FUTURE- READY
COCA-COLA FEMSA
2 0 2 2 I N T E G R A T E D R E P O R T
At Coca-Cola FEMSA, we are building a future-ready
organization to become our customers’ preferred
commercial platform.
Aligned with our vision, we are advancing on all of
our strategic fronts—from our profound cultural
transformation to our winning multi-category portfolio
and industry-leading sustainable business development.
Fueled by these advances, we are not only escalating
our transformation into a digitalized company—
adopting technology and digital capabilities across our
value chain—but also accelerating our growth into an
omnichannel, multi-category player.
C O N T E N T S
OVERVIEW
OUR FRAMEWORK
OUR STRATEGIC PRIORITIES
APPENDICES
Letter to Our Stakeholders
5
8 CFO Interview
12 Our Footprint
14 Financial & Sustainability
Highlights
17 Our Value Chain
19 Strategy
20 Sustainability
26 Sustainable Financing
30 Develop a Future-Ready Portfolio
41 Become our customer’s preferred
93 Financial Summary
95 Management’s Discussion and
Omnichannel Commercial
Platform
50 Make a difference in
environmental, social and
governance (ESG)
78 Strengthen our Customer-centric
Culture
Analysis
99 Capital & Company Engagement
100 Comprehensive Risk Management
103 Corporate Governance
105 Integral Ethical System
106 Turnover
107 Independent Verification
111 Shareholder and Analyst Information
112 About Our Integrated Report
OVERVIEW
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CHAIRMAN’S AND CEO’S LETTER TO STAKEHOLDERS
DEAR FELLOW
STAKEHOLDERS
This year we consistently advanced on all of our strategic fronts—from our digital transformation to our
winning multi-category portfolio and sustainable business development. These advances fueled our
momentum and a very positive year for our company.
Fundamentally, we built on the strength of our enhanced cooperation framework with The Coca-Cola
Company to align and execute ambitious growth plans and investments, while advancing our digital
strategy and accelerating our transformation into an omnichannel, multi-category platform.
STRATEGIC PROGRESS AND ACHIEVEMENTS FOR 2022
During the year, we continued developing a consumer-centric portfolio, focused on affordability, innova-
tion, and mix enhancement. Through our initiatives, we grew our single-serve mix, non-carbonated bev-
erage volumes, and zero- and low-sugar portfolio. Notably, the new formula of Coca-Cola Zero Sugar out-
performed the sparkling beverage category across our markets, achieving 27% and 11% growth in Brazil
and Mexico, respectively. In terms of mix enhancement, we leveraged our multipacks, increased cooler
coverage, and execution to grow our single-serve mix across our territories.
This year we consistently advanced on all of our strategic
fronts—from our digital transformation to our winning multi-
category portfolio and sustainable business development.
IAN CRAIG
CHIEF EXECUTIVE OFFICER
JOSÉ ANTONIO
FERNÁNDEZ CARBAJAL
CHAIRMAN OF THE BOARD
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Aligned with our enhanced cooperation framework with
The Coca-Cola Company—along with our omnichannel
platforms’ digital order-taking capabilities—we contin-
ued exploring new revenue streams to complement our
multi-category portfolio through pilot programs and distri-
bution agreements with strategic partners across adjacent
categories in certain markets.
Importantly, we expanded our B2B and D2C commer-
cial platforms, enabling our customers to interact with us
whenever, wherever, and whichever way they want. Cur-
rently, we serve over 800 thousand monthly active pur-
chasers on Juntos+, our B2B omnichannel platform, up al-
most threefold over the past year. We also carried on with
the expansion of our D2C home delivery model, rolling out
400 new routes—reaching close to 1,650 routes serving
approximately 600 thousand Mexican households.
Importantly, we underscored our company’s commitment
to sustainability. This year, we continued making histo-
ry in sustainable financing, becoming the first company
in the consumer sector in the Americas and the first in
the Coca-Cola System to successfully issue social bonds.
Indeed, for the third consecutive year, our sustainability
(ESG) performance enabled us to be included in the S&P
Global Sustainability Yearbook 2023.
Environmentally, we continued focusing on making a dif-
ference on climate action, circular economy, and water
efficiency. We began construction of PLANETA, a food-
grade recycling plant in Tabasco, Mexico, with the capacity
to process approximately 50,000 tons of post-consumer
PET bottles annually. This new plant—coupled with new
collection centers in the southeast region—will help us to
expand our PET collection and close the recycling loop
towards our objective of including at least 50% recycled
content in our packaging by 2030. We improved our water
use ratio to 1.46 liters of water per liter of beverage pro-
duced—an industry benchmark. We also look to decrease
our scope 1 and 2 emissions by 50% and to reduce 20%
of our entire value chain emissions by 2030.
Socially, we are focusing on our neighboring communi-
ties, value chain, and talent diversity. We are increasing
the representation of women in leadership positions; and
we have a robust plan to achieve our ambition of 40% of
women in leadership and management positions by 2030.
Notably, this is the fifth consecutive year that our compa-
ny is part of the Bloomberg Gender-Equality Index.
Finally, as part of our focus on value-enhancing acquisi-
tions, we integrated CVI in record time during the year
with synergies above expectations, marking an important
step in the consolidation of our Brazilian footprint.
FINANCIAL & OPERATING HIGHLIGHTS
As we navigated an uncertain inflationary environment,
our focus on affordability and relentless point-of-sale
execution enabled us to deliver 8.6% year-over-year vol-
ume growth—12.1% ahead of our 2019-baseline year.
For the year, total revenues increased 16.4% to Ps. 226.7
billion. Operating income improved 12.5% to Ps. 30.8
billion. Operating cash flow increased 10.7% to Ps. 43.0
billion. Controlling net income rose 21.2% to Ps. 19.0 bil-
lion to achieve earnings per share of Ps. 1.13 and per unit
of Ps. 9.06 (Ps. 90.60 per ADS).
All of our beverage categories drove growth, with our
non carbonated beverages and bottled water categories
growing double digits. Driven by our portfolio initiatives
and point-of-sale execution, we continued gaining share
across key markets and categories.
Our solid volumes and revenue growth management ca-
pabilities drove double-digit top-line growth. On the prof-
itability front, we mitigated the impact of inflation by le-
veraging our top-line growth, hedging initiatives, and cost
and expense efficiency strategies throughout the year.
UNIQUELY POSITIONED FOR GROWTH
To achieve our ambition of building our customer’s pre-
ferred commercial platform, we are convinced that we
have unmatched rights to win.
• First, we have the largest B2B user base in Lat-
in America, serving more than 2 million clients with
whom we have developed a relationship of trust over
the years through our consistent customer focus. This
is a user base that we grow every year, and we deliver
to on average 1.8 times a week.
• Second, we have an unmatched scale and distribution
capabilities with leading-edge enablers. This gives us
the capacity not only to reach the most remote place in
our territories, but also to do it profitably, while deliver-
ing a differentiated customer service level.
Notably, our return on invested capital (ROIC) improved
for the fifth consecutive year. Moreover, our net-debt-to-
EBITDA ratio ended the year at 0.9 times—while our cash
position was more than Ps. 40 billion—reflecting our strong
balance sheet, while putting us in a great position to grow.
• Third, we carry and deliver our customer’s and con-
sumers’ preferred brands—leveraging the strength
of The Coca-Cola Company portfolio. This gives us
relevance at the point of sale and opens the door to
serve our user base.
For the year, our consolidated volumes increased signifi-
cantly, driven mainly by strong growth in Argentina, Bra-
zil, Colombia, Guatemala, and Mexico. Today, all of our
territories’ volumes are ahead of pre-pandemic levels,
evidencing positive momentum across our territories.
• Fourth, we have a talented team, who enjoy a growth
mindset and are used to winning in the market.
• Fifth, we have in FEMSA and The Coca-Cola Compa-
ny two shareholders who have a growth bias, a long-
term vision, and a commitment to invest behind our
business.
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MANAGEMENT TRANSITION
Effective January 1, 2023, Coca-Cola FEMSA’s Board of Directors appointed Ian Craig as
Chief Executive Officer, succeeding John Santa María, who retired from his position as
Chief Executive Officer.
Working together with a talented team of professionals, John dedicated himself 24/7 and
guided Coca-Cola FEMSA through challenging times, including the COVID-19 pandemic.
John leaves the Company operating with positive momentum.
Ian has proved an outstanding member of the FEMSA team for 28 years, with increasing
responsibilities at Coca-Cola FEMSA over the past two decades. Ian served as CEO
of Coca-Cola FEMSA Brazil since 2016, leading the company’s digital transformation
towards a B2B platform.
Ian’s appointment and the composition of Coca-Cola FEMSA’s leadership team is a testa-
ment to the depth of talent across the organization. We are confident that his vision and
drive will translate into a new chapter of growth and sustainable value creation for our
stakeholders.
• And finally, we have a strong culture focused on
generating economic, social, and environmental
value for our shareholders, our communities, and
our people.
We are confident that we are uniquely positioned
for growth by leveraging these strengths, our posi-
tive momentum, and by focusing on the following six
strategic priorities as our guiding principles:
• Grow the core. We see more runway to grow our
core business by a focus on capturing the fair share
of the Coca-Cola trademark across all markets and
channels; accelerating the growth of Coca-Cola
Zero Sugar across our territories; developing the
growth opportunities in low per-capita markets;
and achieving the full potential of profitable non-
carbonated beverage categories.
• Become our customer’s preferred omnichannel
commercial platform. We will work to grow our
total and digital client base across our markets.
We will continue to enhance our value proposition,
leveraging a curated portfolio of our customers’
and consumers’ favorite brands together with
The Coca-Cola Company and our multi-category
partners. This will enable us to continue generating
network effects, further strengthening our platform.
• De-bottleneck our infrastructure and digitize
the enterprise. We aim to unlock growth by in-
creasing manufacturing and distribution capacity,
while ensuring we implement best-in-class logis-
tics and distribution enablers. Additionally, as part
of the digitization of our company, we will be un-
dergoing the migration from our legacy infrastruc-
ture-as-a-service ERP systems into the SAP S/4
HANA cloud-based platform-as-a-service.
• Make a difference in ESG. We aim not only to re-
inforce our industry-leading environmental initia-
tives, but also to bolster our social and governance
agenda, including community development pro-
grams and diversity and inclusion.
• Strengthen our customer-centric culture and
reorganize the way we work. We will promote a
growth mindset, building a multiplier leadership
style, empowering leaders to develop our people,
and foster a workplace that provides psychologi-
cal safety within our teams. We will redesign our
structure into a more insights driven, agile, and
effective organization.
• Strategic M&A. By leveraging our disciplined ap-
proach, we will focus on value-enhancing, syner-
gistic acquisitions as a priority, while strengthening
our commercial platform capabilities.
As we continue advancing along these priorities, we
will continue to strengthen the relationship we have
with The Coca-Cola Company, pursuing joint oppor-
tunities to accelerate our growth.
On behalf of our employees, we thank you for your
continued confidence in our ability to deliver eco-
nomic value and to generate social and environmen-
tal wellbeing for you all.
JOSÉ ANTONIO FERNÁNDEZ CARBAJAL
CHAIRMAN OF THE BOARD
IAN CRAIG
CHIEF EXECUTIVE OFFICER
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INTERVIEW
WITH
OUR
CFO
GERARDO CRUZ CELAYA
CHIEF FINANCIAL OFFICER
Gerardo Cruz, our company’s Chief
Financial Officer, reflects on our
ability to navigate a dynamic global
environment. He also discusses the
ways in which we are leveraging our
enhanced cooperation framework with
The Coca-Cola Company, exploring
complementary revenue streams,
the issuance of milestone social
and sustainability-linked bonds,
his previous experience within the
company, and his key financial
priorities for the coming years.
Q) Gerardo, how would you reflect on the company’s
performance for the year in the face of what proved
a volatile global industry environment?
A) The company has demonstrated the ability to work in
volatile, ambiguous, and inflationary environments,
much like the one we faced this year.
Despite these headwinds, we were able to adapt
quickly and continue strengthening our business by
executing the right strategies locally, driving a solid
top- and bottom-line performance.
As we enter 2023, we are monitoring inflationary
pressures to continue taking appropriate actions to
mitigate their impact.
With that mindset, we are leveraging three key
strengths to continue growing our business:
First, we enjoy a strong market position with share of
sales leadership in almost every segment in all bever-
age categories we serve across our markets. Currently,
we serve a client large base of over 2.0 million custom-
ers across our territories. This gives us an edge particu-
larly in the traditional trade, which at the end of the day
is the base of Latin America’s economic model.
Second, KOF has an unmatched distribution network
and point of sale execution. Throughout the years, we
have developed a close relationship with those 2.0
million customers, which is a key driver of both per
capita and market share growth, as well as giving us
credibility to be able to continue growing our Juntos+
B2B digital platform.
Third, we are committed to maintaining solid financial
indicators. Despite volatile environments, we have
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continually proven our financial resilience
and cash flow generation capacity. As of De-
cember 31, 2022, our net debt-to-EBITDA
ratio closed below 1.0 time, while we ended
the year with a cash position of more than
Ps. 40 billion.
Q) Could you elaborate on the significance of
the enhanced cooperation framework with
The Coca-Cola Company and its strategic
importance?
A) The enhanced cooperation framework ef-
fectively aligns both companies on pursu-
ing profitable growth. This year, we contin-
ued leveraging the enhanced cooperation
framework with The Coca-Cola Company
to execute ambitious growth plans and in-
vestments in the market, explore and open
new revenue streams, and significantly ad-
vance the rollout of our digital strategy. To-
gether, we continued exploring new revenue
streams to complement our multi-category
portfolio, with new pilot programs and dis-
tribution agreements that expand our grow-
ing network of strategic partnerships—from
spirits companies and, brewers, to personal
care and consumer goods.
We are also exploring new ventures,
particularly digitally. Working closely with
The Coca-Cola Company, we are coming to
understand how much value we can create
through data capabilities and other products
and services in the digital world—which is
enabling us to accelerate our digital strategy.
We further enjoy a healthy and active
collaboration network across the Coca-Cola
System on many fronts, including digital.
Thanks to this collaborative environment,
we have identified significant opportunities
to standardize, optimize, design, and
implement digital platforms through
knowledge exchanged not only within the
region, but also across different regions in
the Coca-Cola system.
Q) Could you update us on the company’s
strategic progress?
A) We continue to develop a winning consum-
er-centric portfolio, enabling us to improve
our price-mix, provide affordability, and
expand our refillable capacity, which both
serves an affordability role, as well as an
important sustainability tool, that is actual-
ly a competitive advantage. Thanks to our
portfolio initiatives, we significantly grew
our single-serve mix, still beverage volumes,
and zero- and low-sugar portfolio. Through-
out a challenging year, our revenue growth
management capabilities further enabled us
to grow our top-line and generate savings by
optimizing discounts and promotions.
Also, we have made substantial progress
building out our B2B and D2C omnichan-
nel commercial platforms. Notably, we now
serve over 1.3 million registered clients on
our B2B platform, including more than 800
thousand active digital purchasers monthly,
and we reached more than US$1.2 billion in
digital revenues this year.
Our people and culture are keys to our stra-
tegic success. Accordingly, we continue to
accelerate the development of the capabil-
ities that our company needs to drive our
vision, ensuring that we have an agile and
digital mindset. To this end, we carried on
implementing collaborative models and new
ways of working, ensuring digital inclusion
and up-skilling not only in finance, but also
across the whole organization.
On the sustainability front, we continue to
make important progress throughout our
company, transforming our environmental,
social, and governance (ESG) framework
to be at the forefront of market, regulatory,
and consumer trends. Notably, we achieved
another important milestone in sustainable
financing this year, becoming the first com-
pany in the consumer sector in all of the
Americas to issue social bonds, as well as
the first in the Coca-Cola System to issue
such bonds. We also became the first com-
pany in Mexico’s consumer sector to issue
sustainability bonds. This issuance comple-
ments our green bond placed in 2020 and
sustainability-linked bonds issued in 2021,
while reinforcing our company’s commit-
ment to generating social and environmental
value for our stakeholders.
Additionally, we have made significant ef-
forts to continue digitizing our operations,
enabling and empowering our digital trans-
formation journey. Initially, we transformed
into a digitalized bottler, adopting digital
technology and capabilities across our value
chain. Now, we are becoming an omnichan-
nel and multi-category player, with a clear
ambition of becoming a full commercial eco-
system into the future.
On the sustainability front, we
continue to make tremendous
progress throughout our
company, transforming our
environmental, social, and
governance (ESG) framework
to be at the forefront of
market, regulatory, and
consumer trends.
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Finally, this year we completed and integrated
our acquisition of CVI in Brazil with synergies
well above expectations, marking an important
step in the consolidation of our Brazilian foot-
print.
alliances in the future. Indeed, these pilots have
already proven quite successful, with us transi-
tioning from pilot programs into long-term dis-
tribution agreements in some cases.
Furthermore, in light of volatile market condi-
tions, we continued with our disciplined hedg-
ing policy, enabling us to maintain a net debt
of Ps. 38 billion, low net leverage of 0.9 times
EBITDA, and comfortable cash liquidity.
Q Could you expand on the company’s explora-
tion of complementary revenue streams, par-
ticularly in light of its two recent distribution
agreements with Campari Group and Grupo
Perfetti Van Melle in Brazil?
A) Consistent with our vision and aligned with our
enhanced cooperation framework with The
Coca-Cola Company, we continue to explore
new revenue streams with strategic partners.
Our omnichannel platforms’ digital order-tak-
ing capabilities are enabling us to enhance our
portfolio beyond our core Coca-Cola products.
To this end, we are strengthening our multi-cat-
egory platform through distribution agreements
and pilot programs with strategic partners in
certain markets across adjacent categories, pri-
oritizing leading beer, spirits, alcoholic ready-
to-drink (ARTD) beverages, snacks, and con-
sumer packaged goods brands.
These pilots aim to prove the distribution
and selling capacity of Coca-Cola FEMSA to
strengthen our partner’s products presence in
the traditional trade channel, enabling more
customers and consumers access to a broader
portfolio while always putting their satisfac-
tion at the center of everything we do. We ex-
pect that these pilots will enable us to not only
expand our customers’ value proposition, but
also obtain necessary learnings and insights to
continue advancing towards potential strategic
On April 19, we announced a new distribu-
tion agreement with Campari Group in Brazil,
marking an important step to strengthen and
consolidate our multi-category platform with a
high-potential spirits brand. Similarly, on July
14, we announced a non-exclusive distribution
agreement with Grupo Perfetti Van Melle—one
of the world’s largest manufacturers of sweet
confectionary snacks and chewing gum with
global brands such as Mentos and Fruit-tel-
la. These two recent agreements build on last
year’s agreement to distribute leading Spanish
brewer Estrella Galicia’s beer portfolio with the
Coca-Cola System in Brazil.
Q) Could you briefly discuss the initiatives taken
to strengthen the company’s balance sheet
and financial position in what was a very dy-
namic environment?
A) In this volatile environment, we proactively un-
dertook strategies to strengthen the company’s
balance sheet and overall financial position.
Under our liability management strategy, we
repurchased part of our US-dollar-denominated
Yankee bonds, and we refinanced them in the
Mexican market through an issuance of the first
social bonds for a consumer sector company in
the Americas. This enabled us to not only gen-
erate interest expense savings, but also finance
important social projects.
Q) In light of their strategic significance to our
sustainable financing strategy, could you
elaborate further on the company’s success-
ful issuance of social and sustainability bonds
in the Mexican market?
A) As a company, we are committed to generating
economic, social, and environmental value for
all of our stakeholders and for the communities
we serve. Aligned with this commitment and
consistent with our financial discipline, strong
credit profile, and commitment to sustainabili-
ty, we issued social and sustainability bonds for
an amount of Ps. 6.0 billion. This issuance rep-
resents the first social bonds in the consumer
sector in the Americas and the first social bonds
for the Coca-Cola System. We also became the
first company in the consumer sector in Mexico
to issue sustainability bonds.
This transaction was completed in two tranch-
es: The first tranche was priced at a fixed rate of
9.95% (Mbono+0.30%) for an amount of Ps. 5.5
billion due in 7 years. The second tranche was
priced at a variable rate of TIIE + 0.05% for an
amount of Ps. 500 million due in 4 years.
The proceeds from these bonds will be used to
fund projects focused on the social and eco-
nomic development of our communities and re-
spond to their local needs. Specifically, the goal
of this latest issuance is to support underrepre-
sented and traditionally excluded social groups
We issued social and
sustainability bonds for
an amount of Ps. 6.0
billion. This issuance
represents the first
social bonds in the
consumer sector in the
Americas and the first
social bonds for the
Coca-Cola System.
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in our communities with programs relating to empowerment,
entrepreneurship, and self-employment, financial support to
mom & pop store owners, and sustainable community devel-
opment, including water replenishment and access projects.
I am proud of our leadership in sustainable financing and the
progress our company has made to become a benchmark in
this increasingly important area: From the issuance of our first
Green Bond in 2020—at the time the largest for a Latin Amer-
ican company and a first for the Coca-Cola system—to our
2021 issuance of the first-ever sustainability-linked bonds in
the Mexican market, and now our 2022 issuance of the first
social bonds by a non-financial corporate in Mexico and the
first for the Coca-Cola System.
and planning function for Argentina, Central America, Colom-
bia, and Uruguay.
Throughout my career, I have been a strong advocate for in-
clusion and diversity serving as President of our company’s
Inclusion & Diversity Advisory Board over the past two years,
while contributing to our efforts to make the organization a
better place for everyone to work in.
Q) Could you briefly discuss your key financial strategies for
the coming years?
A) We are committed to creating long-term value for our stake-
holders through sound financial strategies. In the coming
years we will focus on the following financial strategies:
First, we will continue prioritizing financial discipline, under-
scoring our focus on an efficient financial position and our
commitment to shareholder return. We will continue focusing
on generating strong cash flow, maintaining a disciplined ap-
proach to capital allocation and managing operational risks by
continuing to implement disciplined currency and commodity
hedging strategies to provide stability for our operations to be
able to generate shareholder value.
Q) Could you talk about your experience before becoming
Coca-Cola FEMSA’s Chief Financial Officer?
A) My financial experience spans almost 20 years, since I joined
our company in 2003, including my most recent role as CFO
for our operation in Colombia,
I began my career within the corporate finance and treasury
function, overseeing financing, risk management, and trea-
sury, eventually taking the role of Corporate Finance and Trea-
sury Director in 2013. I held this position until my appoint-
ment as Planning and Finance Director for the Latin America
Division in 2017, where my team and I oversaw the finance
We will continue prioritizing financial
discipline, underscoring our focus on
an efficient financial position and our
commitment to shareholder return.
Second, we will double down on productivity and efficiencies
across our P&L. We will continue focusing on improving our
operational efficiency to mitigate inflationary impacts. This
includes investing behind our supply chain optimization and
digitalization to drive operating efficiencies.
Third, we will allocate capital towards organic growth. Our
capex for 2022 amounted to Ps. 19.7 billion. Given the out-
performance of our top-line, we must accelerate investments
to better serve our markets, customers, and consumers. We
expect to maintain a similar level of Capex for 2023, as we
continue to invest behind this positive momentum, prioritizing
investments that are aligned with our return objectives.
These key financial strategies will guide our decision-making
in the coming years as we work together to achieve our long-
term goals.
MANAGEMENT TRANSITION
Effective January 1, 2023, the Board of Directors elected Gerardo Cruz to serve
as CFO for Coca-Cola FEMSA. Gerardo’s financial experience spans almost
20 years, since he joined the company in 2003, including his most recent role
as CFO for our operation in Colombia. He previously served in several senior
management positions including Corporate Finance and Treasury Director and
Planning and Finance Director for the Latin America Division.
As of the same date, Constantino Spas, our former CFO, was appointed to
become CEO of FEMSA Strategic Businesses. We acknowledge Constantino’s
contribution, dedication and leadership during his tenure as CFO of
Coca-Cola FEMSA.
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OUR
FOOTPRINT
We have the privilege to serve 270 million
people through 2.1 million points of sale
in 9 markets of Latin America with a wide
portfolio of leading brands.
MEXICO
74.3 million people served
858K points of sale
28 plants
135 distribution centers
CENTRAL AMERICA
(Guatemala, Nicaragua, Costa Rica and Panama)
33.4 million people served
241K points of sale
7 plants
36 distribution centers
COLOMBIA
52 million people served
463K points of sale
7 plants
22 distribution centers
VENEZUELA1
people
served
270 million
56 plants
million
points
of sale
2.1
249 distribution
centers2
1) As of December 31, 2017, Venezuela is reported as an investment in shares, as a non-consolidated operation.
