EVOLUTION
COCA-COLA FEMSA Integrated Report 2021
More than an evolution, we're igniting a business
re-evolution.
Our strategic growth and industry leadership is driven by
our purpose to refresh the world anytime, anywhere—
always finding the most efficient and sustainable way to
put our consumer's choice in their hands whenever and
wherever they want it.
Guided by our purpose, we're working seamlessly,
collaboratively, and agilely across six strategic corridors:
Build out an Open Omnichannel Platform; Develop
a Winning Consumer-Centric Portfolio; Foster an
Agile, Digital Savvy, and People-Centric Culture; Place
Sustainability at the Heart of our Organization; Digitize the
Core; and Actively pursue Value-Enhancing Acquisitions.
Letter to Our Stakeholders
CFO Interview
CAO Letter
1 Overview
5
8
12
14 Our Experienced Management Team
16 Our Footprint
18
Financial & Sustainability
Highlights
21 Our Value Chain
2 Our
Framework
Strategy
Sustainability
Sustainable Financing
23
24
27
3 Our Strategic
Corridors
30 Develop a Winning Consumer-
Centric Portfolio
40 Build out an Open Omnichannel
46
70
Platform
Place Sustainability at the Heart
of our Organization
Foster an Agile, Digital Savvy, and
People-Centric Culture
CONTENTS
4 Appendices
82
Financial Summary
84 Management’s Discussion
88
89
92
94
95
96
97
99
and Analysis
Capital & Company Engagement
Comprehensive Risk Management
Corporate Governance
Integral Ethical System
Turnover
Recognitions
Independent Verification
Shareholder and Analyst
Information
100 About Our Integrated Report
Overview
Our Framework
Our Strategic Corridors
Appendices
4
OVERVIEW
Overview
Our Framework
Our Strategic Corridors
Appendices
5
CHAIRMAN’S AND CEO’S LETTER
TO STAKEHOLDERS
DEAR FELLOW
STAKEHOLDERS
This year highlighted our business’s resilience, adaptability,
and agility. In these unprecedented times, our resilience was
evident in our company’s ability to protect the safety and
wellbeing of our people, while delivering accelerated results
across all of our strategic fronts—from portfolio management
and digital transformation to milestones in sustainable
development—highlighted by our issuance of the first ever
sustainability-linked bonds in the Mexican market.
José Antonio Fernández Carbajal
Chairman of the Board
John Santa Maria Otazua
Chief Executive Officer
Overview
Our Framework
Our Strategic Corridors
Appendices
6
Consistent with our strategy, we are further adapting and reshap-
ing our company to thrive in the new global business environ-
ment. Together with The Coca-Cola Company and the Coca-Cola
System in Brazil, we redesigned our distribution partnership with
Heineken. This agreement enables us to continue our relationship
with Heineken as a key partner, allowing us to serve the Brazilian
market with a customer-centric portfolio of premium, mainstream,
and economy brands and affording us the flexibility to further
complement our portfolio. To this end, we acquired Brazilian craft
beer brand Therezópolis, and we agreed to distribute Estrella
Galicia’s beer portfolio in Brazil.
Savvy, People-Centric Culture; Place Sustainability at the Heart of
our Organization; Digitize Our Core; and Actively pursue Value-En-
hancing Acquisitions.
To this end, we’re developing a winning consumer-centric portfolio that
is allowing us to consolidate our industry leadership within the non-al-
coholic ready-to-drink (NARTD) space. Underscored by the success of
the new formula and visual identity of Coca-Cola Zero Sugar, our spar-
kling beverage category posted solid volume and share growth, while
our still beverage and personal water categories achieved double-digit
growth and share gains across most of our territories.
Importantly, we worked with The Coca-Cola Company to bolster
our successful, longstanding relationship. Our enhanced coopera-
tion framework ensures the long-term alignment of our partner-
ship, growth plans, and strategies—enabling us to not only continue
building a winning consumer-centric portfolio, but also explore new
multi-category opportunities across our markets while we develop
new strategic digital initiatives.
On the omnichannel front, we accelerated the expansion of our B2B
customer-centric omnichannel commercial platform. To give you
a sense, we now have approximately 300 thousand active monthly
purchasers, up over twofold from a year ago. Notably, digital pur-
chases now represent over 6% of our total orders, generating close
to US$360 million in sales. This marks triple-digit growth in our digi-
tal orders and revenues compared with 2020.
Consistent with this framework, we’ve already rolled out pilot pro-
grams to test the distribution of complementary categories such
as spirits, other alcoholic beverages, and consumer brands in cer-
tain markets—working together to improve distribution economics
and open new revenue streams by providing other leading brands
access to our company’s deep customer relationships, distribution
network, and rapidly evolving omnichannel commercial platform.
Re-Evolving Business, Vision & Strategy
Aligned with our purpose and our vision, we are working across six
strategic corridors: Build out an Open Omnichannel Platform; De-
velop a Winning Consumer-Centric Portfolio; Foster an Agile, Digital
We worked with The Coca-Cola Company
to bolster our successful, longstanding
relationship.
Additionally, in the direct to home channel, we substantially in-
creased the number of home delivery routes—from almost 800
routes to over 1,200 routes, allowing us to reach close to 600 thou-
sand Mexican households.
We’ve further deepened our company’s commitment to sustainable
development, placing sustainability at the heart of our organiza-
tion. As a result of our Climate Action Strategy, 85% of our bottling
operations’ power came from clean energy sources, up more than
fourfold from 2015. We increased the use of recycled materials in our
PET packaging to 31%, while increasing the collection of bottles that
we put into our markets, thus accelerating the transition to a circu-
lar economy. Through our water stewardship, we improved our wa-
ter use ratio to an average of 1.47 liters of water per liter of beverage
produced, an industry benchmark. Furthermore, we issued the first
sustainability-linked bonds in the Mexican market, enabling us to
align our financial strategy with the achievement of ambitious wa-
ter efficiency targets that are now public commitments. Indeed, for
the second consecutive year, our sustainability (ESG) performance
We substantially increased
the number of home delivery
routes—from almost 800
routes to over 1,200 routes,
allowing us to reach close
to 600 thousand Mexican
households.
Overview
Our Framework
Our Strategic Corridors
Appendices
7
enabled us to be the only Mexican company in our sector included in
the S&P Global Sustainability Yearbook 2022.
Aligned with our commitment to ESG, we acknowledge the importance
of evolving towards a more balanced governance model to enrich our
corporate governance profile. We are working to ensure our board’s
composition includes the skills, experiences, diversity, and capabilities
required to provide effective oversight into the future.
To win in the market and our industry, we are re-evolving the way we
work, creating an agile, digital savvy, culture while we continue to fos-
ter a diverse, inclusive, and people-centric culture. To improve gender
diversity, we’re systematically working to recruit, develop, and retain
female talent at all levels of the organization. Indeed, this is the fourth
consecutive year that Coca-Cola FEMSA is part of the Bloomberg Gen-
der-Equality Index.
Looking ahead, we plan to actively pursue value-enhancing acquisi-
tions. We’re not only exploring traditional opportunities to shape our
company’s future NARTD footprint, but also prioritizing adjacent cat-
egories for portfolio expansion. To this end, we acquired Brazilian craft
beer brand Therezópolis, our first ever acquisition in the beer segment.
We also acquired Brazilian Coca-Cola bottler CVI Refrigerantes Ltda.,
bolstering our NARTD leadership position in the region.
Performance
As we navigated a dynamic environment, our focus on affordabili-
ty and execution enabled us to deliver 5.3% year-over-year volume
growth—2.6% ahead of our 2019-baseline year. For the year, total rev-
enues increased 6.1% to Ps. 194.8 billion. Operating income improved
8.6% to Ps. 27.4 billion. Operating cash flow increased 4.0% to Ps. 38.8
billion. Controlling net income rose 52.4% to Ps. 15.7 billion to achieve
earnings per share of Ps. 0.93 and per unit of Ps. 7.48 (Ps. 74.77 per ADS).
Notably, our return on invested capital improved for the fifth consec-
utive year, closing out the year in the double digits. Moreover, our net-
debt-to-EBITDA ratio ended the year at 0.9 times—while our cash posi-
tion was more than Ps. 47 billion—reflecting our strong balance sheet,
while putting us in a great position to grow.
As we move forward, one of our key strengths is our business relation-
ship with The Coca-Cola Company. Working together, we’re able to
successfully navigate ever changing macroeconomic and industry dy-
namics, driving a consumer-centric approach and fundamental trans-
formation in the way we operate and collectively go to market.
Building on this longstanding relationship, our overarching strategic
priorities are to accelerate the build out of our open omnichannel com-
mercial platform; and ensure the necessary investment behind our ca-
pabilities to escalate our business growth.
When we reflect on our vision for Coca-Cola FEMSA and the actions
we’re taking, we are confident that we are building the right set of ca-
pabilities to expedite our company’s growth and value creation for
many years to come.
On behalf of our employees, we thank you for your continued confi-
dence in our ability to deliver economic value and to generate social
and environmental wellbeing for you all.
José Antonio Fernández Carbajal
Chairman of the Board
John Santa Maria Otazua
Chief Executive Officer
Our focus on affordability
and execution enabled us to
deliver 5.3% year-over-year
volume growth—2.6% ahead
of our 2019-baseline year.
Overview
Our Framework
Our Strategic Corridors
Appendices
8
INTERVIEW
WITH
OUR CFO
Constantino Spas, our company’s
Chief Financial Officer, reflects on
our company’s ability to navigate a
dynamic market environment and
deliver accelerated results across all of
our strategic fronts. He discusses the
strategic importance of our enhanced
cooperation framework with The
Coca-Cola Company, redesigned
distribution partnership with Heineken,
approach to value-enhancing
acquisitions, first ever sustainability-
linked bonds in the Mexican market,
and disciplined capital allocation.
Constantino Spas
Chief Financial Officer
Overview
Our Framework
Our Strategic Corridors
Appendices
9
This year, we
successfully navigated
a dynamic market
environment to
deliver accelerated
results across all of our
strategic fronts.
Q) Constantino, how would you reflect on the company’s perfor-
Q) Given its strategic importance, could you elaborate further on the company’s
mance for the year?
enhanced cooperation framework with The Coca-Cola Company?
A) This year, we successfully navigated a dynamic market environment
to deliver accelerated results across all of our strategic fronts. We
strengthened key longstanding partnerships, accelerated the build
out of our customer-centric B2B and D2C omnichannel commercial
platforms, achieved key milestones in our sustainable development,
capitalized on value-enhancing acquisition opportunities, and
emerged even stronger from the pandemic—closing the year with
escalating momentum by delivering solid top- and bottom-line
growth, coupled with share gains across our territories.
Thanks to our consistent strategic execution, we achieved con-
solidated volume growth of 5.3% year over year, improving 2.6%
compared to our 2019 baseline. Consolidated revenues rose 6.1%,
surpassing our 2019 baseline, and operating income grew 8.6%, in-
creasing 7.8% compared with 2019. This enabled us to finish the year
with a very solid financial foundation while continuing to improve
our return on invested capital (ROIC). We further increased our an-
nual dividend, delivering on our commitment to our shareholders.
Perhaps most importantly, based on our enhanced coopera-
tion framework with The Coca-Cola Company, we’re reshaping
our company to thrive in the new global business environment.
Aligned with our purpose to refresh the world anytime, anywhere,
we are working seamlessly and collaboratively across six strate-
gic corridors: Build out an Open Omnichannel Platform; Develop a
Consumer-Centric Winning Portfolio; Foster an Agile, Digital Savvy,
and People-Centric Culture; Place Sustainability at the Heart of our
Organization; Digitize the Core; and Actively pursue Value-Enhanc-
ing Acquisitions.
A) Our enhanced cooperation framework is great news for both of our companies. It
further strengthens our relationship, ensuring long-term alignment and certainty,
positioning us to accelerate further towards our shared purpose of refreshing the
world. Specifically, this enhancement will ensure long-term alignment in the fol-
lowing key areas:
1) Growth plans. We have agreed to build and align long-term strategies and
business plans to ensure coordinated execution. These growth plans aim to in-
crease our operating income via top-line growth, volume expansion, cost and ex-
pense efficiencies, and the implementation of marketing and commercial strate-
gies and productivity programs.
2) Relationship economics. We have agreed to ensure that the economics of our
business and management incentives are fully aligned towards long-term system
value creation, always considering investment and profitability levels that are ben-
eficial to both The Coca-Cola Company and Coca-Cola FEMSA.
3) Potential new businesses and ventures. As the system continues to evolve, we
agree to explore potential new businesses and ventures, such as the distribution
of beer, spirits, and other consumer goods. Indeed, we’ve already rolled out pilot
programs to test the distribution of complementary categories in certain mar-
kets—thereby working together to improve distribution economics and open new
revenue streams by providing other CPG brands access to our deep customer re-
lationships and robust distribution network.
4) Lastly, through a joint general framework for digital initiatives, we acknowledge
the great opportunity to develop a joint digital strategy across strategic corridors.
Crucially, through our enhanced cooperation framework, we have not only
renewed and reinforced our successful longstanding relationship with
The Coca-Cola Company—which remains one of our key strengths—but also
empowered our business’s re-evolution.
Overview
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Appendices
10
Q) Could you brief us on the company’s redesigned distribution
partnership with Heineken, as well as the company’s steps to
further complement its beer portfolio in Brazil?
Q) Could you also expand on the company’s strategic approach to
value-enhancing acquisitions, particularly in light of its two re-
cent acquisitions in Brazil?
A) As part of our key strategic priorities, together with the Coca-Cola
A) Aligned with our strategy, we are not only exploring global
We furthered capitalized on
an excellent opportunity to
complement our portfolio by
acquiring Brazilian craft beer
brand Therezópolis.
opportunities to shape our company’s non-alcoholic ready-to-
drink (NARTD) footprint of the future, but also prioritizing adjacent
categories and capabilities that enhance our value proposition and
foster our multi-category portfolio expansion, reaching customers
and consumers across multiple channels with a wide array of
products and services.
As exemplified by our two recent acquisitions, any future invest-
ment must be completely aligned with our vision and strategy, be
value accretive for our shareholders, and be consistent with our ex-
tremely disciplined approach to capital allocation.
With these criteria in mind, we recently closed our acquisition of
CVI, a Coca-Cola franchise bottler with operations in southern Bra-
zil. This bolt-on acquisition bolsters our leadership position in the
region—to reach 52% of the Coca-Cola System’s volume in Brazil—
adding to our operation one bottling facility and three distribution
centers that serve more than 13 thousand points of sale and more
than 2.8 million consumers in a territory that is full of synergies and
market opportunities. We also acquired Brazilian craft beer brand
Therezópolis, together with Coca-Cola Andina. Marking our first ever
acquisition of a beer brand, this acquisition advances our long-term
strategy to complement our beer portfolio in the region.
System, we successfully redesigned our distribution partnership
with Heineken. This represents a win-win for the Coca-Cola System,
Heineken, and most importantly, our customers and consumers in
Brazil, who will benefit from a wider array of options.
In particular, this agreement allows our company to:
i) Strengthen our beer portfolio with solid premium, mainstream,
and economy brands from Heineken’s portfolio.
ii) Align our interests and provide flexibility: The Coca-Cola Sys-
tem will be able to produce and distribute other beers and alco-
holic beverages, subject to certain mutually agreed upon terms.
iii) Capture distribution synergies within the system, allowing for
stronger economics.
As part of this new agreement—which became effective mid-
2021—we completed the transition of the Heineken and Amstel
brands to Heineken Brazil’s distribution network. We also lever-
aged our continuing relationship with Heineken as a key partner
to complement our existing beer portfolio, including the Kaiser,
Bavaria, and Sol brands, with Eisenbahn, a premium brand, and Ti-
ger, a pure malt mainstream brand, from Heineken’s portfolio. We
furthered capitalized on an excellent opportunity to complement
our portfolio by acquiring Brazilian craft beer brand Therezópolis,
together with Coca-Cola Andina, and by entering into a distribu-
tion agreement with leading Spanish brewer Estrella Galicia, to-
gether with the Coca-Cola System in Brazil.
Moving forward, the redesign of this successful distribution part-
nership with Heineken and, more importantly, the realignment of
incentives, combined with our capabilities to develop the market,
make us confident that we will continue growing and developing
the beer category as we have successfully done in the past—build-
ing a solid portfolio of premium, mainstream, and value brands.
Overview
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Appendices
11
Q) Could you briefly discuss the proactive initiatives taken to
strengthen the company’s balance sheet and financial position
in what was still a very dynamic environment?
A) Consistent with our financial discipline, we continued to take ad-
vantage of favorable capital market conditions with our issuance of
the first ever sustainability-linked bonds in the Mexican market.
Building on last year’s issuance of what was the largest ever green
bond for a Latin American corporation, we are very proud to con-
tinue making history in terms of our sustainable financing, and we
are confident that these efforts will not only have a positive environ-
mental impact, but also bolster the commitment to sustainability
across our industry.
Through this milestone transaction, we further extended the aver-
age life of our debt from 7 to approximately 9 years, while reducing
our average interest expense. We also continued to adhere to our
policy of zero net debt exposure to U.S. dollars.
Today, we enjoy a comfortable and conservative debt profile, with
more than 85% of our debt maturing beyond 2025.
Q) Finally, could you briefly review Coca-Cola FEMSA’s disciplined
approach to capital allocation?
A) At this point, we are well positioned financially and operationally to
take advantage of any compelling inorganic growth opportunities
that may arise. As of December 31, 2021, our net debt-to-EBITDA ratio
closed below 1.0 time, compared to 1.13 times at the end of 2020, and
we finished the year with a cash position of more than Ps. 47 billion.
Q) In light of its strategic significance, could you elaborate further
on the company’s issuance of the first ever sustainability-linked
bonds in the Mexican market?
A) Certainly, consistent with our financial discipline, strong credit pro-
file, and commitment to sustainability, we issued the first ever sus-
tainability-linked bonds in the Mexican market for Ps. $9.4 billion.
These bonds were priced in two tranches: (i) Ps. 6.9 billion at a fixed
rate of 7.36% due in 7 years, and (ii) Ps. 2.4 billion at a variable rate
of TIIE + 5 basis points due in five years. This transaction received
broad participation from investment-grade dedicated investors,
confirming Coca-Cola FEMSA’s financial strength and position as a
sustainable financing leader.
As part of this transaction—and aligned with our commitment to
place sustainability at the heart of our organization—we are public-
ly committed to achieve a water use ratio of 1.36 liters of water used
per liter of beverage produced by 2024, and a water use ratio of 1.26
by 2026. Today, our water use ratio is 1.47 liters, a benchmark of wa-
ter efficiency for the Coca-Cola System.
With that in mind, we will leverage our disciplined approach to cap-
ital allocation as we evaluate inorganic growth opportunities from
both a strategic and value standpoint. Aligned with a clear frame-
work for value-enhancing acquisitions—as exemplified by our re-
cent Brazilian transactions—we look to pay a correct valuation,
including clearly identifiable synergies; to create value for our share-
holders; to diversify our operations across geographies, categories,
and currencies; and to expand our multi-category portfolio, prioritiz-
ing promising adjacent categories and capabilities for expansion.
With regards to CAPEX, we will continue to take a very disciplined
approach to capital allocation, using our cash control tower meth-
odology to ensure that we maintain solid cash flow generation.
Guided by a CAPEX-to-revenue ratio of from 7% to 8%, we expect
that these investments will primarily focus on strengthening our
infrastructure—especially our affordability capacity—and investing
behind assets that increase our market presence in order to ensure
our long-term growth and re-evolution.
We are very proud to continue
making history in sustainable
financing as exemplified by
our issuance of the first ever
sustainability-linked bonds in
the Mexican market.
Overview
Our Framework
Our Strategic Corridors
Appendices
12
CAO’S LETTER TO
STAKEHOLDERS
In Coca-Cola FEMSA, we are placing sustainability
at the heart of our organization. Throughout
our operating structures and geographies, it
represents the strategic pillar that guides our
business decisions. Working together, we are
tackling sustainability challenges in a holistic way
with focus on the our people, our community and
our planet pillars.
María del Carmen Alanis Figueroa
Corporate Affairs Officer
Overview
Our Framework
Our Strategic Corridors
Appendices
13
Notably, on September
21st, 2021, we placed the
first sustainability-linked
bonds in the Mexican
market for Ps. 9.4 billion
(US$470 million).
We recognize the great responsibility that our company
has as part of a global ecosystem, and we reinforce our
commitment to positively contribute to the development
of the communities where we operate. We view sustain-
ability as an interrelated system in which every action that
our company undertakes directly impacts our society and
our environment.
We’re committed to create social, environmental, and eco-
nomic value by encouraging dialogue and continuous in-
teraction with our interest groups in order to develop and
deploy programs and initiatives that address their particu-
lar needs and ensuring the construction of responsible en-
vironments throughout our value chain.
Now, we’ve set our sights on new ambitions and a new re-
cap, recognizing that we can only address the challenges
we face both internally and externally through cooperative,
equitable, and solid alliances, mainly focused on interest
groups with an inclusion and diversity scope.
Consistent with our commitment to our social footprint,
in collaboration with The Coca-Cola Company, The
Coca-Cola Foundation, and FEMSA Foundation, together
we carry out projects designed to improve communities’
standard of living by helping them with digital training
and economic empowerment, and community wellbeing,
while working to provide them with safe water, improved
sanitation, and hygiene education. Additionally, we work to
strengthen water funds and conserve water basins through
sustainable initiatives involving partnerships with several
key stakeholders.
Notably, on September 2021, we placed the first sustain-
ability-linked bonds in the Mexican market for Ps. 9.4 bil-
lion (US$470 million). For this first issuance, we’re focusing
on the sustainable and efficient use of water, committing
to the achievement of a water use ratio of 1.26 liters of wa-
ter per liter of beverage produced by 2026. This milestone
transaction was made possible by the collaboration of our
tremendous multidisciplinary team of executives, who rep-
resented all engaged areas of our company. This reinforces
our commitment to a comprehensive water management
strategy, guaranteeing efficient use, promoting conserva-
tion and replenishment, and facilitating access to safe wa-
ter in the communities where we operate.
Looking ahead, our communication strategy will become
an important component of our business strategy. Our
goal is to reposition our corporate brand and identity to en-
hance our company’s reputation among different external
audiences, providing powerful messages.
Coca-Cola FEMSA is in the process of updating and strength-
ening its ESG (environmental, social, and governance) strat-
egy. This way, we will boost our business's ability to manage
operational risks and reinforce our company’s ability to rec-
ognize and take advantage of potential opportunities.
Overview
Our Framework
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Appendices
14
OUR EXPERIENCED
MANAGEMENT TEAM
Aligned with our purpose to refresh the world anytime, anywhere, our
experienced management team is inspiring a business re-evolution.
Underpinned by KOF DNA, they’re leveraging our strengths to guide
our accelerated business growth and re-evolution, and to achieve our
long-term strategic priorities. Empowered by their example, we aim to
not only consolidate our leadership position in the global beverage in-
dustry, but also adapt and reshape our company to thrive in the new
global business environment.
John Anthony
Santa Maria
Otazua
Chief Executive
Officer
Constantino Spas
Montesinos
Chief Financial
Officer
Karina Paola
Awad Pérez
Human
Resources Officer
Bruno Juanes
Gárate
Commercial
Development
Officer
María del Carmen
Alanis Figueroa
Corporate
Affairs Officer
Mr. Santa Maria joined Coca-Cola FEMSA in
1995 and was appointed to his current po-
sition in 2014. With 39 years of experience
in the beverage industry, he previously
served in several senior management
positions in our organization, including
Chief Operating Officer of the South
America Division, the Mexico Division,
and other C-suite roles such as Strategic
Planning, Commercial Development, and
Mergers & Acquisitions. He is a member of
the Boards of Compartamos Banco,
Coca-Cola FEMSA, and FEMSA Foundation.
Mr. Santa Maria earned a Bachelor’s degree
and an MBA with a major in Finance from
Southern Methodist University.
Mr. Spas joined Coca-Cola FEMSA in 2018
as Strategic Planning Officer and was
appointed to his current position in 2019.
He has over 26 years of experience in the
food and beverage sector in Latin Amer-
ica with a demonstrated track record in
companies such as Bacardi, Kraft Foods,
SAB Miller, Grupo Mavesa, and Empre-
sas Polar. Mr. Spas earned a Bachelor’s
degree in Business Administration from
Universidad Metropolitana in Caracas,
Venezuela, and an MBA from Emory Uni-
versity Goizueta Business School in Atlan-
ta, Georgia.
Ms. Awad joined Coca-Cola FEMSA in
2018 and was appointed to her current
position in the same year. With almost
30 years of experience in the human re-
sources field, she previously served as Se-
nior Vice President of Human Resources
for Walmart Mexico and Central America,
and Vice President of Human Resources
for Walmart Chile. Ms. Awad is a member
of the International Women’s Forum in
Mexico, and she has received numerous
recognitions for her female leadership
role and human resources influence in
Latin America. Ms. Awad earned a Bache-
lor’s degree in Psychology from Pontifical
Catholic University of Chile and an MBA
from the Adolfo Ibáñez School of Man-
agement in Miami. She is also a Newfield
Network Certified Executive Coach.
Mr. Juanes joined Coca-Cola FEMSA in 2021
and was appointed to his current position
in the same year. With over 30 years of ex-
perience in digital transformation, innova-
tion, business model design, and manage-
ment consulting, he previously served as
LATAM Region CEO of the Management
Consulting Division within NTTData, Chief
Digital Innovation Officer, Core Business
Operations Portfolio Leader, and mem-
ber of the executive committee at Deloitte
Consulting Mexico, and Chief Digital and
Innovation Officer for Grupo Xignux. Mr.
Juanes earned a Bachelor’s degree in Or-
ganic Chemistry from Universidad Autóno-
ma de Madrid, a degree in Molecular Biol-
ogy from University of California, Berkeley,
and completed a General Management
Program at IESE in Madrid.
Ms. Alanis joined Coca-Cola FEMSA in 2021
and was appointed to her current posi-
tion in the same year. With more than 30
years of experience in the public sector,
she previously served as Executive Director
of Electoral Training and Civic Education,
Executive Secretary of the Federal Elector-
al Institute, and President of the Federal
Electoral Court of Mexico (TEPJF). She also
served as Mexico’s representative before
the Venice Commission of the Council of
Europe, Mexico’s representative before the
Follow-up Mechanism of the Belém do
Pará Convention, and Consultant for Latin
America at the Kofi Annan Foundation. Ms.
Alanis earned a Master’s degree in Compar-
ative Government from the London School
of Economics and a PhD in Law from the
National Autonomous University of Mexico.
Overview
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Appendices
15
Rafael Ramos
Casas
Supply Chain and
Engineering Officer
Ignacio
Echevarría
Mendiguren
Digital and
Technology Officer
Washington
Fabricio Ponce
García
Chief Operating
Officer—Mexico
Ian Marcel Craig
García
Chief Operating
Officer—Brazil
Eduardo
Guillermo
Hernández Peña
Chief Operating
Officer—Latin
America
Mr. Ramos joined Coca-Cola FEMSA in 1999
and was appointed to his current position
in 2018. With over 31 years of experience in
the beverage industry, he previously served
in several senior management positions, in-
cluding Manufacturing Director for South-
east Mexico, Manufacturing and Logistics
Director, Supply Chain Director for Mexico
and Central America, and Supply Chain
Director of FEMSA Comercio. Mr. Ramos
earned a Bachelor’s degree in Biochemical
Engineering and an MBA in Agribusiness
from the EGADE Business School of ITESM.
