By Anthony Harrup
MEXICO CITY--Mexican Coca-Cola bottler Arca Continental SAB
(AC.MX) said on Wednesday that it intends to invest 5.2 billion
pesos ($341 million) this year, up from 4.1 billion pesos in 2014,
as it pursues plans to expand and upgrade its operations in Mexico
and South America.
Following its annual shareholder meeting, Arca Continental said
60% of the capital expenditures will be made in Mexico.
Projects in Mexico include automation and upgrading of the
company's bottling plant in its home city of Monterrey and
expansion of its Bokados snacks factory. The company will also
build a new plant for its Tonicorp dairy products business in
Ecuador and a new Coca-Cola bottling plant in that country.
Arca Continental is also building a soft-drinks facility in
Corrientes, Argentina.
The company is the second-largest Coca-Cola bottler in Latin
America by sales, behind Mexican bottler Coca-Cola Femsa (KOF,
KOF.MX). It had sales of 62 billion pesos ($4.1 billion) in 2014,
generating earnings before interest, taxes, depreciation and
amortization of 13.6 billion pesos.
Beverage sales totaled 1.33 million unit cases last year, a 1.5%
decline from 2013.
Arca shares were recently quoted up 1% at 97.72 pesos on the
Mexican stock exchange.
Write to Anthony Harrup at anthony.harrup@wsj.com
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