EconomyFinancialPackaging shrinks! The Coca-Cola bottler bets on 'pocket' versions...

Packaging shrinks! The Coca-Cola bottler bets on 'pocket' versions to mitigate the rise in PET prices

Arca Continental , the second Coca-Cola bottler in Latin America, maintained its growth during the first quarter of the year, a period in which the company managed to mitigate the impact of the rise in raw materials as a result of its price and packaging initiatives and its operational discipline.

The Monterrey company registered a sales increase of 13.8% to 46,065 million pesos during the first three months of the year, from 40,475 million in the same period last year, according to financial statement data.

Regarding sales volume, the company reported an increase of 6.1%, driven by the growth of soft drinks and personal water, but without considering the jug. Meanwhile, the cost of sales increased 15.4%, as a result of the increase in raw materials, specifically PET.

To mitigate the rise in the cost of raw materials, the company launched a new personal 250-milliliter non-returnable PET package for soft drinks with the slogan “Friends of the Pocket”. “This new presentation allows us to provide affordability, attract new consumers and capture additional market share in traditional and modern channels,” the company said.

The investment in fixed assets in the period was 1,594 million pesos, which were oriented to investments in returnable bottles, coolers and marketing and execution capabilities at the point of sale. In addition to investments in automation and digitization of processes throughout the value chain and the modernization of information technology systems.

“During the remainder of 2022, we will continue to focus on maintaining the momentum of sales growth through innovative and sustainable business strategies that meet the needs of customers and consumers, to continue delivering financial and operating results that exceed the expectations of our shareholders” , said Arturo Gutiérrez, CEO of the company.

In Mexico, net sales grew 10.4% to 18,279 million pesos. Meanwhile, products with personal packaging grew 2.4% in the quarter, driven by growth in the food and beverage, convenience store, supermarket and entertainment channels, mainly in 600-milliliter, one-liter and 250-milliliter containers. non returnable. These presentations represent more than 75% of the growth.

In the period, the company also registered an 11% growth in its operating flow to 8,527 million pesos. Net profit reached 3,094 million, 19.7% higher compared to the same quarter of 2021.

The still category had the highest growth, due to increases in Powerade of 21% and Fuze Tea of 43%, as a result of an increase in its coverage in the traditional channel and innovations in new flavors and packaging such as Powerade Fit and Fuze Tea. Cinnamon apple.

The Bokados brand had double-digit growth in sales and EBITDA in Mexico, as a result of price increases and a continuous savings plan . The modern channel shows the greatest growth derived from the implementation of savings strategies and optimal management of discounts.

Net sales for the United States region increased 15.0% reaching. 17,429 million pesos. The South American division presented an increase in net sales of 18.3%, to 10,357 million.

“Towards 2022, in the United States and Mexico we will continue to observe a recovery environment and greater activity in various industries (mainly restaurants and tourism). Our attention will be on raw materials, in a year that considers an environment of higher inflation, in addition to a greater ‘normalization’ of activities after the peak of contagion at the beginning of the year that implied certain restrictions”, Monex said about the report in an analysis.

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