Mr. Echevarría joined Coca-Cola FEMSA
in 2018 and was appointed to his current
position in 2021. With over 25 years of ex-
perience in the IT industry, he previously
held IT management positions within the
Coca-Cola System, where he led various
IT strategy and digital transformation
projects developing and implementing
solutions in Spain (Cobega), Africa (Equa-
torial Bottler Company) and Europe
(Coca-Cola Europacific Partners). He also
served as a member of Telynet Group’s
board of directors, a multi-platform and
multi-category omnichannel business
solutions development company with
operations in the Americas, Europe, and
Africa. Mr. Echevarría earned a degree in
Industrial Engineering with a minor in
Industrial Organization and an MBA from
Instituto de Empresa in Madrid.
Mr. Ponce joined Coca-Cola FEMSA in 1998
and was appointed to his current position
in 2019. With over 23 years of experience in
the beverage industry, he previously served
in several senior management positions,
including Chief Operating Officer of the
Philippines, Managing Director of Central
America, Argentina, and Colombia, and
Director of Planning for Latin America
Region. Before joining Coca-Cola FEMSA,
he served as Managing Director for
Heineken in Brazil and Senior Consultant in
Bain & Company. An agricultural engineer,
Mr. Ponce earned a Master’s degree in
Economics from INCAE Business School in
Costa Rica.
Mr. Craig joined Coca-Cola FEMSA in 2003
and was appointed to his current position
in 2016. With over 27 years of experience in
the beverage industry, he previously served
in several senior management positions,
including Chief Operating Officer of Argen-
tina, CFO and Strategic Planning Director
of South America Division, CFO, Planning
and Corporate Affairs Director of Mercosur
Region, and Corporate Finance and Trea-
sury Director of Coca-Cola FEMSA. Mr. Craig
earned a Bachelor’s degree in Industrial
Engineering from ITESM, an MBA from the
University of Chicago Booth School of Busi-
ness, and a Master’s degree in International
Commercial Law from ITESM.
Mr. Hernández joined Coca-Cola FEMSA
in 2015 and was appointed to his current
position in 2018. With over 32 years of
experience in the beverage industry,
he previously served in several senior
management positions, including Strategic
Planning Director and New Business
Director of Coca-Cola FEMSA. Before
joining Coca-Cola FEMSA, he served as
CEO of Gloria Alimentos and Beer Business
Director of Empresas Polar in Venezuela. Mr.
Hernandez earned a Bachelor’s degree in
Business Administration from Universidad
Metropilitana in Caracas, Venezuela,
and an MBA from the Kellogg School of
Management at Northwestern University.
Overview
Our Framework
Our Strategic Corridors
Appendices
16
MEXICO
74.3 million people served
833K points of sale
22 plants
132 distribution centers
CENTRAL AMERICA
(Guatemala, Nicaragua,
Costa Rica and Panama)
32.7 million people served
228K points of sale
7 plants
55 distribution centers
OUR
FOOTPRINT
We have the privilege to serve
more than 266 million people
through 2 million points of sale in
9 markets of Latin America with a
wide portfolio of leading brands.
COLOMBIA
51 million people served
454K points of sale
7 plants
22 distribution centers
1) As of December 31, 2017, Venezuela is reported as an investment in shares, as a non-consolidated operation.
2) Figures do not include CVI. In January 2022, our Brazilian subsidiary acquired CVI, a Brazilian bottler of Coca-Cola trademark products with
operations in the state of Rio Grande do Sul in Brazil. CVI serves more than 13 thousand points of sale and more than 2.8 million consumers.
VENEZUELA1
BRAZIL2
90.7 million people served
443K points of sale
10 plants
43 distribution centers
266 million
people
served
2 million
points
of sale
49 plants
260 distribution
centers
URUGUAY
3.5 million people served
26K points of sale
1 plants
5 distribution centers
ARGENTINA
13.4 million people served
63K points of sale
2 plants
3 distribution centers
Overview
Our Framework
Our Strategic Corridors
Appendices
17
SPARKLING
BEVERAGES
2,721 Volume
15,956 Transactions
WATER AND
BULK WATER
495 Volume
1,485 Transactions
STILL
BEVERAGES
242 Volume
2,050 Transactions
Argentina
765.8
Uruguay
202.1
Brazil
5,866.6
Mexico
8,569.5
TRANSACTIONS
million
19,490.9
Colombia
2,046.2
CAM
South
1,005.3
Guatemala
1,035.2
PRODUCT MIX BY PACKAGE
PRODUCT MIX BY SIZE
%
5
5
%
5
6
%
4
8
%
0
8
%
1
8
%
0
8
%
1
7
%
8
5
%
0
7
%
7
6
%
2
8
%
4
8
%
5
4
o
c
i
x
e
M
%
5
3
a
c
i
r
e
m
A
l
a
r
t
n
e
C
%
0
2
%
6
1
l
i
z
a
r
B
i
a
b
m
o
o
C
l
%
9
1
a
n
i
t
n
e
g
r
A
%
0
2
y
a
u
g
u
r
U
%
2
4
a
c
i
r
e
m
A
l
a
r
t
n
e
C
%
9
2
o
c
i
x
e
M
%
3
3
%
0
3
l
i
z
a
r
B
i
a
b
m
o
o
C
l
%
8
1
a
n
i
t
n
e
g
r
A
%
6
1
y
a
u
g
u
r
U
■ Returnable ■ Non-returnable
■ Single serve ■ Multi-serve
Argentina
155.4
Uruguay
43.4
PRODUCT MIX BY CATEGORY
Brazil
903.3
Mexico
1,790.0
TOTAL
VOLUME
million unit
cases1
3,457.9
Colombia
297.9
CAM
South
136.6
Guatemala
131.3
% of volume of total beverages
Sparkling
Water1
Bulk Water2
Mexico
Central America
Colombia
Brazil
Argentina
Uruguay
72.8%
87.3%
78.7%
87.0%
80.5%
86.9%
4.6%
3.8%
9.0%
5.4%
7.6%
11.2%
15.7%
0.2%
5.1%
0.9%
3.5%
—
Still
6.8%
8.7%
7.2%
6.7%
8.5%
1.9%
1) Volume is measured in million unit cases
1) Unit case is a unit of measurement that equals 24 eight-ounce servings of finished beverage.
1) Excludes still bottled water in presentations of 5.0 Lt. or larger. Includes flavored water.
2) Bulk water - still water in presentations of 5.0 Lt. or larger. Includes flavored water.
Overview
Our Framework
Our Strategic Corridors
Appendices
18
FINANCIAL
HIGHLIGHTS
In a year of operational and strategic milestones,
Coca-Cola FEMSA was able to deliver solid performance
and volume recovery ahead of pre-pandemic levels.
Despite supply chain disruptions and higher raw material
costs, Coca-Cola FEMSA delivered another year of
operating income growth.
Sales Volume
(million unit cases)
Total Revenues
Operating Income
2021
USD1
2021
MXN
2020
MXN
% Change
3,457.9
3,457.9
3,284.4
9,496
194,804
183,615
1,336
27,402
25,243
5.3%
6.1%
8.6%
Controlling Interest Net Income
766
15,708
10,307
52.4%
Total Assets
13,238
271,567
263,066
Long-Term Bank Loans and Notes Payable
4,062
83,329
82,461
Controlling Interest
Capital Expenditures
Book value per share2
5,925
121,550
116,874
676
0.35
13,865
10,354
7.23
6.95
3.2%
1.1%
4.0%
33.9%
4.0%
Millions of Mexican pesos and U.S. dollars as of December 31, 2021 (except volume and per share data). Results under International
Financial Reporting Standards.
1. U.S. dollar figures are converted from Mexican pesos using the exchange rate for Mexican pesos published by the U.S. Federal Reserve
Board on December 31, 2021, which exchange rate was Ps. 20.51 to U.S.$1.00.
2. Based on 16,806.7 million outstanding ordinary shares as of December 31, 2021 and 2020.
Sales Volume
million unit cases¹
2
2
3
3
,
9
6
3
3
,
4
8
2
3
,
8
5
4
3
,
Total Revenues
billion Mexican Ps.
.
5
4
9
1
.
6
3
8
1
.
8
4
9
1
.
3
2
8
1
Operating Income
billion Mexican Ps.
.
7
4
2
.
4
5
2
.
2
5
2
.
4
7
2
Dividend Per Share
Mexican Ps.
4
0
5
.
6
8
4
.
4
5
3
.
5
3
3
.
2018
2019
2020
2021
2018
2019
2020
2021
2018
2019
2020
2021
2018
2019
2020
2021
1. Unit case is a unit of measurement that equals 24
eight-ounce servings of finished beverage.
Overview
Our Framework
Our Strategic Corridors
Appendices
19
SUSTAINABILITY
HIGHLIGHTS 2021
At Coca-Cola FEMSA, we are tackling
sustainability challenges in a holistic way—
including our people, communities, and
transforming operations—on issues such as
climate change, water stewardship, circular
economy, safety, and community development.
4
~100K benefited
in neighboring communities with
the funds we operate in
collaboration with Fundación
FEMSA.
+2K activities
of volunteering, impacting more
than 300 thousand people.
1.3 million
beneficiaries of activities focused on our
sustainability pillars: Our Planet, Our
Community, and Our People.
US$114.6 million
invested in projects in the Our Planet pillar,
prioritizing activities in the areas of circular
economy, water stewardship, and climate action.
2
5
1
3
6
+2 million
liters of beverage donated to vulnerable
populations, health professionals, and front-line
workers amidst the COVID-19 pandemic.
70K tons
of waste were collected in a holistic and transversal
way through some of our countries’ most
important initiatives.
Overview
Our Framework
Our Strategic Corridors
Appendices
20
1.47 liters
of water per liter
of beverage produced.
85% of our
electricity
requirements across our
manufacturing operations come
from clean sources.
7
11
15
31% recycled
PET used on average across our
plastic bottle presentations.
8
12
98% of post-
industrial waste
recycled or properly disposed.
1st Mexican
Company
to secure approval of the Science
Based Targets Initiative (SBTi) for our
GHG emissions reduction targets.
28% reduction
of our absolute GHG
emissions from our
operations (scope 1 and 2)
from 2015 to 2021.
16
4th Consecutive
year of inclusion in the Bloomberg
Gender-Equality Index.
First
Sustainability-
Linked Bonds issued in
the Mexican market for Ps. 9.4 billion
(US$470 million) with a commitment
to achieve a water use ratio of 1.36 by
2024 and 1.26 by 2026.
Top 15% of
companies leading the
sustainability agenda,
according to the S&P
Global Sustainability
Yearbook 2022.
9
13
17
46% of our
manufacturing
facilities
have Zero Waste
certification.
US$705 million
1st Green Bond issuance within
the Coca-Cola System.
10
14
18
Recognized
for a 3rd year
as one of the Best LGBTQ+ Places to
Work by the Human Rights Campaign
Foundation and HRC Equidad MX:
Global Program for Labor Equity.
Overview
Our Framework
Our Strategic Corridors
Appendices
21
OUR VALUE CHAIN
1 Ingredients
We work with our
suppliers to have the
best raw materials.
3 Primary Distribution
From our manufacturing
facilities, we ship beverages to
our 260 distribution centers.
5 Pre-Sale
Powered by KOF digital
platforms, we serve our clients
in the traditional and modern
channels, offering a winning
portfolio of leading brands.
7 Points of Sale
We reach more than 2.0 million
points of sale with targeted
commercial initiatives, and
we use Market Analytics to
maximize the value proposition
for each client.
9 Recycling
We encourage and help
consumers to properly dispose
and recycle all packages from
our beverages.
2 Manufacturing
Enabled by our Digital
Manufacturing Platform 2.0, we
produce high-quality beverages
in our facilities, with an efficient
use of water and energy.
4 Distribution Center
In our automated
warehouses, we integrate
pre-sale with secondary
distribution processes.
6 Secondary Distribution
Once a pre-sale order is
placed, we use our Digital
Distribution Platform to
define an optimal Route-To-
Market operation.
8 Consumption
We serve more than 266
million people, offering a
portfolio with choices for
every lifestyle.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
22
22
OUR
FRAMEWORK
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
23
23
Strategy
More than an evolution, we’re inspiring a business
re-evolution, working seamlessly, collaboratively, and agilely
across six strategic corridors:
• Build out an Open Omnichannel Platform
• Develop a Winning Consumer-Centric Portfolio
• Foster an Agile, Digital Savvy, and People-Centric Culture
• Place Sustainability at the Heart of our Organization
• Digitize the Core
• Actively pursue Value-Enhancing Acquisitions
Our strategic growth and industry leadership is driven by
our purpose to refresh the world anytime, anywhere—always
finding the most efficient and sustainable way to put our
consumers’ choice in their hands whenever and wherever
they want it.
E
L
B
A
N
I
A
T
S
U
S
Winning
Portfolio
Value-
enhancing
acquisitions
Omnichannel
Platform
E C O S Y S T E M
Digitize
our core
operation
Agile, digital
savvy, people
centric
culture
Sustainability
S
U
S
T
A
I
N
A
B
L
E
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
24
24
Sustainability
Materiality Matrix
With our company’s achievement of key 2020
sustainability targets, we conducted a com-
prehensive materiality study to ensure that
our sustainability priorities were aligned with
stakeholder expectations and what our busi-
ness needs to thrive over the coming years.
Through this analysis, we developed an updat-
ed set of priorities that:
• Clarify our company’s position as part of our
overall value chain
• Position our company’s value chain within
the context of society’s expectations
• Allow us to understand the role that we
and our society play with respect to envi-
ronmental care and respect for planetary
boundaries
As a result of this study, we identified 45 materi-
al topics and 17 priorities that will drive strategic
lines of action across our value chain to ensure
the sustainability of our business, our business
partners, and the communities in which we
operate. Using the results of our study, we gen-
erated an updated materiality matrix, mapping
the 17 identified priorities across the three pilars
of our sustainability strategy.
e
c
n
a
v
e
l
e
R
r
e
d
l
o
h
e
k
a
t
S
3
17
15
13
16
18
21
27
23
29
26
28
31
34
36
25
10
4
9
14
7
12
19
22
20
24
1
8
2
11
6
5
37
38
45
43
41
44
42
35
39
40
30
33
32
B u s i n e s s S u c c e s s
Our Planet
1 Packaging Circular Economy
4 GHG Emissions Reduction
5 Sustainable Mobility
6 Climate Change Adaptation
9 Energy Management:
Renewables & Efficiency
10 WASH (Water Access,
Sanitation, and Hygiene)
11 Context-Based Hydrological
Safety
17 Water Efficiency
26 Industrial Waste Circular
Economy
43 Environmentally Responsible
Dairy Farming
Our Community
13 Human and Labor Rights
15 Diversity and Inclusion
16 Safety, Health, and Wellness
20 Culture, Ethics, and Values
21 Labor Relations
23 Standards for Contractors
32 Talent Attraction
33 Compensation and Benefits
44 Training and Development
Our People
2 Nutritional Attributes of
Product Portfolio
7 Product Portfolio
Diversification
14 Supporting Small Businesses
18 Advertising & Commercial
Practices
19 Women’s Empowerment
22 Local Community
Relationships
25 Information Security &
Cybersecurity
28 GMOs / Traceability of
Ingredients
29 Digitalization in Customers
31 Promotion of Healthy Habits
34 Customer Engagement for
Circular Economy
36 Support of Local Supply Chains
37 Road Safety
38 Information & Quality of
Products
39 Customer Satisfaction
Measurement
40 Quality of Service for
Customers
41 Supplier Relationship T&Cs
Management
42 Mechanism for Consumers to
Raise Concerns
45 Opportunities for Youth
Corporate Governance
3 Global Integrity & Compliance
24 Best-in-Class Board Practices
27 Partnerships for Sustainability
30 Comprehensive Risk
8 Relationship with Government
12 Consumer Engagement for
Management
35 Code of Conduct
Circular Economy
Our materiality matrix maps 17 identified priorities across the three pillars of our sustainability strategy.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
25
25
Consistent with our sustainability frame-
work, we maintained the three pillars—Our
People, Our Planet, and Our Community—
that have guided us since the inception of
our strategy, while reinvigorating these pil-
lars with a differentiated approach to sus-
tainability focusing on 10 strategic priorities
throughout our value chain.
Circular Economy
Suppliers
KOF Operations
Customers
Consumers/
Communities
Packaging Circular Economy
Industrial Waste
Circular Economy
Customer
Engagement for
Circular Economy
Consumer
Engagement for
Circular Economy
GHG Emissions Reduction
Climate Action
Sustainable Mobility
Climate Change Adaptation
Energy Management: Renewables & Efficiency
Water
Stewardship
Product Portfolio
Gmo's/ Traceability
of Ingredients
Context-Based
Hydrological
Safety
Water Efficiency
Nutritional
Attributes of
Product Portfolio
Product Portfolio
Diversification
Relationship with
Governments
Wash (Water
Access, Sanitation,
And Hygiene)
Information
& Quality of
Products
Aligned with societal expectations, stake-
holder engagement, and respect for en-
vironmental boundaries, our refreshed
approach to sustainability aims to simulta-
neously create economic and social value
across our value chain in collaboration with
all of our stakeholders.
Relationship with
Government
Marketing &
Advertising
Supporting Small
Businesses
Fundamental
Working
Conditions
Enhanced
Cultural Elements
Corporate
Governance
Advertising & Commercial Practices
Development of
Capabilities
Human & Labor Rights
Safety, Health &
Wellness
Diversity &
Inclusion
Global Integrity & Compliance
Our Planet Our Community Our People Corporate Governance
Sustainability Framework
Our sustainability framework is based on three over-
arching pillars: Our People, Our Community, and Our
Planet. This strategic framework provides us with
the direction to accomplish our mission to positively
transform the communities where we operate, sup-
ported by our ethics, values, and collaboration.
Our People
Our people and the way they work together are our
company’s most valuable assets. We promote their
integral development and quality of life through our
comprehensive wellbeing model. Through this mod-
el, we positively influence their workplace environ-
ment, enabling them to work toward shared goals,
achieve our expected business results, enhance and
improve our leading position, and live our core be-
liefs and behaviors every day.
Our Community
Our communities are key enablers of business suc-
cess. We reinforce positive relationships with the
communities with which we continuously interact,
fostering our ability to serve the market and main-
tain our social license to operate. Above all, these
efforts enable us to create a stronger, more flexible
organization, with the agility to adapt to ever-chang-
ing environments while generating sustainable
growth.
Our Planet
We ensure that we fully understand the role that
we play with respect to environmental care and
planetary boundaries by embedding environmen-
tal consciousness throughout our day-to-day de-
cision-making processes and business operations.
Thus, we strategically, efficiently, and responsibly
address environmental challenges across our value
chain—from climate action to water stewardship
and a circular economy.
Our differentiated approach to sustainability focuses on 10 strategic priorities throughout our company’s value chain. Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
26
26
United Nations Sustainable Development Goals
We are committed to contributing to the achievement of the United Nations Sustainable Development
Goals (SDGs). While many of our actions contribute to the 17 SDGs, we are convinced that we can have a
larger impact on the following fourteen goals through our strategic framework and initiatives.
We are working with FEMSA
Foundation on initiatives and social
programs in our communities, focused
on early childhood and healthy
lifestyles.
Aligned with our comprehensive
management framework, we
continued to prioritize the safety
and wellbeing of our employees,
customers, consumers, and
communities throughout the
COVID-19 pandemic. By prioritizing
their health and safety, we reinforce
our company’s commitment to
delivering economic value, while
generating social and environmental
wellbeing. In addition, we offer a total
beverage portfolio, and we carry out
responsible marketing strategies for
our products.
Aligned with our commitment to
improve gender diversity at all levels
of the organization, our operations are
developing and deploying initiatives
to increase women’s representation
within their operations. In addition, we
carry out projects to foster women’s
empowerment in the traditional trade.
We are committed to ensuring the
efficient use of this natural resource in
our bottling operations and returning
to the environment more water than
we take to produce our beverages,
while safeguarding this resource not
only for the benefit of our company,
but also for the enjoyment of our
communities and planet now and
into the future. In alliance with FEMSA
Foundation, we also develop water
access, sanitation, and hygience
(WASH) programs.
We strive for energy efficiency across
our value chain. We further integrate
clean and renewable sources of
energy and technologies to reduce
our GHG emissions—thus contributing
to climate change mitigation. Our
operations’ energy consumption
focuses on a comprehensive strategy
that encompasses our value chain.
We aim to achieve sustainable
economic growth through efficient
resource utilization, promote a
work environment that offers
comprehensive professional
development, create jobs in
emerging markets, and apply
sustainable procurement principles.
In addition, we developed initiatives
in our communities focused on
empowerment training to generate
resilience and reactivation of local
economies.
We continually work to improve our
environmental performance and
foster industry innovation, mainly in
water stewardship, circular economy
and energy efficiency, while reducing
our carbon footprint across our
value chain. We complement these
programs with digital and innovation
training to develop local suppliers.
We carry out projects designed to
improve communities’ quality of
life and wellbeing by helping them
with digital training and economic
empowerment, while working
to provide them with safe water,
improved sanitation, and hygiene
education.
We currently replenish to more
than 100% of the water we use in
the production of our beverages
in Argentina, Brazil, Costa Rica,
Guatemala, Panama, Colombia,
and Mexico through conservation
projects like “Agua para el Futuro” and
protection of biodiversity.
Our corporate governance and the
way we conduct our business is
in full compliance with applicable
regulations in all of our countries of
operation, with our Code of Ethics as
our compass. With our suppliers, we
further apply guiding principles that
focus on strategic input categories,
including areas such as human rights,
environmental protection, and labor
rights.
We recognize that complex, ever-
changing challenges require
innovative solutions that can only
be achieved and put into action
together. We embrace this reality, and
we partner with other companies,
governments, NGOs, and institutions
to maximize our impact.
We look to provide tools that allow
for the sustainable growth and
development of the communities
within our social and operational
footprint. At the same time, we
strive to protect and promote the
prosperity of all of the people in these
communities and to continue to build
socially responsible environments
throughout our whole value chain.
We communicate our sustainability
results annually through our
Integrated Report. We are confident
that, with the support and co-
responsibility of all of the actors across
the value chain, we will fulfill our
2030 goal of collecting 100% of the
PET bottles we place in the market
through a concerted market-based
approach to the circular economy.
We recognize that climate change is a
real, imminent threat to the way that
we are accustomed to live, and we are
convinced that a science-based, multi-
stakeholder effort is required to address
this urgent matter that concerns us
all. Aligned with the goal of the Paris
Agreement to limit global warming
to well below 2°C above pre-industrial
levels, our Climate Action Strategy is
designed to drive an absolute reduction
of our carbon footprint throughout
the entire value chain—from suppliers
to our operations, customers, and
consumers.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
27
27
Sustainable Financing
Our approach to sustainable financing enables us to
maximize our positive impact by publicly aligning our
finance strategy with the achievement of our environ-
mental targets, while contributing to the United Na-
tions Sustainable Development Goals.
Green Bond Progress Report
Aligned with this approach and our sustainability
strategy, we issued our first-ever green bond in
September 2020, valued at US$705 million, at the time
the largest for a Latin American corporation and a first
for the Coca-Cola System. Subsequently, in June 2021,
we released our first Green Bond Report, providing
an update on the allocation of the net proceeds
from this bond to finance or refinance eligible green
projects in three main categories—climate action, water
stewardship, and circular economy—according to our
Green Bond Framework. As published in that report,
we allocated US$235.48 million in net proceeds from
the issuance of our first green bond to eligible green
projects from 2018 through 2020, representing 33.4% of
the net proceeds.
As of December 31, 2021, we had allocated US$350.12
million of green bond net proceeds to eligible green
projects—including a further US$114.64 million during
2021—leaving US$354.88 million of net proceeds unal-
located at the end of 2021. The total investment so far
represents 49.7% of the net proceeds and includes in-
vestments in all of the three main categories of climate
action, water stewardship, and circular economy.
Green Bond Allocation
As of December 31, 2021, Coca-Cola FEMSA had allocated US$350.12 million of green bond net
proceeds to projects supporting climate action, water stewardship, and a circular economy.
US$705Million
Green Bond
Issued September 2020
US$350.12 million allocated
Between 2018-2021
Spend by Year
US$ million
Spend by Category 2018-2021
.
4
6
4
1
1
.
7
2
3
8
.
7
2
8
7
5
9
3
7
.
2018
2019
2020
2021
Circular
Economy
90.9%
US$318.29
million
Water
Stewardship
3.9%
US$13.6
million
Climate
Action
5.2%
US$18.23
million
Goal Performance
The net proceeds of our
green bond help to deliv-
er on our company’s sus-
tainability goals, includ-
ing our commitments to
increase recycled content
in our PET packaging,
improve water efficiency,
and reduce CO2 emis-
sions. From 2018 through
2021, we made progress
against these goals, as il-
lustrated in these charts.
% Recycled content
%
1
3
%
9
2
%
3
2
%
1
2
%
0
2
%
6
1
2016
2017
2018
2019
2020
2021
Water efficiency
Liters of water per liter of
beverage produced
(less is better)
2
7
.
1
5
6
.
1
8
5
.
1
2
5
.
1
9
4
.
1
7
4
.
1
2016
2017
2018
2019
2020
2021
Clean Energy in
Manufacturing
%
5
8
%
0
8
%
7
0
7
.
%
6
.
1
5
%
8
3
%
9
2
2016
2017
2018
2019
2020
2021
Use at least 50%
recycled resin (rPET)
in our PET bottles by
2030
Achieve a water use
ratio of 1.26 liters of
water per liter of
beverage produced
by 2026
As part of our
commitment to the
Science Based Targets
initiative (SBTi), we
commit to achieve
100% renewable
energy from our
operations by 2030.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
28
28
Sustainability-Linked Bonds
Building on our sustainability strategy, in September 2021, we
issued the first-ever sustainability-linked bonds (SLB) in the
Mexican market for a total of Ps. 9,400 million in accordance
with our Sustainability-Linked Bonds Framework. Rec-
ognizing that water is not only an invaluable resource for our
company and industry, but also an indispensable element of
climate change resilience, we are focusing this first issuance
on the sustainable and efficient use of water, aligned with our
commitment to water stewardship. Unlike the use of green
bond proceeds, our sustainability-linked bonds are committed
to the achievement of a water use ratio of 1.36 by 2024 and 1.26
by 2026. Today, our water use ratio is 1.47 liters, a benchmark of
water efficiency for the Coca-Cola System.
Data Reported
and Forecast
KPI water use ratio (lt)
8
5
.
1
2
5
.
1
9
4
.
1
7
4
.
1
6
3
.
1
6
2
.
1
2018
2019
2020 2021
2024
SPT
2024
2026
SPT
2026
Sustainability-Linked Bonds Features
On September 21, 2021, Coca-Cola FEMSA issued the first
sustainability-linked bonds in the Mexican market.
Issuer
Format
Issue Date
Currency
• Coca-Cola FEMSA SAB de CV
• Senior Fixed & Variable Rate Sustainability-Linked
Bonds
• September 21, 2021
• Mexican Pesos
Total Issued Amount
• Ps. 9,400 million
Ratings
• HR AAA (HR Ratings de México) / Aaa.mx (Moody’s
Sustainability
Performance Targets
de México)
• As part of these bonds, we commit to achieve a
water use ratio of 1.36 by 2024 and 1.26 by 2026,
which will be verified by an independent third
party, and in the event these targets are not met,
the interest rate will increase by 25 bps to remain at
7.61% and TIIE + 0.30%, respectively.
Bonds/Yields/Maturities • Ps. 6,965 million at fixed rate of 7.36% (MBONO + 34
bps) due in 7 years
• Ps. 2,435 million at variable rate of TIIE + 5 bps due
in 5 years
Subject to the issuance of applicable funding instruments, we will continue to
annually report on the allocation of proceeds and the associated impact in the
year(s) following issuance of any future funding instruments under our current
Green Bond and Sustainability-Linked Bonds Frameworks.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
29
29
OUR
STRATEGIC
CORRIDORS
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
30
30
Driven by our obsessive
focus on our consumers
and customers, we are
developing a winning,
multi-category portfolio
with compelling options for
every consumer taste and
lifestyle, while promoting
healthy habits—prioritizing
the safety and wellbeing
of our employees,
customers, consumers, and
communities throughout
the course of the COVID-19
pandemic.