2) For purposes of this table, we have considered owned and third-party distribution centers managed by us.
BRAZIL
92.7 million people served
474K points of sale
11 plants
49 distribution centers
URUGUAY
3.6 million people served
26K points of sale
1 plant
3 distribution centers
ARGENTINA
13.7 million people served
64K points of sale
2 plants
4 distribution centers
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SPARKLING BEVERAGES
2,895 Volume1
17,731 Transactions
WATER AND BULK WATER
566 Volume1
1,896 Transactions
STILL BEVERAGES
294 Volume1
2,688 Transactions
Argentina
939.5
Uruguay
224.2
Argentina
173.9
Uruguay
46.6
Brazil
7,014.5
Mexico
9,276.4
Brazil
1,016.2
Mexico
1,888.9
TRANSACTIONS
million
22,315.1
Colombia
2,503.7
CAM
South
1,196.0
Guatemala
1,160.8
TOTAL VOLUME
million unit cases1
3,755.2
Colombia
330.1
CAM
South
152.3
Guatemala
147.2
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.
PRODUCT MIX BY PACKAGE
PRODUCT MIX BY SIZE
PRODUCT MIX BY CATEGORY
%
7
5
%
9
6
%
4
8
%
0
8
%
3
8
%
2
8
%
3
4
i
o
c
x
e
M
%
1
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
a
n
i
t
n
e
g
r
A
%
7
1
%
8
1
y
a
u
g
u
r
U
%
7
3
%
3
6
i
o
c
x
e
M
%
5
4
%
5
5
a
c
i
r
e
m
A
l
a
r
t
n
e
C
%
5
3
%
5
6
%
9
3
%
1
6
%
0
3
%
0
7
%
9
2
%
1
7
i
a
b
m
o
o
C
l
a
n
i
t
n
e
g
r
A
y
a
u
g
u
r
U
l
i
z
a
r
B
■ Returnable ■ Non-returnable
■ Single-serve ■ Multi-serve
% of volume of total beverages
Sparkling
Bottled Water1 Bulk Water2
Mexico
Central America
Colombia
Brazil
Argentina
Uruguay
71.4%
86.1%
77.1%
84.1%
80.2%
84.2%
5.5%
3.7%
10.3%
6.5%
9.2%
12.3%
15.9%
0.2%
3.8%
1.1%
2.2%
—
Still
7.2%
9.9%
8.8%
8.3%
8.4%
3.5%
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.
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FINANCIAL
HIGHLIGHTS
5
5
7
,
3
9
6
3
,
3
4
8
2
,
3
8
5
4
,
3
E
M
U
L
O
V
S
E
L
A
S
1
s
e
s
a
c
t
i
n
u
n
o
i
l
l
i
m
7
.
6
2
2
5
.
4
9
1
6
.
3
8
1
8
.
4
9
1
S
E
U
N
E
V
E
R
L
A
T
O
T
.
s
P
n
a
c
i
x
e
M
n
o
i
l
l
i
b
2022
USD1
2022
MXN
2021
MXN
% Change
2019
2020
2021
2022
2019
2020
2021
2022
Sales Volume (million unit cases)
3,755.2
3,755.2
3,457.9
8.6%
Total Revenues
Operating Income
11,630
226,740
194,804
16.4%
1,582
30,838
27,402
12.5%
Controlling Interest Net Income2
976
19,034
15,708
21.2%
Total Assets
14,259
277,995
271,567
2.4%
Long-term bank loans and notes
payable
3,598
70,146
83,329
-15.8%
Controlling Interest
Capital Expenditures
Earnings Per Share2
6,431
125,384
121,550
3.2%
1,009
19,665
13,865
41.8%
0.06
1.13
0.93
21.2%
Millions of Mexican pesos and U.S. dollars as of December 31, 2022 (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, 2022, which exchange rate was Ps. 19.50 to U.S.$1.00.
2. Based on 16,806.7 million outstanding ordinary shares as of December 31, 2022 and 2021.
Capitalizing on our strong market position,
obsessive point-of-sale execution, and
extremely solid financials, we successfully
navigated a volatile and inflationary macro
environment to deliver solid double-digit top-
and bottom-line growth. We further improved
our return on invested capital (ROIC) for the fifth
consecutive year—closing the year in the double
digits—and sustained our healthy net-debt-to-
EBITDA ratio of 0.9 times, while ending the year
with a robust cash position of more than Ps. 40
billion, reflecting our strong balance sheet.
8
.
0
3
4
.
7
2
4
.
5
2
2
.
5
2
E
M
O
C
N
I
G
N
I
T
A
R
E
P
O
.
s
P
n
a
c
i
x
e
M
n
o
i
l
l
i
b
3
4
.
5
4
0
.
5
6
8
.
4
4
5
.
3
E
R
A
H
S
R
E
P
D
N
E
D
I
V
I
D
.
s
P
n
a
c
i
x
e
M
2019
2020
2021
2022
2019
2020
2021
2022
1) Unit case is a unit of measurement that equals 24 eight-ounce servings of finished beverage.
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SUSTAINABILITY HIGHLIGHTS
Aligned with our imperative
to make a difference in
environmental, social, and
governance (ESG), we aim
to break the ceiling on
sustainability initiatives—
to be at the forefront of
market, regulatory, and
consumer trends—while
elevating ESG practices
across Latin America and
the world.
600 thousand
beneficiaries of activities
focused on our environmental
and social pillars
DJSI
KOF was named to the Dow
Jones Sustainability MILA Pacific
Alliance Index for the sixth
consecutive year. The company
was also included in the Dow
Jones Emerging Markets Index
for the tenth year in a row.
+250K volunteer
hours
in +2,300
initiatives
US$314.74 million
were invested during 2022
in our environmental pillar,
focusing on climate action,
circular economy, and water
stewardship projects
17% reduction
of absolute GHG emissions from
scope 3 vs 2015 base line
1.46 liters
of water per liter of
beverage produced, an
industry benchmark
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UNGC
In 2022 we signed the
United Nations Global
Compact (UNGC),
committing to align our
business strategy with
their Ten Principles.
98.5%
of post-industrial waste
recycled or properly
disposed
1ST
Mexican Company
29%
to secure approval
of the Science Based
Targets Initiative (SBTi)
for our GHG emissions
reduction goals
reduction of absolute GHG
emissions from our direct
operations scope 1 and 2 vs
2015 base line
3RD
consecutive year
of inclusion in S&P Global’s
Sustainability Yearbook
5TH
consecutive year
of inclusion in the
Bloomberg
Gender-Equality Index
77%
of our manufacturing
facilities have earned
Zero Waste certification
94%
of our Green Bond funds
have been allocated
4TH
year
of recognition as one of the
Best Places to Work for LGBTQ+
Equality by the Human Rights
Campaign Foundation and HRC
Equidad MX: Global Program for
Labor Equity
66%
renewable energy
use in our operations
1ST 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 1.26 by 2026
1ST Social Bonds
issued in the consumer
sector in the Americas,
and 1st Sustainability
Bonds issued in Mexico’s
consumer sector for a total
amount of Ps. 6 billion
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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 249
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 digital warehouse
process, 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
270 million people,
offering a portfolio
with choices for
every lifestyle.
OUR STRATEGY AND ESG
FRAMEWORK
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STRATEGY
We are confident we are uniquely positioned for growth by leveraging our
strengths, our positive momentum, and focusing on the following six strate-
gic priorities as our guiding principles:
• Grow the core. Capturing the fair share of Coca-Cola trademark in all mar-
kets and channels; accelerating the growth of Coca-Cola Zero Sugar; de-
veloping growth opportunities in low per-capita markets; and achieving the
full potential of profitable non-carbonated beverage categories
• Become our customer’s preferred omnichannel commercial platform.
Growing our total and digital client base across our markets and enhancing
our value proposition, leveraging a curated portfolio of our customer’s and
consumer’s favorite brands together with The Coca-Cola Company and our
multi-category partners.
• De-bottleneck our infrastructure and digitize the enterprise. Unlock
growth by increasing manufacturing and distribution capacity, implement-
ing best-in-class logistics and distribution enablers. We will continue digi-
tizing our company, including the migration of our legacy ERP System into
cloud-based platform-as-a-service.
• Make a difference in ESG. Reinforcing our industry-leading environmental
initiatives and bolstering our social and governance agenda, including com-
munity development programs and diversity & inclusion.
• Strengthen our customer-centric culture. Promoting a growth mindset,
building a multiplier leadership style and empowering leaders to develop
our people.
• Strategic M&A. Leveraging our disciplined approach, we will focus on val-
ue-enhancing, synergistic acquisitions as a priority, while strengthening our
commercial platform capabilities.
Looking ahead to our ambition to build our
customer’s preferred commercial platform, we
are convinced we have unmatched rights to win.
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REFRESHED ESG FRAMEWORK
We engaged in a comprehensive ESG transforma-
tion over the past year involving all parts of the or-
ganization to evolve our sustainability strategy and
break the ceiling on sustainability initiatives—to
be at the forefront of market, regulatory, and con-
sumer trends. We sought to ensure our practices
are aligned not only with local requirements, but
also with world-leading best practices across in-
dustries, so we could establish a new frontier for
our local markets on ESG trends and commitments.
Our overarching vision is to become a global leader
on sustainability and elevate ESG practices in Latin
America and the world.
ESG TRANSFORMATION METHODOLOGY
Aligned with our mandate to make a difference in ESG,
we divided the top-down, bottom-up ESG transforma-
tion into five distinct phases to develop and refine our
sustainability strategy. These phases not only defined
the priorities for our sustainability strategic corridor, but
also the concrete ambitions and commitments for key
priorities within our strategic framework, along with the
changes to our ways of working necessary to ensure the
strategy can be properly executed for years to come.
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NEW ESG
STRATEGY PHASES
Phase 2:
DEVELOPING HOLISTIC
EVALUATIONS
We developed a sustainable proj-
ects financial evaluation and prior-
itization methodology under a joint
effort among our financial, project
management, and core sustainability
teams. Our holistic model seeks to
quantify several intangible and long-
term value drivers, including the cost
of externalities such as carbon emis-
sions. These drivers are typically
underrepresented in traditional proj-
ects, but are especially relevant for
ESG investments.
Phase 3:
AMBITION SETTING
With a robust baseline in place, we
conducted external market research,
drew from our conversations with
key stakeholders, and evaluated in-
dustry benchmarks to discover what
goals we wanted to achieve across
each material topic in our ESG frame-
work. Setting ambitions relative to
these benchmarks followed our ho-
listic view on ESG. Establishing these
ambitions required understanding
what world-leadership meant for
each of our signature topics. The pro-
cess of developing and tailoring our
ESG goals along each topic was our
ambition setting phase.
Phase 1:
SETTING THE ESG STRATEGIC
FRAMEWORK
Our initial phase required us to de-
termine the topics where we had the
largest impact on our society and
for our business continuity. To do
so, we identified and drew insights
from stakeholder groups to inform
our new strategic ESG framework,
ensuring that we understood their
highest priority topics.
In setting our framework, we applied
a robust baseline of our internal op-
erations across sustainability areas.
Through detailed benchmarking on
our current state of operations, we
finalized our ESG framework with re-
freshed priorities across environmen-
tal, social, and governance pillars.
Phase 5:
OPERATING MODEL
To stay up to date with rapidly evolv-
ing trends, our ESG strategy requires
change within our organization to be
executed effectively. While devel-
oping our plans, we considered the
interdependencies and implications
that our ESG initiatives would have
on our operations. As a result, we de-
signed changes to our ways of work-
ing, governance, and people enablers
to ensure the strategy is well execut-
ed for years to come.
Phase 4:
ROADMAP DEVELOPMENT
With ambitions established, we set
plans across the organization to en-
sure that we achieve these goals in
time, and that all priorities have con-
crete and clear paths of execution. We
complemented each ambition with a
roadmap of investments and opera-
tional requirements that we needed to
execute every year to timely reach our
goals. Recognizing that roadmaps are
only an initial estimate of how we will
achieve our goals, we will continuous-
ly revise these roadmaps as markets
mature, regulations change, and new
technologies arise.
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ESG FRAMEWORK
After several iterations, we developed a refreshed
framework for our sustainability priorities, with envi-
ronmental, social, governance, and transversal prior-
ities. Our environmental pillar seeks to improve our
relationship with our environment, focused on strong
climate action, circular economy, and water efficiency.
Our social pillar seeks to improve our impact on all of
our stakeholders, including our nearby communities,
our value chain, and our talent. Our governance pillar
seeks to ensure we are accountable to our stakehold-
ers, which includes managing compliance and cyber
& data security issues, ensuring transparency, and
developing the internal governing bodies and account-
ability to support this level of commitment. Transver-
sally, we consider the effect our internal and external
actions have on diversity, equity, and inclusion, and
we consider the enablers that can help us execute the
overall ESG strategy effectively.
For more information see →Future Ready Sustainability Strategy
Make a difference in environmental, social and governance (ESG)
ENVIR ONMENTAL
SOCIAL
GOVER NANCE
Scope 1 & 2
Scope 3
Collection
Packaging
Operational Waste
Water Effi ciency
Human Capital Development
Integral Wellbeing
Flexibility
Sustainable Value Chain
My KOF Community
&
y
t
e
f
a
S
h
t
l
a
e
H
Water Regeneration
Replenishment
Access
D IV ER SIT Y, EQ UIT Y & INCLU SION
D IGITALIZ ATION ( EN ABLE MEN T, TO OLS & TR A ININ G )
Supply Chain Management
Cyber & Data Security
Risk Management
Shareholder Management
& Materiality
Governing Bodies
ClimateActionCompliance& SecurityCorporate GovernanceCircularEconomyWaterStewardshipInternalExternal
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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 nine goals
through our strategic
framework and initiatives.
We are working with FEMSA
Foundation on initiatives and so-
cial programs in our communi-
ties, focused on early childhood
and healthy lifestyles.
We are committed to ensuring
the efficient use of this natural
resource, conservation of wa-
ter basins, and safe access to
drinking water for our communi-
ties and ourselves. By 2025, our
ambition is to develop with our
communities and stakeholders
one access or replenish project
in each of our priority sites to
achieve the return of 100% of
the water we use.
Through our external and inter-
nal social priorities, we continue
to focus on the health, safety,
and wellbeing of our employ-
ees, customers, consumers, and
communities. By prioritizing their
health and safety, we reinforce
our company’s commitment to
delivering economic value, while
generating social and environ-
mental wellbeing. In addition, we
offer a total beverage portfolio,
including our growing zero- and
low-sugar portfolio, and we carry
out responsible marketing strat-
egies for our products.
We strive for energy efficiency
across our value chain. We fur-
ther integrate renewable sourc-
es of energy and technologies
to reduce our CO2e emissions—
aligned with our commitment
to break the ceiling on climate
action. Our operations’ energy
consumption focuses on a com-
prehensive strategy that encom-
passes our value chain.
Aligned with our ambition to im-
prove gender diversity at all lev-
els of the organization, we are de-
veloping and deploying initiatives
to increase women’s represen-
tation across our operations. By
2030, our ambition is for women
to represent 40% of leadership
and management positions. We
are also carrying out programs
to foster women’s financial and
digital empowerment within the
traditional trade.
We aim to achieve sustainable
economic growth through effi-
cient resource utilization, pro-
mote a work environment that
offers comprehensive profes-
sional development, create jobs
in emerging markets, and apply
sustainable sourcing principles.
In addition, we develop initia-
tives in our communities focused
on empowerment to foster re-
silience and reactivation of local
economies.
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We continually work to improve
our ESG performance and foster
industry innovation, especially
in the areas of water steward-
ship and energy efficiency, while
reducing our carbon footprint
across our value chain. We com-
plement these programs with
digital and innovation training to
develop local suppliers.
By 2030, to break the ceiling on
climate action, we are committed
to decreasing our scope 1 and 2
emissions by 50%, and reducing
20% of our entire value chain
emissions. To reach our interim
and final ambition on CO2e emis-
sion reduction, we set initiatives
to migrate relevant operational
assets to lower emission alterna-
tives, as well as setting various
initiatives to tackle emissions
across our value chain.
Our work with small local busi-
nesses across our rich value
chain of suppliers, customers,
and other stakeholders seeks to
improve their financial and digital
inclusion, while we work to pro-
vide our communities with safe
water, improved sanitation, and
hygiene education.
Aligned with our community en-
gagement priority, we are deter-
mined to advance the develop-
ment of the communities where
we operate. With this mindset,
we will collaborate with our com-
munities across all of our opera-
tions to develop sustainable solu-
tions that address local needs.
Given the growing urgency of
shared water risks and the need
for systemic action across the
value chain, our holistic water
strategy is focused on water
efficiency, replenishment, and
access. We consistently lead
our industry peers on water ef-
ficiency, and continue to invest
in minimizing our use of water.
Moreover, our social water stew-
ardship strategy protects peo-
ple’s right to water, and aims to
guarantee this resource for cur-
rent and future generations.
Our corporate governance and
the way we conduct our business
is in full compliance with applica-
ble regulations in all of our coun-
tries of operation, with our Code
of Ethics as our compass. With
our suppliers, we further apply
guiding principles that focus on
strategic input categories, includ-
ing areas such as human rights,
environmental protection, and
labor rights.
We hold ourselves to high stan-
dards of transparency and au-
thenticity in our external commu-
nications, including reporting the
progress on our commitments
and other material topics identi-
fied throughout the year. We are
confident that, with the support
and co-responsibility of all of
the stakeholders across our val-
ue chain, we will fulfill our 2030
ambition of collecting 100% of
the PET bottles we place in the
market through a concerted mar-
ket-based approach to the circu-
lar economy.
We recognize that complex, ev-
er-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 maxi-
mize our impact.
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MATERIALITY MATRIX
After setting and achieving several public sus-
tainability targets, we conducted a comprehen-
sive materiality assessment to ensure that our
overall sustainability priorities were aligned
with stakeholder expectations and what our
business needs to thrive over the coming years.
As a result of this assessment, we identified
and mapped 45 material topics and 17 iden-
tified priorities across the three pillars of our
ESG framework.
e
c
n
a
v
e
l
e
R
r
e
d
l
o
h
e
k
a
t
S
37
42
38
41
44
45
43
3
17
15
13
16
10
4
9
18
14
21
7
12
27
23
29
19
22
20
24
26
28
31
34
36
25
35
39
40
30
33
32
1
8
2
11
6
5
■ ENVIRONMENT
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
■ SOCIAL EXTERNAL
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
B u s i n e s s S u c c e s s
We are currently carrying out the process to update our materiality ma-
trix and priorities, which we will include in our 2023 Integrated Report.
■ SOCIAL INTERNAL
2 Nutritional Attributes of Product
Portfolio
7 Product Portfolio Diversification
8 Relationship with Government
12 Consumer Engagement for Circular
Economy
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
■ GOVERNANCE
3 Global Integrity & Compliance
24 Best-in-Class Board Practices
27 Partnerships for Sustainability
30 Comprehensive Risk Management
35 Code of Conduct
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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
environmental and social ambitions,
while contributing to the United Nations
Sustainable Development Goals. We have
leveraged our investments with financial
instruments that allow us to direct our
resources appropriately to mitigate
risk, increase positive impact, and align
incentives within the company with our
ESG objectives.
Green Bond Allocation
As of December 31, 2022, Coca-Cola FEMSA had allocated
US$664.87 million of green bond net proceeds to projects
supporting circular economy, water stewardship, and
climate action.
US$705 Million
Green Bond
Issued September 2020
US$664.87 million allocated
Between 2018-2022
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US$20.67
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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 Ameri-
can corporation and a first for the Coca-Cola System.
As of December 31, 2022, we had allocated US$664.87 mil-
lion of green bond net proceeds to finance or refinance eligi-
ble green projects in three main categories—circular econo-
my, water stewardship and climate action—according to our
→Green Bond Framework. This total investment represent-
ed 94% of the net proceeds, leaving US$40.13 million of net
proceeds unallocated at the end of 2022.
While eligible projects within the three categories focused on
a variety of solutions, they shared the common objective of
advancing our company’s mission to simultaneously create
economic and social value while generating environmental
wellbeing across our value chain in collaboration with all of
our stakeholders.
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GOAL PERFORMANCE
The net proceeds of our green bond help to deliver on our company’s sustainability goals,
including our commitments to increase recycled content in our PET packaging, improve water
efficiency, and reduce CO2e emissions. From 2018 through 2022, we made progress against
these goals, as illustrated in these charts.
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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.
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 preindustrial levels. In 2020
KOF commited to use 100% of renewable energy in manufactur-
ing and distributiuon operations by 2030. Pursuant to this public
commitment, we made great progress during 2022 by increasing
our renewable energy usage from 53% to 66%.
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SUSTAINABILITY-LINKED BONDS
SOCIAL & SUSTAINABILITY 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.
Recognizing that water is not only an invaluable resource for our com-
pany and industry, but also an indispensable element of climate change
resilience, we are focusing this first issuance on the sustainable and ef-
ficient 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 1.26 by 2026.
Today, our water use ratio is 1.46 liters, a benchmark of water efficiency
for the Coca-Cola System.
Consistent with our financial discipline, strong credit profile, and com-
mitment to sustainability, we issued social and sustainability bonds in
the Mexican market for a total of Ps. 6,000 million in October 2022—be-
coming the first non-financial corporation in the Americas and the first
company in the Coca-Cola System to issue social bonds. We also be-
came the first company in Mexico’s consumer sector to issue sustain-
ability bonds.
This transaction was completed in two tranches: The first social tranche
was priced at a fixed rate of 9.95% (Mbono+0.30%) for an amount of
Ps. 5,500 million due in seven years; and the second sustainability
tranche was priced at a variable rate of TIIE + 0.05% for an amount of
Ps. 500 million due in four years.
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The net proceeds from these bonds will be used to finance eligible so-
cial and sustainability projects focused on the social and economic de-
velopment of our communities in accordance with our →Sustainability
Bonds Framework. Specifically, the goal of this latest issuance is to
support underrepresented and traditionally excluded social groups
in our communities with programs that provide entrepreneurial and
self-employment skills, financial solutions that support store owners,
and investments in sustainable community development, including wa-
ter replenishment and water access projects.
Subject to the issuance of applicable funding instruments, we will con-
tinue to annually report on the allocation of proceeds and the associated
impact in the year(s) following issuance of any future funding instru-
ments under our current Green Bond and Sustainability-Linked Bonds
Frameworks.
OUR STRATEGIC
PRIORITIES
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DEVELOP A
FUTURE-READY
PORTFOLIO Driven by our obsessive focus on our
consumers and customers, we aim to grow
our core business portfolio, capturing the
fair share of Coca-Cola trademark in all
markets and channels and achieving the
full potential of profitable non-carbonated
beverage categories.
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WINNING CONSUMER-CENTRIC PORTFOLIO
SUCCESS STORIES
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—from promising alcoholic ready-to-drink to
dynamic still beverage categories—while strengthening our multi-category
platform across key markets.
Our customers and consumers are at the center of everything we do. We
proactively adapt our portfolio strategies and initiatives to satisfy their
evolving preferences and practices, expanding the number of routes and
households we serve with our direct-to-home Coca-Cola en Tu Hogar de-
livery routes; enhancing consumer excitement and engagement through
limited-edition releases from Coca-Cola Creations; developing comple-
mentary indirect distribution models to increase customer service levels;
and improving consumer and customer interaction while increasing our
single-serve mix by leveraging popular multipacks, increased cooler cov-
erage, and execution across our markets.
ENHANCING CONSUMER ENGAGEMENT THROUGH
COCA-COLA CREATIONS
During the year, we introduced limited edition, sequential
releases from Coca-Cola Creations, The Coca-Cola Company’s
innovation platform, across key markets to enhance consumer
engagement. These exciting new creations—featuring gaming-
inspired, pixel-flavored Coca-Cola Zero Sugar Byte and the artist
Marshmello’s Limited Edition Coca-Cola—enabled us to launch
creative new products and experiences successively across
physical and digital worlds.
