Overview of Arca Continental’s Strategy
Arca Continental, through its subsidiary AC Bebidas, continues to advance its growth strategy by expanding its portfolio of alcoholic beverage distribution in Mexico, Peru, and Argentina. The aim is to capture new consumption occasions and generate additional growth sources in its most relevant Latin American markets.
Expansion Across Three Segments
This expansion focuses on three segments: ready-to-drink alcoholic beverages, spirits and distilled products, and beer.
- Ready-to-drink alcoholic beverages: Arca Continental is expanding its portfolio to capture new growth avenues by incorporating ready-to-consume products that blend brands like Jack Daniel’s & Coca-Cola, Bacardí & Coca-Cola, and Topo Chico-based beverages.
- Spirits and distilled products: The company is working on pilot distribution programs in Mexico, Peru, and Argentina, integrating 16 SKUs from Diageo brands into its portfolio. This includes Johnnie Walker (including Black Label), Buchanan’s, Smirnoff, Baileys, and Tanqueray.
- Beer: Arca Continental is advancing with the creation of operational and commercial synergies through a pilot program with Heineken in Mexico, Peru, and Argentina, which has reportedly been “successful.”
Company Background and Relevance
Arca Continental has been in operation for over 130 years, maintaining iconic brands like Topo Chico and a strategic alliance with The Coca-Cola Company since 1926. Its portfolio has grown to include more than 140 brands and 1,800 SKUs, driving categories such as still and carbonated waters, cola-based, and flavored beverages. The company holds market participation ranging from 39.7% to 83.8% in Mexico.
Key Questions and Answers
- What is Arca Continental’s growth strategy? Arca Continental aims to expand its alcoholic beverage distribution portfolio in Mexico, Peru, and Argentina to capture new consumption occasions and generate additional growth sources.
- Which segments is Arca Continental focusing on for expansion? The company is targeting three segments: ready-to-drink alcoholic beverages, spirits and distilled products, and beer.
- What brands is Arca Continental incorporating into its portfolio? Arca Continental is integrating ready-to-consume products from brands like Jack Daniel’s & Coca-Cola, Bacardí & Coca-Cola, and Topo Chico-based beverages. In the spirits and distilled products segment, it is distributing 16 SKUs from Diageo brands such as Johnnie Walker, Buchanan’s, Smirnoff, Baileys, and Tanqueray. In the beer segment, Arca Continental is collaborating with Heineken in Mexico, Peru, and Argentina.
- What is Arca Continental’s history and relevance in the beverage industry? With over 130 years of operation, Arca Continental maintains iconic brands like Topo Chico and has a strategic alliance with The Coca-Cola Company since 1926. Its portfolio comprises more than 140 brands and 1,800 SKUs, driving various beverage categories in Mexico.
