cerveza (now part of Heineken) will continue to be the exclusive supplier of beer to OXXO until June 2020.
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