DEVELOP A
WINNING
CONSUMER-
CENTRIC
PORTFOLIO
WINNING CONSUMER-CENTRIC PORTFOLIO
Our strategy aims to build a winning consumer-centric, multi-
category portfolio for every occasion by leveraging affordability to drive
sustainable beverage growth; capturing new consumption occasions
and preferences through portfolio innovation; and consolidating our
market leadership in emerging beverage categories, while exploring
multi-category opportunities across our markets.
Our customers and consumers are at the center of everything we do.
By deeply understanding their changing tastes and buying habits, we
proactively adapt our portfolio strategies and digital initiatives to satisfy
their evolving preferences; develop complementary distribution models
to increase their service levels; accelerate our first-mover advantage
across digital sales channels to indulge their online purchasing patterns;
and fulfill their growing needs through exemplary market execution.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
31
31
SUCCESS STORIES
MEXICO
MEXICO: DEVELOPING COMPLEMENTARY
INDIRECT DISTRIBUTION MODELS
We are developing and customizing comple-
mentary indirect distribution models to in-
crease customer service levels to our small
mom-and-pop clients. This is reflected in dou-
ble-digit growth in emerging indirect channels
such as wholesalers and distributors. Through
a clear segmentation and category manage-
ment strategy, the wholesalers channel gained
double-digit volume growth year over year.
We also moved forward with our distributors’
transformation process, covering nearly 30% of
this channel’s total volume during 2021.
MEXICO: CAPITALIZING ON CONVENIENT HOME DELIVERY
As at-home consumption occasions and preferences change, we contin-
ued to expand our home delivery routes, while broadening our portfolio
strategies and digital initiatives, to serve the evolving needs of nearly 600
thousand households across Mexico. During the year, we not only added
over 400 new routes for a total of more than 1,200 routes, but also started
the digital transformation of those routes to our Coca-Cola en tu Hogar
(Coca-Cola at Home) omnichannel solution, connecting directly with our
consumers via chatbot and website order-taking platforms. Thanks to
increased routes, digital enablers, and portfolio initiatives, our home de-
livery routes are rapidly improving their productivity, average ticket, and
sales. For the year, we increased the average ticket by driving the mix of
non-jug-water products to close to half.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
32
32
SUCCESS STORIES
BRAZIL
ACCELERATING FIRST-MOVER ADVANTAGE
ACROSS DIGITAL SALES CHANNEL
As consumers reshape their online purchasing pat-
terns and preferences, we’re accelerating our growth
and first-mover advantage across the digital sales
channel, from pure players to grocery and food ag-
gregators to e-retailers. In Brazil, we have scaled our
digital consumer experience to achieve an incidence
rate of 17% in food aggregators—a benchmark for the
Coca-Cola system globally—and a more than 70%
share of the country’s e-retailers. Consequently, our
sales volume across the increasingly important digi-
tal sales channel grew by almost 50% year over year.
GUATEMALA
AWARD-WINNING EXCELLENCE
By focusing on our fundamentals—delivering op-
erational excellence, developing a winning con-
sumer-centric portfolio, driving affordability to
better serve consumers’ demands, and facilitating
route-to-market transformation—Guatemala has
increased its score on The Coca-Cola Company’s
execution index, expanded our share of sales, and
generated a compound annual volume growth rate
of more than 11% over the last four years. Conse-
quently, Guatemala now represents our fourth larg-
est market in terms of revenues.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
33
33
SUCCESS STORIES
MEXICO
EXPANDING AFFORDABILITY STRATEGY
In Mexico, our affordability strategy
focuses not only on our expanding
portfolio of refillable multi-serve
presentations, but also on boosting
our portfolio of affordable one-way
presentations through our magic price
points. In the traditional trade channel,
we bolstered our magic price points with
the launch of our new affordable 1.35-liter
one-way PET presentation of Coca-Cola
Original and our core flavored sparkling
brands, along with the launch of our
new affordable 2.75-liter one-way PET
presentation of Coca-Cola Original. Thanks
to this strategy, we gained market share
in the multi-serve cola segment, and
we supplemented our affordability with
refillables in convenience stores.
Leverage Affordability To Drive Sustainable Beverage Growth
Affordability remained an important driver of our sustainable beverage
growth. Accordingly, we leveraged our unmatched execution and ability to
provide affordability to consumers to drive our markets’ recovery through-
out the year. To this end, we continued investing behind this core capabili-
ty, including more than US$500 million in production lines and returnable
bottles and cases over the past two years.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
34
34
SUCCESS STORIES
MEXICO
& COLOMBIA
INCREASING UNIVERSAL BOTTLE COVERAGE
The launch of our Universal Bottle or Botella Unica—which enables us to
use the same refillable bottle for Coca-Cola, flavored sparkling beverages,
and juices—is delivering better than expected results. Now covering 75% of
our territories across Mexico, we increased our Universal Bottle production
capacity, while expanding our labeling production capacity by more than
40% during 2021. To scale the Universal Bottle’s impact, we continued the
rollout of our 2.5-liter returnable PET Universal Bottle beyond the traditional
trade channel, while beginning the rollout of our 500-ml returnable glass
Universal Bottle in certain cities. Indeed, our focus on increasing the
coverage of our Universal Bottle continues to provide share gains. Notably,
our 2.5-liter refillable PET Universal Bottle contributed to a share of sales
gain in the cities where it was launched. Similarly, our Universal Bottle is
proving successful in Colombia, with volumes and share of sales increases in
the cities where it was launched. By expanding our returnable reach beyond
Coca-Cola, this transformational bottling technology enables us to launch
affordable returnable PET presentations of our flavored sparkling and still
beverage brands to compete more effectively in the market.
BRAZIL
LEVERAGING THE POPULARTIY OF MULTIPACKS
This year, we continued to leverage the popularity
and household penetration of our convenient, afford-
able multipacks of Coke and our core flavored spar-
kling beverage brands in our single- and multi-serve
non-returnable presentations. By harnessing the pow-
er of brand Coca-Cola to introduce consumers to our
flavored sparkling beverage brands, our multipack
strategy largely enabled us to grow our volume of
Fanta Guaraná by more than 9% year over year, while
capturing increased share of sales in the sparkling
beverage category.
ARGENTINA
IMPROVING HOUSEHOLD PENETRATION
Under our affordability strategy, we continued
to regain share and expand our consumer base
in the face of Argentina’s dynamic competitive
and economic environment. Thanks to our mar-
ket segmentation strategy, we were able to offer
the right product at the right price across di-
verse socioeconomic segments of our franchise
territory, enabling us to improve our household
penetration while preserving our profitability.
We further increased our volume versus our
baseline year of 2019.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
35
35
SUCCESS STORIES
Capture New Consumption Occasions
Through Portfolio Innovation
Through ongoing portfolio innovation,
we continue to focus on improving our
competitive position and capturing the
most value from our beverage brands
by closely aligning our portfolio with
consumers’ tastes and preferences.
Among our initiatives, we continue to
drive the growth of our no- and low-sugar
portfolio of sparkling beverages to satisfy
and stimulate demand for our products,
while adapting our portfolio to evolving
consumer behavior.
MEXICO
SUCCESSFULLY LAUNCHING NEW FORMULA OF
COCA-COLA SIN AZÚCAR (ZERO SUGAR)
This year, we successfully launched the new formula
and visual identity of Coca-Cola Sin Azúcar (Zero Sugar)
with a great reception from our consumers. Notably, our
focus on increasing consumer contact and transactions
enabled us to achieve double-digit volume growth year
over year, mainly focused on the single-serve format.
GROWING PREMIUM TOPO CHICO
SPARKLING MINERAL WATER
The power of portfolio innovation and
expansion is exemplified by the successful
launch and popularity of our Topo Chico
brand of sparkling mineral water. With
volume growth of over 60%, this naturally
sourced mineral water complements our
portfolio, offering consumers a superb
premium offering. After its launch last year,
we expanded Topo Chico’s mineral water
coverage across the country’s modern
and traditional trade channels, achieving
consistent share growth in the sparkling
water category. Also, our dual Topo Chico and
Ciel mineral water strategy drove us to reach
a leading share of the mineral water category
in the modern trade channel. Furthermore,
we continued to innovate in the flavored
sparkling water segment with new flavors of
both Topo Chico and Ciel mineral water.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
36
36
SUCCESS STORIES
INCREASING COVERAGE, VOLUME, AND
SHARE OF COCA-COLA SEM AÇÚCAR
(ZERO SUGAR)
This year, we continued to increase the cov-
erage of Coca-Cola Sem Açúcar (Zero Sugar)
across our franchise territories, gaining sig-
nificant share of sales growth while gener-
ating double-digit volume growth year over
year. Consequently, we managed to build
on the popularity of Coca-Cola Sem Açúcar
(Zero Sugar) to not only drive volume growth
of over 14% and 10% versus 2020 and 2019, re-
spectively, but also contribute to our record
share of sales across the sparkling beverage
category.
BRAZIL
INNOVATIVE MULTIPACKS SPUR SINGLE-
SERVE RECOVERY
This year, our single-serve multipacks, in-
cluding our convenient 24-pack of 200-ml
bottles and six-pack of 350-ml cans, contrib-
uted to a more than 13 pp recovery in our sin-
gle-serve sparkling beverage mix. Moreover,
the volume of these popular mixed multi-
packs of our Coke and core Fanta brands
grew more than 30% year over year.
ARGENTINA
& URUGUAY
EXPANDING ZERO-SUGAR CATEGORY GROWTH
Harnessing the successful new formula of
Coca-Cola Sin Azúcar (Zero Sugar), we success-
fully expanded the no-sugar beverage category
across our Argentina and Uruguay franchise terri-
tories. Thanks to the popularity of this refreshing
sugar-free alternative, coupled with our superi-
or market execution, we achieved double-dig-
it growth in per capita consumption across our
no-sugar sparkling beverage category in Argenti-
na, while we expanded our market leadership in
Uruguay’s no-sugar beverage category—spurred
by Coca-Cola Sin Azúcar (Zero Sugar) reaching
more than 32% volume growth year over year.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
37
37
SUCCESS STORIES
MEXICO
MEXICO
& BRAZIL
DELIVERING DOUBLE-DIGIT DAIRY AND DAIRY-
ALTERNATIVE GROWTH
Under our joint venture with The Coca-Cola Company,
we satisfied growing consumer demand for our
portfolio of wholesome Santa Clara brand UHT whole
milk, specialized milk, and flavored milk products.
Thanks to our unmatched market execution, we
expanded our share of sales and achieved more
than 20% volume growth year over year across the
traditional trade channel. Simultaneously, we captured
consumers’ taste for dairy-alternative beverages
through our AdeS brand, significantly increasing our
volume in the plant-based beverage category.
Capitalize On Emerging
Categories & New Multi-
Category Opportunities
This year, we continued to
capture market share across
emerging still beverage
categories—from hydration
to nutrition, energy, tea, and
sport drinks—while identifying,
defining, and exploring multi-
category opportunities across
our markets.
COLOMBIA
LAUNCHING REFRESHING BRISA SPARKLING
FLAVORED WATER
In Colombia, we took portfolio innovation to a new
level with the launch of refreshing Brisa sparkling
water in enticing Colombian Apple and Lemon-Lime
flavors. By year-end, we essentially doubled our volume
and achieved higher share of sales in the country’s
competitive flavored sparkling water segment.
ACCELERATING ENERGY GROWTH
In Mexico, thanks to our point-of-sale execution, we
achieved high double-digit volume growth year over
year in the energy category, which drives us to be the
leader within the premium energy brands segment.
Also, we’re continually innovating with new product
launches such as Monster Pacific Punch, Lo Carb, and
Hamilton. Additionally, we continued to build on our
successful launch of Predator, a more affordable value
brand from the Monster family. Predator complements
our energy portfolio across the modern and traditional
sales channels, while enabling us to gain market
share in this attractive, growing beverage segment.
By leveraging the traditional trade and wholesalers’
channels, we’ve achieved amazing volume growth of
more than 50% year over year. In Brazil, we launched
new flavors of our Monster and Reign brand energy
drink, including Monster Pacific Punch and Dragon Tea
Pessego, significantly expanding our share of sales, while
increasing our sales volume by more than 80% year over
year in this segment. Notably, Monster not only achieved
record share of sales, but also share of sales leadership in
Brazil’s fast-growing energy drink segment.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
38
38
SUCCESS STORIES
BRAZIL
BRAZIL
& COSTA RICA
BUILDING A WINNING CONSUMER-CENTRIC
BEER PORTFOLIO
This year, together with Heineken,
The Coca-Cola Company, and the rest of the
Coca-Cola System in Brazil, we successfully
redesigned our beer distribution partnership
in the country. As a result, during the year, we
completed the transition of the Heineken and
Amstel brands to Heineken’s distribution net-
work, and we proactively evaluated and rolled
out promising new brands to complement our
beer portfolio. Leveraging our continued rela-
tionship with Heineken, we incorporated and
launched two brands from Heineken’s port-
folio: Eisenbahn, a premium brand, and Tiger,
a pure malt mainstream brand. We furthered
capitalized on market opportunities to acquire
Brazilian craft beer brand Therezópolis, togeth-
er with Coca-Cola Andina, and announced a
new agreement to distribute leading Span-
ish brewer Estrella Galicia’s portfolio, together
with the Coca-Cola System in Brazil.
TANTALIZING TEA AND SPORT DRINKS GROWTH
We continued to capitalize on our reformulated portfolio to cater to our Brazilian con-
sumers’ growing demand for refreshing teas. Strategically, the combination of our new
cold-fill formula together with the rollout of our Leão brand teas enabled us to increase
our sales volume by almost 20% for the year, while expanding our sales to a record share
of this fast-growing beverage category. We further achieved significant share of sales and
almost 50% volume growth in the profitable sport drinks category year over year. More-
over, in Costa Rica, we successfully launched a fusion of Hi-C and Fuze Tea in the main-
stream tea segment, expanding our share of sales year over year.
MEXICO
& BRAZIL
EMERGING OPPORTUNITIES IN FLAVORED ALCOHOLIC READY-TO-DRINK BEVERAGES
Consistent with our journey to complement our portfolio with options for all
consumption occasions, we are identifying and defining a broader multi-category
portfolio beyond our traditional non-alcoholic ready-to-drink beverages. Our experience
with Topo Chico Hard Seltzer shows consumers are excited to see recognizable beverage
brands that they already enjoy enter the flavored alcoholic ready-to-drink alcohol space.
With the combination of a familiar, beloved brand and a strong distribution and market
position, we are confident that consumers will enjoy our emerging portfolio of flavored
alcoholic ready-to-drink beverages, including Topo Chico Hard Seltzer. Additionally, we
further continue to rollout pilot programs to test the distribution of complementary
categories such as leading spirit brands, other alcoholic beverages, and leading
consumer products in certain markets.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
39
39
RESPONSIBLE MARKETING
At Coca-Cola FEMSA, our consumers are at the center of everything we do. Therefore, transparency, fact-based information, an analytical
culture, and a high sense of responsibility are the guiding principles for our marketing practices.
1 Informed nutritional
decisions
To enable our consumers to make healthy
informed choices across every one of our
operations, our upfront product labels
include clear, easy-to-find nutritional
content information, including the
nutrients, fats, sugar, and sodium in each
of our products. Our nutritional labeling
strategy is based on providing consumers
with clear and complete information in full
compliance with applicable regulations in
each of the countries we serve. Our aim is
to ensure that our consumers are provided
with high-quality information.
2 Responsible marketing
3 Highest quality
As part of our commitment to the
wellbeing of our consumers and
customers, our advertising adheres to
The Coca-Cola Company’s Responsible
Marketing Policy and Global School
Beverage Guidelines. For instance, as part
of the Coca-Cola system, we diligently follow
and enforce The Coca-Cola Company’s
Responsible Marketing Policy, and we do
not market products in channels with an
audience predominantly of children under
13. In this and other ways, we underscore
our devotion to the healthy habits of our
consumers.
Our production processes fulfill the
highest quality standards; our ingredients
comply with each of our operations’ local
regulations and international standards
of other regulatory agencies, including
CODEX, FDA, JEFCA, and EFSA. Our
processes are performed in state-of-the-
art bottling facilities within the global
beverage industry—all FSSC 22000
certified—thus guaranteeing only the best
quality products for our consumers.
DELIVERING HIGH-QUALITY PRODUCTS AND SERVICES
As a customer-focused company, we are in
constant communication with our custom-
ers, giving them an open channel where they
can voice their concerns and complaints. With
that in mind, one of the ways we measure
customer satisfaction is by reducing the num-
ber of complaints through our ongoing pro-
cess optimization and food safety and quality
assurance systems.
This year, we are pleased to report that we en-
joyed our best quality control performance in
the past eight years across key performance
indicators. Notably, we managed to reduce
complaints by 35%, while lowering minor
product non-conformities by 63%. We also
managed to reduce internal incidents by 25%,
surpassing our 15% reduction goal. We further
achieved a 7% reduction in non-quality event
costs, a significant result taking into consid-
eration that we invest more than US$1 million
per year to address those types of occurrenc-
es. Overall, in terms of our key performance
indicators for quality control, we had our best
performance in the past 8 years.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
40
40
BUILD OUT
AN OPEN
OMNICHANNEL
PLATFORM
To enable the digital re-evolution
of our business, we’re expanding
an omnichannel multi-category
commercial platform that will
seamlessly interact with other
interconnected platforms and
encompass our business-to-business
(B2B), direct-to-consumer (D2C),
indirect, and digital trade channels.
During the year, we
markedly accelerated
the evolution of our
customer-centric B2B
omnichannel multi-category
commercial platform.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
41
41
B2B TRADITIONAL
OMNICHANNEL
COMMERCIAL
PLATFORM
10:00 AM
Our goal is to
build a profitable,
customer-centric
omnichannel
B2B platform
across our multi-category product offerings,
with a differentiated end-to-end customer
experience.
During the year, we markedly accelerated
the evolution of our customer-centric B2B
omnichannel multi-category commercial
platform. Through our multicategory om-
nichannel platform, we’re connecting every
point of contact in real time for our large
base of traditional trade clients—strength-
ening our successful pre-sale model and
contact centers with digital touch points to
amplify our customer service, including di-
rect messaging, web portals, mobile apps,
and electronic data interchange (EDI)—so
they can interact with us whenever, wherev-
er, and whichever way they want.
2
Hours later, Juan real-
izes that he forgot to
order a specific prod-
uct, but it is too late.
Mario will visit him
again in a few days.
Juan then uses KOF’s
chatbot to place an
additional order, in-
cluding the specific
product he had for-
gotten.
4
Mario decides to call
Juan to confirm his
new request.
03:35 PM
08:00 PM
6
Next, he confirms
that his most recent
orders will be deliv-
ered in the afternoon,
using the order track-
ing functionality.
12:55 PM
NEXT DAY
8
The delivery truck ar-
rives, and Juan receives
both of his orders. He
uses the built-in e-pay-
ment system in KOF’s
mobile app to create a
QR Code.
Juan validates his pay-
ment was successful
and verifies his total
balance. Juan is a satis-
fied customer.
3
Mario instantly re-
ceives a notification
in his handheld: “Juan
has placed an addi-
tional order.”
03:30 PM
04:02 PM
1
Juan has been our cli-
ent for some years. To-
day, as every Monday,
Juan is visited by Ma-
rio, his usual pre-seller.
While Juan is busy
taking care of his busi-
ness, he asks Mario to
place his weekly order.
7
As the delivery truck
approaches Juan’s
business, he receives a
notification: “Your or-
der is about to be de-
livered. You will be the
next customer in our
route to be served.”
01:50 PM
NEXT DAY
10:30 AM
NEXT DAY
5
Overnight, Juan’s
cooler malfunctioned.
Using his cellphone,
Juan accesses KOF’s
mobile app and cre-
ates a service order to
evaluate and repair his
cooler.
Juan receives a call
from the Contact Cen-
ter: “A technician will
visit you in the next
few hours.”
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
42
42
Our platform puts the customer
front and center. With that in mind,
we’re building out our omnichan-
nel platform around them, offering
a growing array of customer-centric
options and features to serve them
better across multiple points of con-
tact. For example, to build upon the
personal customer experience our
clients enjoy, we’re offering them
pre-seller visits, plus a mobile app—
which we’re scaling up company-
wide. The app’s latest version pro-
vides clients with a wider selection
of features, including digital order
tracking, promotions, and a devel-
oping loyalty program.
Our large base of traditional trade
customers is rapidly embracing the
digital options available on our B2B
omnichannel platform. Notably,
we are serving over 500 thousand
registered clients, including almost
300 thousand active purcharsers
monthly, on our B2B platform—
which enables seamless order tak-
ing with an enhanced customer ex-
perience and lower cost to serve—in
Argentina, Brazil, Central America,
Colombia, and Mexico. Indeed, cus-
tomers’ preference for our robust
omnichannel platform is clearly re-
flected in their growing acceptance
and rising orders, while amplifying
the performance of new categories
across our product portfolio.
Overall, we processed more than 5.5
million orders on digital channels,
generating close to US$360 million
in sales, representing roughly 6%
of our company's total orders and
a triple digit increase in orders and
revenues as compared to 2020.
We processed more than
5.5 million orders on
digital channels in 2021.
We are serving over 500
thousand registered clients,
including almost 300
thousand active
purchasers monthly,
on our B2B platform.
Digital channels
represent approximately
6% of our company's
total orders.
1
2
3
BRAZIL: ALMOST 270,000 ACTIVE CUSTOMERS EMBRACE OUR B2B OMNICHANNEL PLATFORM
tures—from digital order tracking to product pro-
During 2021, our Brazilian operation reached ap-
motions, and a customer loyalty program.
proximately 270,000 active users —including over
130,000 monthly buyers— on our B2B omnichan-
nel multi-category commercial platform. Appeal-
ing to customer demand for a one-stop solution,
our platform enables our large base of traditional
trade clients to not only place an order for their
favorite brands/categories whenever, wherever,
and whichever way they choose, but also take
advantage of a constantly evolving array of fea-
For the year, our Brazilian traditional trade cus-
tomers generated over US$280 million on our
B2B omnichannel platform. Notably, digital pur-
chases represented over 30% of our Brazilian
clients’ total orders or approximately 9% of total
revenues by year-end 2021.
Pre Seller
Chatbot
App
Website
All clients
Medium and
small-sized clients
Medium and
small-sized clients
Large and
medium-sized clients
This year, we reached an inflection point—with digital purchases accounting for over 6% of our total orders or almost US$360 million. Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
43
43
DIRECT TO CONSUMER
Our goal is to develop a profitable and scalable D2C business model to
market our company’s products and services directly to our consumers’
homes, acting as a benchmark in the market. Aligned with this goal, our
mission is to become households’ favorite D2C platform throughout our
operations, offering top-class service.
Vision
Develop a profitable and scalable standardized
model to sell products directly to the consumer at
home, being a reference in the market
Mission
Be the favorite B2C platform for consumers in
KOF’s operations offering top class service
• Personalized attention
• Direct support to consumer
• Living the experience
• Penetration
Immediacy
•
• Practicality
• Shopping experience
• Loyalty plans
• Different payments means
• Multi-functionality
Web
SFA device
Sales
and delivery
route
Consumer
Chatbot
CCETH
ERP
Building on the year’s historical expansion of our D2C home
delivery routes—from almost 800 routes to more than 1,200
routes serving almost 600 thousand households in Mexico—
we recently began the deployment of our consumer-centric
D2C omnichannel platform in those routes, including the
home order-entry platform and Coca-Cola en tu Hogar web-
site, supported by our digital (ERP) order fulfillment system.
At the end of 2021, our D2C omnichannel platform was in-
tegrated and tested to serve home delivery routes in major
Mexican cities.
As a fundamental component of our omnichannel multi-cat-
egory platform, we look to expand and consolidate our in-
tegrated D2C omnichannel platform in Mexico during 2022.
Also, we will carry on the development of new functionalities
to increase our household penetration while continuing to
evolve with a focus on the consumer.
HISTORICAL D2C HOME DELIVERY EXPANSION
This year, we achieved the historical expansion of our
D2C home delivery routes—from almost 800 routes
to over 1,200 routes serving more than 600 thousand
households in Mexico. We also started the implemen-
tation of our D2C omnichannel platform, including the
order-entry platform and Coca-Cola en tu Hogar web-
site, supported by our digital (ERP) order fulfillment
system. For the year, we generated double-digit reve-
nue growth in the home delivery channel; moreover, in
those routes in which we deployed our D2C omnichan-
nel platform, we increased the average ticket by en-
larging the mix of our non-jug water portfolio.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
44
44
DIGITAL & ANALYTICS HUB:
DRIVE AGILE, DIGITAL
RE-EVOLUTION
Our digital and
analytics hub
is enabling us
to re-evolve the
way we work
across the company. To win in both the
market and our industry, we’re driving an
agile methodology, mindset, and culture
that will accelerate the deployment of
our omnichannel commercial platforms
and solutions holistically via an end-to-
end process that connects strategic plan-
ning with quick delivery of the best value
proposition for our customers, consum-
ers, and business through agile cells—
ranging from distribution and planning
optimization to our B2B, D2C, and indi-
rect omnichannel platforms.
Through our digital and analytics hub,
we’re re-evolving our advanced analyt-
ics and data management capabilities
to produce valuable insights, tools, and
solutions for any area of the company
through agile cells of data scientists, data
engineers, and initiative leads. Among
our aggressive pipeline of analytic solu-
tions, an agile team of data engineers,
scientists, and business translators is
working to design and install the sug-
gested order process for our B2B plat-
form, based on a machine-learned al-
gorithm that enables us to predict the
number of products our clients’ need to
prevent out of stocks. In this way, we’re
improving the customer experience by
tackling two key pain points for our tra-
ditional trade clients: increase the sales
and reduce the risk of out of stocks of
their preferred products.
Moreover, our price and promotion op-
timization cell is addressing one of the
most important gain points for custom-
ers—product promotion—while enabling
us to improve our promotional return
on investment in our Argentina, Central
America, Colombia, and Uruguay opera-
tions. With this and other solutions, we’re
capturing the voice of our customers,
working closely with them to quickly de-
velop and deploy their favorite features
and to enhance their overall customer
experience.
CONTINUOUSLY EVOLVING MARKETING
CAPABILITIES: ENABLE HOLISTIC, OMNICHANNEL
CUSTOMER EXPERIENCE
We’re re-evolving and leveraging our marketing capa-
bilities—from revenue growth management (RGM) to
dynamic initiative management (DIM) and digital mar-
keting—to develop not only a winning multi-category
portfolio, but also a holistic omnichannel experience for
our customers and consumers.
To fully capitalize on our advanced analytics capabilities,
our DIM process aligns the marketing and commercial
strategy across our day-to-day operations to select, pri-
oritize, and schedule granular initiatives that the sales
force team executes for specific customers within the
traditional and modern trade channels. During 2021, we
implemented over a million targeted initiatives through
our DIM process every month across our operations, im-
proving our point-of-sale execution scores and customer
engagement.
Additionally, we’re improving our RGM capability with
our advanced commercial analytics platform, enabling
our Brazil, Colombia, and Mexico operations to create
greater customer value by maximizing our price, port-
folio, and promotion optimization. We’re also centraliz-
ing our price and promotion optimization capability and
tools within our operations.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
45
45
KEY FINANCIAL ENABLER: DESIGN AND DEPLOY
DIGITAL PAYMENT SYSTEM ACROSS ALL CHANNELS
As part of our digital re-evolution, an agile cell is work-
ing to design and deploy a safe, frictionless, end-to-end
digital payment solution to customers and consumers
across all channels. Thus far, we’ve rolled out the digital
credit card payment feature to almost 600 thousand
households throughout our over 1,200 D2C home deliv-
ery routes in Mexico. We’ve also enabled 1,200 custom-
ers to make digital QR code payments, along with over
6,600 customers who pay digitally through our B2B
web portal in our Argentine franchise territories.