MEXICO: EXPANDING CONVENIENT CONSUMER-CENTRIC HOME
DELIVERY
To satisfy evolving at-home consumption occasions and preferences,
we continued to expand our home delivery routes to serve the evolving
needs of almost 600 thousand households across Mexico. During
the year, we not only added over 400 new routes for a total of close
to 1,650 home delivery routes, but also integrated our Coca-Cola
en tu Hogar D2C omnichannel platform across 85% of those routes,
dramatically expanding our base of monthly digital purchasing
customers to over 125 thousand households. Thanks to the success of
our D2C model, our home delivery 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 over
50%, while continuing to improve our delivery effectiveness and net
promoter score. For more information see →D2C Marketplace
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SUCCESS STORIES
MEXICO: DEVELOPING COMPLEMENTARY
INDIRECT DISTRIBUTION MODELS
Complementing our direct models, we are develop-
ing and customizing indirect distribution models to
not only increase customer service levels to our small
mom-and-pop clients, but also achieve our saturation
strategy. This is reflected in the significant growth of
our emerging indirect wholesaler and distributor chan-
nels. Through a clear segmentation, route to market,
and category management strategy—catering to both
big and small deposit wholesalers—the wholesaler
channel gained 25 million incremental unit cases for
close to 15% volume growth year over year. Similarly,
our indirect distributor channel generated high sin-
gle-digit growth year over year, contributing almost 10
million unit cases or 14% of our total volume across
the traditional trade channel. We also continued with
our distributor transformation and digitalization pro-
cess, covering around 45% of this indirect channel’s
total volume during 2022.
MEXICO: DRIVING IMPROVED CONSUMER
INTERACTION AND SINGLE-SERVE MIX WITH
MULTIPACKS
In Mexico, our popular portfolio of multipacks is not
only enabling better interaction with our consumers,
but also growing our profitable single-serve mix, trans-
actions, and revenues across the modern trade chan-
nel. For the year, our multipacks volume grew more
than 35%, driving approximately 10% of our incremen-
tal volume throughout the modern channel. We tailor
our portfolio of six, eight, and 12 multipacks to suit the
needs of our customers and consumers—from whole-
salers to supermarkets and price clubs. In Mexico’s
modern trade channel, our multipacks included brand
Coca-Cola, Coca-Cola Zero Sugar, Sprite, Mundet, Fan-
ta, Ciel, Seagrams, and Monster.
COLOMBIA: HISTORIC CUSTOMER GROWTH
Over the past three years, our Colombian operation
achieved historic customer growth of more than
120 thousand clients. Among other strategic initia-
tives, we accomplished this remarkable growth by
expanding our winning consumer-centric portfo-
lio, driving affordability to better serve consumers’
demands, and delivering point-of-sale excellence.
Indeed, our Colombia operation significantly in-
creased its score in The Coca-Cola Company’s ex-
ecution index year over year, while generating dou-
ble-digit volume growth for the year.
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SUCCESS STORIES
MEXICO: INCREASING
RETURNABLE CAPACITY AND
COVERAGE
To bolster our returnable strategy,
this year we significantly enlarged
our refillable capacity and the
coverage of our 3-liter returnable
PET presentation of Coca-Cola
Original. With this launch across
seven new cities—including Leon,
Queretaro, and Veracruz—this
popular affordable multi-serve
presentation is now present in 30
cities. We further invested in three
new returnable bottling lines with
an annual capacity of 50 million unit
cases, strengthtening our affordable
returnable strategy.
MEXICO: EXPANDING UNIVERSAL BOTTLE
COVERAGE ACROSS THE TERRITORY
During the year, we launched our 2.5-liter return-
able PET universal bottle across multiple new cit-
ies. Now covering nearly all of our franchise terri-
tory, the universal bottle or botella unica enables
us to use the same refillable bottle for our core
flavored sparkling beverage and juice brands—
from our Fanta, Sprite, and Valle Frut brands to
our regional Escuis and Victoria flavored brands.
Importantly, the expanded coverage of our refill-
able universal bottle continued to yield share of
sales gains in the cities where it was launched.
LEVERAGE AFFORDABILITY
TO DRIVE SUSTAINABLE
BEVERAGE GROWTH
Affordability remained an important driver of our sustainable
beverage growth. We executed to win in the “away from
home” and “at home” consumption occasions thanks to
several market initiatives that enabled us to provide our
consumers with unmatched affordability. Importantly, we
increased our returnable volume almost 25% over the past
five years, supported by the successful rollout of our refillable
universal bottle. To this end, we continued investing behind
this core capability, including more than US$500 million in
production lines and returnable bottles and cases over the
past two years.
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SUCCESS STORIES
COLOMBIA: GROWING UNIVERSAL BOTTLE
COVERAGE YIELDS POSITIVE RESULTS
This year, we significantly expanded the rollout
of our affordable universal bottle to cover more
than 60% of the country. This transformational
bottling technology enables us to offer affordable
refillable PET presentations not only of brand
Coca-Cola, but also of our flavored sparkling and
still beverage brands to compete more effectively
in the market, enabling volume and share of sale
increases in the cities where it was launched.
BRAZIL: CONSOLIDATING RETURNABLE
GROWTH AND HOUSEHOLD PENETRATION
Through our returnable affordability strategy, we
continued to consolidate our volume growth and
competitive advantage across the sparkling bev-
erage category—growing our household penetra-
tion while increasing our returnable volume year
over year. For the year, returnable presentations
represented close to 160 million unit cases or
more than 18% of our sparkling beverage mix.
This year, we further capitalized on our new re-
fillable universal bottles to enable flavored spar-
kling beverage expansion and to improve asset
management.
ARGENTINA: GROWING CONSUMER BASE
AND VOLUME THROUGH AFFORDABILITY
STRATEGY
Under our affordability strategy, we contin-
ued to regain share and expand our consumer
base in the face of Argentina’s dynamic com-
petitive and economic environment. Thanks
to our evolving market segmentation strate-
gy—leveraging our integral value proposition
and execution excellence—we were able to
offer consumers the right product at the right
price across diverse socioeconomic seg-
ments of our franchise territory, enabling us
to improve our household penetration while
achieving volume growth year over year.
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CAPTURE NEW CONSUMPTION
OCCASIONS THROUGH
PORTFOLIO
INNOVATION
Through ongoing portfolio innovation, we contin-
ue to focus on improving our competitive position
and capturing the most value from our beverage
brands by closely aligning our portfolio with con-
sumers’ tastes and preferences. Among our ini-
tiatives, we continued to drive the growth of our
no- and low-sugar portfolio of sparkling beverages
to satisfy and stimulate demand for our products—
with no-sugar volumes an impressive 30% ahead
of our 2019 baseline—while adapting our portfolio
to evolving consumer behavior. Notably, the new
visual identity and formula of Coca-Cola Zero Sug-
ar outperformed the sparkling beverage category
across our territories, growing 23% year over year
as we leveraged a consistent value proposition
with sampling, innovation, and customer experi-
ence initiatives.
SUCCESS STORIES
MEXICO: COCA-COLA ZERO SUGAR
OUTPERFORMING SPARKLING CATEGORY
The new formula and visual identity of
Coca-Cola Zero Sugar continued to outperform
the sparkling beverage category across our
Mexico territory. Impressively, Coca-Cola Zero
Sugar achieved 20% volume growth year over
year. Notably, our focus on increasing consumer
contact and transactions also enabled us to
achieve double-digit volume growth in the
single-serve format this year.
ARGENTINA, BRAZIL, CENTRAL AMERICA, & COLOMBIA:
INNOVATIVE MULTIPACKS SPUR SINGLE-SERVE RECOVERY
In Argentina, Colombia, and Central America, we capitalized on the re-
opening of the on-premise channel and the strength of our multipack
strategy to recover our single-serve mix, which has increased by more
than five percentage points in Argentina and Panama. By leveraging
our multipacks, increased cooler coverage, and execution, we look
forward to continue growing our single-serve mix across our markets.
In Brazil, we also continued to leverage the popularity and household
penetration of our convenient, affordable multipacks of Coke and our
core flavored sparkling beverage brands—achieving over 28% volume
growth year on year. Through our multipacks and other mix initiatives,
we reached a single-serve mix of almost 23% this year, exceeding our
2019 baseline by more than 2 percentage points.
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SUCCESS STORIES
BRAZIL: COCA-COLA ZERO SUGAR
WINNING THE CONSUMER CHOICE
BATTLE
In Brazil, Coca-Cola Zero Sugar is win-
ning the consumer choice battle through
a consistent value proposition, gaining
significant share of sales while generating
double-digit volume growth year over year.
To achieve this growth, we built on a con-
sistent value proposition with sampling,
innovation, and customer experience initia-
tives—highlighted by the Panini FIFA World
Cup Qatar 2022 sticker campaign.
URUGUAY: BUILDING ON OUR
COMPANY’S ZERO-SUGAR BENCHMARK
During the year, we continued to build on our
leadership position in Uruguay’s zero-sugar beverage
market—a benchmark with our company. Harnessing
the success of Coca-Cola Zero Sugar, we continued to
leverage our consistent value proposition and point-
of-sale execution with sampling, innovation, and an
enhanced customer experience. Consequently, our
zero-sugar formulas continued to outperform, with
Coca-Cola Zero Sugar volume an impressive 44%
ahead of our 2019 baseline.
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CAPITALIZE
ON EMERGING
CATEGORIES &
NEW MULTI-CATEGORY
OPPORTUNITIES
This year, we continued to capture market share across
emerging still beverage categories—from hydration to
energy, tea, and sport drinks. We also strengthened
and consolidated our multi-category platform through
distribution agreements and pilot programs with stra-
tegic partners in certain markets across adjacent cate-
gories, prioritizing leading beer, spirits, alcoholic ready-
to-drink (ARTD) beverages, snacks, and consumer
packaged goods brands. Through our winning strategic
partnership model, we are building a one-stop shop
for our customers and consumers, while exploring
complementary revenue streams that boost our pres-
ence, visibility, and share of wallet at the point of sale
through targeted cross-promotion and execution op-
portunities across physical and digital realms.
SUCCESS STORIES
BRAZIL: DELIVERING MONSTER
ENERGY DRINK GROWTH
Bolstered by our Monster brand, we not
only achieved record share of sales, but
also expanded our share of sales lead-
ership position in Brazil’s fast-growing
energy drink segment. Our portfolio of
Monster brand energy drinks capitalized
on every product—from Monster Energy
Green to Monster Mango Loco and Mon-
ster Absolutely Zero—to fuel volume
growth of more than 26% year on year.
Furthermore, our Reign brand delivered
important volume growth for the year.
URUGUAY: LAUNCHING SUCCESSFUL LOCAL
PRODUCTION OF POWERADE
After previously importing Powerade into Uruguay, we suc-
cessfully began local production of this refreshing sports
drink during the fourth quarter of 2022. As a result, we re-
launched our 600-ml presentation of Powerade, achieving
record share of sales, double-digit volume growth, and
better profitability backed by a new marketing strategy
within this emerging beverage segment.
COLOMBIA: CONSUMER-CENTRIC BRISA
MANZANA SPURS TRIPLE-DIGIT GROWTH
Catering to our consumers’ shifting prefer-
ence to natural, no-calorie beverages, we took
portfolio innovation to the next level with the
expanded consumer-centric launch of our
locally developed formula of Brisa Manzana
(Colombian Apple) sparkling water. By lever-
aging this refreshing proposition, we almost
tripled our year-on-year volume growth, while
achieving significantly higher share of sales in
the country’s competitive flavored sparkling
water segment.
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SUCCESS STORIES
BRAZIL: PROMISING NEW CONSUMER-
CENTRIC BEER PORTFOLIO
After completing the transition of the Heineken
and Amstel beer brands to Heineken’s distribu-
tion network during 2021, this year we managed
to increase the share of sales of our promising
new consumer-centric beer portfolio, includ-
ing Heineken legacy and new beer brands. No-
tably, Sol beer sales recovered considerably;
Kaiser took the lead of the economy segment,
achieving significant market share growth; and
Eisenbahn Unfiltered won a Gold Medal at the
World Beer Awards 2022. Additionally, recently
acquired Brazilian craft beer brand Therezópolis
achieved record sales volume in the premium
segment. We also leveraged our existing long-
term distribution agreement with Estrella Gali-
cia, achieving positive performance for the year.
MEXICO & BRAZIL: EMERGING
OPPORTUNITIES IN FLAVORED
ALCOHOLIC READY-TO-DRINK
BEVERAGES
Consistent with our journey to become a to-
tal beverage company with drink options for
all consumption occasions, we continue to
work closely with The Coca-Cola Company
to identify and define a broader multi-cat-
egory portfolio of beverages 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 alco-
holic ready-to-drink space. With the com-
bination 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 (Brazil, Costa Rica, Mex-
ico), Jack Daniel’s & Coca-Cola (Mexico),
Lemon-Dou (Mexico), and Schweppes Pre-
mium Drinks (Brazil).
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SUCCESS STORIES
BRAZIL: TANTALIZING TEA, SPORT DRINKS, AND
WATER GROWTH
This year, we continued to leverage our reformulated
portfolio to cater to our Brazilian consumers’ growing de-
mand for refreshing teas. The combination of our cold-fill
formula, together with the rollout of Leão brand teas, en-
abled us to increase our sales volume by over 15% for the
year, while increasing our sales to a record share of sales
in this fast-growing beverage category. We also achieved
significant share of sales and almost 60% volume growth
in the profitable sport drinks category year over year. We
further capitalized the on the market opportunity in the
water segment to drive over 29% volume growth.
BRAZIL & MEXICO: WINNING MULTI-CATEGORY STRATEGIC PARTNERSHIPS
& ALLIANCES
Aligned with our vision and enhanced
cooperation framework with The
Coca-Cola Company—while lever-
aging our expanding B2B and D2C
omnichannel digital platforms—we
continued to roll out new distribution
agreements and pilot programs with
strategic partners to not only con-
solidate our multi-category platform,
but also test complementary catego-
ries, prioritizing leading beer, spirits,
snacks, and consumer packaged goods
brands in certain markets. For more
information on B2B and D2C plat-
forms see →Become our customer’s
preferred Omnichannel Commercial
Platform We further carried on gath-
ering important insights on the ways
in which our partners’ different supply
chains operate.
In Brazil, we announced a new distri-
bution agreement with Campari Group
on April 19, another step to strength-
en and consolidate our multi-category
platform with a high-potential leading
spirits brand. During the year, we con-
tinued exploring complementary rev-
enue streams in Brazil, as exemplified
by our announced distribution agree-
ment on July 14 with Grupo Perfetti
Van Melle—one of the world’s largest
manufacturers of sweet confectionary
snacks and chewing gum with global
brands such as Mentos and Fruit-tella.
Building on our expanding pilots with
leading consumer and personal care
brands, we began a pilot beer distribu-
tion program in Mexico to strengthen
our portfolio’s presence in the tradi-
tional trade channel, enabling more
customers and consumers to access a
broader multi-category portfolio. We
expect these pilots will enable us to
not only expand our customers’ value
proposition, but also obtain necessary
learnings and insights to continue ad-
vancing towards potential strategic alli-
ances in the future.
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RESPONSIBLE MARKETING
At Coca-Cola FEMSA, our consumers
are at the center of everything we
do. Therefore, we are committed
to the responsible marketing of our
products. Guided by the principles of
transparency, fact-based information,
and authenticity, we have a history
of aligning our commercial practices
with our values and our sustainability
and business goals.
As we evolve and respond to
consumers’ desires for more choices
across categories, we are reducing
added sugar while providing more
beverages with nutritional benefits;
optimizing our mix of products;
offering more small packaging
choices; and providing our consumers
with clear nutritional information.
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. 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
As part of our commitment to the wellbeing of our consumers and custom-
ers, our advertising adheres to The Coca-Cola Company’s Responsible Mar-
keting Policy and Global School Beverage Guidelines. For instance, as part of
the Coca-Cola system, we diligently follow and enforce The Coca-Cola Com-
pany’s Responsible Marketing Policy, and we respect the role of parents and
caregivers by not marketing directly to children under 13. For more informa-
tion see →The Coca-Cola Company’s Responsible Marketing Policy.
3. Highest quality
Our production processes fulfill the highest quality standards; our ingredients
comply with each of our operations’ local regulations and international stan-
dards 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.
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Aligned with our priority to expand our total and
digital client base across our markets we will
continue to build a future-ready omnichannel
multi-category commercial platform—which will
seamlessly interact with other interconnected
platforms and encompass our business-to-
business (B2B), direct-to-consumer (D2C),
indirect, and digital trade channels.
BECOME OUR
CUSTOMER’S
PREFERRED
OMNICHANNEL
COMMERCIAL
PLATFORM
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JUNTOS+ TRADITIONAL
OMNICHANNEL COMMERCIAL
PLATFORM
To achieve our vision, we are
building a profitable, custom-
er-centric omnichannel B2B
commercial platform across our
multi-category product offerings,
with a differentiated end-to-end
customer experience.
03:30 PM
Hours later, Juan realizes that he
forgot to order a specific product, 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, including
the specific product he had forgotten.
10:00 AM
Juan has been our client for some
years. Today, as every Monday,
Juan is visited by Mario, his usual
pre-seller.
While Juan is busy taking care
of his business, he asks Mario to
place his weekly order.
03:35 PM
Mario instantly receives
a notification in his hand-
held: “Juan has placed
an additional order.”
During the year, we significantly
accelerated the evolution of our
customer-centric Juntos+ B2B
omnichannel multi-category
commercial platform. Through
this omnichannel platform, we will
connect every point of contact in
real time for our large base of more
than 2 million traditional trade
clients. To this end, we are building
on our successful pre-sale model
and call center experience with
digital touch
points to amplify
our customer service—
from direct messaging and
chatbot-enabled conversational
commerce to mobile and desktop
experiences via our app and web
portal—so our clients can interact
with us whenever, wherever, and
whichever way they want.
04:02 PM
Mario decides to
call Juan to confirm
his new request.
10:30 AM NEXT DAY
Next, he confirms that his
most recent orders will be
delivered in the afternoon,
using the order tracking
functionality.
08:00 PM
Overnight, Juan’s cooler
malfunctioned.
Using his cellphone,
Juan accesses KOF’s
mobile app and creates a
service order to evaluate
and repair his cooler.
Juan receives a call from
the Contact Center: “A
technician will visit you
in the next few hours.”
01:50 PM NEXT DAY
The delivery truck arrives,
and Juan receives both of
his orders. He uses the built-
in e-payment system in
KOF’s mobile app to create a
QR Code.
Juan validates his payment
was successful and verifies
his total balance. Juan is a
satisfied customer.
12:55 PM NEXT DAY
As the delivery truck ap-
proaches Juan’s business,
he receives a notification:
“Your order is about to be
delivered. You will be the
next customer in our route
to be served.”
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We processed more than 17.7 million
orders on digital channels in 2022.
We are serving over 1.3 million
registered clients, including more than
800 thousand monthly active users
digital, on our B2B platform.
Digital revenue represents approximately
16% of our company’s total orders.
Our Juntos+ platform is focused
on the customer first and fore-
most. With that mindset, we are
building out our omnichannel
platform around them, offering a
growing array of customer-centric
options and features to provide a
holistic client experience across
multiple points of contact. Rec-
ognizing that this is very much a
relationship-driven business, we
are enhancing the face-to-face
personal customer experience our
clients enjoy with digital order-en-
try tools, including our chatbot-en-
abled conversational commerce
solution and our evolving web
portal and mobile app—which we
are scaling up companywide after
our successful deployment across
Brazil, Mexico, and now Colombia.
The mobile app’s latest version 3.0
provides our clients with a wider
array of features, including 24/7
digital order entry and tracking,
exclusive promotions, and a devel-
oping customer loyalty program.
Our large base of traditional trade
customers is rapidly embracing
the digital options available on
our omnichannel platform. Nota-
bly, we are now serving over 1.3
million registered clients, reach-
ing more than 800 thousand dig-
ital monthly active users, on our
B2B platform—up over 170% and
210%, respectively, year over
year—in Argentina, Brazil, Central
America, Colombia, and Mexico.
Clients’ preference for our robust
omnichannel platform is clearly
reflected in their growing custom-
er satisfaction, acceptance, and
rising orders, while amplifying the
performance of new categories
across our product portfolio.
Overall, we processed more
than 17.7 million orders on digi-
tal channels, generating close to
US$1.2 billion in digital revenue
that represents roughly 16% of
our company’s total orders—a tri-
ple-digit increase in orders and
revenue as compared to 2021.
This year, digital sales accounted
for almost US$1.2 billion.
Guía de marca
Juntos+
Guía de marca
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BRAZIL & MEXICO: 917 THOUSAND REGISTERED CUSTOMERS EMBRACE OUR B2B
OMNICHANNEL PLATFORM
During 2022, our Brazilian and Mexican operations reached approximately 917,000
registered users—including almost 615,000 monthly active users—on our B2B om-
nichannel multi-category commercial platform. Appealing to customer demand for a
one-stop solution, our B2B 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
features—from 24/7 digital order entry and tracking to exclusive product promotions
and a customer loyalty program now deployed to over 100 thousand customers.
For the year, our Brazilian and Mexican traditional trade customers generated over
US$1 billion digital revenue on our B2B omnichannel platform—up 221% from 2021.
COLOMBIA, BRAZIL & MEXICO:
PERCENTAGE OF DIGITAL PURCHASING
CUSTOMERS EXPANDS
This year, our Colombian operation
expanded its base of digital pur-
chasing clients to over 177,000 dig-
ital monthly active users on our B2B
omnichannel commercial platform.
Building on the successful strate-
gic evolution of our omnichannel
platform in Brazil and Mexico, we
capitalized on growing customer
demand for our chatbot-enabled
conversational commerce solution.
This easy-to-use solution enables
our large base of traditional trade
clients to expand their order entry
window to 24/7, empowering them
to place an order for their favorite
brands/categories whenever and
wherever they want.
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D2C MARKETPLACE
Our goal is to develop a profitable
and scalable D2C business model
to market our company’s prod-
ucts 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
multi-category platform through-
out our operations, offering top-
class services.
EVOLVING D2C OMNICHANNEL PLATFORM
Aligned with our mission, we continue to enhance and develop the functionalities of our evolv-
ing D2C model throughout our customer-centric points of contact to become the favorite plat-
form for home consumers throughout our company’s operations.
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
SFA device
Web
Consumer
Chatbot
CCETH
ERP
Sales
and delivery
route
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average ticket by 2 times versus
auto sales model.
As we move forward, we will con-
tinue to enhance and develop
the functionalities of this evolv-
ing D2C omnichannel platform
throughout our main consum-
er-centric points of contact—from
the integration of web-based
digital payment platforms and
multi-category product offerings
to 24-hour and scheduled deliv-
eries—to improve our value prop-
osition and expand our house-
hold penetration while continuing
our consumer-focused evolution.
This year, we carried on with the
historic expansion of our D2C
home delivery model, rolling out
400 new routes—reaching close
to 1,650 routes serving almost
600 thousand households in
Mexico. Our home delivery cov-
erage continued to prioritize the
cities and territories with the
most market potential, including
Mexico City, Leon, Puebla, San
Luis, Tapachula, Toluca, Tuxtla,
and Veracruz. Looking ahead, we
are exploring the possible expan-
sion of our home delivery model
to other countries of operation
based on their market potential
and digital maturity.
Importantly, we integrated our
consumer-centric D2C omni-
channel platform across 85% of
our home delivery routes, and we
dramatically expanded our base
of monthly active users.
Thanks to our evolving D2C om-
nichannel platform, home con-
sumers enjoy the personalized
attention and direct support of
their delivery route drivers and
customer call centers; the 24/7
digital home order-entry plat-
form; and the digital shopping ex-
perience of the Coca-Cola en tu
Hogar (CCETH) website, enabling
them to view our complete port-
folio with all of our promotions.
The success of our D2C platform
is reflected not only in home
consumers’ growing acceptance
and digital orders, but also in our
multi-category portfolio’s en-
hanced price-mix performance,
with the average ticket of con-
sumers who buy online increas-
ing almost two times.
We processed more than 900
thousand digital home delivery
orders in 2022, expanding our
We processed more than 900 thousand digital home
delivery orders in 2022, expanding our average ticket
by 2 times versus auto sales model.
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Furthermore, our Juntos+ app cell is cap-
italizing on our customer knowledge to
optimize the user interface of our mobile
app, considering user frictions, expecta-
tions, and objectives. In this way, we have
improved the customer experience at ev-
ery stage of the journey—from searching
and browsing to gathering product knowl-
edge and ordering, to consulting and con-
firming delivery status.
