2970_AboutUs.jpgAbout Us
  • BMV:CULTIBA
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Key Reasons to Invest in Cultiba

1. GEPP, our beverages division, is the only beverage bottler with a nationwide distribution network

This has led to an enhanced presence of GEPP's brands in the Mexican market. As a result, in 2014 the combined volume of soft drinks and jug water increased to 1,614 million unit cases, representing year-over-year growth of 0.4%.

Direct distribution of drinks under PepsiCo, GEPP's proprietary brands and third-parties brands allows our beverages division to serve close to 740,000 points of sale. GEPP has specialized routes for the different distribution channels served: traditional market, convenience stores and supermarkets, on-premise, post-mix dispensers, vending machines and special events.

Meanwhile, GEPP's jug water distribution network consists of direct-to-home routes across three channels of sale: households, stores and institutions.

In 2014, GEPP continued improving and modernizing several of its bottling plants and distribution centers, optimizing production, commercial and management processes.

 

2. An integrated business model in order to achieve operating efficiency

Whereby we have achieved important operating and production synergies that have driven   margin expansion and will enable us to continue optimizing our operations in a sustainable way.

Three partners with complementary strengths and proven capabilities:

 

GEUSA:

  • Deep market knowledge
  • First PepsiCo JV outside the USA market
  • Water jug (5 gal) direct-to-home market 
  • Strong nationwide distribution networks in retail and direct-to-home for bottled beverages and jug water

 

Polmex:

Operational expertise  in the Food and Beverages industries:

  • Portfolio development
  • Differentiated go-to-market 
  • Proven Pepi-Cola Latin America experience

 

PepsiCo:

  • Strong / leading brands
  • Product innovation
  • Shared procurement
  • Investment commitment

 

Most of the initiatives undertaken for the extraction of synergies and improvement of margins have been implemented in supply chain, distribution, technology unification, operating integration and management optimization process.

By the end of 2013, we realized a total of Ps.900 million in identified synergies, resulting from the merger of three bottling operators that today comprise our nationwide network.  During 2014 we implemented a savings program to cope with the macroeconomic challenges that the beverages industry faced. Such program resulted in additional operating efficiencies that enhanced our cost structure.

Integration Synergies / Efficiencies:

Integration Stage Successfully Executed after 2 years of Operation and Continued Operating Improvements still going on

 

Procurement:

  • Leverage scale (key raw materials and other goods / services)

 

Supply Chain:

  • Reduce transportation costs
  • Optimize manufacturing and distribution footprint
  • Incorporate strong brand's  logistics into GEPP's network

 

Organization:

  • Eliminate duplicities/redefine roles
  • Standardize human capital ratios  
  • Integrate IT

 

Procurement:

  • Leverage vertical integration
  • Process optimization

3. A wide portfolio of leading brands

Comprised of brands that focus on the most relevant categories for  the Mexican market.

Our beverages division has realigned and adjusted its product portfolio so as to focus on its strongest brands with nationwide presence.

 

Our beverages division has repositioned the main products from PepsiCo, GEPP's proprietary brands and third-party brands, by means of new bottle designs and a focused price-packaging strategy, among other innovations. In addition, GEPP has continued to strengthen its carbonated and non-carbonated drinks categories.

4. An appealing market

Reinforcing growth and offering important opportunities for GEPP's beverages portfolio.

GEPP's geographical presence and scope create an ideal strategic position for our beverages division, enabling it to take advantage of the opportunities for growth that the Mexican beverage market offers.

Our beverage division seeks to replicate the portfolio Mexican consumers require currently, focusing its development and innovation plans in the most relevant categories. The idea is to offer appealing products within each category, in line with the evolution of the domestic market.

 

 

5. Vertical integration provides natural hedge.