SUPPLY CHAIN ENABLERS:
FACILITATE COMMERCIAL
RE-EVOLUTION
Our omnichannel multi-catego-
ry strategy leverages our lead-
ing-edge supply chain enablers
to enhance our customers’ expe-
rience when they interact with us,
while re-evolving our capabilities to win in the market and
the industry.
Digital Distribution
Through our evolving Commercial Control Tower, we mon-
itor and manage our entire commercial and distribution
operation, enabling both real-time and dynamic routing.
With the deployment of dynamic routing across our sec-
ondary distribution fleet in Brazil, Mexico, Colombia, Gua-
temala, Panama, Costa Rica, Argentina, and Uruguay, we’re
able to offer 24/7 order entry. Thanks to this enabler, we
enjoy the flexibility to plan vehicles’ routes on a daily, week-
ly, and monthly basis, thereby optimizing available delivery
resources and distances traveled to serve our customers.
Moreover, with the continuing evolution of our Digital Dis-
tribution 2.0 platform, we completed the rollout of real-time
routing across 100% of our Brazilian operation’s second-
ary distribution routes, serving 35,000 clients per day. With
real-time routing, we adapt our delivery process—from
pre-sellers’ visits to digital apps—to unplanned daily events,
constantly integrating and analyzing traffic, road, climate,
and other conditions to define the most efficient delivery
sequence and route, thereby fulfilling our sales promise
while improving customer service and engagement.
Aligned with our omnichannel multi-category strategy,
we further deployed our order-tracking platform to enable
customers to track their orders—created on any commer-
cial channel—from the moment of shipment to delivery.
Already deployed in Argentina, Brazil, and Mexico, we plan
to develop this digital tool for our other operations while
accelerating our digital distribution journey.
Warehouse Optimization & Digitalization
During the year, we optimized our warehouses to manage
our growing multi-category product portfolio, while con-
tinuing the systematic deployment of advanced picking
solutions, including both real and optimal picking.
Utilizing voice and digital images, these advanced picking
solutions improve our warehouses’ level of service through
the assertive assembly of mixed pallets according to each
client’s specific needs, maximizing load and route opti-
mization while increasing productivity. Building on the
integration of real picking across 100% of our Brazilian op-
erating units last year, we rolled out this solution to 42 op-
erating units across 6 different operations, while we final-
ized the implementation of 28 additional operating units
with optimal picking, completing the rollout plan in all our
Brazilian operating units.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
46
46
Consistent with our
strategic corridors, we
are placing sustainability
at the heart of our
organization.
PLACE
SUSTAINABILITY
AT THE HEART
OF OUR
ORGANIZATION
Starting from within
by setting an example
and involving our whole
organization—across all
of the different areas—we
integrate sustainability as a
strategic pillar that guides
our business decisions
to continuously create
economic, social, and
environmental value for our
stakeholders.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
47
47
Working together, we are tackling sustainability chal-
lenges in a holistic way—including our people, com-
munities, and transforming operations—on issues
such as climate change, water stewardship, circular
economy, safety, and community development.
Today, Coca-Cola FEMSA is the largest bottler in terms
of sales volume in the entire Coca-Cola System. With-
out a doubt, this is reflected in the great operational,
economic, social, and environmental footprint that
we have created from operating throughout nine
countries across Latin America.
At Coca-Cola FEMSA, we recognize the great respon-
sibility that comes from the role we play within this
ecosystem. That is why we view sustainability as an
interrelated system in which every action directly im-
pacts the environment and our society.
We recognize that we can only deal with the internal
and external challenges we face through cooperative,
equitable, and solid local and international alliances,
like UN Women, Inter-American Development Bank
and The Global Compact, among others. In this way,
our extensive footprint gives us the power to improve
socioeconomic and environmental conditions for cur-
rent and future generations.
Aligned with our company’s strategy, our senior lead-
ership team recently defined six strategic corridors.
One of these strategic corridors is to place sustainabil-
ity at the heart of our organization. Across this strate-
gic corridor, our renewed focus on sustainability seeks
to tackle issues that the company depends on in a
holistic way, starting from within by setting an exam-
ple and involving our entire value chain.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
48
48
CLIMATE ACTION
At Coca-Cola FEMSA, we recognize that
climate change is a real, and imminent threat,
and we are convinced that a science-based,
multi-stakeholder effort is required to address
this urgent matter that concerns us all.
Consequently, in 2020, we became the first
Mexican company and the third in Latin
America to achieve the official approval of our
emissions reduction targets by the Science
Based Target initiative (SBTi), aligned with
the goal of the 2015 Paris Agreement to limit
global warming to well below 2°C above pre-
industrial levels. Accordingly, our new 2030
commitments (compared with the 2015
baseline) are:
CO₂
CH₄
N₂O
HFCs
PFCs
SF₆
Scope 2
Scope 1
Scope 3
Reduce 20% absolute GHG
emissions from the value chain
(covering purchased goods and
services provided by suppliers and
upstream transportation) by 2030
compared with a 2015 baseline year.
Achieve 100%
renewable
electricity for our
operations.
Reduce 50% absolute
GHG emissions from our
operations (scope 1 and 2)
by 2030 compared with a
2015 baseline year.
Upstream
Scope 3
• Subcontracted fleet.
• Ingredients: sugar,
HFCS, CO₂.
• Packaging: PET,
aluminum, glass,
labels, screw caps,
crown caps.
Direct operations
Scope 1
• Plant boilers.
• Own fleet.
• Refrigerant gases.
Scope 2
• Power consumption
in plants, distribution
centers, and offices.
SCIENCE BASED TARGETS
INITIATIVE (SBTi)
In June 2020, Coca-Cola FEMSA be-
came the first Mexican company
and the third in Latin America to
obtain approval from the Science
Based Targets initiative (SBTi) for its
emissions reduction goals.
Performance on SBTi1
• Reduce 50% absolute GHG emissions
from our operations (scope 1 and 2) by
2030 compared with a 2015 baseline
year.
2030
28%
50%
• Achieve 100% renewable electricity for
our operations.
53%
2030
100%
• Reduce 20% absolute GHG emissions
from the value chain by 2030 com-
pared with a 2015 baseline year.
14%
2030
20%
Our absolute emissions targets de-
couple business growth from GHG
emissions. We thereby ensure that, no
matter the overall size of our business
in 2030, we will make our operations,
along with the entire value chain, less
carbon intensive than our 2015 baseline.
1. Performance reflects all of our operations and is
calculated based on SBTi.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
49
49
Manufacturing CO₂e emissions
Scope 2:
41,853
ton CO₂e
127,901
ton CO₂e
Scope 1:
86,048
ton CO₂e
Value chain CO₂e emissions
Cold drink
Equipment
31.1%
Ingredients
29.9%
3,841,932
ton CO₂e
Distribution
13.6%
Packaging
22.2%
Manufacturing
3.3%
Consistent with our Climate Action Strategy, we have defined sever-
al initiatives to meet our emissions reduction goals. Among the most
important initiatives, we worked along with our primary goods and
packaging suppliers to reduce their emissions. We will also continue to
lighten the weight of our packages and utilize a greater percentage of
recycled resin (rPET); increase the energy efficiency of our plants and
distribution centers; move our operations to renewable energy sources;
focus on sustainable mobility, replacing our secondary trucks and utility
vehicles with electric vehicles; and improve the management of refrig-
erant gases in our sales equipment.
Energy Efficiency, Clean Energy & Emissions Reduction
We strive for energy efficiency across our value chain. We further in-
tegrate clean sources of energy and technologies to reduce our GHG
emissions—thus contributing to climate change mitigation. Our oper-
ations’ energy consumption focuses on a comprehensive strategy that
encompasses our value chain.
Clean Energy in Manufacturing
%
5
8
%
0
8
%
1
7
%
2
5
%
8
3
%
9
2
2016
2017
2018
2019
2020
2021
At the end of 2021, we supplied 85% of the electricity used in our bot-
tling plants with energy from clean sources. We used clean sources of
energy for our manufacturing operations in Argentina, Brazil, Colombia,
Costa Rica, Guatemala, Mexico, and Panama.
We further aim to improve the energy efficiency of our manufacturing
operations, while simultaneously reducing our GHG emissions. To im-
prove our plants’ energy efficiency, we have implemented multiple stra-
tegic initiatives:
• Energy Training – We provide annual training to all of our energy
managers in every division, as well as all of the operators of each of
our work centers.
• Energy Assessments – We conduct annual energy assessments to
support our operations in Argentina, Brazil, Central America, Colom-
bia, and Mexico.
• Steam Standard – We focus on the utilization of steam produced in
our plants to reduce consumption, ensure safe use, recover steam
condensate, and increase the life of our assets.
• Top 20 Energy Efficiency Strategies – We implement key energy effi-
ciency strategies to minimize each of our plants’ energy consumption.
From 2015 to 2021, we increased our
energy efficiency by 1.35 times. We also
reduced our energy consumption by
44 million MJ year over year, and we
have invested US$16.8 million in energy
efficiency.
Liters of beverage
produced per MJ
6
6
5
.
7
1
.
4
2015
2021
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
50
50
SUSTAINABLE MOBILITY
Through our Sustain-
able Mobility Strategy,
we aim to reduce the
impact of our fleet on
the CO2 emissions of
our supply chain (including primary and sec-
ondary distribution trucks), and to position
ourselves as an industry leader in Latin Ameri-
ca in terms of vehicle efficiency, environmental
stewardship, and safety.
Aligned with this strategy, our 2030 projects
are to:
•
Integrate 45% commercial electric vehicles
in our fleet
• Achieve a 25% increase in efficiency in fuel
consumption (MJ)/kilometers of distance
covered (Km)
During the year, we continued to execute
route optimization strategies to maximize
overall vehicle efficiency. With the deploy-
ment of KOF Digital Distribution 1.0 platform
in Argentina, Brazil, Colombia, Central Ameri-
ca, Mexico, and Uruguay, we installed vehicle
telemetry systems on 80% of our primary and
secondary distribution fleet. Thanks to each
truck’s telemetry data—together with the
functionality of our mobile delivery devices—
we enjoy the ability to identify and correct de-
viations in distribution route execution versus
our route plan. This equipment also enables us
to analyze route execution patterns in order to
identify an optimal combination of variables to
improve our route planning process. As a re-
sult, we optimize our fleet’s usage and improve
key road safety indicators, while reducing
fuel consumption and CO2 emissions. Indeed,
we’ve developed a standardized KPI for fuel
use efficiency that will enable us to perform
internal benchmarks to improve this indicator
moving forward.
Moreover, with the deployment of dynamic
routing across our secondary distribution fleet
in Brazil, Colombia, and Mexico, we enjoy the
flexibility to plan vehicles’ routes on a daily,
weekly, and monthly basis, thereby optimizing
available fleet resources and distances traveled
to serve our customers.
EXPANDING ELECTRIC VEHICLE FLEET
This year, we expanded our fleet of electric vehicles by over 30% to 421 vehicles. We also sig-
nificantly expanded our supplier base for electric vehicles in the Latin America region to
eight leading global suppliers, working with them to develop electric units that meet the
bottling industry’s specifications.
Through our sustainable mobility community, we’re working to align the electric vehicle
strategy followed across our operations. Within this community, we developed and de-
ployed a total cost of ownership (TCO) and scenarios analysis tool. Moreover, to further align
our operations, we developed a standardized protocol to test new electric vehicle technol-
ogies—with a standard fuel efficiency KPI to measure fuel consumption by country—to re-
inforce and improve our migration to electric vehicles. Thanks to these and other initiatives,
we’re confident that we will transition our fleet to 45% of electric vehicles by 2030.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
51
51
Additionally, we leveraged our secondary fleet substitution program in
Mexico, Brazil, and Colombia, where we maintain the largest volume of de-
livery trucks. This year, we invested in 100 new electric vehicles to reach a
total of 421 vehicles. Additionally, through our sustainable mobility commu-
nity, we have been working to align the strategy followed across the differ-
ent countries. Within this community, we developed an economic-opera-
tional feasibility analysis, as well as an analysis of the market conditions and
availability of electric vehicles in Latin America.
Over the past five years, we’ve substituted our fleet with new vehicles that
meet higher emissions reduction standards. Currently, we’ve 2,934 trucks
throughout these operations’ secondary and primary fleet with EPA and
Euro V Certification. Thanks to this program, we reduced our fuel con-
sumption, emissions, and maintenance costs, and we reinforced our com-
mitment to eco-efficiency with local environmental authorities.
Through our self-regulation program in the Valley of Mexico, we commit to
minimize the local delivery fleet’s emissions through key initiatives, includ-
ing an efficient maintenance process and ongoing fleet substitution pro-
gram, fostering our social license to operate.
80%of our Brazilian operation’s utility vehicles use cleaner, lower emission ethanol biofuel. Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
52
52
WATER STEWARDSHIP
Water is an essential
ingredient in the
production of our
beverages. Therefore,
we are committed
to ensuring the efficient use of this natural
resource in our bottling operations and
returning to the environment more water
than we take to produce our beverages, while
safeguarding this resource not only for the
benefit of our company, but also for the access
and the enjoyment of our communities and
planet now and into the future.
COCA-COLA FEMSA PLACES FIRST
SUSTAINABILITY-LINKED BONDS IN
MEXICO
In September, 2021, we placed the first
sustainability-linked bonds in the Mexi-
can market for a total of Ps. 9,400 million
(US$470 million). Recognizing that wa-
ter is not only an invaluable resource for
our company and industry, but also an
indispensable element of resilience to
climate change, we are focusing this first
issuance on the sustainable and efficient
use of water. Specifically, as part of these
bonds, we are committed to the achieve-
ment of a water use ratio of 1.36 by 2024
and 1.26 by 2026.
Consistent with this commitment, we have established a
comprehensive water strategy, founded on three pillars:
1. Efficiency in water use at our plants
2. Facilitating access to water and sanitation in our
communities
3. Replenishment and water funds.
Aligned with this strategy, our goals and key performance
indicators are to:
• Achieve a water use ratio of 1.26 liters of water per liter of
beverage produced by 2026 (total Coca-Cola FEMSA)
• Replenish more than 100% of the water utilized to pro-
duce beverages across our bottling operations, focusing
on those determined to have high hydrological stress
• Conduct a yearly water risk analysis in each plant, in-
cluding identifying the social risks associated with water
• Create mitigation and adaption plans in each operation,
community or watershed in which we identify some risk
Efficiency
• Reduce, reuse, and track the water used in the
operation (lt water/lt beverage).
1.47
2026
1.26
Hydrological safety
• Replenish all of the water used in our beverages in
the watershed with a focus on high stress areas.
Water risk assestment
• Annual water risk assestment.
2025
100%
+100%
Annual
100%
100%
Water Efficiency
At the end of 2021, we averaged 1.47 liters of water
per liter of beverage produced and used 28 million
liters of water. To this end, we have invested US$4.5
million in 2021.
Aligned with our goal to achieve a water use ra-
tio of 1.26 liters by 2026, we are making all of our
operations more efficient. Through our continu-
ously improving Top 20 Water Saving Initiatives
program, we foster efficient water consumption
across all of our plants. To this end, we registered
significant progress across our operations, focus-
ing on 20 key measures—from our detection and
elimination of leaks to optimal water use in our
plants to our water recovery systems.
Water efficiency
Liters of water per liter of
beverage produced
(less is better)
2
7
.
1
5
6
.
1
8
5
.
1
2
5
.
1
9
4
.
1
7
4
.
1
2016
2017
2018
2019
2020
2021
15%
improvement in
water use ratio over
the last five years
Liters of
municipal water
Liters of
rainwater
Liters of
well water
Liters of
river water
Total water
consumption (L)
Total
General 8,434,437,506.30
5,424,000.00
18,071,077,948.96 1,487,958,647.00 27,998,898,102.26
Liters of water
discharged to
sewers
Liters of water
discharged into
rivers
Total water
discharged (L)
Total
General 2,761,699,828.84 3,051,539,229.71 5,813,239,058.55
100% of the water we discharge from our
manufacturing operations is sent to water treatment plants,
which ensure sufficient water quality to foster aquatic life.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
53
53
WATER RISK & ADAPTATION
This year, we analyzed water risks and estab-
lished mitigation plans across 100% of our
operations.
All of our strategies are aligned with the Unit-
ed Nations' Sustainable Development Goals.
Through different alliances, we join efforts to
foster adaptability and resiliency in the com-
munities we serve, prioritizing those most vul-
nerable to climate change and water short-
age. In this way, we support the communities
where we operate with water treatment and
water access projects.
Our aspiration is to return to the environment
and our communities more water than we use
to produce our beverages where it matters
the most. Aligned with this goal, we currently
give back to the environment more than 100%
of the water we use in the production of our
beverages in Argentina, Brazil, Central Ameri-
ca, Colombia, and Mexico through the conser-
vation and protection of biodiversity. We also
replenished 100% of the water that we use in
Colombia, Costa Rica, Guatemala, and Panama
through our “Agua para el Futuro” (Water for
the Future) conservation projects.
FACILITATING COMMUNITIES ACCESS TO SAFE AND SECURE WATER
By 2030, our Water Access Program aims to support 1 million people across our
communities in Mexico, so they can secure access to safe and sustainable wa-
ter through the promotion of collective action and inclusion. Moreover, “Ven por
Agua” (Come for Water) is a mobile vehicle through which we provide access to
safe, secure water for those communities that need it the most or those declared
disaster zones in Colombia and Mexico. In addition, we launched a pilot in Chi-
apas, where we’re distributing drums to collect water that impacted 5,000 fami-
lies in small rural communities.
Furthermore, in collaboration with FEMSA Foundation, we carry out projects de-
signed to improve communities’ quality of life by helping to provide them with
safe water, improved sanitation, and hygiene education. While the Foundation
intervenes significantly at the outset of each project, all of these initiatives utilize
the necessary elements to enable communities to adopt them in a sustainable
way—enduring over the long term.
For more information about FEMSA Foundation, visit https://www.femsa.com/
en/femsa-foundation/
Given the substantial scope, importance,
and complexity of water conservation
and replenishment, we further work to
strengthen water funds and conserve
water basins through sustainable
initiatives involving partnerships with
multiple stakeholders. Through the Latin
American Water Funds Partnership—
comprised of The Nature Conservancy
(TNC), FEMSA Foundation, the Inter-
American Development Bank (IDB),
and the Global Environment Facility
(GEF)—we jointly seek to achieve and
sustain water security in the region,
ensuring sustainable access to a
sufficient quantity and quality of water
to sustain human life and socioeconomic
development.
To date, the Partnership has developed
26 water funds. Of these funds, eight
are in countries where we operate—
Brazil, Colombia, Costa Rica, Guatemala,
and Mexico. As a result, through 2021,
the Partnership has worked to directly
benefit approximately 100 thousand
people in neighboring communities
around the water basins, creating jobs
and capabilities training since the
projects began.
We replenished
109%
of the water we used and had an
average water use ratio of 1.41 liters
for our 17 Brazilian, Mexican, and
Guatemalan plants located in high
water stress areas.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
54
54
CIRCULAR ECONOMY
At Coca-Cola FEMSA, we are con-
fident that, with the support and
co-responsibility of all the actors
involved in the value chain, we will
fulfill our 2030 goal of collecting
100% of the PET bottles we place in the market
through a concerted market-based approach
to the circular economy. To accelerate the tran-
sition to a circular economy for PET plastic bot-
tles, our focus is on ensuring both a steady and
secure supply of recycled resin through the
joint development of bottle-to-bottle recycling
facilities and closed-loop systems through
the development of our own infrastructure or
through partnerships with other stakeholders.
Distributors
10
(cid:30)
Producers
1
Waste
2
11
Consumers
Transport
3
Circular economy of
post / consumption packaging
Collection
4
8
PET Bottles
with Recycled
Content
(cid:29)
(cid:27)
5
Recyclers
Bales
Sorting
Centers
Transport
(cid:28)
(cid:31) Virgin PET Producers
(Grading/sorting,
washing, grinding,
shaping)
(cid:31)
Other Products
(Open loop)
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
55
55
Consistent with our long-term commitment to waste management and aligned with
The Coca-Cola Company’s commitment to a “World Without Waste,” our goals are to:
• Make all consumer packaging 100% recyclable by 2025
• Certify 100% of our bottling plants as zero waste to landfill by 2025
• Collect the equivalent of 100% of the PET bottles we place in the market by 2030
• Use at least 50% recycled resin (rPET) in our PET bottles by 2030
• Reach 25% reusable packaging by 2030
Industrial waste
• Zero Waste Certification in all of our
operations.
Packaging
•
Increase the use of recycled resin in
our PET bottles.
46%
• % of solid waste recycled.
2025
100%
2025
98%
100%
31%
2030
50%
• Recyclable materials in our packaging.
2025
• Reusable packaging.
97%
100%
2030
34%
25%
To achieve these goals, we strive to mitigate the environmental impact of our
operations’ processes, leading the way in the promotion of a culture of waste
management throughout all of our operations and value chain.
KOF Waste Management Strategy
Post-consumption collection
and recycling
Efficient design and
integration of recycled
materials in our
packaging
Comprehensive and
responsible post-
industrial waste
management
Packaging
Within the beverage industry, our product packaging is mainly com-
prised of polyethylene terephthalate (PET) plastic, glass, and aluminum.
PET, our highest-volume packaging material, is versatile, lightweight,
and the most widely recycled of all plastic types2 —which can also be
made into new and refillable bottles. We are committed to efficiently
using our packaging materials; redesigning our packaging’s compo-
nents to achieve recyclability; and integrating a growing share of recy-
cled content.
In 2021, we used an average of 31% recycled PET resin (rPET) in our plas-
tic bottles, an increase of more than five times in rPET volume over the
past eight years. Recycled PET is part of a closed loop recycling solution
for plastic bottles, offering a 60% greenhouse gas reduction and a 75%
lower total energy demand over virgin PET.3
2. The Coca-Cola Company, 2020 World Without Waste Report (June 2021), p. 5.
3. According to an updated Cradle-To-Resin Life Cycle Analysis of Polyethylene Resin by the National
Association for PET Container Resources (NAPCOR), a 60% reduction in greenhouse gas emissions and a
75% lower total energy demand may be achieved by replacing a unit of virgin PET with recycled PET.
Mix
69%
Recycled
content
31%
rPET
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
56
56
Moving forward, our goal is to use at least 50%
rPET in our plastic bottles by 2030. Notably, we
now offer beverages packaged in 100% rPET
across our markets, including all one-way pre-
sentations of Crystal brand water in Brazil, Bri-
sa brand water in Colombia, Ciel brand water
in Mexico, KIN brand water in Argentina, Vi-
tale brand water in Uruguay, and Alpina and
Dasani brand water in Central America. We
are also transitioning Sprite’s packaging from
green to clear in order to make it easier to re-
cycle; in the meantime, all of our Sprite bottles
in Mexico are made of 100% rPET. We further
built on the successful launch of our Univer-
sal returnable bottle in Argentina, Colombia,
Mexico, and Uruguay, significantly expanding
coverage and increasing production capacity
throughout key franchise territories.
% Recycled content
%
1
3
%
9
2
%
4
2
%
1
2
%
1
2
%
6
1
Consistent with our efficient resource man-
agement and optimization of packaging ma-
terials, we continued to deploy a wide-ranging
light-weighting strategy for our operations’
PET presentations and caps. Thanks to our ef-
ficient resource management and packaging
optimization, we generated savings of approxi-
mately US$6.4 million in 2021.
UPSTREAM INNOVATION: RETURNABLE/REFILLABLE PACKAGING MODEL
Through upstream innovation, we not only avoid the production of billions of new PET plas-
tic bottles every year through our expanding portfolio of refillable PET presentations, but
also make our packaging more sustainable while minimizing our use of virgin PET plastic,
as exemplified by the growth of our reusable Universal bottle that can be used across mul-
tiple beverage categories and brands.
Universal Bottle – Circular System
In this circular system, consumers pay an indirect deposit when purchasing our beverag-
es in a refillable Universal bottle by receiving a discount on their next purchase when they
return the empty bottle to the store—a reward feature that ensures a return rate of above
90%. Our retail customers store them and then give them back upon delivery of a new or-
der. We take the multi-branded mix of Universal bottles back to our bottling facility where
we wash off the paper labels and clean, refill, and rebrand the bottles with a fresh label be-
fore redistributing them.
Universal Bottle - Environmental Benefits
Carbon Emissions Reduction: Greenhouse gas emissions can be reduced by up to 47%
compared to single-use PET bottles, taking into account bottle production, increased trans-
port, and water use during washing.4
2016
2017
2018
2019
2020
2021
Water Use Reduction: Even factoring in washing, the reuse model reduces water use by
45% compared to single-use PET bottles.3
3. According to an updated Cradle-To-Resin Life Cycle Analysis of Polyethylene Resin by the National Association for PET Container Resources
(NAPCOR), a 60% reduction in greenhouse gas emissions and a 75% lower total energy demand may be achieved by replacing a unit of virgin
PET with recycled PET.
4. Ellen MacArthur Foundation, Upstream Innovation, A guide to packaging solutions (November 2020), p. 106.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
57
57
Collection & Recycling
We strive to make our beverage packaging
part of the circular economy. To this end, we
are creating circular solutions for collection
throughout our markets, working with key
partners across different collection and recy-
cling infrastructures. Through locally appropri-
ate collection and recycling solutions, we can
effectively turn old packages into new ones,
reduce our carbon footprint, and keep plastic
out of the environment.
WORKING WITH KEY PARTNERS TO MULTIPLY OUR SUSTAINABLE COLLECTION
CAPABILITIES
By joining efforts, we multiply the effects of
our actions. Accordingly, we partner with com-
munities, authorities, industry allies, and NGOs
on different initiatives to raise awareness of
post-consumer waste management, carry out
collection and recycling programs within our
communities, and inform consumers about the
proper disposal and handling of the waste gen-
erated from our products.
Across Latin America, we continued to
strengthen our sustainable collection capabili-
ties, including the following collaborative initia-
tives in our countries of operation:
Argentina – We are focused on reinforc-
ing our recycling capabilities in municipalities
through programs such as Ruta Verde, Latitud
R, Iguazú, and Red de Innovación Local (RIL).
Brazil – Through SustentaPET, a joint
venture created in partnership with
The Coca-Cola Company, we have opened
four PET collection centers in Belo Horizonte,
Cosmópolis, Porto Alegre, and São Paulo, Brazil.
Colombia – We expanded our Movimien-
toRE program, an industry/business alliance
to increase the collection of PET in the cities of
Barranquilla, Cartagena, Santa Marta, and Cali
(through “Cali Circular”), as well as Reciclave Bo-
gotá with the empowerment of recyclers.
Costa Rica – We use green trucks along our
home delivery routes to collect PET from the
households to whom we deliver our products.
Also, through our Geocycle, Misión Planeta, and
industry alliances.
Guatemala – Through our alliances with
other developers, we can start the separation
and collection process from homes. We also
formed an alliance with INGRUP, a local recy-
cled resin provider.
Mexico – We opened five new collec-
tion centers, so we can increase recycling in
the southeast region of the country. We also
aligned with small customers, as well as with
larger chains, to collect waste at their stores
through “mi tienda sin residuos” (“my zero
waste stop”) program.
Nicaragua – Starting in 2021, we estab-
lished a strategic alliance with Gravita, which
operates through a network of base recyclers
in several municipalities, guaranteeing the re-
covery and treatment of PET, so that it can be
reused as a raw material again.
Panama – We formed an alliance with Reci-
cladora Nacional to increase the collection and
treatment of PET plastic bottles and create a
circular economy for the use of these materials.