DIGITAL & ANALYTICS HUB: DRIVE AGILE,
DIGITAL EVOLUTION
Aligned with our vision, the mission of our digital and
analytics hub is to enable the expansion of our omni-
channel commercial platforms by connecting the needs
of our customers, consumers, and business—using tech-
nology to drive a new way of working across the com-
pany. Through our agile, digital, analytical, and custom-
er-focused talent and mindset, we not only empower
our organization’s cultural transformation and strategic
capability building, but also co-create prioritized digital
and analytical solutions that accelerate the deployment
of our commercial platforms and solutions holistically
through agile cells—ranging from our Juntos+ B2B, D2C,
and indirect omnichannel platforms to digital payments,
pricing, and promotions.
Enabling A New Way of Working (WoW)
Through our digital and analytics hub, we have imple-
mented a co-creation process where we assemble agile
cells—with different profiles, skills, functions, and areas—
that ensure our business units’ participation from the
conception and development to the delivery of our digital
and analytical solutions to our operations, clients/cus-
tomers, and consumers. To this end, we use agile product
construction frameworks such as scrum or kanban that
enable continuous value deliveries over short time spans,
while building workspaces and environments that facili-
tate collaboration and encourage teamwork.
AGILE CELLS ACCELERATE EXPANSION OF
OMNICHANNEL COMMERCIAL PLATFORMS
Our agile cells co-create a growing portfolio
of digital and analytical solutions that ac-
celerate the expansion of our omnichannel
commercial platforms.
AppApp
Home
Chatbot
Digital
Payments
DPO
Product
Teams
Service
Order
Indirect
Suggested
Order
Pricing
Hedging
Promo
● Juntos+
B2B Platform
● Enablers
● D2C
Enabling An Aggressive Pipeline of
Digital and Analytical Solutions
Through our co-creation model, our agile
cells are not only accelerating the expan-
sion of our omnichannel platforms, but
also generating positive value through
an aggressive pipeline of digital and ana-
lytical solutions. One of our agile cells is
working to design, implement, and scale
the suggested order analytical solution for
our Juntos+ B2B platform, utilizing ma-
chine-learning algorithms. This solution
enables us to predict the number of prod-
ucts our clients’ need to prevent out of
stocks, and thereby, improve the customer
experience by tackling two key pain points
for our traditional trade clients: increasing
sales while reducing out of stocks of their
preferred products. Consequently, the
more than 1.1 million Brazilian and Mexi-
can customers with suggested order have
increased their sales significantly.
Another agile cell is optimizing distribu-
tion planning at the strategic, tactical, and
operational levels, using machine learn-
ing and digital applications to accelerate
our delivery response capacity in order to
increase customer service and business
profitability. As a result, we have improved
our customer service levels considerably,
utilizing artificial intelligence to calculate
the necessary delivery times for 1 million
customers in Brazil and Mexico.
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SUPPLY CHAIN ENABLERS: FACILITATE
OMNICHANNEL STRATEGY
Our omnichannel multi-category strategy leverages
our leading-edge supply chain enablers to enhance
our customers’ experience when they interact with
us, while evolving our capabilities to win in the market
and the industry.
Digital Distribution
After the successful deployment of our Digital Distri-
bution 2.0 platform throughout our Brazilian and Mex-
ican operations, we began the implementation of this
platform across our Colombia, Costa Rica, and Guate-
mala operations over the course of 2022. Addressing
the entire strategic and tactical planning cycle of our
secondary distribution process—from analytics to de-
livery route planning and execution—this enhanced
platform features route traceability, a web-based app
for supervisors, end-to-end supply chain network
analysis, digital real-time control of our distribution
operation, and interaction with customers to track
their orders. Through our increasing operational disci-
pline and use of these digital tools, we seek to contin-
uously improve our customer service and the produc-
tivity of our delivery teams.
CUSTOMER CONTROL TOWER ENABLES DYNAMIC ROUTING FOR 24/7 ORDER ENTRY
Through our Customer Control Tower, we monitor and manage our entire commercial and distribution op-
eration, enabling both real-time and dynamic routing. With the deployment of dynamic routing across our
secondary distribution fleet in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, Panama, and
Uruguay, we are able to offer 24/7 order entry. Thanks to this enabler, we enjoy the flexibility to plan ve-
hicles’ routes on a daily, weekly, and monthly basis, thereby optimizing available delivery resources and
distances traveled to serve our customers.
For more information on the positive environmental impact of dynamic routing see →Climate Action
With the evolution of our Digital Distribution 2.0
platform, we have completed the rollout of real-
time routing across 100% of our Brazil and Mexico
operations’ secondary distribution routes, serving
220 thousand clients per day. With real-time routing,
we adapt our delivery process 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 the deployment of our Digital
Distribution 2.0 platform, we have implemented
our web-based Delivery Supervisor App to enable
delivery supervisors to better manage their teams in
Brazil, Mexico, Panama, and Uruguay. By connecting
our route monitoring tools and telemetry equipment,
this app allows managers to not only make quick
inquiries about routes, drivers, and customers, but
also to act swiftly to account for any incidents or
deviations during the execution of delivery routes.
Consistent with our omnichannel multi-category
strategy, we further deployed our order-tracking
platform to enable customers to track their orders—
created on any commercial channel—from the
moment of shipment to delivery.
Through our increased operational discipline
and utilization of these digital tools, we look to
continuously improve our customer service and
our delivery teams’ productivity. For example, in
Mexico, we implemented the My KOF Route project,
a business initiative that processes key information
from different strategic areas to generate added
value and facilitate integrated operational teams
management. During the year, we also explored the
use of advanced analytics to predict customer service
times, maximizing our route planning capabilities
through a tool capable of serving all of our operations.
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Warehouse Optimization & Digitalization
During the year, we continued with our warehouse
optimization to enable our growing multi-category
product portfolio and to increase our warehouses’
storage density and productivity, while avoiding
significant capital expenditures (CAPEX).
We are transforming the way we analyze, design, and
utilize our warehouses. Through the introduction of
new concepts—from optimal height utilization to more
fronts and less depths, and honeycombing effect
reduction—our estimated increase in warehousing
capacity is around 25,000 pallet positions, equivalent to
an estimated CAPEX avoidance of US$30 million. Based
on the methodology derived from a customized artificial
intelligence (AI) platform, our teams developed several
different algorithms and implemented optimizations
across 16 operating units with positive results. Using this
AI platform, we continued working on new warehouse
design capabilities for pallet and case slotting, staffing,
and docks optimization. Moreover, we plan to expand
these capabilities to the rest of our territories and to
explore optimization opportunities across the rest of our
supply chain, from inventory to distribution.
We also continued 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 optimization while increasing
productivity. By year-end 2022, we not only integrated
real picking across 100% of our Brazilian operating units,
but also rolled out this solution to 87 operating units
across three different operations. We further finalized the
implementation of optimal picking throughout all of our
Brazilian operating units.
MANUFACTURING 4.0
As part of our digital supply chain strategy, we defined the technological tools and applications behind
our Manufacturing 4.0 strategy to ensure seamless manufacturing performance, while focusing on devel-
oping the capabilities to ensure operational responsiveness and efficiency.
Line
Performance
Connected
Workforce
Digital
Maintenance
Digital
QSE
Objectives
Improve bottling
line reliability
and productivity
through
deployment of
line visualization
platform
Digitize and
automate
operation model
activities to
create execution
efficiency
Implement future
state of Quality and
Safety evolution by
leveraging digital
solutions
Improve
maintenance
planning and
execution
processes through
digital solutions
that mitigate risk
and maximize
asset productivity
and reliability
Foundations
Digital Manufacturing Capabilities Development
OT/IT Management and Architecture
Cybersecurity
During the year, we further carried out proofs of concept,
where we compiled insights about those technologies
that will enable us to build scalable, digital capabilities.
Starting in 2023, we will begin the deployment of use
cases for different digital technologies and applications in
Brazil, Colombia, and Mexico.
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MAKE A
DIFFERENCE
ESG
IN
For purposes of these metrics, we have considered owned and third-
party distribution centers. Plants acquired during the year 2022 will
report on these metrics in the 2023 Integrated Report.
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OUR ESG TRANSFORMATION METHODOLOGY
We based our transformation work over the past year on six guiding principles:
1. Integrate ESG in the business: Embed
ESG in all critical business actions to engrain
a new way of working for Coca-Cola FEMSA.
2. Balance “best-in-class” efforts across
the three ESG pillars: Ensure that leader-
ship was attained holistically across envi-
ronmental, social, and governance perspec-
tives.
4. Consider all sources of value and a cost
of inaction: Balance immediate financial
incentives with the long-term value of ESG
progress.
5. Define metrics and ensure
transparency: Develop clear metrics
quickly that could be cascaded throughout
the organization.
3. Drive change from the top while
6. Amplify change management with
involving all stakeholders: Encourage
bold decision-making and shared
responsibility for advancing ESG initiatives.
training: Translate corporate-level ESG
strategy to key stakeholders across the or-
ganization, enabling them to enact change.
The execution was divided into five distinct phases
to develop and refine our sustainability strategy.
For more information see →Sustainability Framework.
OUR CULTURE OF ACTION
At Coca-Cola FEMSA, we have a deep drive
to improve our environment and the commu-
nities in which we operate, and conversely,
to understand the impact our environment
and communities have on our business. We
have established sustainability priorities
based on materiality assessments, and shift-
ed our capital strategy to finance our sus-
tainable development, using green and sus-
tainability-backed bonds to finance some of
our important work.
Over the last year, we engaged in a compre-
hensive ESG transformation process involving
all parts of our operation. We sought to en-
sure our practices aligned not only with local
requirements, but also with world-leading
best practices across industries, so we could
establish a new frontier for our local markets
on ESG trends and commitments.
We established an ESG Committee, com-
prised of the company’s senior leadership
team,1 including our CEO, guided the trans-
formation process and met regularly to make
strategic sustainability decisions. To ensure
enduring success, senior executives with
knowledge of the business and sustainabili-
ty actively participated in this new vision for
change and contributed perspectives from
across all areas of our organization.
At Coca-Cola FEMSA, our guiding strate-
gic framework incorporates Environmental,
Social, and Governance (ESG) principles in
two complementary ways. The first is over-
arching guidance for each of our strategic
priorities to ensure that the decisions we
make and the resulting changes we drive
through these six corridors are sustainable.
This ensures that our growth is responsible
throughout our organization and serves all
of our stakeholders. The second is as one of
our priorities—our imperative to make a dif-
ference in ESG. We separated this from our
overarching guidance of sustainable devel-
opment because we want to ensure that we
are proactive in our approach to become a
more sustainable organization. Much more
than compliance, our plans for sustainability
proactively foster a culture of action.
1 The ESG Committee is comprised of our company’s CEO, CFO, Human Resources Director, a COO from one of our
main operations, Supply Chain Director, Corporate Affairs Director, and permanent invitees from the FEMSA
Sustainability team, among others.
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OUR ESG
STRATEGIC
FRAMEWORK
Make a difference in environmental, social and governance (ESG)
ENVIRONMENTAL
SO CI A L
GOV E RNAN CE
Scope 1 & 2
Scope 3
Collection
Packaging
Operational Waste
Water Effi ciency
Human Capital Development
Integral Wellbeing
Flexibility
Sustainable Value Chain
My KOF Community
&
y
t
e
f
a
S
h
t
l
a
e
H
Water Regeneration
Replenishment
Access
DIVER SIT Y, EQUIT Y & INCLUSION
DIGITALIZATI ON (ENABLEMENT, TOOLS & TRAININ G)
Supply Chain Management
Cyber & Data Security
Risk Management
Shareholder Management
& Materiality
Governing Bodies
ClimateActionCompliance& SecurityCorporate GovernanceCircularEconomyWaterStewardshipInternalExternal
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ENVIRONMENT
CO₂
CH₄
N₂O
HFCs
PFCs
SF₆
CLIMATE ACTION
We follow the Science Based Targets initiative’s (SBTi)
guidance on reducing rather than offsetting most of our
CO2e emissions. We separate our emissions mainly in
scope 1 and 2 (direct and indirect emissions from our op-
erations) and scope 3 (indirect emissions from our value
chain, covering purchased goods and services provided by
suppliers and upstream transportation and distribution).
By 2030, to break the ceiling on climate action, we are
committed to decreasing our scope 1 and 2 emissions by
50%, and reducing 20% of scope 3 emissions in our en-
tire value chain.
We annually calculate our emissions by evaluating them
across various categories, including asset emissions such
as our fleet, and emissions from energy consumption in
our bottling plants and distribution centers. We also esti-
mate emissions from our value chain, including ingredient
and packaging emissions, and emissions from cold drink
equipment operations at the point of sale. We also report
our emissions to the Carbon Disclosure Project (CDP), fol-
lowing their guidelines to baseline. This ensures that we
follow international standards and increase transparency
around our sources of emissions and progress to date.
SCOPE 2
Achieve 100%
renewable
electricity for our
operations.
SCOPE 1
Reduce 50%
absolute GHG
emissions from our
operations (scope
1 and 2) by 2030
compared with a
2015 baseline year.
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.
UPSTREAM
Scope 3
• Subcontracted fleet.
• Ingredients: sugar,
HFCS, CO₂.
• Packaging: PET,
aluminum, glass, labels,
screw caps, crown caps.
DIRECT OPERATIONS
Scope 1
• Plant boilers.
• Owned fleet.
• Refrigerant gases.
Scope 2
• Power consumption in plants,
distribution centers, and offices.
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SCOPE 1 & 2 EMISSIONS – CONTEXT & AMBITIONS
2022 CARBON FOOTPRINT: TOTAL KOF
To reach our interim and final ambition on CO2e emission reduction, we have set initiatives to
migrate these assets to lower emission alternatives.
Project
1 Fuel substitution in boilers.
2
Energy efficiency in own fleet
and fuel-switch.
3 Integration of electric vehicles.
Refrigerant gases management.
4
1
A
Energy efficiency in
manufacturing facilities
Renewable energy supply
2
A
5
6
Initiatives
Migrate boilers to natural gas.
Improve fleet efficiency.
Transition of own transport fleet to electric.
Refrigerant gases from sales equipment will be
confined and / or recirculated.
Manufacturing plants will reach their full
potential by 2030.
100% of the electricity requirements will be
renewable by 2030.
SCOPE 3 EMISSIONS – CONTEXT & AMBITIONS
Project
Efficiency in third party fleet.
7
8
9
10
3
A
Initiatives
Improve efficiency of the new subcontracted
transport fleet.
Improve the efficiency of new sales equipment.
Energy efficiency of sales
equipment.
Sustainable packaging and light
weighting.
Strategic suppliers development. Collaborate with our suppliers to improve their
Achieve 50% rPET content in our packaging by
2030.
11 Renewable energy in SMEs
emissions per unit of product.
Migration to renewable energy.
Over the last three years, our scope 3 emissions made up 84% of our CO2e emissions on av-
erage, driven by agents across our entire value chain. Our main sources of scope 3 emissions
are cold drink equipment at the point of sale, ingredients, and packaging. We set various ini-
tiatives to tackle these emissions, many of which require new partnerships along our value
chain, and better ways to manage our supply chain.
MANUFACTURE
(Scope 1 & 2)
DISTRIBUTION
(Scope 1, 2 & 3)
COOLERS
(Scope 1 & 3)
PACKAGING
(Scope 3)
INGREDIENTS
(Scope 3)
• Plant electricity
• Boilers / Fossil
• CEDIS electricity
• Primary and
• Electricity
• Coolers
Fuels
secondary fleet
• PET / rPET
• Glass
• Aluminum
• Others
• Sweetener
• CO2 as an
ingredient
TOTAL CO2 KOF EMISSIONS: 3,789 kt CO2e
3%
15%
32%
25%
26%
* kt CO2e: thousand tons of CO2 equivalent
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CLIMATE ACTION – PROGRESS AND
2022 HIGHLIGHTS
In 2022, absolute CO2e emis-
sions across our value chain
amounted to 3,789 kt CO2e. Our
overall value chain emissions are
broken down as follows:
PERFORMANCE ON SBTi
Reduce absolute scope 1 and 2 GHG
emissions 50% by 2030, from a 2015
base year.
Reduce absolute scope 3 GHG emissions
20% from purchased goods and services and
upstream transportation and distribution by
2030, from a 2015 base year.
Increase annual sourcing of renewable
electricity from 8.7% in 2015 to 100%
by 2030.
Scope 1
15%
555 kt CO2e
Scope 2
1%
52 kt CO2e
3,789
kt CO2e
Scope 3
84%
3,182 kt CO2e
29%
2030
50%
2030
17%
20%
2030
100%
66%
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EXPANDING ELECTRIC VEHICLE FLEET
This year, we expanded our fleet of electric vehicles to 482
vehicles. We also significantly expanded our supplier base
for electric vehicles in the Latin America region to eight
leading global suppliers, working with them to develop elec-
tric units that meet the bottling industry’s specifications.
Through our sustainable mobility community, we are
working to align the electric vehicle strategy followed
across our operations. Within this community, we devel-
oped and deployed a total cost of ownership (TCO) and
scenarios analysis tool. Moreover, to further align our op-
erations, we developed a standardized protocol to test
new electric vehicle technologies—with a standard fuel ef-
ficiency KPI to measure fuel consumption by country—to
reinforce and improve our migration to electric vehicles.
Thanks to these and other initiatives, we will continue our
efforts to transition to electric vehicles, prioritizing areas
with restricted mobility.
SUSTAINABLE MOBILITY
Through our Sustainable Mobility Strategy,
we aim to reduce the impact of our fleet
(including primary and secondary distri-
bution trucks) on the CO2 emissions of our
supply chain, and to position ourselves
as an industry leader in Latin America in
terms of vehicle efficiency, environmental
stewardship, and safety.
Aligned with this strategy, our projects
are to:
• Transition of own transport fleet to elec-
tric fleet efficiency, prioritizing areas
with restricted mobility
• Achieve a 25% increase in efficiency in
fuel consumption (MJ)/kilometers of
distance covered (km)
During 2022, we continued to execute
route optimization strategies to maximize
overall vehicle efficiency. With the de-
ployment of KOF Digital Distribution 1.0
platform in Argentina, Brazil, Colombia,
Central America, Mexico, and Uruguay,
we installed vehicle telemetry systems on
80% of our primary and secondary distri-
bution fleet.
Thanks to each truck’s telemetry data—to-
gether with the functionality of our mobile
delivery devices— we enjoy the ability to
identify and correct deviations in distribu-
tion route execution versus our route plan.
This equipment also enables us to analyze
route execution patterns in order to iden-
tify an optimal combination of variables to
improve our route planning process.
As a result, we optimize our fleet’s usage
and improve key road safety indicators,
while reducing fuel consumption and CO2
emissions. Indeed, we have developed
a standardized KPI for fuel use efficien-
cy that will enable us to perform inter-
nal 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 resourc-
es and distances traveled to serve our
customers.
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In addition to our sustainable mobility initiatives, we
continue to drive down scope 1 emissions from the re-
lease of refrigerant gases. We have upgraded more of
our coolers at the point of sale to cleaner refrigerant
gases, and confined a greater percentage of gases at the
end-of-life.
Our scope 2 improvements were led by investments in
energy efficiency and renewable energy. We assess our
operation’s energy efficiency through an annual ener-
gy assessment, understanding sources of inefficiencies
and opportunities to drive down emissions. To this end,
we invested US$146.84 million in climate action initia-
tives, focused on operating with steam and executing
our Top 20 Energy Efficiency Strategies across our oper-
ations. Since 2015, these initiatives have enabled us to
increase our energy efficiency to 5.97.
We were also able to increase our use
of renewable energy for our operations,
achieving 66% renewable energy use.
Scope 3 emissions pose the greatest
challenges to our climate action ambi-
tions, and they are the greatest source
of emissions in our value chain. In 2022,
our scope 3 emissions amounted to
3,182 kt CO2e or 84% of our total value
chain emissions. Since 2015, we have de-
creased our scope 3 emissions by 303.02
thousand tons, leading to progress on our
scope 3 ambitions of 17%.
In 2022, we migrated part of our cold
drink equipment to high-efficiency ver-
sions, enabling us to reduce emissions
from electricity use at the point of sale,
while benefitting many small and medi-
um-sized enterprises (SMEs) in our value
chain by reducing their energy costs.
Moreover, we continue our work with
suppliers to reduce our scope 3 emis-
sions. We are integrating scope 3 emis-
sions into our agreements and conversa-
tions with suppliers, and are looking for
better ways to collaborate with top sup-
pliers and drive down the climate impact
of our value chain.
7
9
.
5
5
.
5
6
.
5
6
6
.
5
1
.
5
5
.
4
4
.
4
2
.
4
2015
2016
2017
2018
2019
2020
2021
2022
Y
C
N
E
I
C
I
F
F
E
Y
G
R
E
N
E
e
g
a
r
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b
f
o
s
r
e
t
i
L
J
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p
d
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c
u
d
o
r
p
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CIRCULAR ECONOMY
COLLECTION AND PACKAGING – CONTEXT &
AMBITIONS
To mitigate the impact of our production vol-
umes, we have set ambitions to collect 100%
of all the PET we put in the market by 2030
and to have 50% of recycled resin in our pack-
aging by 2030.
Local market conditions for recycled PET
(rPET) collection and recycling differs drasti-
cally across our countries of operation, and we
are currently evaluating the best approach for
collection and recycling in the short term. We
recognize that several markets will require us
to partner with communities, the public sector,
and regulators to ensure our supply of rPET.
Our shift to more sustainable packaging is also
driven by adoption of returnable/reusable bot-
tles. As of 2020, the Coca-Cola system had
ambitions to reach 25% adoption of return-
able/reusable bottles across its network by
2030. At Coca-Cola FEMSA, we have already
exceeded these targets—with 31.5% adop-
tion of returnable/reusable bottles for 2022—
bolstered by our affordability initiatives and
our universal bottle that can be used across
multiple beverage categories. →For more
information see Portfolio.
OPERATIONAL WASTE – CONTEXT & AMBITIONS
Our ambition is to have 100% of our bottling
plants certified as zero waste by 2025. While
our distribution centers have a longer way to
go, we aim to have 100% of our distribution
centers certified as zero waste by 2030.
CIRCULAR ECONOMY (COLLECTION, PACKAGING,
AND OPERATIONAL WASTE) – PROGRESS & 2022
HIGHLIGHTS
This year, we continued our efforts in PET col-
lection and use of recycled resin across our
operations, collecting 26% of the PET we put
in the market and using 27% recycled resin
across our beverage portfolio. This year, we
changed our methodology to calculate our col-
lection rate to only include direct and subcon-
tracted collection, where we are certain as to
who collected the material. In terms of direct
and subcontracted collection, we collected
over 45% more tons of PET in 2022.
%
1
3
%
9
2
%
7
2
%
4
2
%
1
2
%
1
2
2017
2018
2019
2020
2021
2022
T
N
E
T
N
O
C
D
E
L
C
Y
C
E
R
%
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We collected more than 80 thousand
tons of the PET we put into market in
2022 versus more than 50 thousand
in 2021 through both collective and
individual action. Ensuring adequate
collection across our regions of op-
eration requires us to actively partic-
ipate in civil and industry alliances.
For example, we collaborate with
ECOCE, a Mexican civil association
that promotes waste collection and
recycling, to advance our levels of
collection. ECOCE reached a national
collection rate of 59% in 2021, on par
with the EU.
We also operate through joint col-
lection centers in Brazil, Mexico, and
Costa Rica, which enabled us to col-
lect 64,184 tons of PET in 2022.
WORKING WITH KEY PARTNERS TO MULTIPLY OUR SUSTAINABLE COLLECTION CAPABILITIES
By joining efforts, we multiply the effects of our ac-
tions. Accordingly, we partner with communities,
authorities, industry allies, and NGOs on different
initiatives to raise awareness of post-consumer
waste management, carry out collection and recy-
cling programs within our communities, and inform
consumers about the proper disposal and handling
of the waste generated from our products.
Across Latin America, we continued to strengthen
our sustainable collection capabilities, including the
following collaborative initiatives in our countries of
operation:
Argentina – We are focused on reinforcing our
recycling capabilities in municipalities through pro-
grams such as Ruta Verde.
Brazil – During 2022, four collection centers
were added in São Paulo, Mutinga, Porto Alegre,
and Belo Horizonte.
Colombia – We expanded our MovimientoRE
program, an industry/business alliance to increase
the collection of PET in the cities of Barranquilla,
Cartagena, Santa Marta, and Cali (through “Cali Cir-
cular”), as well as Reciclave Bogotá with the em-
powerment of recyclers.
Costa Rica – We use green trucks on our home
delivery routes to collect PET from the households
to whom we deliver our products. We also work,
through our Geocycle, Misión Planeta, and industry
alliances.
