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Mexico Coca-Cola bottler eyeing controlling stake in Philippine counterpart

22-Feb-12, 8:50 AM | Reuters

InterAksyon.com
The online news portal of TV5

MEXICO CITY - The world's largest coke bottler, Coca-Cola FEMSA, on Monday (Tuesday in Manila) said it is considering buying a controlling stake in Coca-Cola Co's Philippine bottling operations.

The Mexican company said it signed a year-long exclusive agreement with the US beverage giant Coke to give it first dibs on the Asian bottler.

"Both parties believe that KOF's expertise and successful track record operating in fragmented markets and emerging economies can be effectively deployed in this territory," the companies said in a statement.

KOF has experience working in Mexico, a massive market for bottled drinks, and also in Central and South America. This would be its first foray outside of the region.

Coke FEMSA went on a buying spree in Mexico last year and analysts on average expect the company to post a 16.6 percent jump in fourth-quarter earnings when it reports next week.