Uruguay – We have an industry agreement
with Crystal PET to close the PET recycling loop
through the use of rPET.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
58
58
Continuing our long-term commitment to collectively ad-
dress the challenge of waste management and aligned with
The Coca-Cola Company’s commitment to a “World With-
out Waste,” in the main markets where we operate or have
strong alliances with packaging collection and recycling
mechanisms, we have collected more than 122 thousand
tons of PET, putting us well on track to our 2030 goal of col-
lecting 100% of the PET bottles we place in the market.
Since 2002, we have collaborated with other food and bever-
age companies through ECOCE, a Mexican civil association
that promotes collection of waste, creation of a national mar-
ket for recycling, and development of recycling programs.
With an impressive national collection rate of 59% in Mexico
under the ECOCE model, we are at the top of collection and
recycling practices in Latin America through this collabora-
tion, with levels equivalent to the European Union.
To close the PET plastic recycling loop, we are leaders in PET
bottle-to-bottle recycling in Latin America. In 2005, we joined
forces to operate the first food-grade PET recycling plant in
Latin America, called IMER (Industria Mexicana de Reciclaje
or Mexican Recycling Industry), which recycled 19,252 tons of
PET during 2021. Overall, we now have a total of nine recycled
food-grade resin suppliers across our operations network.
In 2021, we utilized a total of 83,085 tons of recycled mate-
rials in our operations in Argentina, Brazil, Central America,
Colombia, Mexico, and Uruguay. As a result of these efforts,
we avoided the use of more than 460 thousand tons of virgin
PET resin since 2010.
BREAKING GROUND ON A NEW FOOD-GRADE PET RECYCLING
FACILITY IN MEXICO
Through a joint venture with ALPLA, we recently broke ground on
a new food-grade PET recycling facility in Cunduacán, Tabasco,
México known as PLANETA (Planta Nueva Ecologia de Tabasco),
which is projected to begin operation during the third quarter of
2023. This facility will have the capacity to process approximately
50,000 tons of post-consumer PET bottles annually—resulting in
35,000 tons of rPET pellets—which we plan to supply from 18 col-
lection centers in the southeast region. This new plant, together
with the accompanying collect centers, will help us to achieve our
goal of using at least 50% rPET in our plastic bottles by 2030, gain
greater control of the PET collection and rPET production cycle,
expand collection and recycling to states with low activity, and
generate approximately 20 thousand direct and indirect jobs.
Colombia earned
gold certification for
100%
of our seven bottling
plants as zero waste
facilities this year.
2.8 K
tons
landfilled
Industrial Waste Management
In 2021, 22 of our bottling plants earned Zero Waste to landfill certifica-
tion. Originally designed for our Mexico operations, this initiative estab-
lishes specific measures to improve waste management, disposal, and
repurposing—resulting in improved waste efficiency per liter of bever-
age produced. We also extended this program to our distribution cen-
ters, with 78% of our Brazilian distribution centers became zero waste
to landfill during the year. At the end of 2021, our bottling plants recy -
cled 98% or approximately 116.8 thousand tons of manufacturing waste
generated.
To this end, we diligently work to ensure our processes comply with the
highest national and international standards and with all applicable
laws, avoiding sanctions and fines pertaining to environmental issues,
while reaffirming our commitment to efficient operational processes,
environmental performance, and competitiveness.
.
3
8
Total
waste
generated
119.6 K
tons
116.8 K
tons recycled
Waste efficiency
grams of waste per liter
of beverage produced
(less is better)
.
5
97
6
.
4
6
.
.
2
6
.
3
6
2016
2017
2018
2019
2020
2021
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
59
59
SAFETY
Safety is a key priority, a
basic principle of action,
and a fundamental val-
ue for our company. It is
of utmost importance to
fulfill our purpose as an organiza-
tion. That is why we are committed
to continuously improve our opera-
tions by doing everything necessary
to prevent workplace injuries and
illnesses to safeguard the safety of
our employees, strategic partners,
and communities.
OUR 2020-2025 SAFETY GOALS
Aligned with our safety strategy, our 2020-2025
goals are to reach:
• Zero fatalities (avoidable or within the
company’s control)
• Lost Time Incident Rate (LTIR) of 0.4
• Total Incident Rate (TIR) of 0.8
• Crash Rate of 6.5
• Major Crash Rate of 0.5
Safety Performance
This year, we achieved an accelerated reduction
of both industrial and road incidents. Like the
past five years, we again registered our safest
year at the company level.
During 2021, we reported a Lost Time Incident
Rate (LTIR) of 0.58, a 20% year-over-year reduc-
tion that puts us closer to our 2025 goal of 0.4.
Notably, our manufacturing operations achieved
an LTIR of 0.32, below the 2025 goal that we set
as an organization. We also reduced our Total
Incident Rate (TIR) by 22% year over year to 1.04,
remaining on track to achieve our 2025 goal of
0.8. We also formally integrated KPIs for our own
employees and third parties:
• Lost Time Incident Rate (LTIR) of 0.66 for
employees and third parties
• Total Incident Rate (TIR) of 1.06 for
employees and third parties
We further achieved 12% and 55% year-over-year
reductions in Crash Rate and Major Crash Rate
to 9.76 and 0.83, respectively. During 2021, we
integrated a new metric tracking the frequency
of serious incidents and fatalities (SIF Exposure
Rate), effective 2022.
Lost time
incident rate-LTIR
(less is better)
8
.
1
.
3
3
81
1
.
1
0
1
.
1
3
7
0
.
8
5
0
.
Total incident
rate-TIR
(less is better)
6
0
3
.
9
6
2
.
9
9
.
1
9
8
.
1
3
3
.
1
4
0
.
1
2016
2017
2018
2019
2020
2021
2016
2017
2018
2019
2020
2021
Indicator
KOF Results1
2016 2017 2018 2019 2020 2021
0.58
LTIR
1.04
TIR
1 For comparability purposes, this data excludes Venezuela, since Venezuela is a
deconsolidated operation.
1.18
1.99
1.33
2.69
0.73
1.33
1.10
1.89
1.8
3.06
The numbers in this table reflect rates only for KOF employees and not third
parties, which is a number we started integrating this year.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
60
60
Safety Vision & Strategy
This year, we began implementing our 2021 -
2025 safety strategy, a multi-year effort to up-
date our focus and vision for the whole com-
pany. Consequently, we updated our vision,
objectives, and strategic initiatives to corre-
spond to our “zero is possible” aspiration.
Additionally, we started implementing five key
safety initiatives focused on our main risks and
organizational culture. With the success of these
programs, we are confident that we will reach
our goals and accelerate our safety results, with
active employee participation and leadership
key to the success of our safety strategy.
Safety is a key priority, a basic principle of action, and a fundamental value for our company. It is of utmost
importance to fulfilling our purpose of always finding the most efficient and sustainable way to put the drink
of choice in our consumers’ hands anytime, anywhere.
SAFETY VISION
Goals
Strategic
Corridors
Key Safety
Initiatives
• Zero Fatalities & Serious Incidents
• Best In Class KPIs
• ZERO External Audit Findings
Key Risks
and Systems
Management
Talent and
Capability
Development
Serious Incidents
and Fatalities
Prevention
Model (SIF)
Life Saving Rules
and Critical
Safety Standards
Infrastructure,
Technology,
Digitalization of
Processes and
Basics
Performance
Management,
Improvement,
and Innovation
Road Safety
Program
Safety Model for
Third Parties
QSE Culture
Safety Culture &
Accountability
Program
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
61
61
Key Risks & Systems Management
We aim to provide solid manage-
ment based on world-class stan-
dards, systems integration, oper-
ating models, and programs that
ensure the control, mitigation, and
containment of major risks and
their impacts on our people, com-
munities, and company. Among our
achievements for the year, we put
in place diagnostics and plans for
our 14 Life Saving Rules throughout
100% of our manufacturing plants
and 60% of our distribution centers.
As part of our Road Safety Program,
we updated the road safety strat-
egy and standards, and executed
a series of road safety diagnostics
and evaluations across all of our
operations—which will serve as the
base for their strategic, tactical, and
operational plans. We carried out
strategies and communications
plans designed to create awareness
among different road actors of the
risks present on public roads while
educating them on their different
roles and responsibilities when driv-
ing on a public road. We standard-
ized precursors, risks, and distri-
bution activity controls to manage
risks and implement key controls,
establishing high-impact activities
such as reverse maneuvers, vehicle
parking, and offloading on public
roads. We also carried out a series
of incentive/recognition programs
for drivers to reinforce expected be-
havior, compliance, and road risk
management.
Moreover, we began to implement
our Safety Incidents Prevention
Model, so we can replicate this
model throughout our operations
during 2022. We updated nine
global standards that respond to
critical safety risks at the organi-
zational level—from working at
height to road safety—with each
country executing these standards
in accordance with their own risk
analysis. We also employed a safe-
ty management model where we
defined 30 safety processes and
requirements that are managed
within the organization, with each
country complementing this model
with applicable local government
requirements.
With our strategic partner Solisti-
ca, we implemented a safety and
environmental management mod-
el aligned with our five strategic
safety corridors. Begun in 2020, this
model led to a 52% reduction in
minor crashes, a 72% reduction in
major crashes, and zero serious in-
cidents and fatalities (SIF).
Talent & Capability Development
Our aim is to enable a capable and trained team and talent, com-
mitted to safety at all levels of the organization. Among our achieve-
ments for the year, we worked with our strategic partner Solistica
to design a shifting skill development model, with latest generation
road simulators, in Brazil and Mexico. Thanks to these simulators and
new training methods, we are developing a highly professional team
of safe drivers. Moreover, in Brazil, we carried out a training program
specifically designed to achieve our company’s defined education-
al objectives, along with the technical and behavioral capabilities to
achieve safe and efficient driving standards.
QSE ACADEMY & COMMUNITIES COLLABORATIVELY
ADVANCE KEY SAFETY INITIATIVES
As part of our company’s skills development, we designed
phase one of our QSE Academy. The Academy offers more
than 70 subjects—29 of them safety related—to be implement-
ed throughout our operations in the coming years. Additional-
ly, during 2021, we developed safety technical skills, focusing on
key risks, involving an annual investment of over 350 thousand
hours of virtual and in-person training.
We further strengthened and managed our safety knowledge
communities, including those focused on RTM Safety, Third
Party Safety, and Serious Injuries and Fatalities (SIF) Manage-
ment Model. Through these communities, we systematically
connect best practices, experiences, and a network of experts
from across our operations to collaboratively advance these
key safety initiatives.
During 2021, we conducted a companywide study to evaluate our or-
ganizational structure, considering operations management and the
impact of COVID-19. We also achieved 95% implementation of our
new safety organizational structure, which was re-designed in 2020.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
62
62
Infrastructure, Technology & Digitalization of Processes
We are leveraging technological development,
process digitalization, and predictive analy-
sis to enable our safety culture and strategy,
transforming behavior while fulfilling machin-
ery and vehicular safety standards. To this end,
we chronicled the following achievements for
the year:
Costa Rica, Guatemala, and Panama – We in-
stalled telemetry equipment across 100% of the
secondary delivery fleet. We also implemented
a behavioral management platform that en-
ables driving traceability through a telemetry
system, while identifying and grading opera-
tor’s driving habits on a scale from 0 to 100%.
Costa Rica, Guatemala, Nicaragua, and Pan-
ama – We implemented an integral system
for forklift management that utilizes telem-
etry equipment for behavior management,
team performance optimization, and excellent
service. This system increases visibility and re-
al-time alerts, reduces risky behavior, improves
impact detection, and lowers corrective main-
tenance cost, among other benefits.
Mexico – We installed advanced driver assis-
tance and monitoring systems (ADAS) across
100% of our primary distribution fleet. We also
deployed an onboard management technol-
ogy model through the ADAS Mobileye + Eye-
sight technology that was installed through-
out our primary distribution fleet. The ADAS
technology consists of auxiliary electronic de-
vices to support drivers in specific driving sit-
uations—from fatigue and collision alerts to
speed limits—generate a plan, and follow up
with each operator to foster safe driving habits.
Added to the behavior management model,
these technologies have enabled us to dras-
tically reduce the number of road incidents,
while following up on key findings.
Brazil – We managed to eliminate 100% of mo-
torcycle crashes as an integral part of our safe-
ty risk strategy. Through the development of a
motorcycle management model, we were also
able to reduce crashes by over 35% in Colom-
bia and Guatemala.
Performance Management, Improvement & Innovation
We aim to provide the required pro-
cesses and tools for safety perfor-
mance management, while promot-
ing improvement and innovation
that leverages our safety strategy.
Among our achievements for the
year, our manufacturing plants re-
ceived ISO 45001 occupational health
and safety certification. We devel-
oped a digital preventive observa-
tions registry to control and identify
behavior across our Central American
operations. We digitized the motorcy-
cle documentation process in Colom-
bia, including traffic violation controls,
skill and dexterity texts, and personal
protective equipment verifications.
We conducted the first self-diagnos-
tic evaluation of our company’s safety
maturity model. Moreover, we devel-
oped phase two of our Control Tower,
where all of the safety indicators were
standardized and automated, gen-
erating reports and business intelli-
gence data analyses.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
63
63
QSE Culture
We aim to position our QSE culture as a fun-
damental business strategy, ensuring the
ownership, commitment, credibility, consis-
tency, and leadership to support our QSE cul-
tural evolution.
Our “Zero Is Possible” Aspiration
Since 2016, we have consolidated and im-
proved our culture and performance on safety
issues, while we have not been able to elimi-
nate fatal and serious incidents involving em-
ployees and third parties.
Among our achievements for the year, we car-
ried out communication plans and conducted
training of our leadership teams based on psy-
chological safety principles, elements, and be-
haviors. We conducted a diagnosis of cultural
interferences that limit our QSE cultural trans-
formation progress, defining nine key priorities
aligned with The Coca-Cola Company’s global
human and organizational methodology. We
carried out a diagnosis and QSE culture work-
shops in Colombia, Costa Rica, Guatemala, and
Mexico. We further conducted communication
plans and recognition programs that leverage
expected beliefs and behaviors by acknowl-
edging people and operational units with ex-
traordinary results.
With this in mind, we are now implementing
throughout the organization a deeper and
more consistent focus on the interaction be-
tween people, culture, leadership, teams, work
systems, and processes because most of our
fatal and serious incidents result from the in-
teraction of these elements. We are also evolv-
ing our approach to focus on risks and pre-
cursors management, so we can help people
make better decisions and prevent damages
when things do not go as planned.
Furthermore, we will continue the deploy-
ment of our security plan throughout the
company, creating an organizational culture
where we are convinced that “zero is possible.”
This implies a significant change in mentality
throughout our global leadership and in our
commitment to security, while we reinforce
and ensure our fundamental security practices
and principles. In this way, we strive to make
ZERO a reality, so if there is an incident, our
people come out unscathed
ceptable, so we will not be satisfied until we ful-
fill our promise of ZERO incidents. We extend
our condolences to all of the families and ev-
eryone affected by our operations, and we are
committed to implement best practices to pre-
vent any losses in the future.
This report documents the total number of
fatalities (with or without legal responsibili-
ty where we were somehow involved during
2021). Importantly, we include any fatalities
involving our own personnel, third parties,
and communities, integrating all of our opera-
tions—manufacturing, distribution, and com-
mercial locations operated by our own person-
nel, contractors, and third parties.
Roughly 95% of these fatal events were relat-
ed to road accidents (16 events), and 5% were
connected to violence on public roads. Of the
17 fatalities, five (29%) were third-party employ-
ees/contractors, and 12 (71%) were community
members connected to our operations. Five
events (29%) were related to logistics/primary
fleet; eight (47%) were connected to secondary
distribution; and in 5 events (29%), the authori-
ties determined that we were legally responsi-
ble, while in the rest of the incidents the com-
munity was deemed to be responsible.
Fatalities
Unfortunately, over the past year, 17 people died
either through their work for Coca-Cola FEMSA
or community members involved in an incident
with one of our vehicles. Any fatality is unac-
Notably, we have reduced the total fatalities
involving our own vehicles or personnel by 93%
from 2016, and over the same period, we have
managed to reduce the total fatalities involv-
ing our contractors and third parties by 43%.
Total fatalities
Own employees + third parties + communities
Own employees
Third parties
Communities
39
9
6
2016
29
23
19
22
12
5
3
2017
4
3
2018
4
4
2020
5
2021
2
2019
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64
SHARED OPPORTUNITY WITH OUR COMMUNITIES
We work to strengthen and consolidate positive relationships with the communities with which we
interact. We identify and develop shared opportunities for our company and communities’ sustain-
able development, enhancing our ability to serve the marketplace while maintaining our social li-
cense to operate.
Sustainable Procurement
At Coca-Cola FEMSA, we work with our suppliers
to reduce the environmental and social impacts
generated by our commercial interactions and
thus improve the conditions of our supply chain.
In this way, we not only minimize negative im-
pacts, but also raise standards in key business
areas, increase labor efficiency, preserve envi-
ronmental capital, and reduce risks and costs for
all of those involved throughout the value chain.
As part of our company’s sustainable procure-
ment mandate, in conjunction with our defined
strategic initiatives, each supplier cooperates to
minimize their social and environmental risks
over which we have no direct control and which
cause the greatest number of impacts through-
out our supply chain on a daily basis. The general
guidelines that we use to make this happen are:
1. The Coca-Cola Company’s (TCCC) Supplier
Guiding Principles focus on strategic input
categories and include areas such as Human
Rights Policies, Environmental Protection,
and Labor Rights. Through audits that en-
sure compliance with these standards, TCCC
authorizes its bottlers to work with approved
suppliers.
2. Sustainable Agriculture Guiding Princi-
ples. Established by TCCC, they include the
same areas as the previous principles, but are
adapted to suppliers of agricultural raw ma-
terials.
3. Coca-Cola FEMSA’s Supplier Guiding Prin-
ciples. We apply these principles to mitigate
social risks of suppliers for categories that are
different from those of the strategic inputs
and are relevant to the value chain.
COCA-COLA FEMSA SUPPLIER GUIDING PRINCIPLES
Human Rights
1. Respect for human dignity
2. No to discrimination
Fundamental Principles and
Rights at Work
3. No to forced or child labor
4. Freedom of association and
trade-union freedom
5. Labor relations
6. Safety and health at work
7. Human capital development
and well-being
8. Whistleblowing systems
Environment
9. Environmental impact and
compliance
Commitment to the
Community
10. Community development
Information Management and
Security
11. Privileged and confidential
information
12. Intellectual property
13. Personal data
14. Information security
Third-Party Relationship
15. Competition
16. Government and authorities
Culture of Lawfulness
17. Regulatory Compliance
18. Tax Compliance
19. Anticorruption
20. Anti-money laundering
21. Conflict of interest
22. Gifts, hospitalities, and/or
Entertainment
23. Information update
24. Corrective measures
For further information you may access one
of the following links:
Spanish
English
Portuguese
Overview
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65
These principles reflect the standards that guide our daily activities to
ensure we provide responsible workplaces that protect human rights
and comply with environmental laws. Founded on these principles, we
follow a comprehensive five-step Sustainable Procurement Strategy:
Prioritization of categories
At Coca-Cola FEMSA, we use a proprietary tool to identify which suppli-
ers are candidates for a development process. Suppliers are prioritized
considering factors such as expenditure, environmental, social, and eth-
ical impacts for each product category, dependability, brand associa-
tion, and operational criticality.
The Coca-Cola Company
Country
Mexico
Costa Rica
Guatemala
Nicaragua
Panama
Argentina
Brazil
Colombia
Total
2016
52
3
5
1
0
11
47
7
126
2017
40
7
8
0
3
19
102
18
197
2018
59
0
7
0
3
10
51
11
141
2019
37
1
8
1
2
10
42
4
105
Sustainable purchases
Through this step, we include Coca-Cola FEMSA’s Supplier Guiding Prin-
ciples in our supplier contracts and requests for information, provide
general guidelines for assessment procedures, and conduct training for
sourcing and purchasing employees.
Assessment
At Coca-Cola FEMSA, we assess our suppliers continuously through our
Sustainable Procurement System, ensuring that they are aligned with
our company’s operating principles and values. Carried out online,
this assessment focuses on four main areas: Social/Labor Rights; Envi-
ronment; Ethics and Values; and Community. To ensure the process’s
transparency, a third party reviews and verifies the information, and we
then provide feedback and create action plans to encourage supplier
development, ethics, and sustainability. All suppliers with low scores
are subject to improvement plans at their facilities and are evaluated
periodically to encourage their continuous improvement. This year, we
conducted 699 supplier evaluations based on Coca-Cola FEMSA’s Sup-
plier Guiding Principles. Since 2015, we have carried out 3,215 evalua-
tions under these principles.
Consistent with this strategy, The Coca-Cola Company (TCCC) assesses and
ensures compliance with its guiding principles and sustainability stan-
dards for specific categories of strategic suppliers; at Coca-Cola FEMSA,
we only work with suppliers approved by TCCC in those categories. In 2021,
TCCC carried out 253 evaluations of suppliers aligned with their Supplier
Guiding Principles and Sustainable Agricultural Guiding Principles.
Coca-Cola FEMSA
Country
Mexico
Costa Rica
Guatemala
Nicaragua
Brazil
Panama
Argentina
Colombia
Uruguay
Total
2015
100
30
2016
198
120
84
2017
245
106
49
94
45
2018
172
34
34
27
66
36
31
130
402
539
400
2019
165
41
36
21
63
24
31
30
15
426
In addition to these assessments, Coca-Cola FEMSA is one of the few companies that promoted the
application of these assessments to Tier 2 suppliers or the suppliers of our suppliers. Currently, our
strategic suppliers are applying the same risk assessment and mitigation mechanisms within their
own value chain. This ensures that the knowledge and the drive for greater sustainability not only
remains within our direct circle of influence, but also extends to all of those who participate in sup-
plying raw materials, inputs, and services. In 2021, we evaluated 61 indirect Tier 2 suppliers based on
Coca-Cola FEMSA’s Supplier Guiding Principles. Since 2018, we have conducted 143 evaluations un-
der these principles.
Year
2018
2019
2020
2021
Tier 2 Suppliers Evaluated
26
36
20
61
2020
27
7
7
1
1
10
57
10
120
2020
164
35
35
15
245
30
17
51
27
619
2021
130
0
7
0
1
25
65
25
253
2021
143
47
57
24
266
36
42
56
28
699
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Capabilities development
To strengthen our suppliers’ business capabilities, we provide them
with access to training and growth initiatives on topics such as finance,
marketing, and human resources, among others. We also support their
growth and build their business skills, improve their companies, and de-
velop high quality products aligned with our principles and values.
In collaboration with GDS Resources, we carry out a Comprehensive
Supplier Development Program for strategically selected small- and
medium-sized enterprises (SMEs) to improve their business capabili-
ties. Through this program, we collaborate with suppliers to not only
improve their sustainable competitiveness, but also forge stronger re-
lationships with our company and other large companies. In 2021, eight
suppliers participated in the program, training a total of 263 suppliers
from Mexico.
Recognition
The good performance of our suppliers on sustainability issues is very
important. Accordingly, we recognize all those suppliers that incorpo-
rate sustainability into their own business’s DNA not only as a require-
ment for doing business with Coca-Cola FEMSA, but also as a compet-
itive advantage and a means to become socially responsible. During
2021, we conducted virtual recognition forums for suppliers to our Brazil,
Costa Rica, Guatemala, Mexico, and Panama operations, where we rec-
ognized 64 suppliers from over 374 participating companies for their
remarkable practices.
SUSTAINABLE COMMUNITY
DEVELOPMENT
1.3 million benefited in neighboring
communities that contributed to the
achievement of the UN Sustainable
Development Goals.
At Coca-Cola FEMSA, we look to provide tools that allow for the sus-
tainable growth and development of the communities within our so-
cial and operational footprint. At the same time, we work to develop
standardized activities through all of our countries with high social
impact to protect and promote the prosperity of all of the people in
these communities and to continue to build socially responsible envi-
ronments throughout our value chain.
Throughout the year, we developed strategies with our communi-
ties, prioritizing activities focused on our sustainability pillars—Our
Planet, Our Community, and Our People—that benefitted approx-
imately 1.3 million people during 2021. Thanks to our alliances with
The Coca-Cola Company, The Coca-Cola Foundation, and FEMSA
Foundation, we implemented more than 120 initiatives that contrib-
uted to the achievement of the UN Sustainable Development Goals.
Through actions focused on Our Community and Our People pil-
lars, we benefitted more than 400 thousand people throughout our
operations, and we worked on more than 2 thousand volunteering
activities that impacted over 300 thousand people. Specifically, we
prioritized our community integral wellbeing, early childhood devel-
opment, economic growth, sustainable procurement, and inclusion
and diversity initiatives.
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67
to artistically express emotions, thereby achieving a
healthier physical and mental state. Moreover, through
the Fiesta Navidad Calle Blancos and Natal Sem Fome
initiatives in Costa Rica and Brazil, respectively, we de-
ployed luminous caravans to distribute and donate
more than 4,000 baskets of basic goods. Furthermore,
in Venezuela, we continued the Red de Entrenadores
program, which has trained 800 coaches, positively im-
pacting more than 60 thousand young people in vul-
nerable communities across the country since its cre-
ation in 2016.
Economic development and empowerment
At Coca-Cola FEMSA, we strive to positively impact so-
ciety by investing and supporting small business own-
ers because they can transform their communities.
Consistent with our commitment to support commu-
nities and achieve a more sustainable environment fo-
cused on inclusion and diversity, we developed activities
to create resilience and reactivate local economies. To
this end, we deployed economic development projects
to support the rentability and sustainability of more than
17 thousand people’s businesses, mainly in the tradition-
al channel, through entrepreneurship and economic
empowerment training with innovation and digitaliza-
tion components.
Together with FEMSA Foundation, we carried out ac-
tions and achieved long-term benefits focused on
early childhood development. Among the highlights,
in Brazil, we undertook the Vamos a Brincar and Guia
Pela Primeira Infância programs to promote active and
healthy lifestyles for children between the ages of three
and five with the support of their families and teachers.
In Colombia, we helped to reduce gaps in early child-
hood education for children from vulnerable families
through La Mojana. In Nicaragua, in alliance with Glass-
wing, we delivered family and emotional welfare kits,
as well as baskets of food and hygiene products, under
the Desarrollo Infantil Temprano program. Additionally,
in Costa Rica, our Lazos de Amor initiative trained par-
ents and caregivers to stimulate the development of
skills for 100 children from birth through age 5.
To promote healthy lifestyles and a positive family en-
vironment, we continued activities that promote exer-
cise—like Vive Bailando - Somos Sabor and Me Gozo la
Vida in Colombia—where we use dance and movement
Consistent with our
commitment to support
communities and achieve a
more sustainable environment
focused on inclusion and
diversity, we developed
activities to create resilience
and reactivate local economies.
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Furthermore, we are
promoting women’s
resilience to emerge from
the pandemic and reinvent
their business to adapt to
the new normal.
In Mexico, we joined forces with The Coca-Cola Company,
FUNDES, and Pro Mujer to implement the Programa Mujeres
en el Canal Tradicional, through which we carried out individual
training in areas such as client development and sales, business
management, digital abilities, and financial health. This pro-
gram’s goal is to bolster the development of women and small
businesses, so they can recover from the recent economic crisis
and adapt to the new digital business reality. With the State of
Chiapas’ Secretary of Gender Equality, we also developed the
Juntas Crecemos tu Negocio initiative, which looks to empow-
er vulnerable women with the strengths and skills to get their
businesses to take off.
Similarly, in South America, we worked on programs focused on
gender equality, inclusion, and diversity. In Brazil, together with
The Coca-Cola Company, we developed the Coca-Cola dá um gás
no seu negócio initiative, in which we trained Afro-descendent
women entrepreneurs in small stores and economic kitchens
through the Camellia Institute. In Colombia, we strengthened
small businesses long term, while promoting responsible finan-
cial models under the Finsotienda y Ruta Tenderos program.
Moreover, in Venezuela, we provided training for the develop-
ment of women’s collective leadership, with a psychosocial com-
ponent, through the Red de Empoderamiento program.