Guatemala – Some of our programs include
cleaning of Río las Vacas, Recíclalos, Casas Verdes,
Ecobots, and the beach clean up.
Mexico – We opened five new collection cen-
ters, 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 Residu-
os” (“my zero waste shop”) program.
Nicaragua – Starting in 2021, we established
a strategic alliance with Gravita, which operates
through a network of base recyclers in several mu-
nicipalities, guaranteeing the recovery and treat-
ment of PET, so that it can be reused as a raw ma-
terial again.
Panama – We formed an alliance with Recicla-
dora Nacional to increase the collection and treat-
ment 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.
We continued to accelerate our use of recycled resin in our port-
folio of beverages’ packaging, with more than 85 thousand tons
of recycled resin used in 2022. Most of our recycled resin is ac-
quired from third parties, but we have also continued our joint
recycling ventures in Mexico, recycling more than 18 thousand
tons of rPET through our IMER plant. We are in the procees of
building a new plant “PLANETA”, in Southeast Mexico with and
investment of US$70 million.
Overall, our bottles were made of 97.13% recyclable materials
this year. We also continue to exceed targets from the Coca-Cola
system in sales of returnable bottles, with 31.5% of our sales
coming from reusable packaging.
In addition to reducing packaging waste, we have made strides in
our operational waste control. We certified 37 bottling plants as
zero waste, achieving progress of 77% for our bottling plants. We
recycled 98.5% of our industrial solid waste this year, and improved
our waste ratio to 6.31 grams of waste per liter of beverage.
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WATER STEWARDSHIP
WUR
1.26 by
2026
100% of the water we
discharge from our
manufacturing opera-
tions is processed by
wastewater treatment
plants to fulfi ll local
and Coca-Cola Com-
pany requirements to
ensure suffi cient wa-
ter quality to foster
aquatic life.
Anual
Water Risk
Assessment
(WRA)
My KOF
Community
Increase
effi ciency
100% discharged
water treatment
under KORE
(Coca-Cola
Requirements)
Water access,
sanitation, hygiene
(WASH) projects
in social risk
operations
Regenerative
operations
Resilient
Communities
We are committed to ensuring the
efficient use of this natural resource,
conservation of water basins, and
safe access to drinking water for our
communities and ourselves.
Water
regeneration
Healthy
watersheds
100%
Water replenished
in watersheds with
high and medium
water stress
Water funds
in watersheds
where collective
action is needed
Given the growing urgency of shared water risks and the
need for systemic, transversal action across the value chain,
our holistic water strategy is focused on four main interrelat-
ed elements:
• Reducing the water we consume and secure water avail-
ability for our operations (efficiency)
• Returning the water we use to the source (replenishment)
• Implementing water funds where collective action is
needed
• Improving access to water for us and our communities
(access)
Since water efficiency seeks to minimize our use of the wa-
ter source, it is a core part of our environmental pillar.
Watershed
resilience
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WATER EFFICIENCY – PROGRESS & 2022 HIGHLIGHTS
This year, we used a total of 30,240.92 megaliters of water, discharging 8,564.43 megaliters back. We treated
100% of this discharged water to quality levels that could sustain aquatic life.
Megaliters of
Megaliters of
municipal water
municipal water
Megaliters of
Megaliters of
rainwater
rainwater
Megaliters of
Megaliters of
well water
well water
Megaliters of
Megaliters of
river water
river water
Total water
Total water
consumption
consumption
(ML)
(ML)
9,315.6
10.3
19,278.4
1,636.6
30,240.9
Megaliters
Megaliters
of water
of water
discharged to
discharged to
sewers
sewers
Megaliters
Megaliters
of water
of water
discharged into
discharged into
rivers
rivers
Total water
Total water
discharged
discharged
(ML)
(ML)
3,940.9
4,623.5
8,564.4
Total KOF
(ML)
Total KOF
(ML)
We invested a total of US$7.07 million in water efficiency programs to reduce our water use, guided by our
“Top 20 Water Saving Initiatives.” Through these initiatives, we continued to improve our water efficiency to
an industry leading level of 1.46, down from 1.47 in 2021.
2
7
.
1
5
6
.
1
8
5
.
1
2
5
.
1
9
4
.
1
7
4
.
1
6
4
.
1
2016
2017
2018
2019
2020
2021
2022
Y
C
N
E
I
C
I
F
F
E
R
E
T
A
W
r
e
t
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l
r
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t
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(
WATER EFFICIENCY – CONTEXT & AMBITIONS
Our main tool to reduce the impact on water reservoirs of our
operations is to use less of this resource to produce our bev-
erages. We analyze this through our water use ratio (WUR),
which calculates the liters of water required per liter of bev-
erage produced.
We have consistently led our peers in the industry in water
efficiency, and continue to invest in minimizing our use of
water. For this purpose, we designated our first issuance of
sustainability-linked bonds in Mexico for Ps. 9,400 million
to improving our water efficiency. For more information see
→Sustainable Financing.
We realize that complacency is ineffective to stave off the
social and environmental impact of water scarcity, and our
vision is to continue to break the ceiling on water efficiency.
For this reason, we are committed to reduce our WUR to 1.26
by 2026.
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WATER REPLENISHMENT – CONTEXT & AMBITIONS
Water is a vital resource for life on the planet, and
we must work to conserve this resource in the same
environment where we operate. With this in mind,
we defined a social water stewardship strategy to
guarantee this resource for current and future gen-
erations. To develop this strategy, we conducted
a cross-sectional analysis of water risk within our
company, supported by our partnership with The
Coca Cola Company, FEMSA, FEMSA Foundation,
The Coca-Cola Company Foundation, and various
consultancies.
We identified 31 priority sites that operate in areas
of high or medium water stress. We set ambitions to
go beyond water neutrality and ensure the regen-
eration and protection of water in these basins. By
2030, our ambition is to replenish 100% of the wa-
ter we use in our production, focusing on medium
and high stress sites.
WATER REPLENISHMENT – PROGRESS & 2022 HIGHLIGHTS
Water replenishment remains a priority for investment and partnerships. We currently
replenish more than 100% of our total water use. During 2022, more than 43 thousand
hectares were impacted through conservation, protection, and reforestations projects.
EXEMPLARY CONSERVATION, PROTECTION, AND REFORESTATION PROJECTS
MEXICO
TLALOC Reforestation Project – This
project has already intervened in the
reforestation of the 1,833-hectare
Alto Atoyac Watershed. So far, it has
reforested 20 hectares, and restored
soil on 130 hectares for the purpose of
supplying the Toluca Valley aquifer.
Regenerative Agriculture and Access
Program – In collaboration with the
World Resources Institute (WRI), the
company developed a three-year pro-
gram to promote regenerative agricul-
ture, addressing water infiltration and
quality problems on 200 hectares that
support 100 local producers.
CENTRAL AMERICA AND COLOMBIA
Agua por el Futuro (Water for the
Future) – Through several conser-
vation projects, this program has re-
plenished 100% of the water that we
use in Colombia, Costa Rica, Guate-
mala, and Panama.
Forest Protection, Agroforest-
ry Promotion, and Reforestation
Projects (Guatemala) – One project
protects 231.47 hectares of land in
the Xaya-Pixcaya Watershed, which
provides approximately 30% of the
water supply for the Guatemala City
metropolitan region. This project
has already reforested 51.42 hect-
ares and implemented agroforestry
on 8.16 hectares through the plant-
ing of hedgerows and trees. Another
project protects 218.58 hectares of
forestland in the Los Ocote, Teocinte,
Las Vacas, and Villalobos East Wa-
tersheds in the Guatemala City met-
ropolitan region. This project has al-
ready restored 8.4 hectares of forest.
We believe partnerships and industry alliances are fundamental and
critical to the success of water projects. Therefore, we always look for
the appropriate partnerships with communities, third parties, or other
companies. Through the Latin American Water Funds Partnership, we
have worked with The Nature Conservancy, FEMSA Foundation, the In-
ter-American Development Bank, and the Global Environment Facility to
develop eight water funds located in basins of interest:
• In Colombia, we participate in several water funds, such as Agua So-
mos, Cuenca Verde, and Biocuenca, which are dedicated to providing
water security in the country. For example, the Agua Somos project is
implemented across five watersheds located in the Guasca, Sesqui-
le, and La Calera municipalities of southwest Bogota, Colombia. This
project consists of five different activities—forest conservation, par-
amo conservation, passive forest restoration, grassland restoration,
and active restoration—that impact a total of 1178.6 hectares.
• In Costa Rica, we participate in the Agua Tica water fund that promotes
the conservation and supply of water sources. Since 2014, the fund has
impacted 607 hectares and the supply of 631,700 cubic meters of wa-
ter through an in-situ monitoring system that measures both the quality
and origin of the water, as well as the condition of the forests
• In Guatemala, we participate in the Funcagua water fund, aimed at pro-
moting the availability of safe water for the population in the country's
capital. A total of 1,000 people have benefited from this program.
• In Mexico, we participate in the Agua Capital and Cause Bajio water
funds, created to contribute to water security and the sustainable
management of the basin through nature-based solutions.
• In Uruguay, we are part of the Alianza Uruguaya por el Agua (AUA), a wa-
ter fund designed to provide water security to the Río de la Plata region.
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bia, we partnered with FEMSA Foundation to
provide a water treatment vehicle that offered
clean and safe water to several communities
that have water access difficulties and defi-
ciencies, benefiting 67,907 people. Moreover,
in Costa Rica, at Belen (distribution center),
we established a new system in order to return
clean and safe water to the environment, and
built a wastewater treatment system. Further-
more, in Guatemala, we benefitted 105 people
through the distribution of Vivienda Digna kits,
designed to capture rainwater in various zones
across the country that have limited access to
drinking water.
WATER ACCESS – CONTEXT & AMBITIONS
WATER ACCESS – PROGRESS & 2022 HIGHLIGHTS
The human right to water is not only essential
to live with dignity, but also a precondition for
the realization of other human rights.
One of our objectives is to provide water se-
curity in the watersheds where we operate.
Therefore, we work hand-in-hand with com-
munities, governments, and other institutions
to create water resilience that provides for the
return of water to nature and ensures a safe
and reliable water supply for communities.
With this mindset, we aim to improve access
for our communities to safe drinking water.
Throughout our cross-sectional water risk anal-
ysis, we have identified 17 priority sites for wa-
ter access, sanitation, and hygiene initiatives
(WASH). Currently, we have access projects in
Argentina, Colombia, Costa Rica, Guatemala,
and Mexico.
We partner with The Coca-Cola Company, The
Coca-Cola Foundation, and FEMSA Foundation
to co-develop community initiatives and mag-
nify our impact.
For example, Escuelas de Lluvia is a
comprehensive program that provides clean
water to Mexico schools suffering from water
scarcity through the installation of a rainwater
harvesting system and the implementation
of an environmental education program.
This year, we installed rainwater-harvesting
systems in 24 schools across 5 Mexican states
and supported the hygiene of 2,800 students.
Additionally, in Mexico, we developed the
Water 4 Happiness program in conjunction
with the Coca-Cola Foundation to improve
the quality of public water supply sources
in the town of Apizaquito, Tlaxcala, Mexico,
benefiting 10,200 people.
Similarly, in Argentina, we participated in the
improvement of water access infrastructure for
the Buenos Aires’ neighborhoods of Tigre and
Tuna, benefiting 1,649 people. Also, in Colom-
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SOCIAL
programs that better respond to their specific needs. We aim to final-
ize concrete ambitions for this group by next year.
We also aim to support our PET collectors through our Sustainable
Value Chain initiatives. Our PET collection performance and adher-
ence to collection guidelines established by The Coca-Cola Company
depends on our ability to collaborate with PET collectors across our
countries of operation, and we can play an enormous role in re-en-
forcing the socioeconomic progress of these groups.
Together with our Supply Chain Management ambitions, we seek to
improve our relationships with the small and medium enterprises in
our supplier base. We are already working together with our procure-
ment team to reach our SME suppliers, while we also seek new ways
to collaborate to improve socioeconomic development while meet-
ing our environmental goals.
The development of our social ambitions and strategy is founded on
an understanding that our license to operate relies on developing
mutually beneficial relationships between our company and our in-
ternal and external stakeholders. Internally, we are guided by an un-
derstanding that our people are the lifeblood of Coca-Cola FEMSA,
and the best way to grow is to ensure that our talent can live fulfilling
lives—balancing their purpose in and out of the workplace. Externally,
we are focused on our relationships with local communities and the
value chain. Recognizing that our operations have an enormous im-
pact on our society and communities close to our plants, our goal is to
continue to add value to ensure sustainable growth for our company
and community in tandem.
SUSTAINABLE VALUE CHAIN – CONTEXT & AMBITIONS
We enjoy tremendous opportunities to collaborate across our rich
value chain of suppliers, customers, and other stakeholders to max-
imize our impact on society, and make our value chain more sustain-
able. Within our Sustainable Value Chain, we have highlighted our
small local businesses, PET collectors, and SME suppliers for closer
collaboration.
Small local businesses are the heartbeat of our large and thriving
commercial network—they are the small and medium retailers and
shopkeepers that distribute our final product to consumers. Our small
business network has an enormous impact on our sustainability: we
sell and market our products through more than 1.8 million points of
sale across our traditional sales channel, including a large percentage
of women shopkeepers and other diverse groups. As the main con-
tact at the point-of-sale, small local businesses are close to consum-
ers, and can contribute significantly to our environmental goals.
Our work with small local businesses will seek to improve their fi-
nancial and digital inclusion, while amplifying our own environmental
development and lower scope 3 emissions. To achieve these goals,
we are working to better understand the social conditions of small
local businesses across our regions of operation in order to tailor
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MY KOF COMMUNITY – CONTEXT & AMBITIONS
EXTERNAL SOCIAL – PROGRESS & 2022 HIGHLIGHTS
Our community engagement priority is called My KOF Community in our
ESG strategic framework. This reflects our understanding that our com-
munities cannot be treated as completely distinct from our business op-
erations—sustainable growth for us requires sustainable growth for the
communities in which we operate.
We define our communities according to different standards of our prox-
imity and levels of interaction. We are focusing on our local community
operations for the purposes of these ambitions.
At Coca-Cola FEMSA, we are determined to advance the development
of the communities where we operate. With this in mind, we will collab-
orate with our communities across all of our operations to develop sus-
tainable solutions that address local needs.
Our activities across our ecosystem include strategic volunteering
through our people, enhancing economic development of SMEs within
the community, promoting health and minimizing safety issues within
our operations, and interacting with local authorities.
By 2030, we aim to have at least one community engagement plan per
site to improve our relationships based on our MARRCO (Model for Ad-
dressing Risks and Relations with Our Community) methodology. These
engagement plans include prioritized activities to support business con-
tinuity and contribute to community needs.
This year, we continued to engage with our value chain and communities
through investments and social programs, impacting over 331 thousand
people’s quality of life and socioeconomic development. We also
innovated in our use of sustainable financing to fund our social projects,
with social and sustainable bond issuances this year totalling Ps. 6,000
million. →Sustainable Financing.
Our traditional trade channel is a key segment of our value chain that we
always look to strengthen through our community projects. We focus on
ensuring that these projects are always connected to priority topics for
our company, such as water, PET collection, and renewable energy.
SUSTAINABLE VALUE CHAIN
We supported our local business owners with several local initiatives
across our operations.
We couple our initiatives with elements designed to improve our small
business owners’ capabilities with our work on diversity, equity, and in-
clusion. To this end, we continued our focus on female small business
owners through empowerment initiatives that provide business man-
agement training to foster the success of their businesses.
EXEMPLARY SUSTAINABLE VALUE CHAIN INITIATIVES
In Colombia, our work with programs such as Ruta Tenderos focuses on
providing small business owners with access to management advice,
information, and training for their businesses in areas such as account-
ing, PET collection, and economic reactivation. We supported our small
business owners improving their credit access, and provided them with
training for their personal and professional development through Mu-
jeres Tenderas ICP programs.
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In Brazil, we implemented Acelera SC – Rota do Empreende-
dorismo, a program that contributes to small entrepreneurs’
business innovation processes by fostering the innovation eco-
system, presenting opportunities for more companies to partic-
ipate, helping small businesses to reposition themselves in the
market, promoting networking and co-creation, and expanding
the vision of open innovation in companies that are already con-
solidated or in the process of repositioning. We also supported
the use of differentiated credit, and worked on the Empreenda
como Uma Mulher initiative, providing specific technical training
for women, while developing new work skills.
We further continued our initiatives to support women-led busi-
nesses through the Villa Talento program in Costa Rica and Nic-
aragua; and through the Emprendamos Juntas program in Ar-
gentina and Uruguay.
Our Mexico operation partnered with The Coca-Cola Foundation
to start the Empoderamiento de mujeres y pequeños negocios
program in 2021. The program’s goal is to support the social,
economic, and digital development of women and their small
businesses—driving their success through a personal-profes-
sional training plan. Since its inception, the program has im-
pacted 17,000 women throughout Mexico.
In Panama, we supported their use of cashless and digital
capabilities.
PET COLLECTORS
In addition to improving our small business owners’ capabili-
ties, we work with them to improve their skills in other aspects
of our company’s business. For example, to facilitate PET col-
lection, projects such as Mi Tienda sin Residuos focus on help-
ing our small local business owners or “tenderos” to strengthen
their business by incorporating elements that invite the com-
munity to participate in waste collection. During 2022, this proj-
ect supported almost 200 local business owners, while advanc-
ing our PET collection priority.
EXEMPLARY PET COLLECTOR INITIATIVES
We also work on PET collection across the value chain, working
with collectors to improve their capabilities, access to resourc-
es and networks, and compliance with local regulations. For
example, through the collaboration of companies and associ-
ations, programs such as Reciclar Pelo Brazil work to regulate,
improve, and professionalize the performance of cooperatives
and associations of collectors of recyclable materials, aligned
with the National Solid Waste Policy.
MY KOF COMMUNITY
We continue to prioritize the safety and wellbeing of our em-
ployees, customers, consumers, and communities through our
community projects and donations, including special emergen-
cies such as in the aftermath of natural disasters.
During 2022, we provided support to more than 240 thousand
members of our communities through donations of our hydra-
tion products during natural disasters, as wells as donations
for the improvement of public spaces such as parks, sidewalks,
and playgrounds in the areas where we operate, among others.
Overall, we managed to benefit over 600 thousand people in
our communities through our environmental and social (pro-
grams and donations) initiatives, improving their quality of life
and socioeconomic development.
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HUMAN CAPITAL DEVELOPMENT – CONTEXT &
AMBITIONS
The strength of our workforce today is a key
driver of our growth tomorrow. By 2030, we aim
to increase opportunities for our employees to
fulfil their individual career needs and be the
real protagonist of their own careers.
To enable our development strategy, we are
looking at various ways in which employees can
sustain continuous career development. Ca-
reers require opportunities, and we are aiming
to increase the internal career mobility opportu-
nities across various company functions, coun-
tries, and business units. We also realize that
development requires tools to perform well, and
we have set ambitions to maintain annual train-
ing hours at best-in-class levels across contri-
bution levels and gender.
Engaging career development offers the poten-
tial to improve our employee retention, and we
consider this one of our key metrics to improve.
We will continue analyzing strategies for reten-
tion through human capital development to sus-
tain our human capital ambitions.
INTEGRAL WELLBEING – CONTEXT & AMBITIONS
Focusing on our employees’ and their families’
wellbeing is where we all win. By 2030, we want
to foster a culture of wellbeing based on a holis-
tic view of self-care and prevention.
Our wellbeing ambitions include helping our
employees to lead meaningful lives. To this end,
we invest continuously to ensure our people
enjoy the opportunity to volunteer in environ-
mental or social initiatives, and make an impact
beyond their direct job function. We also aim to
improve our employees’ physical and mental
health, as measured by our rates of absentee-
ism and lost time due to illness, and the overall
rate of serious illness in our workforce (i.e., re-
gardless of impact to operations).
Our wellbeing initiatives should be accessible
to our people across our various geographies,
functional areas, and levels. Accordingly, we are
working to ensure that our programs cover more
of our workforce every year, and that more em-
ployees leverage these programs.
For more information see →Social
Development, Occupational Health &
Wellbeing.
INTERNAL SOCIAL
Our social commitments also have a strong
focus on our employees. As part of our peo-
ple-centric culture, we have a robust Human
Resources Operating Model that manages all
aspects of our talent, and our sustainability
strategy complements that model with ambi-
tions around our employees’ development, in-
tegral wellbeing, flexibility at work, and internal
diversity, equity, and inclusion (DEI).
Notably, our sustainability goals within our in-
ternal social context are underpinned by our ex-
isting integral ethical system, composed of our
Code of Ethics, the Ethics Committee, and the
whistle-blowing system known as KOF Ethics
Line. Our Code of Ethics lays the foundation for
our values and behavior, including topics that are
relevant to our sustainable talent management
such as Human Rights, Inclusion and Diversity,
Discrimination, and Violence and Harassment.
We have an ethics committee in each of our terri-
tories that guarantees compliance with this code,
reports to the Corporate Ethics Committee, and
attends to the company’s most relevant ethical
situations and complaints. Our whistle-blowing
system, the KOF Ethics Line—managed by an ex-
ternal provider—ensures that employees, suppli-
ers, third parties, or anyone with a relationship
with Coca-Cola FEMSA can anonymously lodge
complaints of non-compliance. Our third-party
line management ensures that these complaints
are considered fairly, and analyzed by a group of
investigators impartially and confidentially.
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FLEXIBILITY AT WORK – CONTEXT & AMBITIONS
INTERNAL SOCIAL – PROGRESS & 2022 HIGHLIGHTS
As part of our commitment to business ethics, we continued to uti-
lize our integral ethical system across our organization, with all of
our employees signing the Letter of Compliance to our Code of Eth-
ics, ensuring that they understand the Code of Ethics and are aware
of KOF Ethics Line. We received a total of 1,371 complaints this year
through this system, none of which were related to Human Rights
violations.
This year, we evolved the management of our integral ethical sys-
tem—migrating from a focus on reports from KOF Ethics Line to an
integrated vision that brings together key elements that guide us
towards prevention, surveillance, detection, and response to ethical
dilemmas. Through our management model, we gave our strategy
the impulse and systemic approach, as well as the empowerment
that our organization requires.
In addition, we now employ more solid mechanisms that enable us
to comply with our integrated ethical vision:
• Common reference framework: New corporate standards and in-
ternal guidelines on ethical matters
• Communication strategy aimed at promoting knowledge and con-
fidence in KOF Ethics Line and reinforcing ethical behavior
• New management platform for KOF Ethics Line that enables us to
carry out efficient, transparent, and reliable management
• Annual specialized training plans for our ethics complaint
investigators.
We continue to drive human capital development together with our
priority to strengthen our Customer-Centric Culture. This year, we
expanded our trainings across all contribution levels, providing our
workforce with an average of 22.13 hours of training.
Flexibility is a mindset that extends throughout our operations. By 2030, we
aim to ensure that our employees have more control over their life, along all
of the different steps of their work experience.
We understand that flexibility at work is of utmost importance to many of our
employees, and effective flexibility programs can increase workforce produc-
tivity, wellness, DEI, and improve our competitiveness in our talent market.
We are working to define concrete ambitions around flexibility next year, un-
derstanding the needs of our administrative employees, and evaluating the
feasibility of expanding flexible work options for our frontline employees in
the medium term.
DIVERSITY, EQUITY, AND INCLUSION – CONTEXT & AMBITIONS
Diversity, Equity, and Inclusion (DEI) has implications for initiatives involv-
ing our internal social, external social, and governing bodies topics. For
this reason, it is one of our transversal topics contained in our new ESG
framework. However, we have concentrated our DEI ambitions so far on our
workforce, building a steady path towards becoming a more inclusive and
diverse organization.
Our talent should mirror our market and business. As a company, we aspire
to be an organization preferred by diverse talent for our ability to grow and
support all of our employees.
This year, we have focused on the representation of women in our workforce
across all of our organizational levels. By 2030, our ambitions are for women
to represent 40% of our leadership and management positions. Additionally,
aligned with our commitment to DEI, we will continue to ensure that our ini-
tiatives and programs enable us to attract, develop, and retain diverse talent
into our workforce, including people with disabilities, ethnic, and economical-
ly vulnerable groups according to each country’s priorities. For more infor-
mation see →Diversity, Equity, and Inclusion.
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Our training this year was a mix of synchronous, asynchronous, digital,
and in-person events. We expanded our digital offerings, training 495
leaders through our Agile & Digital Academies. We further continued our
Lab Leadership Program to facilitate accelerated talent development
for the Supply Chain & Engineering and the LATAM Marketing functions.
