Wednesday, 06/23/2004, 12:00:00 am
Monterrey, Mexico and Golden, Colorado – June 23, 2004 – Cervecería Cuauhtémoc Moctezuma, S.A. de C.V. ("CCM"), a subsidiary of FEMSA Cerveza, S.A. de C.V. ("FEMSA Cerveza") and an indirect subsidiary of Fomento Económico Mexicano, S.A. de C.V. ("FEMSA"), (NYSE: FMX; BMV: FEMSA UBD, FEMSA UB), and Coors Brewing Company ("Coors"), (NYSE: RKY), announced today that they have reached an agreement that will make CCM the sole and exclusive importer, distributor, marketer and seller of Coors Light beer in Mexico.
The renewable agreement for an initial term of 10 years, allows both parties to capitalize on a business opportunity that complements their core strategies. For FEMSA Cerveza, the agreement provides a high quality imported light beer that fits well with its existing portfolio. For Coors, it provides access to a powerful commercial and distribution network that will accelerate the growth of its Coors Light brand in the Mexican market.
Javier Astaburuaga, co-Chief Executive Officer of FEMSA Cerveza, commented: "At FEMSA we strive to be a premier customer-oriented beverage company, and we believe that the imported beer category in Mexico is underdeveloped. We will now serve this attractive market segment with Coors Light, the world's seventh largest selling beer brand. This brand enjoys very strong equity in its home market, and we intend to realize its significant potential in Mexico by complementing our already rich brand portfolio, and by leveraging our considerable commercial and logistical capabilities. This is an excellent business opportunity for both companies and we are enthusiastic about the possibilities it represents."
Peter Swinburn, President of Coors Brewers Worldwide, said, "The agreement with FEMSA Cerveza is a significant step in the continued growth of Coors' international volume and in expanding visibility of one of our key brands in the world's eighth largest beer market. With expansive market penetration and a solid track record in building long-term equity for brands, FEMSA Cerveza will be an excellent partner for us in Mexico. Their sophisticated sales and distribution operations will enhance customer loyalty for Coors Light by ensuring the freshness and availability of our beer at retail and on-premise locations across Mexico."
Founded in 1890, FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA the largest Coca-Cola bottler in the region; FEMSA Cerveza the second largest brewer in Mexico and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 2,800 stores. For more information on FEMSA, go to www.femsa.com.
About Coors Brewing Company:
Coors Brewing Company (CBC) is the third-largest U.S. brewer and the ninth largest brewer in the world. Coors sells its products in North America, Latin America, Europe, and Asia. Coors Light is the company's largest brand, and is the seventh largest beer brand in the world. Founded in 1873, Adolph Coors Company is the holding company for CBC, with its stock trading on the New York Stock Exchange under the symbol RKY. For more information on Coors, go to www.coors.com.