Furthermore, we are promoting women’s resilience to emerge
from the pandemic and reinvent their business to adapt to the
new normal.
With an investment of over US$9 million, projects focused on
the Our Planet pillar prioritized activities in the areas of circular
economy, water stewardship, climate action, and environmen-
tal education. In collaboration with The Coca-Cola Company, we
have also been working with non-governmental organizations
(NGOs), local governments, and consumers to define a road-
map that will reduce our environmental impact.
This year, we collected over 70 thousand tons of waste in a ho-
listic, transversal way. Some of our most important initiatives
include: Movimiento Re and Reciclar Tiene Valor in Colombia,
a collaboration of several environmentally committed com-
panies to strengthen recycling organizations and thereby in-
crease their collection capabilities; Limpieza de Playas in Gua-
temala, a volunteer initiative to create a reduce, reuse, recycle
culture; Mi Tienda sin Residuos in Mexico, a program to place
PET plastic recycling bins in Oaxaca; and Misión Planeta in Cos-
ta Rica, a 25-year recycling program focused on PET plastic and
Tetra Pak recycling.
We have further established important alliances with West Coast
Waste, Geocycle, GRAVITA, ECOCE, Recicladora Nacional, FEMSA
Foundation, and The Coca-Cola Company Mexico’s Reciclatón.
Finally, in conjunction with the water funds we operate in col-
laboration with FEMSA Foundation, through 2021, we benefit-
ted approximately 100 thousand people in neighboring com-
munities around the water basins through job creation and
capabilities training since the projects began.
Overview
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COVID-19 ACTIONS
Aligned with our compre-
hensive management frame-
work, we continued to priori-
tize the safety and wellbeing
of our employees, customers,
consumers, and communi-
ties throughout the COVID-19
pandemic. By prioritizing their
health and safety, we reinforce
our company’s commitment
to delivering economic value,
while generating social and en-
vironmental wellbeing.
As a leading beverage com-
pany, we have made our re-
sources available to build on
the actions of the communities
where we operate. In solidarity
with our communities in 2021,
we have offered our company’s
support through our donation
of more than 2 million liters of beverages to medical personnel and vulnerable
families across our markets.
We have further collaborated with government authorities to leverage our mar-
keting spaces and delivery trucks in the communication of prevention measures,
including fliers to spread messages of prevention and care. We have also played
an important role in vaccine rollouts across some of the countries in which we
operate.
MOVING FORWARD
TO A NEW ESG STRATEGY
We are committed to place sustainability at the heart of the organization, fostering an ESG-centered
culture. In pursuit of this goal, we will update our ESG strategy, looking to rise to leadership status in
our industry, as reflected in our performance in evaluations, indexes, and rankings. In addition, this
strategy will be aligned with both The Coca-Cola Company’s and FEMSA’s efforts.
The following objectives for sustainability/ESG were defined:
Strategy and priorities: define the company’s sustainability strategies and priorities.
i)
ii) Public pledges: optimize the revision and approval of public commitments and policy related to
sustainability topics.
iii) Management and assignment of resources: develop a mechanism to revise and approve bud-
gets, resources, and investments to carry out our sustainability strategies and fulfill public com-
mitments.
iv) Monitoring and supervision: ensure that our public commitments are fulfilled, financed, executed,
and communicated appropriately in the manner that was approved by senior leadership.
v) Risk mitigation: analyze external social and environmental dynamics, trends and emerging risks,
and possible strategic alternatives. Oversee sustainability efforts to mitigate risks that may have a
significant impact on the business.
vi) Redefine and prioritize Social/Community programs at country and operation level.
vii) Inclusion and Diversity.
To ensure we are able to reach these objectives in an efficient manner, during 2021 we agreed to es-
tablish an ESG Committee, starting on 2022, which will be composed of members of our senior leader-
ship team—to ensure that all of the relevant areas of our business and all of the countries in which we
operate are fully involved in the creation of ESG initiatives and decisions. Aligned with our strategy, our
aim is to continually reinforce our commitment to create value in the areas of social, environmental,
and corporate governance, while generating economic value across all of the communities we serve.
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Consistent with our
commitment to foster an
agile, digital savvy, and
people-centric culture,
we defined our Human
Resources (HR) function’s
long-term strategy.
To facilitate this strategy, HR acts
as agents of change—leading our
cultural transformation journey,
reshaping our company through
talent, enabling key organizational
capabilities, and improving HR data
and processes to deliver faster and
better services to our organization.
FOSTER AN AGILE,
DIGITAL SAVVY,
AND PEOPLE-
CENTRIC CULTURE
HR Strategy 2020-2025
Enable key
organizational
capabilities
Adapt cultural,
structural and
leadership
capabilities to
meet evolving
business needs
Transform KOF
through talent
Ensure that our Talent
becomes the competitive
advantage to reach KOFʼs
strategic goals
Improve HR data,
processes &
service
Promote standard,
data-driven,
automated
and digital HR
processes to
deliver faster and
better services
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CULTURAL &
ORGANIZATIONAL
TRANSFORMATION
Our cultural transformation journey, coupled with the complex business outlook
brought on by the COVID-19 pandemic, required the continuity of relevant cultural
changes throughout the organization. Our HR function became an active strategic
business partner, efficiently facing the company’s business needs and adding val-
ue to the overall strategy.
Deployment of DNA KOF
In 2018, we began our
cultural transformation with
the launch of KOF DNA. One
of the elements of our DNA is
to be agile decision-makers,
which is why we promote
action oriented decisions.
COVID-19
“The 2020/21 global pandemic has
elevated the role of the CHRO and the
HR function.”
—Gartner
The pandemic brought a series of HR
challenges, enabling it to become a
strategic partner for the business. This
required HR to reconfigure its model
and ways of working to support all of
the company’s needs.
Functionalization
In 2019, we began a
functionalization process to
achieve greater alignment of our
corporate areas and countries
where we operate, ensuring more
agile and better services.
+5,500
leaders trained through our
Agile & Digital Academy.
To support our transformation, we made or-
ganizational changes based on our refreshed
corporate strategy, including the creation of
commercial platforms to ensure our business
transformation, the reorganization of the HR
and Finance functions to offer greater strate-
gic contributions to our business from these
central areas, and the integration of the RTM
Center of Excellence to unify our processes
and practices to better serve our customers.
To this end, we designed robust HR, Finance,
IT, Compliance, and Corporate Affairs models
from our corporate areas to our countries of
operation. These upgraded operating models
focus on supporting our refreshed corporate
strategy: on the one hand, they exploit our
current capabilities through their focus on the
transactional aspects of our business; on the
other hand, they explore future opportunities
through their focus on the strategic elements
of our business.
In 2018, we launched our DNA to ensure that
our customers and consumers were priori-
tized to our activities. This year, we reinforced
our DNA—establishing that our people are at
the center of everything we do. To this end, we
continued to create mechanisms and practic-
es to live and refresh our DNA throughout our
organization. For example, we developed and
implemented a recognition program known
as “Estrella KOF” or “KOF Star” in all of our op-
erations, where our employes nominate and
recognize their colleagues for showing extraor-
dinary commitment to our DNA.
We further focused on our digital and agile
transformation, enabling our organizational
capabilities, transforming KOF through talent,
and improving our data processes and ser-
vices. Among our strategic initiatives, we de-
veloped our Agile & Digital Academy, which of-
fered digital capabilities training to more than
5,500 leaders throughout the organization. We
also adopted agile ways of working like digital
communities and cells. Moreover, we are an-
alyzing the world’s trends and defining new
ways of working in the post-pandemic envi-
ronment, taking into account radical flexibility
and making hybrid work a reality.
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Upgraded HR Operating Model
Upgraded HR Operating Model
HR Talent Leaders
HR Talent Leaders
HR Transformation
HR Transformation
• Lead HR at country
level
• Lead HR at country
level
• Make local decisions
and execution
• Make local decisions
and execution
• Respond in an agile
manner
• Respond in an agile
manner
• Build internal client
relationships
• Build internal client
relationships
• Build labor
relationships
• Build labor
relationships
• Reduce focus
on operational
• Reduce focus
management
on operational
management
• Harmonize new
business and
• Harmonize new
categories
business and
categories
• Focus on the
future (innovation,
• Focus on the
benchmarks, best
future (innovation,
practices)
benchmarks, best
practices)
• Drive cultural
transformation
• Drive cultural
transformation
• Lead inclusion and
diversity agenda
• Lead inclusion and
diversity agenda
• Manage internal
communications
• Manage internal
communications
• Guard change
management
• Guard change
management
• Govern lean and agile
methodologies
• Govern lean and agile
methodologies
Centers of
HR Talent Leaders
Excellence (CoEs)
• Subject matter
experts in each of HR’s
• Subject matter
main functions:
experts in each of HR’s
main functions:
- Talent Management
- Talent Management
- Training and
Development
- Training and
Development
- Total Rewards
- Total Rewards
- Labor Development
- Labor Development
- Health and Social
Development
- Health and Social
Development
- Security
- Security
HR Operations
HR Operations
• Execute transactional
operations
• Execute transactional
operations
• Identify and develop
shared services
• Identify and develop
opportunities
shared services
opportunities
• Drive automation and
digitalization
• Drive automation and
digitalization
• Generate insights
based on HR
• Generate insights
information and
based on HR
analytics
information and
analytics
• Deliver employee
experience
• Deliver employee
experience
People partners
People of the future
People products
People services
People partners
People of the future
People products
People services
We conducted our biannual employee en-
gagement survey throughout our operations.
This year’s survey showed significantly im-
proved employee engagement and commu-
nication with leaders through various cultural
and communication efforts such as KOFFEE
Talks, which are spaces where leaders enjoy
the opportunity to interact with our people to
discuss topics of interest.
We further implemented our labor risk meth-
odology assessment remotely across nine of
our countries of operation to identify gaps in
our operational basics, people needs, and feel-
ings. This assessment enables us to gather rel-
evant information regarding our operations,
prevent possible labor impacts, and develop
plans to address identified needs.
Finally, we are integrating the core capabilities
of our business, developing different function-
al academies focusing on areas such as logis-
tics, commercial, warehouses, and manufac-
turing, among others.
Functional
Academies
This year, we completed eight functional acad-
emies to further develop the core capabilities of
our business. Comprised of 80% virtual and 20%
face-to-face instruction, these academies cur-
rently cover over 49,000 employees.
Distribution 1.0
Courses: 34
Warehouses
Courses: 15
Logistics
Courses: 45
Asset Management
Courses: 36
Commercial Basics
Courses: 55
Manufacturing
Courses: 63
Property Protection
Courses: 14
Leadership & Culture
Courses: 22
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TALENT MANAGEMENT
AND DEVELOPMENT
Our people and the way they work together are our company’s most
valuable assets. Accordingly, we comprehensively manage, attract, de-
velop, and motivate our people effectively, preparing the next genera-
tion of leaders today.
This year, we designed and implemented programs to ensure we have
the right talent for the right position. Recognizing that we have many
talented people across the company, we constantly reinvent ourselves
and mobilize the entire organization to get the best out of our talent,
unleash its full potential, and inject new capabilities. This year we won
the LinkedIn Talent Award, recognizing us as a company that excelled
at engaging with talent, creating inclusive workplaces, building strong
employer brands, encouraging learning and development, and focusing
on employee retention. Among our initiatives, we created our employer
brand to attract the best talent, and we developed programs like intern-
ships with top U.S. universities and other key organizations to increase
talent injection. We also continued implementing the lab leadership
program for the Supply Chain function, giving us greater talent visibility,
and enabling us to enjoy a better succession pipeline for key positions.
Lab Leadership Program
Our Lab Leadership program aims to facilitate accelerated devel-
opment of talent at the Supply Chain & Engineering talent to de-
velop, expose, and generate international mobility
Program Features
• Duration of the program: 4 semesters - 2 for local experiences
and 2 for international experiences.
• A biannual mentoring meeting with Rafael Ramos.
• A monthly follow-up meeting with the Talent area.
• Check point scheme with the Local Supply Chain Director.
During the year, we continued to build our Performance Management
System, giving depth to leader-collaborator conversations while focus-
ing on accountability and contribution to the business. To this end, we
evolved our technological enabler Success Factors Talent Platform to
accompany these dialogues and to close the virtuous circle between
user experience and execution.
We further kept on improving our talent
management processes, proactively ensuring
that we offer the best user experience.
Moreover, we deployed our annual 9-Box Talent
Assessment and 360º evaluations for leaders,
enhancing our talent quality, succession,
mobility, and execution metrics, while focusing
on our high potential talent.
Training hours
Average hours per
contribution level
Average hours
per gender
52.75%
27.20%
Strategic Leaders
Male
67.37%
28.34%
Tactical Leaders
All
36.05%
Female
72.81%
People Leaders
37.76%
Individual Contributors
22.37%
Operations Contributors
31.23%
Interns
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
74
74
INCLUSION & DIVERSITY
At Coca-Cola FEMSA, we are on our way to creating an environment in
which each person feels included and valued for their own knowledge, be-
havior, skills, and results, with opportunities for development and recogni-
tion based on their talent. To this end, our strategic pillars are:
Inclusion & Diversity Board
To accelerate the development of a truly inclusive and di-
verse organizational culture, our companywide Inclusion and
Diversity Board is focused on five main purposes:
Inclusive Leadership
Flexible Environment
Diverse Talent
1. Engage and hold leaders accountable throughout the or-
Recognition as a company
with inclusive leaders and
work teams
Foster a flexible and
agile environment that
adapts to the needs of our
surroundings
Ensure a diverse, inclusive,
and respectful workplace for
all our employees
Inclusive Leadership
Training
Certifications and
Recognitions
• Unconscious bias training
•
•
and awareness
Ignite leader’s role as
inclusion and diversity
advocates
Inclusion on various in-
dexes and obtain recogni-
tions such as: Bloomberg
Gender-Equality Index,
Human Rights Campaign,
UN Women, Women Mat-
ter – McKinsey, Linkedin
Talent Awards
Female Talent Pipeline
• Representation of women
in leadership roles
• Efforts to foster female
employability
Discussion Forums
• Provide safe places for our
employees to dialogue
Engaging and Connecting
• Raise awareness and
create a call to action on
social issues that impact
our communities
New Normal
• Efforts deployed
alongside new normal
practices and new ways
of working
“Our Label Is Talent”
Campaign
ganization
2. Define both long- and short-term objectives and strate-
gies aligned with our company’s inclusion and diversity
vision
3. Ensure functionality of work teams at a country and re-
gional level
4. Ensure deployment of an internal and external communi-
cation plan
5. Measure, monitor, and evaluate initiatives.
Leveraging our Inclusion and Diversity Board, as well as com-
pany leaders, we have prioritized and accelerated the diver-
sity of talent that makes up our company, placing great em-
phasis on increasing the mix of female talent at all levels of
the organization with a primary focus on leadership and op-
erative positions. With that in mind, we became a signatory
to the UN Women’s Empowerment Principles, as we contin-
ue creating an inclusive and diverse organization.
Aligned with the pillars of our Inclusion & Diversity Strategy, we carried out
several initiatives throughout the year to reinforce our company’s commit-
ment to inclusion and diversity. From our “We-talks” discussion forums to
our Inclusion and Diversity Forum, we raised awareness of important soci-
etal issues that will enable our employees to play a role in creating a more
equal, diverse, and inclusive organization.
Our operations are developing
and deploying initiatives
to increase women’s
representation.
Improving gender diversity
Aligned with our commitment to improve
gender diversity at all levels of the organiza-
tion, our operations are developing and de-
ploying initiatives to increase women’s rep-
resentation. Among their initiatives, Mexico
implemented a systematic plan to recruit,
develop, and retain female talent, incorpo-
rating 108 new women in their operation.
Brazil developed a program to train women
to operate forklifts. Moreover, Guatemala not
only developed a program focused on wom-
en, but also a program to attract native peo-
ple through a strategic alliance with the La-
bor Ministry and Native People Associations.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
75
75
%
1
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7
.
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i
I
■ 18-34 ■ 35-44 ■ 45-59 ■ 60+
1%
54%
29%
16%
■ Female ■ Male
EMPLOYEES
Per age group in each contribution level
EMPLOYEES
Per gender in each contribution level
5
2
2
1
2
1
,
2
1
1
5
9
2
,
9
5
1
0
0
0
3
,
3
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6
5
1
,
1
6
1
1
3
2
,
1
0
1
2
0
7
1
8
6
■ Indefinite ■ Temporal
EMPLOYEES
By contract & region
1
9
2
2
4
,
:
o
c
i
x
e
M
8
4
8
4
,
3
4
4
7
3
,
8
7
2
9
1
,
:
l
i
z
a
r
B
5
8
5
3
9
6
8
1
,
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
76
76
84,568
Employees
Female
14%
Male
86%
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
77
77
COMPENSATION
AND BENEFITS
Our people’s compensation and benefits scheme
not only recognizes their effort and commitment
to their jobs, but also their contribution to our
company’s value creation. Therefore, despite the
continuing impact of the COVID-19 pandemic, we
were able to keep salaries aligned with local levels
of inflation or market references during 2021.
Thanks to the optimization of our organization’s
job valuation process, through a model based
on job families, we not only generate efficiencies
in our current workforce management, but also
strengthen our talent processes such as devel-
opment, succession, and talent planning. Also, it
allowed us to improve our compensation plan to
accompany the contributor’s salary throughout
their development.
Moreover, we analyzed the current variable com-
pensation schemes throughout our operations
to reduce the overall number of schemes and to
implement a tool to manage and automate them.
We also continued the implementation of a flex-
ible benefits program to offer our people new
and different options that we identified within
the market, based on our people’s interests. To
support all of our workers in our new working
schemes, we are giving them different ways to
maintain their wellbeing and health. We further
analyzed our turnover to design strategies to re-
tain our top talent.
At all levels of our organization,
we ensure that our employees’
remuneration is competitive,
and their conditions are equal
for both men and women.
At all levels of our organization, we ensure that
our employees’ remuneration is competitive,
and their conditions are equal for both men
and women. Additionally, based on studies per-
formed by international consulting firms that
enable us to make comparisons between coun-
tries, we can determine that our employees are
receiving an integrated salary that is greater
than or equal to the market average.
We act in accordance with obligations defined
by law and in full respect of labor rights, exceed-
ing the conditions and benefits established in
the laws of each country where we operate. We
respect our people’s right of association and, as
such, our collective agreements cover approx-
imately 62% of employees. These employment
contracts are reviewed and agreed with all our
union representatives, respecting the estab-
lished validity periods, as well as complying with
all notification deadlines.
Despite the continuing impact of the
COVID-19 pandemic, we were able
to keep salaries aligned with local
levels of inflation or market references
during 2021.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
78
78
SOCIAL
DEVELOPMENT
KOF Volunteers Program
We encourage the development of our employees and their families as re-
sponsible citizens, committed to their community, society, and environment.
Through the KOF Volunteers program, we promote initiatives that enable us to
beneficially impact the quality of life and wellbeing of the communities where
we operate, strengthening our relationships with them, while positively affect-
ing our corporate position and reputation.
2,424,873.1
hours of volunteer work
since 2015
Aligned with our comprehensive wellbeing mod-
el, we promote our people’s integral development
and quality of life.
To this end, our Social Development Strategy con-
centrates on five dimensions:
• Health: We promote healthy physical and
bio-psychosocial lifestyles for our employees.
• Social Relationships: We encourage satisfac-
tory relationships in harmony with the environ-
ment and community through employee vol-
unteering activities.
• Economic: We promote the protection of as-
sets and the generation of savings through a
culture of financial intelligence.
• Education: We promote participation in pro-
grams and trainings to improve and increase
knowledge and personal development skills.
• Labor: We promote positive work experiences
based on respect and compliance with Human
Rights, as well as fostering workspaces that
promote safety and labor relations.
Our overall volunteer activity is committed to six different causes:
Community
Development
We come together to carry
out collective action and
generate solutions to com-
mon problems to create a
positive impact and build
stronger and more devel-
oped communities.
Environment
Natural
Disasters
We are focused on respon-
sible environmental man-
agement and the responsi-
ble care and use of natural
resources, with attention to
our Strategic Sustainability
Framework, especially on
issues such as water, ener-
gy, carbon emissions, water
bodies’ cleanup, and refor-
estation.
We promote solidarity ef-
forts in the event of natural
disasters, providing sup-
port to people and affected
areas, while carrying out
prevention activities for
greater awareness, with
special attention given to
the communities where we
operate.
Health
Education
Human
Rights
We undertake activities
that promote healthy phys-
ical and bio-psychosocial
lifestyles, as well as initia-
tives related to humanitar-
ian aid, nutritional training,
and with the health sector
in general.
Our activities aim to im-
prove educational levels
and promote cultural, cre-
ative, and technological de-
velopment.
We seek to generate posi-
tive volunteer experiences
based on respect and com-
pliance with Fundamental
Human Rights.
In this complex environment, we focused
on remote and distance volunteering ac-
tivities to support the quality of life of our
people and communities. During the year,
93,012 participants, including our employ-
ees and their families, devoted 254,873
hours to 2,432 volunteer initiatives, sup-
ported by an investment of US$279,734.63.
Throughout this year, we developed sever-
al activities across the countries, regarding
the six different causes: for the environ-
ment, we performed activities to recycle
water bottles and plant trees in Mexico,
Colombia, Guatemala, Panamá, and Vene-
zuela. For the health cause, we made cam-
paigns to support the community with
medicines and treatments, and to support
our people who are going through diffi-
cult situations, we designed a program to
give emotional and psychological support
to manage difficult situations related to
COVID-19 in all our countries. These were
some of the activities that we undertook
during 2021. Volunteering activities re-
mained a challenge because of the com-
plex situation wrought by the pandemic.
Therefore, we developed distanced and
face-to-face activities, taking into account
every COVID-19 recommendation to take
care of our employees.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
79
79
OCCUPATIONAL
HEALTH
At Coca-Cola FEMSA, we seek to improve
employees’ physical and psycho-emotional
health, encourage engagement and a sense
of belonging within the organization, and
strengthen our health and social programs for
an improved work environment.
Occupational Health & Wellbeing
Management System
Our Occupational Health & Wellbeing Man-
agement System establishes the vision, strate-
gy, objectives, elements, and activities through
which we improve the quality of work life for
our employees across our company’s work
centers and strategic business units. Comply-
ing with our legal, ethical, scientific, and orga-
nizational framework, this system encompass-
es our health and wellbeing processes and
programs that we apply according to applica-
ble risk matrices, local legislation, and opera-
tional needs.
2%
improvement in our lost
days due to our General
Illness Index versus 2020
Health & Wellbeing Policies
At Coca-Cola FEMSA, our Corporate Occupa-
tional Health area is responsible for propos-
ing relevant revisions and updates to our two
Health and Wellbeing Policies:
• Global Safety and Occupational Health Policy
• Human Rights Policy
As well as this annual corporate review, which
is sent for approval to our Director of Social and
Labor Development and Global Director of Hu-
man Resources, our company’s internal audit
area reviews these policies for dissemination
and implementation across our operations.
Continuing COVID-19 Actions & Initiatives
As a key player within an essential value chain,
we take our commitment to provide hydration
and nutrition to the communities we serve
with all seriousness. More importantly, we
know that, to deliver on this commitment, the
health, safety, and wellbeing of our employees
are at the front and center of our priorities.
Lost Days due to General Illness Index
per 100 Employees
(Less is better)
2021
2020
534.4
545.2
This year, we continued to prioritize the oc-
cupational health, safety, and wellbeing of
our employees throughout the course of the
COVID-19 pandemic. Indeed, many of our rein-
forced health, sanitation, and hygiene protocols
are becoming not only a daily routine, but also
Coca-Cola System and industry benchmarks.
Beyond our ongoing health, sanitation, and
hygiene protocols, including our protocol to
follow-up active and suspicious COVID-19 cas-
es, we developed a health app to manage our
back to office initiative. With these and other
initiatives, we not only take care of all of the
defined protocols to keep our people safe, but
also proactively monitor our people’s health.
We made several efforts to promote the vacci-
nation against COVID-19 among our employ-
ees; we gave paid labor permissions for our
people to attend the vaccination journeys in
their corresponding localities, according to the
national vaccination plans of the countries in
which we operate. In some operations, private
transportation has been provided from the op-
erating unit to the vaccination center, so that
workers have greater comfort and are motivat-
ed to get vaccinated.
There are also various communication cam-
paigns with the benefits of the vaccines, we
have designed talks given by our medical ser-
vices, as well as webinars and virtual confer-
ences, with medical specialists to explain and
clarify all doubts related to vaccines.
Employee Support Program
Throughout 2021, we continued with our Em-
ployee Support Program across all of our oper-
ations. This emotional support program is de-
signed to help our people and their families to
cope with any situation that may cause stress,
anxiety, and depression, among other emo-
tional disturbances, and to give them psycho-
logical support.
This program is part of our comprehensive
welfare strategy to reduce psychosocial risk
factors inside and outside of work through the
counseling and attention of psychologists and
other health professionals according to our
people’s different situations.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
80
80
PATH TO DIGITAL
During the year, we carried on working to
move our HR function into the digital era
while improving our employee experience.
n
dardiz a ti o
Stan
S
t
e
p
t
o
clo
u
d
I
n
t
e
g
r
a
t
i
o
n
Employee
Experience
t
n
e
m powerm
e & E
v i c
r
e
s
-
f
S e l
To this end, we continued the deployment of
our Success Factors Platform (SSFF) through-
out all of our operations. Ultimately impact-
ing all of KOF’s employees, this platform will
integrate, improve, and simplify our leaders’
and employees’ experience with HR process-
es. Currently, we are working on standard-
izing and migrating our HR Administration
backbone, including our master database
and payroll systems, to a cloud-based solu-
tion in order to meet market trends and set
the foundation for our path to digital.
This year, we finished the implementation of
Employee Central across all of our operations.
This tool is designed to transform personnel
administration management, promoting
leaders’ empowerment while improving our
employee experience. It is the base of glob-
al HR tools where the organization’s master
data is housed. We also continued to make
significant progress on HR process standard-
ization and automation for our third parties
management, variable compensation, and
time and attendance processes. Notably, we
deployed in 2021 the cloud version of our vari-
able compensation tool in Brazil, Colombia,
and Panama, while implementing our time
and attendance tool in our corporate offices.
Furthermore, we began implementing a tool
to gather greater information about our em-
ployee voice, so we can develop and launch
more surveys to give us valuable employee
insights for our strategy. Additionally, we an-
alyzed our current information capabilities
and KPIs to design a standardization strategy
across all of our operations through a central
community, which will enable us to auto-
mate our dashboards, continuously improve
our reports, provide equal information or
benchmarks, and in the future, utilize predic-
tive analytics.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
81
81
APPENDICES
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
82
82
FINANCIAL SUMMARY
Amounts expresed in millions of U.S. dollars and mexican pesos, except data per share and headcount.