For more information see →Talent Management and Development.
In Brazil, we developed Escuelas de Formación to train female talent
within our communities to improve their opportunity to enter the labor
force. Additionally, we trained women to perform refrigeration equip-
ment maintenance to promote female participation in technical areas.
Likewise, we staffed a new distribution center with 40% female talent
since its inception.
We expanded our digital ESG training significantly during the year.
Through multiple training sessions throughout the year, we trained our
top-level of management on our revamped ESG strategy, focusing on
developing a comprehensive understanding of ESG and our strategy.
We also developed more detailed training programs tailored to different
functional areas.
We developed our integral wellbeing initiatives this year, while lever-
aging feedback from our biennial employee engagement survey, last
launched in 2021. We continued to offer our Employee Support program
to support emotional wellbeing and consider other aspects of wellbeing
in the workplace through our Occupational Health & Wellbeing Man-
agement System. For more information see →Occupational Health &
Wellbeing.
Our DEI efforts this year were spearheaded by initiatives to attract and
retain women in our workforce, with oversight from our Diversity, Equity &
Inclusion Advisory Board.
Given the existing gender gap within the industry, we have promoted the
representation and inclusion of female talent in a sustainable manner,
empowering women to make decisions in key positions and implement-
ing actions to attract, develop, and retain women in front-line positions:
In Colombia, we launched the “Cinta Violeta” program, aimed at pre-
venting gender violence within their personal lives and enabling them to
share stories in a safe environment. We also expanded the accelerated
development of our female talent for leadership roles.
In Guatemala, we set up the first all-female production line, demon-
strating that the integration and development of women in operational
positions is possible. For more information see →Diversity, Equity, and
Inclusion.
We further expanded our efforts for talent recruitment of other under-
represented groups. In Brazil, Colombia, Guatemala, and Mexico, we
undertake active recruitment initiatives to improve the representa-
tion of people with disabilities in our workforce, with many of our other
countries of operations actively working to improve accessibility and
inclusion within our workplace. We also work to improve recruitment
of LGBTQ+ talent, and allied with Contratá Trans in Argentina, to im-
prove the inclusion and social mobility of the trans community. To this
end, we continued to improve inclusion of these LGBTQ+ communities
through ally pledges, affinity groups, and consciousness and awareness
programs across our countries of operations. In addition, we continued
talent programs to attract and retain indigenous, afro-descendant, and
economically vulnerable groups into our workforce.
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SAFETY & HEALTH
SAFETY & HEALTH – CONTEXT & AMBITIONS
Our ambitions across health and safety are both in-
ternal and external—they are relevant to our people,
our third-party partners and contractors, and our
neighbouring communities.
Coca-Cola FEMSA’s Safety 0.0 Strategy is based on
the understanding that safety is a fundamental val-
ue and element of our ambitions and organizational
strategy. We believe and understand that nothing
is more important than the safety and wellbeing of
our people.
Our overarching safety vision is “zero is possible.”
We aim to cause no harm or injury while people
manufacture or supply our products or provide any
of our services. To achieve this goal, we prioritize
safety and give it high organizational relevance, em-
powering our leaders and recognizing that each em-
ployee is a fundamental contributor to our physical
and psychological safety.
To ensure the safety of our operations and the plac-
es where we operate, we focus on ensuring the
safety and reliability of our people and our work
environment. Our comprehensive safety strategy is
designed to develop the necessary capabilities and
processes that will enable us to systematically re-
duce our accident rates and continue to achieve our
commitments.
Our safety strategy includes five strategic pillars with
13 strategic actions associated with our key activities.
We have also developed seven key initiatives and con-
siderations needed to achieve these ambitions.
S
E
L
B
A
R
E
V
I
L
E
D
&
Y
G
E
T
A
R
T
S
5 pillars
13
strategic
actions
Safety Culture &
Leadership
Risk Management,
Process & Systems
Capability & Talent
Development
Infrastructure
and Technology;
Digitalization of
Processes
Performance
management,
Improvement and
Innovation
1. Communication
strategy to position
Safety as a
fundamental part of
our DNA & Company
Culture.
2. Formalize and reinforce
my responsibility
and Accountability in
Safety.
3. Evolve to a Congruent
Leadership.
4. Strategy grounded
in our Management
System and perceived
on the floor through the
Operating Models.
5. Management and
development of third
parties - contractors.
6. Evolution to Risk and
Incident Management
based on HOP
principles, global
standards / barriers
and a solid internal
audit process.
7. Standardize and
professionalize the
Safety function.
8. Development of
technical and human
competencies,
ensuring a solid
induction process and
risk and opportunity
management skills.
9. Assurance and
compliance with basic
and inviolable rules.
10. Redesign and strategy
of Safety Machinery
and LOTO.
11. Ensure Infrastructure
and Technology
in machinery and
equipment and E2E
vehicles (from design
and improvement).
12. Involvement of the
Support Areas in the
SAFETY Strategy.
13. Review and adjustment
of the models of
behaviors, recognitions,
consequences and Best
Practices considering
Safety as a key
element.
7 key
initiatives
01
Serious & Fatal
Injuries
Prevention
Program & HOP
02
14 Life saving
Rules, KORE 3.0
KOF Standards
03
Safety Maturity
& QSE Internal
Audit Model
04
Safety in Third
parties
05
Safety RTM 0.0
and Fatality
Elimination Plan
06
Safety machinery
& lock out &
Tagout Program
07
Safety culture
through
Digitalization
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We continue to focus on key programs and initiatives
that have contributed to significant improvements
in our safety performance over the past few years.
While we continue to improve on traditional metrics,
we recognize that we still have a major challenge
to enable “zero” in our operations, which requires
ongoing focus and initiatives to sustain our desired
results. Common across these initiatives are efforts
to improve capabilities, technology, accountability,
communications, and other processes that can drive
down our incident metrics.
es, and safety vehicle infrastructure. We continuous-
ly look to discover best practices and improve road
safety in the many communities and countries where
we operate, proactively sharing our knowledge with
external entities that can enable these practices to
be deployed more widely—from our communities to
companies, governments, and non-governmental or-
ganizations.
By 2030, our goals and ambitions are to achieve zero
fatalities, while reducing other incident metrics.
In 2022, 365 million kilometers were travelled in
the 9 countries where we operate. Our Safety RTM
0.0 route-to-market, distribution, and logistics safe-
ty initiative has already reduced several of our road
incident rates. From our people’s perspective, our
focus is on developing the skills and behaviors we
need to develop professional experts capable of an-
ticipating and preventing incidents. In addition, we
aim to ensure the infrastructure and safety elements
of our vehicles, developing the processes and envi-
ronments necessary for our workforce to manage the
risks they face every day. This strategy has required
us to accelerate our road safety investment to devel-
op the capabilities of our employees and third parties
and to acquire equipment such as road simulators,
advanced telemetry systems and monitoring devic-
2025 public goals:
• Reduce annual fatalities (avoidable or within our
control) to zero
• Reduce the Lost Time Incident Rate to 0.4
• Reduce the Total Incident Rate to 0.8
• Reduce the Crash Rate to 6.5
• Reduce the Major Crash Rate to 0.5
• Reduce Serious Incidents by 75% and High Poten-
tial Serious Incidents (avoidable or within our con-
trol) by 40%
In addition to these safety practices, we have devel-
oped ambitions around our talent’s health and well-
being, including other forms of occupational safety.
For more information see →Occupational Health &
Wellbeing.
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We continued the implementation of our Incident Management Process,
contemplating a differentiated classification by four levels of incidents
to manage and learn based on risk consequence and probability. Thus
far, 100% of our operations have already migrated and implemented
this new standard of Incident Management and Prevention for Serious
and Potentially Serious Incidents.
Starting in 2022, we expanded beyond our traditional metrics, incor-
porating objectives and leading indicators related to Serious and Fatal
Incidents and Potentially Serious and Fatal Incidents. These leading
indicators are designed to help us detect risks and manage mitigation
strategies for serious incidents. Our Behavior-Based Safety program is
linked to this metric, and employees are now contributing to a reduction
in this indicator across the organization. In 2022, a baseline of Serious
Incidents and Potentially Serious Incidents was built and is now includ-
ed in our performance tables.
SAFETY & HEALTH – PROGRESS & 2022 HIGHLIGHTS
This year, we continued executing our safety strategy and revamping our
safety organization, helping us to improve most of our safety indicators.
We redesigned our organization in 2020, and as of this year, implement-
ed 90% of our new structure.
In 2022, we achieved a lost time incident rate of 0.61. Our total incident
rate decreased 13% this year, achieving a rate of 0.90—the lowest in our
company’s history.
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2021
2022
Among our key initiatives for decreasing fatal and serious incidents in
plants, distribution centers, and RTM, we continued to deploy our “14
Life Saving Rules.” To ensure successful implementation and evalua-
tion of our “14 Live Saving Rules,” each operating unit—manufacturing,
warehouses, distribution, and sales—performs a quarterly evaluation on
the progress of their action plans. In 2022, 100% of our operating units
conducted this self-diagnosis, and the level of implementation was 84%
for our manufacturing plants and 67% for distribution centers.
We continued with the certification of our Safety and Health System
in manufacturing plants based on the ISO 45001 standard, and we
improved the performance of external audits by The Coca-Cola Company.
In 2022, we achieved a 25% decrease in major and critical findings
compared to 2021. This year, a new safety audit model was incorporated
throughout the system that includes elements of compliance, safety
strategy-based management, and culture and leadership. Under this new
model, 66% of the operations had satisfactory results, and 33% of the
operations had opportunities for improvement. At the corporate level,
FEMSA’s internal audit had zero findings.
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In our manufacturing operations, the main risks are related to machin-
ery intervention and hazardous energy management. To minimize and
eliminate these related risks, a global initiative has been developed, and
US$20 million will be invested over 2022 and 2023 to ensure successful
implementation. Developed during 2022, this global initiative consol-
idates risk analysis, capability building, implementation of active and
passive safety infrastructure, maintenance, and audits.
As part of our training, we continued to provide and develop new train-
ing programs relating to safety. We developed six safety modules for
our QSE Academy and 20 modules for our RTM Academy, which will be
available for implementation across all of our operations during 2023.
The main topics for 2022 were road risks—focused on motorcycle safety
and transport vehicle driving—and essential topics such as Safety Fun-
damentals, Safety Culture, Serious and Fatal Incident Prevention Pro-
gram, and Roles and Responsibilities.
Road simulators are among our main capabilities development tools
that we aim to implement across our operations. In 2022, we invested
over US$2 million in simulators, with more than 10 in operation. These
simulators enable us to imitate the handling of heavy vehicles (primary
and secondary fleet); motorized vehicles (motorcycles); work at ele-
vated heights; emergency situations in critical systems; and other rel-
evant operational processes. To further develop this infrastructure, we
acquired road simulators in Argentina, Brazil, Guatemala, Mexico, and
Uruguay this year. Through this continuous investment, we have become
not only one of the private companies with the highest capacity for sim-
ulation training, but also an industry benchmark for safety simulation.
FATALITIES
Unfortunately, over the past year, 38 people died either through their
work for Coca-Cola FEMSA or community members involved in an inci-
dent with one of our vehicles. Any fatality is unacceptable, so we will not
be satisfied until we fulfill our promise of ZERO incidents. We extend our
condolences to all of the families and everyone affected by our opera-
tions, and we are committed to implement best practices to prevent any
losses in the future.
This report documents the total number of fatalities (with or without
legal responsibility where we were somehow involved during 2022).
Importantly, we include any fatalities involving our own personnel, third
parties, and communities, integrating all of our operations—manufactur-
ing, distribution, and commercial locations operated by our own person-
nel, contractors, and third parties.
Total Fatalities
Fatalities w/
Responsibility
2016 2017 2018 2019 2020 2021 2022
24
26
17
30
37
54
38
9
9
6
8
8
5
4
Year
2016
2017
2018
2019
2020
2021
2022
KOF
Collaborators
6
3
3
2
4
0
0
Third
Parties
9
5
4
0
3
5
4
Communities
39
29
19
22
23
12
34
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GOVERNANCE
Governance plays an enormous role in ensuring a company is
sustainable. Without effective governance, companies risk not
following through on their sustainability ambitions, engaging in
behaviour that can intentionally or accidentally damage their rep-
utation, and ignoring their stakeholders’ priority issues. Within the
context of sustainability, we view governance as a way to improve
our relationship with all of our stakeholders along two key dimen-
sions: engagement and transparency.
GOOD GOVERNANCE ENABLES ENGAGEMENT AND TRANSPARENCY
Aligned with our goal to break the ceiling on sustainability, we are
shifting the ways we engage our stakeholders—moving from com-
pliance with local regulation and investor requirements to becom-
ing more proactive with our sustainability goals. We already have an
internal ESG committee at the top management level, including our
CEO, and are working to establish clear accountability across areas
on our ESG initiatives. We are also setting strong ambitions of lead-
ership on compliance and security topics such as cybersecurity.
Our reporting to external agencies is key. We are reporting our emis-
sions baselines to the Carbon Disclosure Project (CDP). We have
also been a part of the Dow Jones Sustainability™ Emerging Markets
Index for 10 consecutive years, and consequently, are evaluated
annually under the S&P Global Corporate Sustainability Assessment,
the leading sustainability metric for companies worldwide. We are
also part of the MILA Pacific Alliance Index, FTSE4Good Emerging
Index, and the S&P/BMV Total Mexico ESG Index, which require us
to maintain high levels of transparency.
COMPLIANCE & SECURITY
As we move from compliance to proactivity, we are changing our
approach to standard compliance and security topics around
the organization. To this end, we identified three compliance ar-
eas with ESG implications for this shift: risk management, supply
chain management, and cyber and data security.
RISK MANAGEMENT – CONTEXT & AMBITIONS
Our risk management functions manage the impact that internal
and external factors have on our business, identifying both short-
term and long-term risks, quantifying their impact, developing
mitigation plans, and reporting material risks.
Embedding ESG into these processes requires us to take a longer
term and broader view of our operations, considering interde-
pendencies such as the link between regulation and our ability to
operate our fleet effectively. Several of our risks can be mitigated
through effective ESG actions, and an effective mapping of these
risks is crucial to our ESG strategy. Additionally, to improve our
levels of transparency, ESG risk management requires proactive
reporting, ensuring our stakeholders are aware of our key risks
and the actions we take to mitigate them.
To this end, our ambition is to embed a fully mature and indus-
try-leading ESG risk management process, quantifying our ESG
impact and reporting these risks to our stakeholders.
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As a baseline, during the latest update of our risk and
control base, we have identified around 40% of risks
that are connected to one or more aspects of ESG.
SUPPLY CHAIN MANAGEMENT – CONTEXT & AMBITIONS
We also must upgrade our policies on our supply
chain partners to enable our sustainability goals. En-
vironmental and social priorities, such as mitigating
scope 3 emissions, are heavily dependent on our abil-
ity to work closely with our suppliers and innovate in
our supply chain. At the same time, we are respon-
sible for ensuring a well-functioning, resilient supply
chain to deliver products to our customers, many of
whom depend financially on a steady supply.
To manage our supply chain effectively, we are work-
ing on implementing several ESG levers, including:
• Strengthening our Supplier Code of Conduct with
ESG requirements.
• Assessing current suppliers’ ESG performance.
• Seeking out collaboration opportunities with key
suppliers to mitigate ESG impact.
• Increasing our procurement functions’ ESG sophis-
tication in order to balance ESG trade-offs with oth-
er efficiency/cost considerations.
Our ambition is to:
• Ensure 100% of key suppliers audited compliant,
by 2030 with Supplier Guiding Principles.
• Ensure 100% of our key suppliers have emissions
reduction ambitions by 2050.
CYBER & DATA SECURITY – CONTEXT & AMBITIONS
Over the past decade, our business has grown its digi-
tal footprint, as we actively pursued our strategic cor-
ridor of digitizing our core. Reliable digital platforms
enable much of our commercial and sustainable suc-
cess. Our manufacturing and maintenance programs
are built on digital platforms, and our commercial ef-
forts are based on digital point-of-sale management.
While digital platforms enable much of our strategy, we
are also responsible for ensuring the security of sen-
sitive data from our customers, stakeholders, and our
company. Without effective cyber and data security
mechanisms, we risk operational disruption due to ran-
somware attacks, unauthorized exposure of sensitive
information, fraud, and various other disruptive events.
Our efforts to improve our cyber and data security are
focused on both protecting our data from cybersecu-
rity attacks and managing our sensitive information
ethically. This means that we are considering how we
handle information from storage to use, and commu-
nicating our data use transparently.
Our cybersecurity operating model is based on an in-
dustry best practices framework, which provides a
systemic approach that considers controls aimed at
prevention, detection, and resilience to cybersecuri-
ty incidents. We have governance bodies at different
levels, which include the Board of Directors’ Audit
Committee, an Executive Steering Committee, and a
Chief Information Security officer (CISO) responsible
for leading our cybersecurity strategy. Our technically
specialized organization that combines our own and
third-party technical resources, while considering
proper duty segregation between government and op-
erations. A permanent internal audit process special-
izing in cybersecurity reports directly to the Board’s
Audit Committee, and independent firms conduct pe-
riodic assessments, enabling us to assess our level of
maturity and security posture while providing insights
for our investment program. Also, as a reference, we
have The Coca-Cola Company’s “Business Resilience
Framework,” which provides the guidelines that the
bottling system must meet in terms of cybersecurity
and resilience. Lastly, we have a permanent cyberse-
curity program supported by economic and human
resources, which aims to achieve constant, positive
evolution in cybersecurity and data protection.
Following our theme of moving beyond compliance,
our 2030 ambition on this topic is to be recognized
as a cyber and data security leader in the Coca-Cola
System and our value chain. Internally, achieving this
leadership position will require us to improve cyber
expertise and visibility in our governance bodies and
reach and maintain a cybersecurity level appropiate
for our industry and our risk appetite. It will also re-
quire external effort, requiring us to extend our cyber
risk management to our value-chain partners, and
increasing our transparency regarding our governace
strategy and risk management.
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COMPLIANCE & SECURITY – PROGRESS & 2022 HIGHLIGHTS
This year, we continued our initiatives to advance compliance and security topics (risk
management, supply chain management, and cyber and data security) to leading levels.
We are also working with more strategic suppliers aligned with The Coca-Cola Company’s
Supplier Guiding Principles and Sustainable Agricultural Guiding Principles. This year, The
Coca-Cola Company carried out 120 evaluations of suppliers in our system.
We assessed the criticality of the identified risks according to our current evaluation
methodology and considering the mitigating controls associated with each and found
that we do not currently have any residual risk at a critical level.
As a next step, we are focusing on a deeper analysis of these risks to guarantee full cov-
erage of the key variables that may contribute to them, enhance our mitigating controls,
and improve the methods of communicating them internally to leadership in a timely
manner to act.
Adherence to our various supplier guiding principles increased this year as part of our
focus on supply chain management. We assessed 665 suppliers under our own Suppli-
er Guiding Principles, ensuring alignment with our company’s operating principles and
values across four categories: Social/Labor Rights; Environment; Ethics and Values; and
Community.
2015
100
30
Coca-Cola FEMSA
Country
Mexico
Costa Rica
Guatemala
Nicaragua
Brazil
Panama
Argentina
Colombia
Uruguay
Total
130
2016
198
120
84
2017
245
106
49
94
45
2018
172
34
34
27
66
36
31
402
539
400
2019
165
41
36
21
63
24
31
30
15
426
2020
164
35
35
15
245
30
17
51
27
619
2021
143
47
57
24
266
36
42
56
28
699
2022
217
38
68
13
187
34
41
45
22
665
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
2020
27
7
7
1
1
10
57
10
120
2021
130
0
7
0
1
25
65
25
253
2022
46
1
7
1
3
11
45
6
120
We encourage the use of our SGP for our Tier 2 suppliers—the suppliers of our suppliers. In
2022, we evaluated 35 indirect Tier 2 suppliers based on our Guiding principles. Since 2018,
we have conducted 178 evaluations under these principles.
This year, under our permanent cybersecurity program, we continued implementing and
improving controls oriented toward processes, technology, and people. These controls are
aimed at prevention, detection, and resilience in the face of eventual cybersecurity incidents.
We continued to provide awareness and training programs among company personnel and
encourage safe behaviors, especially regarding social engineering and phishing risks.
Concerning technological controls and processes, we improved our data protection and the se-
curity of our infrastructure, systems, networks, applications, and identity and access manage-
ment. We also continue to strengthen our monitoring, detection, and response capabilities.
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TRANSVERSAL
Throughout our ESG transformation, we set world-leading am-
bitions on various environmental, social, and governance top-
ics. However, achieving these goals requires important chang-
es in the way we execute our day-to-day operations, as well
as deep mindset shifts. We have already made many of these
changes within our operations, but the changes we must make
to sustain this strategy will take several years.
Our transversal topics focus on several operational levers and
key considerations that enable us to successfully execute our
ESG strategy: DEI and digitalization.
DIVERSITY, EQUITY, AND INCLUSION – CONTEXT & AMBITIONS
Our aim is to ensure that we are proactive in our transversal DEI
efforts, while considering the impact our transformation has
on diverse groups’ representation and opportunities. Crucially,
we are uniquely positioned to significantly improve DEI across
our communities and value chain. For instance, our small local
business population has a large representation of women, and
improving business outcomes in our sustainable value chain
actively contributes to better representation of diverse groups.
Empowering these diverse groups yields both direct and indi-
rect benefits—improving the lives of diverse populations can
improve entire communities through accelerated and more bal-
anced economic development. We have opportunities to iden-
tify these groups across all of our work and take actions to im-
prove their opportunities.
DIGITALIZATION (TOOLS, TRAINING, & ENABLEMENT) – CONTEXT &
AMBITIONS
Our ability to become more sustainable depends on an array of
different processes and groups within our organization, which
requires effective tools for knowledge sharing and data capture.
Digital platforms, including tools and training, enable quick and
effective distribution of ESG information across our organiza-
tion, as well as access to data that can help us pivot to more
sustainable operations.
A crucial aspect of this topic is an effective ESG training pro-
gram through our online platforms and beyond. Aligned with
our Human Capital Development ambitions, we will deliver ESG
training that enables our people to understand the ESG impact
of their work, and take action to advance our sustainability am-
bitions. We have already provided several types of ESG training,
and our objective is to leverage our digital platforms to cascade
this training across all levels of our organization.
Different ESG initiatives can also benefit from increased levels
of digitalization, especially our fleet efficiency and electrifica-
tion initiatives. To this end, we will continue to assess opportu-
nities for increased levels of digitalization that can enable us to
reach our different ambitions faster and more effectively.
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STRENGTHEN OUR
CUSTOMER-CENTRIC
CULTURE
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Our Human Resources’ (HR) function is working across three strategic
corridors to foster a future-ready, people-centric culture, with the agility
and digital savvy to support an open business ecosystem:
SHAPE THE ORGANIZATION
OF THE FUTURE
Agile, collaborative, and high-
performing, leveraging digital
capabilities to support an open
business ecosystem
DEVELOP THE NEW PIPELINE
OF TALENT
Diverse, people-centric, and
radically flexible, based on
human dignity and connected
to our purpose to fulfill and
sustain our strategy
EVOLVE OUR HR PLATFORM
Enabled, empowered, digital, data-driven HR, leveraging a deep
human connection, effective service, and management model to
support the organization
To advance along these corridors, we have achieved a
clearer picture of the strategic challenges that we face to
accelerate the development of the capabilities our organi-
zation needs for long-term and day-to-day business suc-
cess, coupled with much more assertive initiatives for our
talent and digitalization roadmap.
OUR HR WINNING ASPIRATION
Lead our company’s cultural
transformation by accelerating
the organizational capabilities
needed to ensure the pursuit of
our purpose and the consolidation
of our strategy.
Purpose-Driven Organization
People-Centric Management
Agility & Digital Savviness
We aspire to transform HR into a
flexible, agile, and efficient platform
that ensures our contribution to
business growth through the focus
on people-centered management,
the positive impact on the wellbeing
and development of our employees,
their families, and their environ-
ments, and the construction of safe
and virtuous collaboration spaces
that facilitate the unleashing of their
talent potential.
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SHAPE THE ORGANIZATION OF THE FUTURE
Our company’s transformation journey, together with the complex outlook brought
on by the COVID-19 pandemic, required the continuity of relevant cultural changes
throughout the organization. HR became an active strategic business partner, effi-
ciently facing the company’s business needs and adding value to the strategy.
