FEMSA to Invest $1.1 bn in Brazil, Colombia

Latin America's largest bottling company Fomento Economico Mexicano or FEMSA has planned to invest $1.1 billion this year in new projects, including new plants in Colombia and Brazil.

Some $710 million will go toward maintenance and expansion at Coca-Cola FEMSA, as well as the construction of the two new plants in South America, CFO Javier Astaburuaga said.

The company plans to invest $350 million in the Oxxo convenience store chain to continue meeting the target of three new store openings per day, Astaburuaga said.

FEMSA expects to generate $600 million in excess cash this year that could be used for acquisitions at either of its two business units, the CFO said.

The company also sells bottled water, juices, tea, sports drinks, beer and other products.

Coca-Cola FEMSA has 34 bottling plants across Latin America and provides its products to 1.6 million retailers in the region.