Coca-Cola FEMSA S.A.B. de C.V

What it is

Listed in Mexico City (KOFUBL) and New York (KOF), Coca-Cola FEMSA is the largest Coca-Cola franchise bottler in the world by sales volume, producing and distributing Coca-Cola beverages to more than 272 million consumers through roughly 2.1 million points of sale.

It runs 56 manufacturing plants and 252 distribution centres across territories in Mexico, Brazil, Guatemala, Colombia, Argentina, Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela. Beyond classic colas, its shelves now include sparkling waters, energy drinks, coffee, dairy, and plant-based drinks — and it distributes Heineken, Estrella Galicia, and Monster in select markets.

Who owns it

FEMSA — the Mexican industrial conglomerate — holds 47.9% of the company, The Coca-Cola Company holds 28.1%, and the remaining interest trades freely on the New York and Mexico City exchanges. Together, the two anchor shareholders control more than three-quarters of the stock and set the strategic direction.

FEMSA itself is controlled by the Garza family of Monterrey — one of Mexico’s most prominent industrial dynasties — though that parent stake is held through coordinated family vehicles rather than a single named individual. This dual ownership structure creates a unique corporate governance model where the world’s most iconic beverage brand and its largest Mexican industrial group share the boardroom.

Who runs it

Ian M. Craig García has been CEO since 2023, bringing more than 30 years in the beverage industry, including stints as chief operating officer of both the Brazil and Argentina divisions.

Gerardo Cruz Celaya has served as Chief Financial Officer since January 2023, appointed by the Board of Directors to succeed the previous CFO.

José Antonio Fernández Carbajal serves as Executive Chairman of FEMSA and sits on the Coca-Cola FEMSA board, giving the Garza family direct oversight at the holding-company level.

The money, in plain words

Sales grew from MXN 245.1 bn (US$14.1 bn) in 2023 to MXN 291.7 bn (~US$16.8 bn) in 2025 — a rise of nearly 19% over two years (our calculation) — as the company pushed higher prices and expanded volumes across South America. The company keeps about 7.9 cents of profit from every peso of sales — a net profit margin of 7.88% — which is modest by consumer-brand standards but typical for a capital-intensive bottler that must build plants, buy trucks, and chill refrigerators.

For every peso owners have put in, it earns about 16 back each year — a return on equity of 15.83%, solid for the sector. At 20 times earnings (a price-to-earnings ratio of 20×), the market prices it as a reliable compounder, not a high-growth story.

At a share price of around US$109.55 on NYSE, the stock has delivered a 21% total return over the past year.

What it is doing now

Management highlighted strong consolidated volume growth in 2025, including the strongest month in the company’s history in December, while preparing for 2026 volume pressure in Mexico due to an excise tax increase. That tax — levied on sugary drinks — arrived in 2026 and hit Mexico, the company’s largest and most profitable market, almost immediately.

In Q1 2026, overall volume grew 1.2% and revenue grew 1.1%, with South America delivering record quarters in Guatemala, Colombia, and Brazil — gains that helped offset volume pressure in Mexico from the excise tax hike and a softer consumer backdrop. The company also plans to use platforms such as the FIFA World Cup and revenue-management initiatives to support volumes and profitability.

What to watch

• Mexico tax drag. A major near-term risk is the beverage excise tax increase in Mexico; management is already forecasting potential low- to mid-single-digit volume declines in Mexico for 2026 as a direct result.
• South America as the offset. Consolidated volume growth is being supported by strong performances in Argentina, Brazil, Colombia, and Guatemala — if that momentum holds, it cushions Mexico’s pain.
• Currency. The company earns in pesos, reais, Colombian pesos, and more, but reports in Mexican pesos; a stronger US dollar or a weaker Brazilian real compresses results when translated for international investors.
• Ownership math. With FEMSA and Coca-Cola together holding 76% of shares, the free float is thin — that can amplify price moves and limits outside shareholder influence on strategy.

This is news, not investment advice.