With the sale to Heineken, FEMSA will reconsider its market strategy
By Barbara Anderson and Adolfo Ortega
CNNExpansion.com
On Monday, Jan. 11, Fomento Economico Mexicano (FEMSA) revealed its agreement with Heineken to sell the iconic Cerveceria Cuauhtemoc Moctezuma that 120 years ago began an industrialization and development that spanned all areas of Monterrey society, creating what one historian describes as "a world of connections."
The company's chairman and chief executive, Jose Antonio Fernandez, said he had little choice. FEMSA Cerveza had lost share since the 90s when it had 55 percent of the market. At the time of the sale, its share had fallen to 43 percent in a market dominated by Grupo Modelo, half of its capital held by the Belgian firm InBev AB.
"This transaction is a trigger. It shows that we must dare to do things," Fernandez says in an interview with the magazine Expansion.
"The entry of the Heineken brand, whether it is as successful as in other countries, will automatically increase our market share," he said. "Now, we must rethink the overall strategy. As of February we will start a whole new planning process in which FEMSA will consider potential changes and what this operation is giving us," he said.