In 2018, we launched KOF DNA to ensure that our customers and consumers are
at the center of our activities. This year, we reinforced our DNA to support our
business vision and transformation, achieving improvement in key behaviors such
as people first, operational excellence, and agile decision-makers. To this end,
we continued to create mechanisms and practices to live and refresh our DNA
throughout our organization. For example, we continued to implement and im-
prove our “Estrella KOF” peer recognition program, where our people nominate
and recognize their colleagues for showing extraordinary commitment to the ele-
ments of our DNA.
We gained a better understanding of where we must build key organizational ca-
pabilities to advance our business strategy, focusing on accelerating our digital
transformation while maintaining and growing our core business in a complex en-
vironment. For HR in particular, this means becoming a platform that will enable us
to develop deeper “people-centric” connections through digitalization and quality
data, which will allow us to offer individualized solutions.
We also improved our Employee Value Proposition (EVP). Aligned with our pur-
pose, we developed a clear and comprehensive narrative, where we defined
our total rewards strategy that focuses not only on our people’s compensation
schemes, but also on their development and wellbeing. Benefits include flexible
hours, home office for administrative positions and other roles where their func-
tion allows, lactation rooms to support breastfeeding at work, and parental leave
in accordance with the specific country’s regulations.
%
4
.
7
9
%
7
.
8
9
%
5
.
8
9
MALE
FEMALE
TOTAL
%
6
.
0
8
%
7
.
8
7
%
6
.
3
6
E
T
A
R
N
R
U
T
E
R
1
R
E
D
N
E
G
R
E
P
E
T
A
R
N
O
I
T
N
E
T
E
R
2
R
E
D
N
E
G
R
E
P
MALE
FEMALE
TOTAL
¹ Employees that returned to work after
Parental Leave.
² Employees that continue working 12
months after Parental Leave.
Male Parental Leave varies in each country
from 2 to 14 days.
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INTEGRAL WELLNESS
Our priority is for our employees
to enjoy health across all of
the dimensions of their lives.
That is why we offer options
for physical, emotional, and
family wellbeing. We recognize
their effort, commitment, and
contribution to the generation of
value for our business.
POSITIVE WORK ENVIRONMENTS
We are interested in making our people feel
motivated, committed, and successful. That
is why we offer collaborative, innovative,
and trusting environments, where they can
take calculated risks and work productively
with the flexibility that adjusts to their
functions and life moments.
KOF EMPLOYEE
VALUE
PROPOSITION
SHARED PURPOSE
We are interested in what our
employees believe and what moves
them. That is why we offer them the
opportunity to be the protagonist of
our business’ transformation into
a digital, agile, flexible, customer-
focused, and collaborative ecosystem,
placing sustainability at the center
of our actions. This is how we
make a difference in people’s lives,
communities, and the planet.
AGILE, DIGITAL AND PEOPLE-CENTERED
CULTURE AND LEADERSHIP
We are interested in our employees
becoming the best version of
themselves, and we believe that our
differences strengthen us. That is why
we offer our employees a respectful,
inclusive, and collaborative environment,
where their voices will be heard.
CONTINUOUS LEARNING AND DEVELOPMENT
We are interested in our people’s
professional and personal aspirations.
That is why we offer them options to
develop and enhance their holistic growth,
reaching their maximum potential.
+400 employees trained through our
digital and agile training programs
Aligned with our imperative to make a difference in
ESG, we expanded our digital ESG training significant-
ly this year. To facilitate our company’s transition into
a worldwide sustainability leader, we not only offered
training to top-level management on our renewed ESG
strategy, but also developed more detailed training
programs tailored to different functional areas. Addi-
tionally, we complemented the design and transfor-
mation of our ESG framework with employee train-
ing to enable the understanding of fundamental ESG
concepts. →For more information see Future Ready
Sustainability Strategy.
As part of our strategy to become a learning ecosys-
tem, during the year, we delivered the training agenda,
according to the level of knowledge required for each
of our organization’s contribution levels. Aligned with
learning tendency, we also delivered more accurate
training, catering the content and duration of the pro-
gram to ensure the best learning experience for our
colleagues.
This year marked “the moment of truth” in the defini-
tion of our new normal and hybrid working schemes.
As a group, we formally announced that we are a hy-
brid company, where we empower our leaders to un-
dertake assertive conversations with their teams and
to establish the best model for each team. We are also
analyzing our FlexKOF model to better align it with our
improved EVP.
Exemplifying our new ways of working, our digital and
analytics hub has implemented a co-creation process
where we assemble agile cells—with different profiles,
skills, functions, and areas—that ensure our business
units’ participation in the delivery of valuable digital
and analytical solutions across our operations while
creating workspaces that empower collaboration and
teamwork. We are also working through different com-
munities in areas like our Supply Chain and HR func-
tions to identify and share insights and best practices.
Comprised of multinational teams, these communities
are focused on defining and updating the organiza-
tional model, variable compensation schemes, and
multi-category offerings, among other areas. This year,
we further implemented a pilot for KOF Financial Ser-
vices (KFS), with a complete remote working scheme,
where we monitored the implementation and results to
ensure success. →For more information see Digital &
Analytics Hub.
We also designed our Lean-Agile Center of Excellence
(LACE) Service Model to support the organization’s dig-
ital and agile transformation, and we deployed digital
and agile training programs for more than 400 employ-
ees, which we will continue to implement throughout
the rest of the organization in the coming year.
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We implemented our biennial employee engage-
ment survey throughout our operations during
2021. With 92% participation and 91% engage-
ment levels, the survey results focused on four
dimensions: intent to stay 84%, discretionary
effort 91%, pride to belong 95%, and willingness
to recommend the organization 94%. As a result,
we significantly improved employees’ engage-
ment and communication with their direct lead-
ers through cultural and communication efforts
such as KOFFEE Talks, which are spaces where
our leaders enjoy the opportunity to interact with
their people to discuss various topics of interest.
During the year, we focused on analyzing the re-
sults by country and area to develop assertive
action plans to mitigate identified gaps. Looking
ahead, we will implement our biennial employee
survey in the coming year—aiming to maintain
high engagement scores while making progress
on targeted gaps.
Consistent with our comprehensive approach to
our people’s wellbeing, we further developed a
conscious leadership program. The goal of this
program is to migrate the concept of health from
a purely medical to a more holistic approach to
wellbeing, including physical health, emotional
wellbeing, spiritual self-development, and con-
scious leadership. During the year, the program
reached middle management across our Colom-
bia, Guatemala, and Mexico operations, and is
expected to reach our Argentina, Brazil, Costa
Rica, Nicaragua, Panama, and Uruguay opera-
tions during the coming year.
This year, we continued with the utilization of our
integral ethical system across our organization
to create a safe environment for our people—
where they can anonymously raise their voice if
they should have any complaints concerning the
company’s code of conduct. Overall, we received
a total of 1,371 complaints this year through
this system, some of which were related to work
environment and leadership, operational, and
financial topics. →For more information see
Integral Ethical System.
We also continued analyzing the gaps identified
in the labor risk assessments that we performed
across our operations last year to measure the
labor conditions of our people and possible im-
pacts. During the year, we not only analyzed the
identified gaps, but also implemented assertive
plans to mitigate them. To this end, we have fo-
cused on investments to improve the infrastruc-
ture of our work centers and guarantee optimal
labor conditions.
We also constantly look for opportunities in our
organizational model and structure to ensure
that we operate with the greatest efficiency,
agility, and efficacy—always accompanying our
evolving business strategies and operating con-
ditions, and complying with the countries’ local
regulations.
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DEVELOP NEW PIPELINE OF TALENT
Our people and the way they work together are our compa-
ny’s most valuable assets. Accordingly, we comprehensive-
ly manage, attract, develop, and motivate our people, pre-
paring the next generation of leaders today.
To this end, we improved our talent attraction and retention
strategy to ensure that we have the right digital and skilled
talent to face coming challenges while leading our organi-
zation’s digital transformation. During the year, we recruited
14,645 skilled employees, including 71 digital and IT posi-
tions at the corporate level.
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, un-
leash its full potential, and inject new capabilities. Among
our initiatives, we designed and implemented accelerated
development programs like the Lab Leadership Program for
the LATAM Marketing and Supply Chain functions, and we
continued promoting critical experiences for our people,
enabling us to enjoy greater talent visibility and a better
succession pipeline for key positions.
LAB LEADERSHIP PROGRAM: LATAM MARKETING
Like the Supply Chain & Engineering function, our Lab Leadership Program
aims to accelerate development of marketing talent at the LATAM division to
develop, expose, and generate international mobility.
PROGRAM FEATURES
Duration: 18 to 24 months segmented into three semesters - two for local
and one for international critical experiences
Talent pipeline sourced: Middle-management marketing positions drawn
from top internal or external talent with three to five years of work experience
Top reasons for entering program: Clear professional development plans,
leadership opportunities, work/life balance, and improved compensation
Program support: Sponsor – Chief Operating Officer – LATAM Division,
Mentor – Marketing Director, Project Leader – Hiring Manager, Monthly
Follow-up – HR/Talent Area
CRITICAL EXPERIENCES FOCUS – MARKETING OF THE FUTURE
Digital
POS
Execution
Revenue
Growth
Management
Trade
Marketing
Consumer
Marketing
Developing tomorrow’s marketing talent today
We also improved our employer brand to attract the best talent, and we
designed an umbrella of early career programs, including college schol-
arships, internship programs, and our new trainee’s talent program to
increase talent injection and to prepare future generations of talent.
During the year, we continued consolidating the performance evaluation
process, focused on each employee’s value generation and contribution
to our business strategy—reinforcing and promoting meritocracy. We
also continued to encourage our executives to engage in ongoing con-
versations with team members about their performance and develop-
ment. This year, we evaluated 97% of our employees’ performance.
84% of our company’s director-level talent
requirements filled by internal candidates
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TRAINING HOURS
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Moreover, we kept on improving our talent
management processes, assertively ensuring
that we offer the best user experience. This
year, we deployed our annual 9-Box Talent As-
sessment for 94% of our people leaders, tac-
tical leaders, and strategic leaders throughout
the organization. This evaluation helps us to
assess our talent that has more than 6 months
in their current position, through their per-
formance and potential, and identify our key
talents. We also applied a 360° DNA-oriented
assessment of our managers and directors’
behavior. This survey was applied to 84% of
our directors and managers to assess their be-
haviors regarding our DNA values.
Notably, we performed a smooth, successful
senior management succession for our CEO,
multiple members of our senior leadership
team, and country managers. This robust suc-
cession planning process enables us to not only
quickly identify internal talent, as well as key
talent from other FEMSA business units and the
market whenever necessary, but also ensure
operational continuity across all of our leader-
ship levels.
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DIVERSITY, EQUITY, AND INCLUSION
Under the umbrella of our ESG strategy, we continued to carry out a number of initiatives to reinforce our compa-
ny’s commitment to diversity, equity, and inclusion. From our “WE Talks” discussion forums to our Inclusion and
Diversity Forum, we raise awareness of important societal issues, work to eliminate unconscious biases, and en-
able our employees to play an integral role on our way to creating a more flexible and inclusive organization.
INCLUSIVE LEADERSHIP
Recognition as a company with
inclusive leaders and work teams
FLEXIBLE ENVIRONMENT
Foster a flexible and agile
environment that adapts to the needs
of our surroundings
DIVERSE TALENT
Ensure a diverse, inclusive, and
respectful workplace for all our
employees
Inclusive Leadership Training
Certifications and Recognitions
• Unconscious biases in leadership
and recruitment workshops and
training
• Ignite leader’s role as inclusion
and diversity advocates
• Bloomberg Gender-Equality Index,
Human Rights Campaign, UN
Women, Women Matter – McKinsey
Discussion Forums
• WE Talks discussion forums
• Provide safe places for our
employees to dialogue
Processes and Practices
• Review, design, align, and deploy
flexible processes and practices,
including Parental and FlexKOF
models
Representation
• Undertake efforts to foster female
employability and representation
• Measure female talent mix in
leadership and operational
positions
• Embark on efforts to include
refugees in the workforce
Engaging and Connecting
• Inclusion & Diversity Forum
»Lean In Circles (Brazil)
»Cinta Violeta (Colombia)
»Transformando Mirades (Central
America)
»Dale la mano a la que sigue
(Mexico)
Raise awareness and create a call to
action on social issues that impact
our communities
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IMPROVING GENDER DIVERSITY
Aligned with our commitment to improve gender diversity at all
levels of the organization, our operations are developing and de-
ploying initiatives to increase women’s representation. Among
their actions, Mexico implemented several initiatives to recruit,
develop, and retain female talent, such as through the expanding
Home Delivery program. Brazil not only continued its program to
train women to operate forklifts and perform refrigerator main-
tenance, but also staffed a distribution center with 40% women
employees since it began operations. Additionally, the operation
carried out training for women to create opportunities for them
in the labor market. Moreover, Colombia launched the “Cinta Vi-
oleta” integral initiative for women, incorporating female talent
across different areas to encourage their development and help
them to prevent gender violence.
DIVERSITY, EQUITY & INCLUSION ADVISORY BOARD
Our diversity, equity, and inclusion (DEI) efforts are cur-
rently integrated through a DEI Advisory Board. This
board is focused on five main purposes to sustain DEI
change across Coca-Cola FEMSA:
Aligned with our commitment to improve gender diver-
sity at all levels of the organization, our operations are
developing and deploying initiatives to increase wom-
en’s representation. Additionally, as a signatory to the UN
Women’s Empowerment Principles, we continue working
towards those standards as we create a more equitable,
inclusive, and diverse organization.
1. Engage and hold leaders accountable throughout the
organization
2. Define both long- and short-term objectives and strat-
egies aligned with our company’s inclusion and diver-
sity vision
3. Ensure functionality of work teams at a country and
regional level
4. Ensure deployment of an internal and external com-
munication plan
5. Measure, monitor, and evaluate initiatives.
Leveraging our DEI Advisory Board, as well as company
leaders, to accelerate our strategic development, we have
prioritized our company’s talent diversity, placing great
emphasis on increasing the gender mix at all levels of the
organization with the main focus on leadership and opera-
tional positions. By 2030, our ambitions are for women to
represent 40% of leadership and management positions.
Importantly, for the fourth consecutive year, the Human
Rights Campaign Foundation and HRC Equidad MX rec-
ognized our company as one of the Best LGBTQ+ Places
to Work in Mexico. Recognizing that women and LGBTQ+
groups represent only a fraction of our people’s diversity,
we began mapping unrepresented groups in our opera-
tions to establish clear ambitions for the coming year.
We have also worked to improve recruitment of LGBTQ+
talent, and allied with Contratá Trans in Argentina to im-
prove the inclusion and social mobility of the trans com-
munity. To this end, we have continued to improve inclu-
sion of these LGBTQ+ communities through ally pledges,
affinity groups, and consciousness and awareness pro-
grams across our countries of operations. In addition,
we continued talent programs to attract and retain indig-
enous, afro-descendant, and economically vulnerable
groups into our workforce.
For more information see →Diversity, Equity, and
Inclusion – Context & Ambitions.
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NUMBER OF INTERNAL EMPLOYEES
EMPLOYEES BY CONTRIBUTION LEVEL
Female 11,478
14.3%
6,121
39,444
STRATEGIC
LEADERS
TACTICAL
LEADERS
PEOPLE
LEADERS
INDIVIDUAL
CONTRIBUTORS
OPERATIONAL
CONTRIBUTORS
INTERNS
78%
22%
116
73%
27%
898
71%
29%
2,375
74%
26%
25,337
92%
8%
51,721
53%
47%
314
TOTAL 80,447
Male 68,969
85.7%
102
560
1,261
36
1,239
2
767
272
2,190
3,068
125
3,226
URUGUAY
662
COSTA RICA
1,261
The number of total employees
for 2022, which includes
both internal and third party
collaborators, is 97,213.
NICARAGUA
769
GUATEMALA
3,068
PANAMA
ARGENTINA
COLOMBIA
3,351
2,462
1,275
■ Total ■ Indefinite ■ Determined
EMPLOYEES BY CONTRACT & REGION
65
21,969
■ Male ■ Female ■ Total
BRAZIL
22,034
MEXICO
45,565
EMPLOYEES BY AGE GROUP
UNDER 30
30,902
30-50
43,795
50+
5,750
348
5,402
■ Total ■ Female ■ Male
4,871
26,031
6,259
37,536
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COMPENSATION AND BENEFITS
Our people’s compensation and benefits
schemes not only recognize their effort
and commitment to their jobs, but also
their contribution to our company’s val-
ue creation.
With the optimization of our company’s
job valuation process—through a model
based on job families—we generate effi-
ciencies in our current workforce man-
agement, and we strengthen our talent
processes such as development, suc-
cession, and talent planning.
Moreover, we continue analyzing the
current variable compensation schemes
throughout our operations in order to re-
duce the number of schemes and to im-
plement a tool to manage and automate
them. We also focused on the evaluation
of parental schemes to offer our people
a flexible benefits program comparable
to those we identified within the market
and aligned with our people’s interests.
At all levels of our organization, we en-
sure that our employees’ remuneration
is competitive, and their conditions are
equal for both men and women. To that
end, we continued analyzing our gen-
der pay gap obtaining a result of 4.6%,
which will serve us to design strategies
to reduce those gaps and to ensure em-
ployee retention. Additionally, based
on studies performed by international
consulting firms that enable us to make
comparisons between countries, we can
determine that our employees are re-
ceiving an integrated salary that is great-
er than or equal to the market average.
We act in accordance with obligations
defined by law and in full respect of la-
bor rights, exceeding the conditions
and benefits established in the laws of
each country where we operate. We re-
spect our people’s right of association
and, as such, our collective agreements
cover approximately 62.1% of employ-
ees. These employment contracts are
reviewed and agreed on with all of our
union representatives, respecting the
established validity periods, as well as
complying with all notification deadlines.
AT ALL LEVELS OF OUR ORGANIZATION,
WE ENSURE THAT OUR EMPLOYEES’
REMUNERATION IS COMPETITIVE, AND
THEIR CONDITIONS ARE EQUAL FOR
BOTH MEN AND WOMEN.
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SOCIAL DEVELOPMENT
Aligned with our holistic approach to our people’s quality of life,
we launched our integral program of wellbeing this year.
KOF Volunteers Program
We encourage the development of our employees and their families as responsible citizens, committed to their community, society, and environ-
ment. Through the KOF Volunteers program, we promote initiatives that enable us to beneficially impact the quality of life and wellbeing of the com-
munities where we operate, strengthening our relationships with them, while positively affecting our corporate position and reputation.
Our overall volunteer activity is committed to six different causes:
COMMUNITY
DEVELOPMENT
We come together to
carry out collective
action and generate
solutions to common
problems to create a
positive impact and
build stronger and more
developed communities.
ENVIRONMENT
We are focused
on responsible
environmental
management and
the responsible care
and use of natural
resources, with
attention to our ESG
Framework, especially
on issues such as
water, energy, carbon
emissions, water
bodies’ cleanup, and
reforestation.
NATURAL
DISASTERS
We promote solidarity
efforts in the event
of natural disasters,
providing support 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
We undertake activities
that promote healthy
physical and bio-
psychosocial lifestyles,
as well as initiatives
related to humanitarian
aid, nutritional training,
and with the health
sector in general.
Our activities aim to
improve educational
levels and promote
cultural, creative,
and technological
development.
HUMAN
RIGHTS
We seek to generate
positive volunteer
experiences based on
respect and compliance
with Fundamental
Human Rights.
To this end, our Social Development Strategy concentrates on
five dimensions:
• Health: We promote healthy physical and bio-psychosocial
lifestyles for our employees.
• Social Relationships: We encourage satisfactory relation-
ships in harmony with the environment and community
through employee volunteering activities.
• Economic: We promote the protection of assets and the gen-
eration of savings through a culture of financial intelligence.
• Education: We promote participation in programs and train-
ings to improve and increase knowledge and personal devel-
opment skills.
• Labor: We promote positive work experiences based on re-
spect and compliance with Human Rights, as well as fostering
work spaces that promote safety and labor relations.
In this complex environment, we focused on remote and distance volun-
teering activities to support the quality of life of our people and commu-
nities. During the year, 105,958 participants, including our employees
and their families, devoted 250,812 hours to 2,337 volunteer initiatives,
supported by an investment of US$8,719,611.
For more information see →External Social – Progress & 2022
Highlights.
2,675 million hours of volunteer
over the past eight years
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OCCUPATIONAL HEALTH & WELLBEING
At Coca-Cola FEMSA, we seek to improve
employees’ physical and psycho-emo-
tional health, encourage engagement
and a sense of belonging within the orga-
nization, and strengthen our health and
social programs for an improved work
environment.
Occupational Health & Wellbeing
Management System
Our Occupational Health & Wellbeing
Management System establishes the
vision, strategy, objectives, elements,
and activities through which we improve
the quality of work life for our employ-
ees across our company’s work centers
and strategic business units. Comply-
ing with our legal, ethical, scientific, and
organizational framework, this system
encompasses our health processes and
programs that we apply according to ap-
plicable risk matrices, local legislation,
and operational needs.
During 2022, we achieved a 12.5% im-
provement in our Lost Days due to Gen-
eral Illness Index versus 2021, driven
mainly by our decentralized health pro-
grams, global disease prevention strate-
gy, integral wellbeing activities, and epi-
demiologic watch systems.
12.5% improvement in our Lost
Days due to General Illness
Index versus 2021
Health & Wellbeing Policies
At Coca-Cola FEMSA, our Corporate Oc-
cupational Health area is responsible for
proposing relevant revisions and updates
to our two Health & 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 Direc-
tor of Social and Labor Development and
Global Director of Human Resources, our
company’s internal audit area reviews
these policies for dissemination and im-
plementation across our operations.
Employee Support Program
Throughout 2022, we continued with our
Employee Support Program across all of
our operations. This emotional support
program is designed to help our people
and their families to cope with any situ-
ation that may cause stress, anxiety, and
depression, among other emotional dis-
turbances, and to give them psychologi-
cal support.
This program is part of our comprehen-
sive welfare strategy to reduce psycho-
social risk factors inside and outside of
work through the counseling and atten-
tion of psychologists and other health
professionals according to our people’s
different situations.
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cases concerning employee performance, strategic workforce plan-
ning, and organizational network analysis. Some of these use cases
will enable us to gain better insights for decision-making, enabling
us to determine whether an employee is well suited for a particular
vacancy, or if a gap opportunity in a certain priority area arises, as
well as how we can help employees with their career growth and
development.
Through these steps, we are convinced that we will continue evolv-
ing our HR capabilities to put our people at the center of the orga-
nization, offering a unique and customized employee value propo-
sition built on the pillars of our HR of the Future—analytics, digital
architecture, service model, and people profile.
EVOLVE OUR HR PLATFORM
During the year, we carried on working to move our HR function into
the digital era while improving our employee experience.
To this end, we continued the deployment of our Success Factors
talent platform throughout all of our operations. Ultimately impact-
ing all of our employees, this platform will integrate, improve, and
simplify our leaders’ and employees’ experience with HR process-
es. Currently, we are working on standardizing and migrating our
HR Administration backbone—including our master database and
payroll systems—to a cloud-based solution in order to meet market
trends and set the foundation for our path to digital.
Moreover, we continued to make significant progress on HR process
standardization and automation for our third parties management,
variable compensation, and time and attendance processes. We
also began the implementation of a tool to digitalize our documents
throughout our operations, which will enable us to be more agile
creating, updating, and managing our people’s files.
We further implemented a powerful online survey tool to gather
greater information about our employee voice, and we launched
several surveys that gave us valuable employee insights for our
strategy. We also continued researching new technologies that
could help us to enjoy a better employee experience, including the
exploration and functionality testing of an HR chatbot.
Additionally, we carried on automating and improving our dash-
boards—enabling us to offer equal information or benchmarks—and
we proceeded developing and testing several people analytics use
APPENDICES
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FINANCIAL
Amounts expresed in millions of U.S. dollars and Mexican
pesos, except data per share and headcount.
