Introduction to FEMSA and its New CEO
Fomento Económico Mexicano (FEMSA), a leading company in Latin America, celebrated its 135th anniversary with a commitment to long-term growth from its new CEO, Jose Antonio Fernández Garza-Lagüera. He emphasized that the company will continue making strategic decisions to avoid sacrificing long-term growth for short-term gains.
FEMSA’s History and Expansion
Founded in 1890 as the Cervecería Cuauhtémoc in Monterrey, FEMSA transformed into a global enterprise over time. In the 1980s, it strengthened its position through the merger of Cervecería Cuauhtémoc and Cervecería Moctezuma, focusing on beverages, retail, and logistics. By the 1990s, FEMSA became the primary bottler of Coca-Cola products in Latin America and expanded its retail presence with OXXO convenience stores.
Throughout the years, FEMSA diversified its portfolio by creating FEMSA Logística (later Solistica), OXXO Gas, acquiring Mexican and South American pharmaceutical groups, and purchasing foodvenience platform Valora with locations in Switzerland, Germany, Austria, Luxembourg, and the Netherlands. In 2024, FEMSA entered the US market by acquiring 249 convenience stores from Delek US Holdings, mainly in Texas.
FEMSA’s Strategic Focus Under New CEO
Jose Antonio Fernández Garza-Lagüera highlighted the importance of a long-term vision while maintaining a sense of urgency in execution. He stated, “I believe in thinking in decades while acting in days, balancing a long-term value creation vision with a sense of urgency. This requires methodically considering our strategy.”
Since 2023, FEMSA has been implementing its FEMSA Forward strategy to maximize long-term value creation in its retail, beverages, and digital ecosystem (Spin) businesses. The company has divested approximately $11 billion in assets over the past 36 months and allocated undisclosed amounts for expansion.
Key Actions and Investments
- Divestiture of $11 billion in assets over the past 36 months
- Allocation of undisclosed amounts for strategic expansion
- Focus on innovation, digitalization, responsible growth, and strengthening organizational culture
Key Questions and Answers
- Who is Jose Antonio Fernández Garza-Lagüera? He is the newly appointed CEO of Fomento Económico Mexicano (FEMSA), a leading company in Latin America.
- What is FEMSA Forward? It is a strategic plan implemented by FEMSA since 2023, focusing on maximizing long-term value creation in its retail, beverages, and digital ecosystem businesses.
- What does it mean to “not mortgage the future of the company for short-term fixes at the expense of long-term growth”? It means prioritizing sustainable, long-term growth over short-term profits that could compromise the company’s future potential.
- What are some of FEMSA’s recent strategic actions? FEMSA has divested around $11 billion in assets, allocated undisclosed amounts for expansion, and focused on innovation, digitalization, responsible growth, and strengthening its organizational culture.