INCOME STATEMENT
Total revenues
Cost of goods solds
Gross profit
Operative expenses
Other expenses, net
Comprehensive financing result
Income before income taxes and share of the profit or of associates
and joint ventures accounted for using the equity method
Income taxes
Share in the (loss) profit of equity accounted investees, net of taxes
Consolidated net income
Equity holders of the parent for cotinuing operations
Non-controlling interest net income for continuing operations
RATIOS TO REVENUES (%)
Gross margin
Net income margin
CASH FLOW
Operative cash flow
Capital expenditures (7)
Total cash, cash equivalents
U.S. (*)
2021
2020
2019
2018(4)(5)(6)
2017(2)(3)(4)
2016(1)
9,496
5,177
4,319
2,960
39
206
1,114
322
4
796
766
30
45.5
8.4
1,595
676
2,303
194,804
106,206
88,598
60,720
807
4,219
22,852
6,609
88
16,331
15,708
623
45.5
8.4
32,721
13,865
47,248
183,615
100,804
82,811
56,444
3,611
6,678
16,077
5,428
(281)
10,368
10,307
61
45.1
5.6
35,147
10,354
43,497
194,471
106,964
87,507
60,537
2,490
6,071
18,409
5,648
(131)
12,630
12,101
529
45.0
6.5
31,289
11,465
20,491
182,342
183,256
177,718
98,404
83,938
57,924
1,881
6,943
99,748
83,508
58,044
31,357
5,362
17,190
(11,255)
5,260
(226)
15,070
10,936
768
46.0
8.3
29,687
11,069
23,727
4,184
60
(11,654)
(16,058)
679
45.6
(6.4)
33,236
14,612
18,767
98,056
79,662
55,462
3,812
6,080
14,308
3,928
147
10,527
10,070
457
44.8
5.9
32,446
12,391
10,476
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
83
83
BALANCE SHEET
Current assets
Investment in shares
Property, plant and equipment, net
Intangible assets, net
Deferred charges and other assets, net
Total Assets
Liabilities
Short-term bank loans and notes payable
Interest payable
Other current liabilities
Long-term bank loans and notes payable
Other long-term liabilities
Total Liabilities
Equity
Non-controlling interest in consolidated subsidiaries
Equity attributable to equity holders of the parent
FINANCIAL RATIOS (%)
Current
Leverage
Capitalization
Coverage
DATA PER SHARE
Book Value (8)
Loss (income) tributable to the holders of the parent (9)
Dividends paid (10)
Headcount (11)
U.S. (*)
2021
2020
2019
2018(4)(5)(6)
2017(2)(3)(4)
2016(1)
3,918
365
3,031
4,981
872
13,238
120
40
2,094
4,062
704
7,019
6,219
294
5,925
1.74
1.13
0.41
6.11
0.353
0.030
0.031
80,364
7,494
62,183
102,174
17,880
271,567
2,453
811
42,957
83,329
14,445
143,995
127,572
6,022
72,440
7,623
59,460
103,971
18,294
263,066
5,017
712
37,116
82,461
15,303
140,609
122,457
5,583
56,796
9,751
61,187
112,050
16,673
257,839
11,485
439
39,086
58,492
18,652
128,154
129,685
6,751
57,490
10,518
61,942
116,804
17,033
263,787
11,604
497
33,423
70,201
16,312
132,037
131,750
6,806
121,550
116,874
122,934
124,944
1.74
1.13
0.41
6.11
7.232
0.935
0.634
1.69
1.15
0.43
5.13
6.954
0.610
0.608
1.11
0.99
0.37
5.51
7.315
0.723
0.443
1.26
1.00
0.41
4.22
7.434
0.831
0.419
83,754
83,754
82,334
82,186
83,364
55,657
12,540
75,827
124,243
17,410
285,677
12,171
487
42,936
71,189
18,184
144,967
140,710
18,141
122,569
1.00
1.03
0.39
4.20
7.293
(0.765)
0.422
79,636
45,453
22,357
65,288
123,964
22,194
279,256
3,052
520
36,296
85,857
24,298
150,023
129,233
7,096
122,137
1.14
1.16
0.41
4.80
7.365
0.607
0.419
85,140
Information considers full-year of KOF’s territories and one month of Vonpar Refrescos, S.A. ("Vonpar").
Income statement information considers full-year of KOF’s territories and full-year of Coca Cola FEMSA Venezuela.
(1)
(2)
(3) Balance sheet information does not include Coca-Cola FEMSA Venezuela's balances due to deconsolidation as of December 31, 2017. Venezuela balance
(8) Based on 16,806.7 million ordinary shares as of December 31, 2021, 2020, 2019, 2018 and 2017, and 16,583.4 million shares as of December 31,
2016.
(9) Computed based on the weighted average number of shares outstanding during the periods presented:16,806.7 million for 2021, 2020, 2019 and
is included as investement in shares as of December 31, 2017.
2018, 16,730.8 million in 2017 and 16,730.8 million in 2016.
(4) KOF Philippines has been classified as a discontinued operation in our profit and loss statement for the years ended December 31, 2017 and 2018.
(5)
(6)
(7)
Income statement information includes 8 months of the financial results in Guatemala.
Income statement information includes six months in the financial results for Uruguay.
Includes investments in property, plant and equipment, refrigeration equipment and returnable bottles and cases, net of disposals of property, plant and
equipment.
(10) Dividends paid during the year based on the prior year's net income, using 16,806.7 millions outstanding ordinary shares for 2021, 2020, 2019 and
2018 and 16,583.4 million oustanding ordinary shares for paid on 2017 and 2016.
(11) Includes third-party and for 2017 excludes 16,566 employees for our discontinued operation in Phillipines.
* Exchange rate as of December 31, 2021 Ps. 20.514 per U.S. dollar solely for the convenience of the reader according to the federal USA reserve.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
84
84
MANAGEMENT DISCUSSION & ANALYSIS
Results for the Year Ended December 31, 2021
Compared to the Year Ended December 31, 2020
Consolidated Results
The comparability of our financial and operating performance in 2021 as
compared to 2020 was affected by the following factors: (1) translation
effects from fluctuations in exchange rates; and (2) our results in Argen-
tina, whose economy satisfied the conditions to be considered a hyper-
inflationary economy. For the convenience of the reader, we have in-
cluded a discussion of the financial information below on a comparable
basis, excluding the translation effects from fluctuations in exchange
rates. To translate the full-year results of Argentina for the years end-
ed December 31, 2021 and 2020, we used the exchange rate at Decem-
ber 31, 2021 of 102.72 Argentine pesos per U.S. dollar and the exchange
rate at December 31, 2020 of 84.15 Argentine pesos per U.S. dollar. The
depreciation of the exchange rate of the Argentine peso at December
31, 2021, as compared to the exchange rate at December 31, 2020, was
22.1%. In addition, the average depreciation of currencies used in our
main operations relative to the U.S. dollar in 2021, as compared to 2020,
were 4.6% for the Brazilian real and 1.3% for the Colombian peso, and an
appreciation of 5.6% for the Mexican peso relative to the U.S. dollar.
Total Revenues. Our consolidated total revenues increased by 6.1% to
Ps. 194,804 million in 2021 as compared to 2020, mainly as a result of
our pricing initiatives, coupled with favorable price-mix effects and vol-
ume growth. These effects were partially offset by unfavorable currency
translation effects from some of our operating currencies into Mexican
pesos and a decline in beer revenues related to the partial transition of
the beer portfolio in Brazil. In addition, this figure includes other oper-
ating revenues related to entitlements to reclaim Ps. 254 million in tax
payments in Brazil in 2021. See Note 23.2.1 to our consolidated finan-
cial statements. On a comparable basis, total revenues would have in-
creased by 11.1% in 2021 as compared to 2020.
Total sales volume increased by 5.3% to 3,457.9 million unit cases in
2021 as compared to 2020, driven mainly by volume growth in Mexico,
Central America, Colombia, Argentina, and Uruguay. This increase was
partially offset by a slight volume decline in Brazil.
•
In 2021, sales volume of our sparkling beverage portfolio increased by
4.2%, sales volume of our colas portfolio increased by 3.1%, and sales
volume of our flavored sparkling beverage portfolio increased by
8.9%, in each case as compared to 2020.
• Sales volume of our still beverage portfolio increased by 18.9% in 2021
as compared to 2020.
• Sales volume of our bottled water category, excluding bulk water, in-
creased by 18.3% in 2021 as compared to 2020.
• Sales volume of our bulk water category decreased by 1.3% in 2021 as
compared to 2020.
Consolidated average price per unit case increased by 7.4% to Ps. 53.0
in 2021, as compared to Ps. 50.6 in 2020, mainly as a result of favorable
price-mix effects and price increases aligned with or above inflation.
This was partially offset by the negative translation effect resulting from
the depreciation of all of our operating currencies relative to the Mex-
ican peso. On a comparable basis, average price per unit case would
have increased 9.0% in 2021 as compared to 2020, driven by our revenue
management and pricing initiatives.
Gross Profit. Our gross profit increased by 7.0% to Ps. 88,598 million
in 2021 as compared to 2020, with a gross margin increase of 40 basis
points as compared to 2020 to reach 45.5% in 2021. This gross margin
increase was driven mainly by favorable price-mix effects, our raw mate-
rial hedging strategies, and the positive effect of the resumption of tax
credits on concentrate purchased from the Manaus Free Trade Zone in
Brazil, partially offset by higher raw material prices, higher concentrate
Overview
Overview
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Our Framework
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Our Strategic Corridors
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Appendices
85
85
costs in Mexico, and the depreciation in the average exchange rate of most of
our operating currencies as applied to our U.S. dollar-denominated raw materi-
al costs. On a comparable basis, our gross profit would have increased by 11.3%
in 2021 as compared to 2020.
The components of cost of goods sold include raw materials (principally con-
centrate, sweeteners, and packaging materials), depreciation costs attributable
to our production facilities, wages and other labor costs associated with labor
force employed at our production facilities, and certain overhead costs. Con-
centrate prices are determined as a percentage of the retail price of our prod-
ucts in local currency, net of applicable taxes. Packaging materials, mainly PET
resin and aluminum, and HFCS, used as a sweetener in some countries, are de-
nominated in U.S. dollars.
Administrative and Selling Expenses. Our administrative and selling expens-
es increased by 7.6% to Ps. 60,720 million in 2021 as compared to 2020. Our ad-
ministrative and selling expenses as a percentage of total revenues increased
by 50 basis points to 31.2% in 2021 as compared to 2020, mainly as a result of
the normalization in labor, maintenance, and marketing expenses. In 2021, we
continued investing across our territories to support marketplace execution, in-
crease our cooler coverage, and bolster our returnable presentation base.
Other Expenses Net. We recorded other expenses net of Ps. 807 million in
2021 as compared to Ps. 3,611 million in 2020, which decrease was mainly as
a result of certain extraordinary other operating expenses related to impair-
ments in Estrella Azul in Panama and in Leão Alimentos, our non-carbonated
beverage associate in Brazil during 2020. For more information, see Notes 8
and 18 to our consolidated financial statements.
Comprehensive Financing Result. The term “comprehensive financing re-
sult” refers to the combined financial effects of net interest expenses, net fi-
nancial foreign exchange gains or losses, net gains or losses on the monetary
position of hyperinflationary countries where we operate, and market value
gain (loss) on financial instruments. Net financial foreign exchange gains or
losses represent the impact of changes in foreign exchange rates on finan-
cial assets or liabilities denominated in currencies other than local currencies,
and certain gains or losses resulting from derivative financial instruments. A
financial foreign exchange loss arises if a liability is denominated in a foreign
currency that appreciates relative to the local currency between the date the
liability is incurred and the date it is repaid, as the appreciation of the foreign
currency results in an increase in the amount of local currency, which must be
exchanged to repay the specified amount of the foreign currency liability.
Comprehensive financing result in 2021 recorded an expense of Ps. 4,219 mil-
lion as compared to an expense of Ps. 6,679 million in 2020. This 36.8% decrease
was driven mainly by a one-time interest expense related to the repurchase
and redemption in full of our 3.875% senior notes due 2023, recorded during
2020. In addition, in 2021 we recorded an increase in our foreign exchange gain
and a gain in financial instruments.
Income Taxes. In 2021, our effective income tax rate decreased to 28.9%, as
compared to our effective income tax rate of 33.8% in 2020, mainly as a result of
a favorable deferred tax credit in Brazil recognized in 2021, and deferred tax ad-
justments in Mexico that were recognized during 2020. For more information,
see Note 25 to our consolidated financial statements.
Share in the Profit of Equity Accounted Investees, Net of Taxes. In 2021, we
recorded a gain of Ps. 88 million in the share in the profit of equity accounted
investees, net of taxes, mainly due to the results of Jugos del Valle, our associ-
ate in Mexico.
Net Income (Equity holders of the parent). We reported a net controlling in-
terest income of Ps. 15,708 million in 2021, as compared to Ps. 10,307 million in
2020. This 52.4% increase was driven mainly by solid operating results, coupled
with a decrease in our comprehensive financial result.
Results by Consolidated Reporting Segment Mexico and Central America
Total Revenues. Total revenues in our Mexico and Central America consolidat-
ed reporting segment increased by 8.4% to Ps. 115,794 million in 2021 as com-
pared to 2020, mainly as a result of a volume increase in all of our territories,
coupled with favorable price-mix effects and pricing initiatives.
Total sales volume in our Mexico and Central America consolidated report-
ing segment increased by 3.3% to 2,057.9 million unit cases in 2021 as com-
pared to 2020, as a result of increases in mobility and gradual recoveries
across our territories.
• Sales volume of our sparkling beverage portfolio increased by 2.4% in 2021 as
compared to 2020, driven mainly by a 2.0% increase in our colas portfolio.
Overview
Overview
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Our Framework
Our Strategic Corridors
Our Strategic Corridors
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86
• Sales volume of our still beverage portfolio increased by 13.2% in 2021 as
compared to 2020, due to a solid performance in Mexico and double-digit
increases in Central America.
• Sales volume of bottled water, excluding bulk water, increased by 17.7% in
2021 as compared to 2020, due to double-digit increases in both Mexico and
Central America.
• Sales volume of our bulk water portfolio remained flat in 2021 as compared
to 2020.
Sales volume in Mexico increased by 1.8% to 1,790.0 million unit cases in 2021,
as compared to 1,759.2 million unit cases in 2020, mainly as a result of gradual
recoveries and increases in mobility.
• Sales volume of our sparkling beverage portfolio increased 0.6% in 2021 as
compared to 2020, driven by a 0.6% increase in our colas portfolio and a 1.0%
increase in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by 9.5% in 2021 as com-
pared to 2020.
• Sales volume of bottled water, excluding bulk water, increased by 17.3% in
2021 as compared to 2020.
• Sales volume of our bulk water portfolio remained flat in 2021 as compared
to 2020.
Sales volume in Central America increased by 15.2% to 267.8 million unit cas-
es in 2021, as compared to 232.4 million unit cases in 2020, mainly as a result of
solid execution, increases in mobility, and recoveries across all of our territories
in the region.
•
•
•
•
• Sales volume of our sparkling beverage portfolio increased by 13.2% in 2021
as compared to 2020, driven by a 11.0% increase in colas and 23.9% increase
in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by 37.5% in 2021 as
compared to 2020.
• Sales volume of bottled water, excluding bulk water, increased by 21.2% in
2021 as compared to 2020.
• Sales volume of our bulk water portfolio increased by 7.1% in 2021 as com-
pared to 2020.
Gross Profit. Our gross profit in this consolidated reporting segment in-
creased by 8.4% to Ps. 57,366 million in 2021 as compared to 2020, and gross
profit margin remained flat as compared to 2020. Gross profit increased main-
ly as a result of our pricing initiatives, favorable price-mix effects, and our raw
material hedging strategies. These factors were offset by higher raw material
prices, higher concentrate costs in Mexico, and the depreciation in the average
exchange rate of most of our operating currencies as applied to our U.S. dol-
lar-denominated raw material costs.
Administrative and Selling Expenses. Administrative and selling expenses
as a percentage of total revenues in this consolidated reporting segment in-
creased by 50 basis points to 32.9% in 2021 as compared to the same period in
2020. Administrative and selling expenses, in absolute terms, increased by 9.9%
in 2021 as compared to 2020, driven mainly by the normalization of certain op-
erating expenses primarily in labor and maintenance.
South America
Total Revenues. Total revenues in our South America consolidated reporting
segment increased by 2.8% to Ps. 79,010 million in 2021 as compared to 2020,
mainly as a result of favorable price-mix effects and our pricing initiatives.
These factors were partially offset by unfavorable currency translation effects
resulting from the depreciation of all of our operating currencies as compared
to the Mexican peso. In addition, this figure includes other operating revenues
related to entitlements to reclaim Ps. 254 million in tax payments in Brazil in
2021. See Note 23.2.1 to our consolidated financial statements. Total revenues
for beer amounted to Ps. 10,677.2 million in 2021. On a comparable basis, total
revenues would have increased by 13.1% in 2021 as compared to 2020.
Total sales volume in our South America consolidated reporting segment
increased by 8.3% to 1,400.0 million unit cases in 2021 as compared to 2020,
mainly as a result of double-digit volume growth in Colombia and Argentina,
coupled with volume growth in Brazil and Uruguay.
• Sales volume of our sparkling beverage portfolio increased by 6.8% in 2021 as
compared to 2020.
• Sales volume of our still beverage portfolio increased by 28.6% in 2021 as
compared to 2020.
• Sales volume of our bottled water category, excluding bulk water, increased
by 18.9% in 2021 as compared to 2020.
• Sales volume of our bulk water portfolio decreased by 11.4% in 2021 as com-
pared to 2020.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
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87
Sales volume in Brazil increased by 4.7% to 903.3 million unit cases in 2021, as
compared to 862.9 million unit cases in 2020.
• Sales volume of bottled water, excluding bulk water, increased by 22.1% in
2021 as compared to 2020.
• Sales volume of our sparkling beverage portfolio increased by 4.1% in 2021 as
compared to 2020, as a result of an increase of 1.9% in our colas portfolio and
an increase of 10.8% in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by 18.9% in 2021 as
compared to 2020.
• Sales volume of our bulk water portfolio decreased by 7.2% in 2021 as com-
pared to 2020.
Sales volume in Uruguay increased by 5.2% to 43.4 million unit cases in 2021,
as compared to 41.2 million unit cases in 2020.
• Sales volume of our bottled water, excluding bulk water, increased by 3.5% in
• Sales volume of our sparkling beverage portfolio increased by 2.6% in 2021 as
2021 as compared to 2020.
compared to 2020.
• Sales volume of our bulk water portfolio decreased by 18.3% in 2021 as com-
• Sales volume of our still beverage portfolio increased by 68.9% in 2021 as
pared to 2020.
compared to 2020.
• Sales volume of bottled water increased by 20.9% in 2021 as compared to
Sales volume in Colombia increased by 16.9% to 298.0 million unit cases in
2021, as compared to 254.8 million unit cases in 2020.
2020.
• Sales volume of our sparkling beverage portfolio increased by 12.6% in 2021
as compared to 2020, driven mainly by a 8.0% growth in colas and 44.1% vol-
ume growth in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by 63.3% in 2021 as
compared to 2020.
• Sales volume of bottled water, excluding bulk water, increased by 59.6% in
2021 as compared to 2020.
• Sales volume of our bulk water portfolio decreased by 8.9% in 2021 as com-
pared to 2020.
Sales volume in Argentina increased by 16.2% to 155.5 million unit cases in
2021, as compared to 133.8 million unit cases in 2020.
• Sales volume of our sparkling beverage portfolio increased by 15.6% in 2021
as compared to 2020, impacted mainly by a 15.7% increase in colas and 15.4%
increase in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by 30.5% in 2021 as
compared to 2020.
Gross Profit. Gross profit in this consolidated reporting segment amounted
to Ps. 31,232 million, an increase of 4.4% in 2021 as compared to 2020, with a 60
basis point margin expansion to 39.5%. This increase in gross profit was driven
mainly by a favorable price-mix effect, our raw material hedging strategies, and
lower concentrate costs in Brazil related to the resumption of tax credits on
concentrate purchased from the Manaus Free Trade Zone. These factors were
partially offset by the depreciation of the average exchange rate of all of our
operating currencies in the consolidated reporting segment as applied to our
U.S. dollar-denominated raw material costs.
Administrative and Selling Expenses. Administrative and selling expenses
as a percentage of total revenues in this consolidated reporting segment in-
creased by 30 basis points to 28.7% in 2021 as compared to 2020, driven mainly
by the normalization of our operating expenses in the region. Administrative
and selling expenses, in absolute terms, increased by 3.9% in 2021 as compared
to 2020.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
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88
CAPITAL & COMPANY ENGAGEMENT
Human
Our people and the way they
work together are our com-
pany’s most valuable assets.
Accordingly, we encourage
their comprehensive professional and
personal development, while creating
an inclusive, diverse, and safe work en-
vironment. Through our continuous
talent management and development,
we promote trust, transparency, and
teamwork, prepare the next generation
of leaders, advance meritocracy, recog-
nize and celebrate teams’ success, while
providing honest, regular feedback. In
this way, we look to attract, retain, and
develop the best multicultural talent to
ensure our sustainable success.
Nature
Our business is committed
to the responsible use of nat-
ural resources. As the main
ingredient in our beverages,
our comprehensive water strategy fo-
cuses on ensuring efficient water man-
agement, facilitating access to safe wa-
ter and sanitation, and implementing
water conservation and replenishment
projects to protect the environment. We
also work to increase energy efficiency
across our value chain, while integrating
clean and renewable energy to reduce
carbon emissions. Aligned with
The Coca-Cola Company’s “World With-
out Waste” global initiative, we continue
to focus on comprehensive and respon-
sible waste management, to increase the
use of recycled materials in our packag-
ing, and to participate in schemes and
models that support post-consumption
collection and recycling.
Social & Relationship
Our communities and oth-
er stakeholders are key en-
ablers of business success.
Therefore, we are commit-
ted to creating economic and social
value and environmental wellbeing by
encouraging dialogue and continu-
ous interaction with our neighbors and
stakeholders in order to develop and im-
plement programs and initiatives that
address their particular needs and guar-
antee the continuity of our social license
to operate.
Financial
Our financial and operat-
ing discipline, strong capital
structure and financial flexi-
bility, transformational digital
initiatives, and adaptability to changing
market dynamics enable us to capture
organic and inorganic growth opportu-
nities in our industry, while creating sus-
tainable value for our investors.
Intellectual
We’re accelerating the digital
re-evolution of our business.
To this end, we’re building
out an open omnichannel
multi-category commercial platform.
Through our digital and analytics hub,
we’re transforming the way we work,
driving an agile methodology, mindset,
and culture to maximize our compet-
itiveness, proactively address industry
challenges, capitalize on market oppor-
tunities, and foster intellectual develop-
ment across our organization.
Manufactured
Our highly experienced team
of specialists operate 49 bot-
tling plants and 260 distri-
bution centers across nine
countries, deliver approximately 3.5 bil-
lion unit cases of beverages through a
primary and secondary fleet to 2 million
points of sale, and serve a population of
more than 266 million people.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
89
89
COMPREHENSIVE
RISK MANAGEMENT
Our company is present in different countries and regions. Consequently, we are continually ex-
posed to an environment that presents challenges and risks. Our ability to manage the risks that
may arise in the global environment where we operate is vital for our business’ value creation. Ac-
cordingly, our strategy includes a Comprehensive Risk Management Process through which we are
able to identify, measure, register, assess, prevent, and/or mitigate risks.
Main Risk
Potential Impacts
Key Mitigation Actions
Main Risk
Potential Impacts
Key Mitigation Actions
Strategic
Shareholder
Relationships
Our business de-
pends on our relationship
with The Coca-Cola Company
and FEMSA, and changes in
this relationship may adverse-
ly affect us.
Consumer
Preferences
Changes in con-
sumer preferenc-
es, purchase drivers, and
consumption habits might
generate variability in the
demand for some of our
products.
Coca-Cola
Trademarks
Coca-Cola’s brand
reputation or brand
violations could adversely af-
fect our business.
• Termination of the bot-
• Comply with the bottler agree-
tler agreements
ments
• Actions contrary to the
interests of our share-
holders other than
The Coca-Cola Company
and FEMSA
• Work together and promote ef-
fective interaction between our
strategic shareholders in order to
maximize value creation
Competition
Competition could
adversely affect our
business, financial
performance, and results of
operations.
Cyber Incidents
Since information
systems are critical
to our business, it
may be impacted by the vi-
olation of security controls,
affecting the confidentiality,
integrity or availability of in-
formation assets.
• Variability in the demand
for our products
• Damage to Coca-Cola’s
trademark reputation
• Transform into a total beverage
company aligned with consum-
ers’ changing tastes and lifestyles
• Build a winning total portfolio of
products and presentations
• Drive our low- and no-sugar port-
folio ahead of consumer trends
• Promote healthy habits
• Offer sustainable packaging op-
tions for our beverages
• Maintain the reputation and
intellectual property rights of
Coca-Cola trademarks
• Effective brand protection
• Strictly comply with Responsible
Marketing Policies
• Changes in consumer
• Offer affordable prices, return-
preferences
• Lower pricing by com-
petitors
• Business disruption
• Theft or unauthorized
exposure of sensitive in-
formation
able packaging, effective promo-
tions, access to retail outlets and
sufficient shelf space, enhanced
customer service, and innovative
products
Identify, stimulate, and satisfy
consumer preferences
•
• Systemic approach to cyber secu-
rity based on industry standards
• Cyber security-focused organiza-
tional structure
• Regulatory noncompli-
• Oversight by the Board’s Audit
ance
• Fraud
• Economic loss
• Reputational damage
and/or impact on share
value
Committee among other gover-
nance bodies
• Risk management process sup-
ported by independent assess-
ments
• Personnel awareness and train-
ing program
• Continuous investment to
strengthen the security of exist-
ing processes and technologies
• Security by design approach to
business digital initiatives
• Continuous improvement of
monitoring incidents response
and resilience capabilities
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
90
90
Main Risk
Potential Impacts
Key Mitigation Actions
Main Risk
Potential Impacts
Key Mitigation Actions
Economic,
Political, and
Social Conditions
Adverse econom-
ic conditions, political, and
social events in the coun-
tries where we operate and
elsewhere, and changes in
governmental policies may
adversely affect our business,
financial condition, results of
operations, and prospects.
• Affect and reduce con-
sumer per capita in-
come, which could result
in decreased consumer
purchasing power
• Lower demand for our
products, lower real pric-
ing of our products or
a shift to lower margin
products
• Negatively affect our
company and materially
affect our financial con-
dition, results of opera-
tions, and prospects
• Through a risk management
strategy, hedge our exposure to
interest rates, exchange rates,
and raw material costs
• Annually or more frequently eval-
uate, when the circumstances
require, the possible financial ef-
fects of these conditions and, to
the extent possible, anticipate
mitigation measures
Regulations
Taxes and chang-
es in regulations in
the regions where
we operate could adversely
affect our business.
•
Increase in operating
and compliance costs
• Restrictions imposed on
•
our operations
Identify regulatory risks and pro-
posals of changes to regulations
that directly affect our operation
or financial condition
• Advocacy work to provide advice
on legislators’ proposed regulato-
ry changes
• Comply with applicable laws and
regulations and comply with
workplace rights policy
•
Legal Proceedings
Unfavorable out-
comes of legal pro-
ceedings could ad-
versely impact our business.
Investigations and pro-
ceedings on tax, con-
sumer protection, en-
vironmental, and labor
matters
Weather
Conditions,
Natural Disasters,
and Public Health
Crises
•
Impact consumer pat-
terns and beverage sales
• Affect plants’ installed
capacity, road infrastruc-
ture, and points of sale
Adverse weather conditions,
natural disasters, and public
health crises may adversely
affect our business, financial
condition, results of opera-
tions, and prospects.
Acquisitions and
Business Alliances
Inability to success-
fully integrate ac-
quisitions or achieve expect-
ed synergies could adversely
affect our operations.
• Negatively affect our
business, financial con-
dition, results of opera-
tions, and prospects
• Difficulties and unfore-
seen liabilities or addi-
tional costs in restruc-
turing and integrating
operations
Foreign Exchange
Depreciation of the
local currencies
of the countries
• Financial loss
•
Increase cost of some
raw materials
• Adversely affect our re-
where we operate relative to
the U.S. dollar could adverse-
ly affect our financial condi-
tion and results.
sults, financial condition,
and cash flows in future
periods
Climate Change
Adverse weather
conditions could
adversely affect
• Negatively affect con-
sumer patterns and re-
duce sales
• Affect plants’ installed
our business and results of
operations.
capacity, road infrastruc-
ture, raw material supply,
and points of sale
•
•
•
•
Implement business continuity
plans and safety protocols to pro-
tect employees and avoid signifi-
cant disruptions to our business
Insure assets and operations
against such adverse events
Integrate acquired or merged
businesses’ operations in a timely
and effective way, retaining key
qualified and experienced profes-
sionals
• Closely monitor developments
that may affect exchanges rates
• Hedge our exposure to the U.S.
dollar with respect to certain lo-
cal currencies, our U.S. dollar-de-
nominated debt obligations, and
the purchase of certain U.S. dol-
lar-denominated raw materials
•
Identify sources of our operations’
CO2 emissions
• Support and comply with climate
change mitigation measures
Identify and reduce our environ-
mental footprint through effi-
cient use of water, energy, and
materials
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
91
91
Main Risk
Potential Impacts
Key Mitigation Actions
Main Risk
Potential Impacts
Key Mitigation Actions
Raw Materials
Increases in the
price of raw materi-
als we use to man-
ufacture our products could
adversely affect our produc-
tion costs.
