FMX:US | FEMSA

FEMSA is a beverage and retail conglomerate based in Monterrey, Mexico. It owns the country’s largest c-store chain OXXO, 47.2% of the world’s largest Coca-Cola bottler Coca-Cola FEMSA and 14.8% of the world’s second largest brewer Heineken. OXXO is one of the best retail assets in LatAm. It dominates Mexico with 20k+ stores and a market share of 85%. Despite the scale of its retail arm, management sees runway to double the OXXO store footprint over the next decade with especially the expansion into Brazil picking up steam. Two big unknowns for this case long-term are M&A outside LatAm at elevated prices and upside from FEMSA’s mobile wallet SPIN.

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