Insufficient availability of raw
materials could limit the pro-
duction of our beverages.
•
• Shortage or insufficient
availability of raw mate-
rials may adversely affect
our capacity to ensure
production continuity
Implement measures to mitigate
the negative effect of product
pricing on our margins such as
hedging via derivative instru-
ments
• Adjustments to our
• Proactively address risk of supply
product portfolio accord-
ing to availability
on our value chain
• Strict compliance with our Sup-
plier Guiding Principles
• Strategically adjust our product
portfolio to enable us to minimize
the impact of certain operating
disruptions
Social Media
Negative or
inaccurate
information on
social media could adversely
affect our reputation.
• Damage to our brands
or corporate reputation
without affording us an
opportunity for correc-
tion
Water
Water shortages or
failure to maintain
our current water
• Water supply may be
insufficient to meet our
future production needs
• Water supply may be
concessions could adversely
affect our business.
adversely affected due
to shortages or changes
in governmental regula-
tions or environmental
changes
• Water concessions or
contracts may be termi-
nated or not renewed
• Effective brand protection
• Proactive external communica-
tion
• Efficient water usage
• Execute water conservation and
replenishment projects
• Maintain 100% legal compliance
• Develop a water risk index, in-
cluding four issues that need to
be assessed: Community and
public perception risks, Scarcity
of water and other inputs, Reg-
ulatory risks, and Legal risks for
each of our bottling plants
• Update water risk assessment
tool and work plans that con-
template aspects such as climate
change, resilience to hydrological
stress, media and social vulnera-
bilities, as well as regulations and
production volumes for each of
our bottling plants
• Secure water concessions for our
production facilities
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
92
92
CORPORATE GOVERNANCE
Board of Directors
Directors appointed
by Series A Shareholders
José Antonio Fernández
Chairman of the Board of FEMSA
29 Years as a Board Member
Eduardo Padilla Silva
Chief Executive Officer of FEMSA
6 Years as a Board Member
Federico Reyes García
Independent Consultant
Alternate: Javier Gerardo Astaburuaga Sanjines
29 Years as a Board Member
John Santa Maria
Chief Executive Officer Coca-Cola FEMSA
8 Years as a Board Member
Ricardo Guajardo Touché*
Independent Consultant
29 Years as a Board Member
Enrique F. Senior Hernández*
Managing Director of Allen & Company
18 Years as a Board Member
Luis Rubio Friedberg*
Chairman of México Evalúa
Alternate: Jaime A. El Koury
(Independent Director)
7 Years as a Board Member
Daniel Servitje Montull*
Chief Executive Officer of Bimbo
24 Years as a Board Member
John Murphy
Chief Financial Officer of The Coca-Cola Company
Alternate: Stacy Lynn Apter
3 Years as a Board Member
Executive Officers
John Santa Maria Otazua
Chief Executive Officer
James Leonard Dinkins
Chief Executive Officer of The Honey Baked
Ham Company, Llc
Alternate: Marie D. Quintero-Johnson
2 Years as a Board Member
Constantino Spas Montesinos
Chief Financial Officer
Karina Awad Pérez
Human Resources Officer
José Luis Cutrale
Chairman of the Board of Sucocítrico Cutrale
Alternate: José Henrique Cutrale
18 Years as a Board Member
Luis Nicolau Gutiérrez*
Partner at Ritch, Mueller, Heather and Nicolau
4 Years as a Board Member
Directors appointed
by Series L Shareholders
Alfonso González Migoya*
Managing Partner of Acumen Empresarial,
S.A. de C.V.
16 Years as a Board Member
Directors appointed
by Series D Shareholders
José Reyes Lagunes
Retired
Alternate: Theresa Robin Rodgers Moore
6 Years as a Board Member
Charles H. Mctier*
Retired
24 Years as a Board Member
Víctor Tiburcio Celorio*
Independent Consultant
4 Years as a Board Member
Francisco Zambrano Rodríguez*
Independent Consultant
19 Years as a Board Member
Secretary of Board
Carlos Aldrete Ancira
Secretary of the Board
Alternate: Carlos Luis Díaz Sáenz
28 Years as a Secretary
Bruno Juanes Gárate
Commercial Development Officer
María del Carmen Alanis Figueroa
Corporate Affairs Officer
Rafael Ramos Casas
Supply Chain and Engineering Officer
Ignacio Echevarría Mendiguren
Digital and Technology Officer
Fabricio Ponce García
Chief Operating Officer—Mexico
Ian M. Craig García
Chief Operating Officer—Brazil
Eduardo G. Hernández García
Chief Operating Officer—Latin America
* Independent Director.
To review the most updated Board of Directors please visit Coca-Cola FEMSA’s Web page.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
93
93
Board Practices
Planning and Finance Committee
Audit Committee
The Planning and Finance Committee works
with management to set our annual and long-
term strategic and financial plans and moni-
tors adherence to these plans. It is responsible
for setting our optimal capital structure and
recommends the appropriate level of borrow-
ing as well as the issuance of securities. Finan-
cial risk management is another responsibility
of the Planning and Finance Committee. Ri-
cardo Guajardo Touché is the chairman of the
Planning and Finance Committee. The oth-
er members include: Federico Reyes García,
John Murphy, Enrique F. Senior Hernández
and Miguel Eduardo Padilla Silva. The secre-
tary non-member of the Planning and Finance
Committee is Constantino Spas Montesinos,
our Chief Financial Officer.
The Audit Committee is responsible for re-
viewing the accuracy and integrity of quarter-
ly and annual financial statements in accor-
dance with accounting, internal control and
auditing requirements. The Audit Committee
is directly responsible for the appointment,
compensation, retention and oversight of the
independent auditor, who reports directly to
the Audit Committee (such appointment and
compensation being subject to the approval
of our board of directors); the internal auditing
function also reports to the Audit Committee.
The Audit Committee has implemented pro-
cedures for receiving, retaining and address-
ing complaints regarding accounting, internal
control and auditing matters, including the
submission of confidential, anonymous com-
plaints from employees regarding question-
able accounting or auditing matters. To carry
out its duties, the Audit Committee may hire
independent counsel and other advisors. As
necessary, we compensate the independent
auditor and any outside advisor hired by the
Audit Committee and provide funding for or-
dinary administrative expenses incurred by
the Audit Committee in the course of its du-
ties. Victor Alberto Tiburcio Celorio is the chair-
man of the Audit Committee and the “audit
committee financial expert.” Pursuant to the
Mexican Securities Market Law, the chairman
of the Audit Committee is elected at our share-
holders meeting. The other members are: Al-
fonso González Migoya, Charles H. McTier and
Francisco Zambrano Rodríguez. Each member
of the Audit Committee is an independent di-
rector, as required by the Mexican Securities
Market Law and applicable New York Stock
Exchange listing standards. The secretary
non-member of the Audit Committee is José
González Ornelas, vice-president of FEMSA’s
internal corporate control department.
Corporate Practices Committee
The Corporate Practices Committee, which
consists exclusively of independent directors, is
responsible for preventing or reducing the risk
of performing operations that could damage
the value of our company or that benefit a par-
ticular group of shareholders. The committee
may call a shareholders meeting and include
matters on the agenda for that meeting that it
deems appropriate, approve policies on related
party transactions, approve the compensation
plan of the chief executive officer and relevant
officers, and support our board of directors in
the elaboration of related reports. The chair-
man of the Corporate Practices Committee
is Daniel Javier Servitje Montull. Pursuant to
the Mexican Securities Market Law, the chair-
man of the Corporate Practices Committee is
elected at our shareholders meeting. The oth-
er members include: Jaime A. El Koury, Luis
Rubio Freidberg, Luis A. Nicolau Gutiérrez, and
two permanent non-member guests, Miguel
Eduardo Padilla Silva and José Octavio Reyes
Lagunes. The secretary non-member of the
Corporate Practices Committee is Karina Paola
Awad Pérez, our Human Resources Office
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
94
94
INTEGRAL ETHICAL SYSTEM
Through our ethical culture, we manage under
schemes that must be adopted as a way of life
and that inspire the actions of all those who are
part of the organization through the establish-
ment of an integral ethical system.
Our ethics management is based on:
• Prevent illicit behaviors that may affect our
human capital and our heritage
• Detect improper acts through open commu-
nication channels
Specifically, regarding the subject of gifts, cour-
tesies and entertainment, our Code of Ethics
specifies:
• We do not receive, give, pay, offer, promise, or
authorize on behalf of Coca-Cola FEMSA or
on a personal basis, in a direct or indirect way,
money, gifts, advantageous conditions, sala-
ries, travel, commissions or anything else of
value to obtain any undue advantage or ben-
efit of any kind.
• We do not give or offer gifts to government
• Respond and provide feedback to our organi-
officials.
zation to build trust
Our system is comprised of three fundamental
elements: the Code of Ethics, the Ethics Com-
mittee, and the whistle-blowing system known
as KOF Ethics Line.
Code of Ethics
The foundation of our organizational culture, the
Code of Ethics communicates our values, con-
templates our main behaviors, promotes good
behavior inside and outside of our organization,
and guides our correct decision-making based
on ethical principles. Our recently updated
Code includes important topics such as Human
Rights, Inclusion and Diversity, Discrimination,
Violence and Harassment, Conflicts of Interest,
Misuse of Information, and Anti-corruption.
• We only accept, give, or offer gifts of a promo-
tional nature, occasional and of symbolic val-
ue.
• We only provide hospitalities in accordance
with our Corporate Policy and the applicable
legal provisions.
• When a client or a supplier offers an invita-
tion, which implies a trip outside the city or
to attend a sporting event or any other en-
tertainment, we shall comply with this Code
of Ethics and other Internal Guidelines and
must obtain prior necessary approval to at-
tend such invitation.
For further information and access to the full
document of our Code of Ethics please access
one of the following links:
Spanish
English
Portuguese
Ethics Committee
The Ethics Committee is the oversight and con-
trol body that guarantees compliance with the
Code of Ethics and attends to the company’s
most relevant ethical situations. In each of our
territories, there is an Ethics Committee, and
each Committee reports to the Corporate Ethics
Committee.
KOF Ethics Line Whistle-blowing System
Complaints about noncompliance with the Code
of Ethics are received through KOF Ethics Line,
which is managed by a third party. Employees,
customers, suppliers, third parties or anyone who
has a relationship with Coca-Cola FEMSA can use
the system anonymously.
A group of investigators analyzes the complaints
impartially and confidentially and, if a violation
of the Code is found, corrective measures are
applied.
In 2021, we received 1,616 complaints; of these,
none were related to child labor, forced labor or
freedom of association.
To strengthen our culture, our workers sign a Let-
ter of Compliance to our Code of Ethics. Its pur-
pose is to ensure that our employees are aware of
the Code of Ethics, understand the main acts or
omissions that may be incurred and can put our
organization at risk, and report any violation of the
Code that they know.
In review
28.9%
Substantiated
31.9%
Complaints
by Status
Unsubstantiated
39.2%
Operational
11.8%
Financial Information
0.1%
Complaints
by Topic
Human
Resources
88.1%
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
95
95
TURNOVER
Turnover by Country
Turnover per Gender
Mexico
Brazil
Colombia
Argentina
Uruguay
Panama
Costa Rica
Nicaragua
Guatemala
Total
Natural
induced
7.0%
6.9%
16.8%
9.5%
16.5%
1.9%
10.3%
4.9%
100.5%
11.3%
8.0%
14.5%
5.5%
1.4%
2.4%
5.7%
7.8%
4.7%
2.1%
8.9%
Female
Male
Natural
13.33%
11.07%
induced
7.50%
9.10%
Turnover by age group
Natural
Induced
18-34
16.76%
10.19%
35-44
6.12%
7.85%
45-59
3.27%
6.38%
60+
23.39%
20.81%
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
96
96
RECOGNITIONS
Recognitions obtained by our Mexico
operation
In recognition of our efforts to reduce our pri-
mary and secondary fleet’s emissions, we
earned the Clean Transportation Award from
Mexico’s ministries of Environment and Natural
Resources (SEMARNAT) and Communications
and Transportation (SCT) for the ninth year.
Currently, 18 of our plants in Mexico have ob-
tained Clean Industry certification from the
Federal Environmental Protection Agency
(PROFEPA). Moreover, in 2021, 35 of our distri-
bution centers in Mexico received air quality
certifications from PROFEPA, the state of Mex-
ico’s Environmental Agency, and Mexico City’s
Ministry Secretary of the Environment (SEDE-
MA). These and other recognitions confirm our
commitment to the environment and overall
sustainability.
Recognitions given out to operations’
suppliers
The good performance of our suppliers on
sustainability is a very important issue for us,
which is why we recognize all of those suppli-
ers that incorporate sustainability into their
own business’s DNA not only as a requirement
for doing business with Coca-Cola FEMSA, but
also as a competitive advantage and a means
to become socially responsible. During 2021,
we conducted virtual recognition forums for
our Brazil, Costa Rica, Guatemala, Mexico, and
Panama operations, where we recognized 64
suppliers from over 374 participating com-
panies for their remarkable practices. Almost
400 companies participated in these events
sharing their best practices. The following are
some of the projects that we recognized:
Mexico:
“Leaderson the Move” - Daimler’s project;
“The sun will shine differently in Querétaro” -
Siemens’s project;
“Multilateral Gathering Program: Clean Points
Tulum” - Tetrapack’s project;
“Circular Economy - Stretch Film Heat Shrink
Film" Packsys Mexico’s project.
Guatemala:
“Fundación Miguel Torrebiarte Sohanin” -
Luces del Norte’s project;
“El poder de una ilusión” - Representaciones
Comerciales F. Mansillay’s project;
“Programa de recuperación y reciclaje de
producto final” - CEK’s project.
Nicaragua & Costa Rica:
“PlanEco Award” - Casa Pellas’s Project;
“Seguridad Vial” - Geocycle’s Project;
“Gestión de sostenibilidad” Ecolab’s Project.
Colombia:
• Sustainability
“New technology– DRYEXDUO” - Ecolab’s
project;
“Planta deReciclajePost-consumo” -
Plastilene’s Project.
•
Innovation
“Diseño Especializado de Remolques” -
Solistica’s project
“Sistema de Control de Plataforma de Carga
Primaria (SGAFP)” - Contacamos’s project.
Brazil
• Logistics:
Transportes Cavalinho, Ritmo Logistica y
Dinon Transportadora
• Services: Fardas Uniformes Profissionais
LTDA, Sodexho Do Brasil, Sodexo Pass do
Brasil
• Constructions work: SP & G Engenharia
LTDA, GAP – BR Construcoes LTDA, Mundo
Vertical Trabalho Em Altura and; Industrial:
O prendin Montagens, Tecsul Equipamentos
e Sevices y Endress Hauser.
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
97
97
Av. Ejército Nacional 843-B
Antara Polanco
11520 Mexico, D.F.
Tel: +55 5283 1300
Fax: +55 5283 1392
ey.com/mx
Independent Limited Verification Report
Performance indicators
Annex A Verified GRI contents and Coca Cola FEMSA’s own indicators
GRI
Name of the disclosure or performance indicator
Scope of the information
Reported
information
Total number of employees
All countries where we operate
84,568
INDEPENDENT
LIMITED
VERIFICATION
REPORT:
PERFORMANCE
METRICS
To the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V.:
Scope of our Work
We have undertaken an independent limited verification of the information and performance indicators included in Annex A
and presented in the Annual Integrated Report (the “Report”) of Coca Cola FEMSA, S.A.B. de C.V. (“KOF” or the “Company”)
corresponding to the year calendar 2021, in accordance with the reporting criteria set forth in the GRI Standards (the
“Criteria”).
The preparation of this report is the responsibility of KOF’s Management. KOF’s Management is also responsible for the
information and the assertions contained therein, defining the scope of the Report and the management and control of the
information systems that provided the reported information.
Our work was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 issued by the
International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). This
standard requires that we plan and perform our engagement to obtain limited assurance about whether the report is free from
material misstatement and that we comply with ethical requirements, including the independence requirements included in
the Code of Ethics of the International Ethics Standards Board for Accountants (IESBA).
Standards and verification procedures
The verification procedures performed focused on the following:
• Interviews with the individuals responsible for the information to understand the activities performed and the procedures
used to gather the information.
• Review of the structure and content of the Report in accordance with the GRI Standards.
• Understanding of the procedures used in compiling and consolidating quantitative and qualitative data, as well as their
traceability.
• Review of the support documentation through analysis and recalculations, as well as sampling, to increase the certainty
of the indicators reported.
It is worth mentioning that the scope of this review is substantially less than a reasonable assurance engagement. Therefore,
the assurance provided is also less. This Report shall in no way be considered an audit report.
Conclusions
Based on our work described in this Report, nothing has come to our attention that causes us to believe that the performance
indicators selected are not presented, in all material respects, in accordance with the applicable criteria.
This report has been exclusively prepared for the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V., in accordance with
the terms of our engagement agreement.
Mancera, S.C.
A Member Practice of Ernst & Young Global Limited
Saúl García Arreguín
Partner
March 28th 2022; Mexico City
Member Practice of Ernst & Young Global Limited
Percentage of employees by gender
All countries where we operate
IP
Percentage of employees by age group
All countries where we operate
IP
Resin materials used by weight
All countries where we operate
301-2
Recycled input materials
All countries where we operate
302-1
Energy consumption within the organization
All countries where we operate
IP
302-3
Energy from clean sources
All countries where we operate
Energy intensity
All countries where we operate
GRI
Name of the disclosure or performance indicator
Scope of the information
Extracción de agua
All countries where we operate
Consumption of water from the municipal network
303-1
Groundwater consumption
Surface water consumption (rivers)
Rainwater consumption
All countries where we operate
All countries where we operate
All countries where we operate
All countries where we operate
Efficiency in water consumption
All countries where we operate
Direct GHG emissions (scope 1)
All countries where we operate
Unit
Employees
% of male employees
% of female employees
% from 18 –34 years old
% from 35 – 44 years old
% from 45-49 años years old
% over 60 years old
Thousand tons of total resin
Thousand tons of virgin resin
Thousand tons of recycled resin
% of recycled resin
Millions of MJ total energy consumption
Millions of MJ thermal energy
86
14
54
29
16
1
271
188
83.1
31
3,379
1,619
1,158
Millions of MJ electricity from renewable energy
509
85
5.66
Millions of MJ electricity from other sources
% from clean electricity
Liters of beverage produced per MJ
Reported
information
28
8.43
18.07
1.49
0.005
1.47
86
Unit
Billions of litres
Billions of litres
Billions of litres
Billions of litres
Billions of litres
Liters of wáter per liters of beverage produced
Thousand tons of CO2e
Energy indirect GHG emissions (scope 2)
All countries where we operate
41.90
Thousand tons of CO2e
GHG emissions intensity
All countries where we operate
Percentage of recycled waste
All countries where we operate
Total incident rate (TIR)
Lost time incident rate (LTIR)
All countries where we operate1
Fatalities
181
98
1.04
0.58
5
grams of CO2e per liter of beverage
% of recycled waste
Cases per 200000/ Worked hours
Cases per 200000/ Worked hours
Number of fatalities
IP
305-1
305-2
305-4
IP
IP
1 Not includes Venezuela
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
98
98
Annex A Green Bond Proceeds Allocation - 2021
Category
Total investment
Circular Economy
Climate Change
Water Stewardship
Figure
114.64
93.19
16.85
4.59
Unit
Millions USD
Millions USD
Millions USD
Millions USD
INDEPENDENT
REASONABLE
VERIFICATION
REPORT:
GREEN BOND
Av. Ejército Nacional 843-B
Antara Polanco
11520 Mexico, D.F.
Tel: +55 5283 1300
Fax: +55 5283 1392
ey.com/mx
Independent Reasonable Verification Report
To the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V.:
Scope of our Work
We have undertaken an independent reasonable verification of the proceeds allocation included in Annex A and presented in
the Annual Integrated Report (the “Report”) of Coca Cola FEMSA, S.A.B. de C.V. (“KOF” or the “Company”) corresponding to
the calendar year 2021, in accordance with the reporting criteria set forth in the Green Bond Principles (the “Criteria”).
The preparation of this report is the responsibility of KOF’s Management. KOF’s Management is also responsible for the
information and the assertions contained therein, defining the scope of the Report and the management and control of the
information systems that provided the reported information.
Our work was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 issued by the
International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). This
standard requires that we plan and perform our engagement to obtain reasonable assurance about whether the report is free
from material misstatement and that we comply with ethical requirements, including the independence requirements included
in the Code of Ethics of the International Ethics Standards Board for Accountants (IESBA).
Standards and verification procedures
The verification procedures performed focused on the following:
• Interviews with the individuals responsible for the information to understand the activities performed and the procedures
used to gather the information.
• Review of the structure and content of the Report in accordance with the Green Bond Principles.
• Understanding of the procedures used in compiling and consolidating quantitative and qualitative data, as well as their
traceability.
• Review of the support documentation through analysis and recalculations, as well as statistical sampling, to increase the
certainty of the indicators reported.
Conclusions
Based on our work described in this Report, proceeds allocation is presented, in all material respects, in accordance with the
applicable criteria.
This report has been exclusively prepared for the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V., in accordance with
the terms of our engagement agreement.
Mancera, S.C.
A Member Practice of Ernst & Young Global Limited
Saúl García Arreguín
Partner
March 28th 2022; Mexico City
Member Practice of Ernst & Young Global Limited
Overview
Overview
Our Framework
Our Framework
Our Strategic Corridors
Our Strategic Corridors
Appendices
Appendices
99
99
SHAREHOLDER & ANALYST INFORMATION
KOF New York Stock Exchange
Quarterly Stock Information
U.S. Dollars per ADS
Quarter ended
Dec-30
Sep-30
Jun-30
Mar-31
U.S. Dollars per ADS
Quarter ended
Dec-31
Sep-30
Jun-28
Mar-29
$ High
56.52
58.94
52.93
48.97
$ High
46.93
44.91
48.39
64.95
$ Low
47.53
51.99
46.56
42.21
$ Low
36.20
39.63
38.09
38.44
KOFUBL Mexican Stock Exchange
Quarterly Stock Information
Mexican Pesos
Quarter ended
Dec-30
Sep-30
Jun-30
Mar-31
Mexican Pesos
Quarter ended
Dec-31
Sep-30
Jun-28
Mar-29
$ High
114.98
117.34
105.71
100.95
$ High
93.88
100.3
106.29
121.02
$ Low
101.17
104.14
93.88
87.79
$ Low
77.30
86.26
91.49
90.56
2021
$ Close
54.38
56.27
52.93
46.20
2020
$ Close
46.10
40.72
43.85
40.23
2021
$ Close
111.54
116.32
105.47
94.41
2020
$ Close
91.51
90.19
100.62
95.65
Coca-Cola FEMSA,
S.A.B. de C.V.
Mario Pani N° 100
Col. Santa Fe Cuajimalpa 05348,
Ciudad de Mexico,
Mexico (5255) 1519 5000
Investor Relations
Independent Accountants
Jorge Collazo
Lorena Martin
Marene Aranzabal
José Enrique Solís
kofmxinves@kof.com.mx
Sustainability
Luis Darío Ochoa
Rosaura Castañeda
Elena Huante
Fernanda Turcott
Daniel Insulza
sostenibilidad@kof.com.mx
Corporate Communication
Aurea Patiño
Diana Pino
Aldana Solano
Legal Counsel of the Company
Carlos L. Díaz Sáenz
Mario Pani Nº 100
Col. Santa Fe Cuajimalpa 05348,
Ciudad de Mexico, Mexico.
Phone: (52 55) 1519 5000
Mancera, S.C.
A member firm of Ernst & Young
Global Antara
Polanco Av. Ejército Nacional
Torre Paseo 843-B Piso 4 Colonia
Granada 11520 Ciudad de Mexico,
Mexico Phone: (5255) 5283 1400
Stock Exchange Information
Coca-Cola FEMSA’s common stock
is traded on the Bolsa Mexicana
de Valores (the Mexican Stock
Exchange) under the symbol
KOFUBL and on the New York
Stock Exchange, Inc. (NYSE) under
the symbol KOF.
Transfer Agent and Registrar
Bank of New York
Bank of New York 101 Barclay
Street 22W New York, New York
10286, U.S.A
ABOUT OUR INTEGRATED REPORT
From our headquarters in Mexico City, we
present our Integrated Report 2021 edi-
tion. This report was developed following
the guidelines of the International Inte-
grated Reporting Council (IIRC) and in
accordance with the GRI (Global Report-
ing Initiative) Standards, as well as mate-
rial indicators of the SASB (Sustainability
Accounting Standards) for the Non-Al-
coholic Beverage Industry. Furthermore,
this report elaborates on our annual
Communication on Progress (COP) to the
United Nations Global Compact, included
by FEMSA in its 2021 report.
The information contained in this report
corresponds to the period from January
1 to December 31, 2021. It includes data
from the countries where
Coca-Cola FEMSA, S.A.B. de C.V. has op-
erations or a majority share. Its opera-
tions encompass franchise territories
in Mexico, Brazil, Guatemala, Colombia,
and Argentina, and, nationwide, in Costa
Rica, Nicaragua, Panama, and Uruguay.1
The company is a member of the Dow
Jones Sustainability Emerging Mar-
kets Index, Dow Jones Sustainability
MILA Pacific Alliance Index, FTSE4Good
Emerging Index, and the S&P/BMV Total
Mexico ESG Index, among others.
Chief Financial Officer
Constantino Spas Montesinos
Corporate Affairs Officer
María del Carmen Alanis Figueroa
1. For comparability purposes, the non-financial quantitative data for 2021, 2020, 2019, and 2018 is
represented without Venezuela, since as of December 31, 2017, Venezuela is a deconsolidated
operation reported as an investment in shares. Moreover, the 2017 information is represented
without the Philippines.
2. References herein to “Mexican pesos” or “Ps.” are to the lawful currency of the United Mexican
States, or Mexico
Stock listing information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to
KOF = 10:1 Coca-Cola FEMSA files reports, including annual reports and other information with the U.S. Securities and
Exchange Commission, or the “SEC,” and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursu-
ant to the rules and regulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make elec-
tronically with the SEC and the BMV are available to the public on the Internet at the SEC’s website at www.sec.gov, the
BMV’s website at www.bmv.com.mx, and our website at www.coca-colafemsa.com. Coca-Cola FEMSA, S.A.B. de C.V. is the
largest Coca-Cola franchise bottler in the world by sales volume. The company produces and distributes trademark bev-
erages of The Coca-Cola Company, offering a wide portfolio of 131 brands to a population of more than 266 million. With
over 80 thousand employees, the company markets and sells approximately 3.5 billion unit cases through close to 2 mil-
lion points of sale a year. Operating 49 manufacturing plants and 260 distribution centers, Coca-Cola FEMSA is commit-
ted to generating economic, social, and environmental value for all of its stakeholders across the value chain. The compa-
ny is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance
Index, FTSE4Good Emerging Index, and the S&P/BMV Total Mexico ESG Index, among others. Its operations encompass
franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua,
Panama, Uruguay, and in Venezuela through its investment in KOF Venezuela.
For further information, please visit www.coca-colafemsa.com