SUMMARY
Income Statement
Total revenues
Cost of goods sold
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 profit (loss) 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. (*)
2022 (6)
2021
2020
2019
2018 (3) (4) (5)
2017 (1) (2) (3)
11,630
6,485
5,145
3,538
50
233
1,323
336
20
1,007
976
30
44.2
8.7
1,820
1,009
2,066
226,740
126,440
100,300
68,981
983
4,549
25,787
6,547
386
19,626
19,034
592
44.2
8.7
35,491
19,665
40,277
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
98,404
83,938
57,924
1,881
6,943
17,190
5,260
(226)
15,070
10,936
768
46.0
8.3
29,687
11,069
23,727
183,256
99,748
83,508
58,044
31,357
5,362
(11,255)
4,184
60
(11,654)
(16,058)
679
45.6
(6.4)
33,236
14,612
18,767
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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)
Income (loss) atributable to the holders of the parent (9)
Dividends paid (10)
Headcount (11)
U.S. (*)
2022 (6)
2021
2020
2019
2018 (3) (4) (5)
2017 (1) (2) (3)
4,063
434
3,652
5,289
821
14,259
437
44
2,491
3,598
924
7,495
6,764
333
6,431
1.37
1.11
0.39
8.68
0.383
0.058
0.035
97,211
79,212
8,452
71,205
103,122
16,004
277,995
8,524
862
48,574
70,145
18,014
146,119
131,876
6,491
125,385
1.37
1.11
0.39
8.68
7.460
1.133
0.679
97,211
80,364
7,494
62,183
102,174
19,352
271,567
2,453
811
42,957
83,329
14,445
143,995
127,572
6,022
121,550
1.74
1.13
0.41
6.11
7.232
0.935
0.634
83,754
72,440
7,623
59,460
103,971
19,572
263,066
5,017
712
37,116
82,461
15,303
140,609
122,457
5,583
116,874
1.69
1.15
0.43
5.13
6.954
0.610
0.608
82,334
56,796
9,751
61,187
112,050
18,055
257,839
11,485
439
39,086
58,492
18,652
128,154
129,685
6,751
122,934
1.11
0.99
0.37
5.51
7.315
0.723
0.443
82,186
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
124,944
1.26
1.00
0.41
4.22
7.434
0.831
0.419
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
Income statement information considers full-year of KOF’s territories and full-year of Coca Cola FEMSA Venezuela.
(1)
(2) Balance sheet information does not include Coca-Cola FEMSA Venezuela's balances due to deconsolidation as of December 31, 2017.
(8) Based on 16,806.7 million ordinary shares as of December 31, 2022, 2021, 2020, 2019, 2018 and 2017.
(9) Computed based on the weighted average number of shares outstanding during the periods presented:16,806.7 million for 2022, 2021, 2020, 2019 and 2018,
Venezuela balance is included as investement in shares as of December 31, 2017.
and 16,730.8 million in 2017.
(3) KOF Philippines has been classified as a discontinued operation in our profit and loss statement for the years ended December 31, 2017 and 2018.
(4)
(5)
(6)
(7)
Income statement information includes eight months of the financial results of our acquisitions in Guatemala.
Income statement information includes six months in the financial results for Uruguay.
Information considers full-year of KOF’s territories and eleven months of CVI Refrigerantes Ltda. (“CVI”).
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 2022, 2021, 2020, 2019 and 2018
and 16,583.4 million oustanding ordinary shares for paid on 2017.
(11) Includes third-party and for 2017 excludes 16,566 employees for our discontinued operation in Phillipines.
* Exchange rate as of December 31, 2022 Ps. 19.496 per U.S. dollar solely for the convenience of the reader according to the federal USA reserve.
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MANAGEMENT’S
Results for the Year Ended December 31, 2022
Compared to the Year Ended December 31, 2021
DISCUSSION & ANALYSIS
CONSOLIDATED RESULTS
The comparability of our financial and operating perfor-
mance in 2022 as compared to 2021 was affected by the
following factors: (1) translation effects from fluctuations in
exchange rates; (2) our results in Argentina, whose econo-
my satisfied the conditions to be considered a hyperinfla-
tionary economy; and (3) the ongoing integration of merg-
ers and acquisitions completed in recent years, specifically
the acquisition of CVI in Brazil in January 2022. For the
convenience of the reader, we have included a discussion
of the financial information below on a comparable basis,
excluding the translation effects from fluctuations in ex-
change rates and the acquisition of CVI in Brazil in January
2022. To translate the full-year results of Argentina for the
years ended December 31, 2022 and 2021, we used the
exchange rate at December 31, 2022 of 177.16 Argentine
pesos per U.S. dollar and the exchange rate at December
31, 2021 of 102.72 Argentine pesos per U.S. dollar. The
depreciation of the exchange rate of the Argentine peso at
December 31, 2022, as compared to the exchange rate at
December 31, 2021, was 72.5%. In addition, the average
appreciation of currencies used in our main operations rel-
ative to the U.S. dollar in 2022, as compared to 2021, was
4.3% for the Brazilian real and 0.8% for the Mexican peso,
and a depreciation of 13.7% for the Colombian peso rela-
tive to the U.S. dollar.
Total Revenues. Our consolidated total revenues increased
by 16.4% to Ps. 226,740 million in 2022 as compared to
2021, mainly as a result of volume growth, our revenue
management initiatives, and favorable price-mix effects.
These factors were partially offset by a decline in beer rev-
enues related to the transition of the beer portfolio in Brazil
and unfavorable currency translation effects from most of
our operating currencies into Mexican pesos. In addition,
for 2021, this line included other operating revenues due
to a favorable determination from the Brazilian tax author-
ities, which allowed the recognition of a deferred tax credit
in Brazil for Ps. 254 million. See Note 24.2.1 to our consol-
idated financial statements. On a comparable basis, total
revenues would have increased by 17.8% in 2022 as com-
pared to 2021.
Total sales volume increased by 8.6% to 3,755.2 million
unit cases in 2022 as compared to 2021, driven mainly by
volume growth across all of our territories, including dou-
ble-digit increases in Brazil, Colombia, Argentina, and Gua-
temala, coupled with solid performances in Mexico and
Uruguay. On a comparable basis, total sales volume would
have increased by 7.5% in 2022 as compared to 2021.
• In 2022, sales volume of our sparkling beverage portfo-
lio increased by 6.4%, sales volume of our colas portfo-
lio increased by 6.1%, and sales volume of our flavored
sparkling beverage portfolio increased by 7.5%, in each
case as compared to 2021. On a comparable basis, sales
volume of our sparkling beverage portfolio would have in-
creased by 5.6% as compared to 2021, driven by growth
across all of our operations. Sales volume of our colas
portfolio would have increased by 5.4%, mainly due to
volume growth in all of our territories, and sales volume
of our flavored sparkling beverages portfolio would have
increased by 6.6%.
• Sales volume of our still beverage portfolio increased by
21.7% in 2022 as compared to 2021. On a comparable
basis, sales volume of our still beverage portfolio would
have increased by 16.9%.
• Sales volume of our bottled water category, excluding
bulk water, increased by 29.0% in 2022 as compared to
2021. On a comparable basis, sales volume of our water
portfolio would have increased by 27.6%.
• Sales volume of our bulk water category increased by
5.8% in 2022 as compared to 2021. On a comparable
basis, sales volume of our bulk water portfolio would
have decreased by 5.2%.
Consolidated average price per unit case increased by
10.9% to Ps. 58.75 in 2022, as compared to Ps. 52.99 in
2021, mainly as a result of favorable price-mix effects and
revenue management initiatives. This was partially offset by
the negative translation effect resulting from the deprecia-
tion of most of our operating currencies relative to the Mex-
ican peso. On a comparable basis, average price per unit
case would have increased 13.0% in 2022 as compared to
2021, driven by our revenue management initiatives.
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Gross Profit. Our gross profit increased by 13.2% to Ps.
100,300 million in 2022 as compared to 2021, with a gross
margin decrease of 130 basis points as compared to 2021
to reach 44.2% in 2022. This gross margin decrease was
driven mainly by a tough comparison base due to the recog-
nition of an extraordinary profit of Ps. 1,083 million during
the second quarter of 2021, related to credits on concen-
trate purchased from the Manaus Free Trade Zone in Brazil,
higher concentrate costs in Mexico, and higher raw material
costs, mainly PET resin and sweeteners. These effects were
partially offset by top-line growth and favorable raw ma-
terial hedging initiatives. On a comparable basis, our gross
profit would have increased by 14.6% in 2022 as compared
to 2021.
The components of cost of goods sold include raw mate-
rials (principally concentrate, sweeteners, and packaging
materials), depreciation costs attributable to our produc-
tion facilities, wages and other labor costs associated with
labor force employed at our production facilities, and cer-
tain overhead costs. Concentrate prices are determined as
a percentage of the retail price of our products in local cur-
rency, net of applicable taxes. Packaging materials, mainly
PET resin and aluminum, and HFCS, used as a sweetener in
some countries, are denominated in U.S. dollars.
Administrative and Selling Expenses. Our administrative
and selling expenses increased by 13.6% to Ps. 68,981
million in 2022 as compared to 2021. Our administrative
and selling expenses as a percentage of total revenues de-
creased by 80 basis points to 30.4% in 2022 as compared
to 2021, driven mainly by efficiencies in marketing and labor
expenses, partially offset by higher fuel and maintenance
expenses. In 2022, we continued investing across our terri-
tories to support marketplace execution, increase our cooler
coverage, and bolster our returnable presentation base.
Other Expenses Net. We recorded other expenses net of
Ps. 983 million in 2022 as compared to Ps. 807 million in
2021. This increase was mainly a result of an increase in
tax contingencies in Brazil. For more information, see Notes
9 and 19 to our consolidated financial statements.
Comprehensive Financing Result. The term “compre-
hensive financing result” refers to the combined financial
effects of net interest expenses, net financial foreign ex-
change 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 financial as-
sets or liabilities denominated in currencies other than local
currencies, and certain gains or losses resulting from de-
rivative 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 2022 recorded an ex-
pense of Ps. 4,549 million as compared to an expense of
Ps. 4,219 million in 2021. This 7.8% increase was driv-
en mainly by a foreign exchange loss of Ps. 324 million as
compared to a gain of Ps. 227 million recorded during the
same period of 2021, as our cash exposure in U.S. dollars
was negatively impacted by the appreciation of the Mexican
peso. In addition, we recognized a loss in the market value
of financial instruments of Ps. 672 million, as compared to
a gain of Ps. 80 million during 2021. Moreover, our interest
expense increased to Ps. 6,500 million, as compared to an
expense of Ps. 6,192 million in 2021, driven mainly by in-
creases in interest rates, partially offset by the tender offer
of senior notes completed during the third quarter of 2022.
Finally, we recognized a lower gain in monetary position in
inflationary subsidiaries, recording Ps. 536 million during
2022, as compared to a gain of Ps. 734 million during the
previous year. These effects were partially offset by higher
interest income of Ps. 2,411 million during 2022, as com-
pared to a gain of Ps. 932 million recorded during 2021, as
a result of an increase in interest rates.
Income Taxes. In 2022, our effective income tax rate de-
creased to 25.4%, as compared to our effective income tax
rate of 28.9% in 2021, mainly as a result of favorable de-
ferred tax credits. For more information, see Note 24 to our
consolidated financial statements.
Share in the Profit (Loss) of Equity Accounted Investees,
Net of Taxes. In 2022, we recorded a gain of Ps. 368 million
in the share in the profit of equity accounted investees, net
of taxes, mainly due to the results of Jugos del Valle, our
associate in Mexico, as compared to a gain of Ps. 88 million
registered during the previous year.
Net Income (Equity holders of the parent). We report-
ed a net controlling interest income of Ps. 19,034 million
in 2022, as compared to Ps. 15,708 million in 2021. This
21.2% increase was driven mainly by operating income
growth, coupled with a decline in our effective tax rate
during the year.
RESULTS BY CONSOLIDATED REPORTING SEGMENT
MEXICO AND CENTRAL AMERICA
Total Revenues. Total revenues in our Mexico and Cen-
tral America consolidated reporting segment increased
by 13.1% to Ps. 131,002 million in 2022 as compared to
2021, mainly as a result of a volume increase in all of our
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territories, coupled with favorable price-mix effects and
revenue management initiatives.
Total sales volume in our Mexico and Central America con-
solidated reporting segment increased by 6.3% to 2,188.4
million unit cases in 2022 as compared to 2021, as a result
of a volume increase in all our territories.
• Sales volume of our sparkling beverage portfolio in-
creased by 4.5% in 2022 as compared to 2021, driven
mainly by a 8.3% increase in our flavored sparkling bev-
erage portfolio.
Sales volume in Central America increased by 11.8% to
299.5 million unit cases in 2022, as compared to 267.8
million unit cases in 2021, mainly as a result of solid execu-
tion and a solid performance in all our territories across the
region.
• Sales volume of our sparkling beverage portfolio in-
creased by 10.3% in 2022 as compared to 2021, driven
by a 9.9% increase in colas and a 12.0% increase in our
flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by
26.8% in 2022 as compared to 2021.
• Sales volume of our still beverage portfolio increased by
• Sales volume of bottled water, excluding bulk water, in-
13.1% in 2022 as compared to 2021, due to double-digit
increases in both Mexico and Central America.
creased by 10.1% in 2022 as compared to 2021.
• Sales volume of our bulk water portfolio increased by
• Sales volume of bottled water, excluding bulk water, in-
39.8% in 2022 as compared to 2021.
creased by 24.9% in 2022 as compared to 2021, due to
double-digit increases in both Mexico and Central America.
• Sales volume of our bulk water portfolio increased by
6.9% in 2022 as compared to 2021, due to a solid per-
formance in Mexico and a double-digit increase in Central
America.
Sales volume in Mexico increased by 5.5% to 1,888.9 million
unit cases in 2022, as compared to 1,790.0 million unit cases
in 2021, mainly as a result of solid volume performance.
• Sales volume of our sparkling beverage portfolio in-
creased 3.4% in 2022 as compared to 2021, driven by a
2.5% increase in our colas portfolio and a 7.6% increase
in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by
10.5% in 2022 as compared to 2021.
• Sales volume of bottled water, excluding bulk water, in-
creased by 26.8% in 2022 as compared to 2021.
• Sales volume of our bulk water portfolio increased by
6.8% in 2022 as compared to 2021.
Gross Profit. Our gross profit in this consolidated reporting
segment increased by 8.1% to Ps. 62,035 million in 2022
as compared to 2021, and gross profit margin decreased
210 basis points to 47.4% as compared to 2021. This gross
margin contraction was driven mainly by an increase in raw
material costs such as PET resin and sweeteners, coupled
with higher concentrate costs in Mexico. These effects were
partially offset by our revenue management initiatives, fa-
vorable price-mix effects, and our raw material hedging
strategies.
Administrative and Selling Expenses. Administrative and
selling expenses as a percentage of total revenues in this
consolidated reporting segment decreased by 70 basis
points to 31.2% in 2022 as compared to the same period
in 2021. Administrative and selling expenses, in absolute
terms, increased by 7.3% in 2022 as compared to 2021,
driven mainly by an increase in variable operating expenses
as a result of top-line growth.
SOUTH AMERICA
Total Revenues. Total revenues in our South America con-
solidated reporting segment increased by 21.2% to Ps.
95,738 million in 2022 as compared to 2021, mainly as a
result of volume growth, favorable price-mix effects, and
our revenue management initiatives. These factors were
partially offset by a decline in beer revenues related to the
transition of our beer portfolio in Brazil, and unfavorable
currency translation effects resulting from the depreciation
of some of our operating currencies as compared to the
Mexican peso. In addition, for 2021 this line included other
operating revenue due to a favorable determination from
the Brazilian tax authorities, which allowed a recognition
of a deferred tax credit in Brazil for an amount of Ps. 254
million. See Note 24.2.1 to our consolidated financial state-
ments. Total revenues for beer amounted to Ps. 5,599 mil-
lion in 2022. On a comparable basis, total revenues would
have increased by 24.4% in 2022 as compared to 2021.
Total sales volume in our South America consolidated
reporting segment increased by 11.9% to 1,566.8 million
unit cases in 2022 as compared to 2021, mainly as a result
of double-digit volume growth in Brazil, Colombia, and Ar-
gentina, coupled with volume growth in Uruguay. On a com-
parable basis, total sales volume would have increased by
9.5% in 2022 as compared to 2021.
• Sales volume of our sparkling beverage portfolio in-
creased by 8.8% in 2022 as compared to 2021, driven
mainly by a 9.4% increase in our colas portfolio. On a
comparable basis, sales volume of our sparkling bever-
age portfolio would have increased by 7.2%.
• Sales volume of our still beverage portfolio increased
by 34.7% in 2022 as compared to 2021, due to a dou-
ble-digit increase in all of our territories from the division.
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Sales volume in Colombia increased by 10.8% to 330.1
million unit cases in 2022, as compared to 297.9 million
unit cases in 2021.
• Sales volume of our still beverage portfolio increased by
94.2% in 2022 as compared to 2021.
• Sales volume of bottled water increased by 18.0% in
On a comparable basis, sales volume of our still beverage
portfolio would have increased by 24.5%.
• Sales volume of our bottled water category, excluding bulk
water, increased by 33.2% in 2022 as compared to 2021,
due to a double-digit increase in all of our territories from
the division. On a comparable basis, sales volume of our
water portfolio would have increased by 30.2%.
• Sales volume of our bulk water portfolio decreased by
4.4% in 2022 as compared to 2021, due to a decline in
Colombia and Argentina, partially offset by a double-digit
increase in Brazil. On a comparable basis, sales volume of
our bulk water portfolio would have decreased by 11.4%.
Sales volume in Brazil increased by 12.5% to 1,016.2 mil-
lion unit cases in 2022, as compared to 903.3 million unit
cases in 2021. On a comparable basis, total sales volume in
Brazil would have increased by 8.8% in 2022 as compared
to 2021.
• Sales volume of our sparkling beverage portfolio in-
creased by 8.5% in 2022 as compared to 2021, driven
mainly by a 7.1% growth in colas and 16.1% volume
growth in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by
34.4% in 2022 as compared to 2021.
• Sales volume of bottled water, excluding bulk water, in-
creased by 27.4% in 2022 as compared to 2021.
• Sales volume of our bulk water portfolio decreased by
16.9% in 2022 as compared to 2021.
Sales volume in Argentina increased by 11.9% to 173.9
million unit cases in 2022, as compared to 155.4 million
unit cases in 2021.
• Sales volume of our sparkling beverage portfolio in-
• Sales volume of our sparkling beverage portfolio in-
creased by 8.7% in 2022 as compared to 2021, as a re-
sult of an increase of 9.9% in our colas portfolio and an
increase of 5.3% in our flavored sparkling beverage port-
folio. On a comparable basis, sales volume of our spar-
kling beverage portfolio would have increased by 6.2%.
• Sales volume of our still beverage portfolio increased by
39.2% in 2022 as compared to 2021. On a comparable
basis, sales volume of our still beverage portfolio would
have increased by 23.1%.
• Sales volume of our bottled water, excluding bulk water,
increased by 37.3% in 2022 as compared to 2021. On
a comparable basis, sales volume of our water portfolio
would have increased by 31.7%.
• Sales volume of our bulk water portfolio increased by
36.2% in 2022 as compared to 2021. On a comparable
basis, sales volume of our bulk water portfolio would
have increased by 10.8%.
creased by 11.4% in 2022 as compared to 2021, impact-
ed mainly by a 12.8% increase in colas and a 6.4% in-
crease in our flavored sparkling beverage portfolio.
• Sales volume of our still beverage portfolio increased by
11.1% in 2022 as compared to 2021.
• Sales volume of bottled water, excluding bulk water, in-
creased by 35.8% in 2022 as compared to 2021.
• Sales volume of our bulk water portfolio decreased by
28.6% in 2022 as compared to 2021.
Sales volume in Uruguay increased by 7.5% to 46.6 mil-
lion unit cases in 2022, as compared to 43.4 million unit
cases in 2021.
• Sales volume of our sparkling beverage portfolio in-
creased by 4.2% in 2022 as compared to 2021.
2022 as compared to 2021.
Gross Profit. Gross profit in this consolidated reporting
segment amounted to Ps. 38,265 million, an increase of
22.5% in 2022 as compared to 2021, with a 50 basis point
margin expansion to 40.0%. This increase in gross profit
was driven mainly by a favorable price-mix effect, our raw
material hedging strategies, and an increase in our top-line.
These factors were partially offset by the depreciation of
the average exchange rate of some of our operating curren-
cies in the consolidated reporting segment as applied to our
U.S. dollar-denominated raw material costs. In addition, for
2021 this line included the recognition of an extraordinary
benefit of Ps. 1,083 million during the second quarter of
2021, related to credits on concentrate purchased from the
Manaus Free Trade Zone in Brazil.
Administrative and Selling Expenses. Administrative
and selling expenses as a percentage of total revenues in
this consolidated reporting segment increased by 70 ba-
sis points to 29.4% in 2022 as compared to 2021, driven
mainly by an increase in variable operating expenses as a
result of our top-line growth. Administrative and selling ex-
penses, in absolute terms, increased by 24.2% in 2022 as
compared to 2021.
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CAPITAL & COMPANY ENGAGEMENT
Capital
Human
Nature
Company Engagement
Capital
Company Engagement
Capital
Company Engagement
Our people are the lifeblood of our compa-
ny. As part of our people-centric culture, we
aim to increase opportunities for our people
to fulfill their individual career needs, foster a
culture of wellbeing based on a holistic view
of self-care and prevention, ensure our people
enjoy more control over their life, along all of
the different steps of their work experience,
and enable our company’s diversity, equity,
and inclusion.
Our business is committed to the responsible
use of natural resources. We are committed
to reducing the water we consume and se-
cure water availability for our operations (ef-
ficiency), returning the water we use to the
source (replenishment), and improving access
to water for our communities and ourselves
(access). We also work to increase energy
efficiency across our value chain, while inte-
grating clean and renewable energy to reduce
carbon emissions. Furthermore, we are fo-
cused on accelerating the transition to a circu-
lar economy, strengthening our PET collection
and use of recycled resin across our opera-
tions, while reducing packaging and opera-
tional waste.
Social &
Relationship
Financial
The development of our social ambitions and
strategy is founded on an understanding that
our license to operate relies on developing
mutually beneficial relationships between
our company and our internal and external
stakeholders. Internally, we are guided by
an understanding that our people are the
lifeblood of Coca-Cola FEMSA, and the best
way to grow is to ensure that our talent can
live fulfilling lives—balancing their purpose in
and out of the workplace. Externally, we are
focused on our relationships with local com-
munities and the value chain. Recognizing
that our operations have an enormous impact
on our society and communities close to our
plants, our goal is to continue to add value to
ensure sustainable growth for our company
and community in tandem.
Our financial and operating discipline, strong
capital structure and financial flexibility, trans-
formational digital initiatives, and adaptabili-
ty to changing market dynamics enable us to
capture organic and inorganic growth oppor-
tunities in our industry, while creating sustain-
able value for our investors.
Intellectual
We are accelerating the digital evolution of
our business to become the world’s preferred,
most sustainable commercial ecosystem.
Through our digital and analytics hub, we
not only empower our organization’s cultural
transformation and strategic capability build-
ing, but also co-create prioritized digital and
analytical solutions that accelerate the de-
ployment of our commercial platforms and
solutions holistically through agile cells that
maximize our competitiveness, proactive-
ly address industry challenges, capitalize on
market opportunities, and foster intellectual
development across our organization.
Manufactured Our highly experienced teams operate 56
bottling plants and 249 distribution centers
across nine countries, deliver approximately
3.8 billion unit cases of beverages through a
primary and secondary fleet to more than 2
million points of sale, and serve a population
of more than 270 million.
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COMPREHENSIVE
RISK MANAGEMENT
Our company is present in different countries and regions. Consequently, we
are continually exposed 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. Accordingly, 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
· Termination of the bottler
agreements.
· Actions contrary to
the interests of our
shareholders other than
The Coca-Cola Company
and FEMSA.
· Comply with the bottler agreements.
· Work together and promote effective
interaction between our strategic
shareholders in order to maximize value
creation.
· Variability in the demand
· Transform into a total beverage company
for our products.
aligned with consumers’ changing tastes and
lifestyles.
· Build a winning multi-category portfolio of
products and presentations.
· Drive our low- and no-sugar portfolio ahead of
consumer trends.
· Offer sustainable packaging options for our
beverages.
· Damage to Coca-Cola’s
· Maintain the reputation and intellectual
and our trademark
reputation.
property rights of Coca-Cola trademarks and
our own trademarks.
· Effective brand protection.
· Strictly comply with Responsible Marketing
Policies.
Strategic Shareholder
Relationships
Our business depends on
our relationship with The
Coca-Cola Company and
FEMSA, and changes in this
relationship may adversely
affect us.
Consumer Preferences
Changes in consumer
preferences, purchase
drivers, and consumption
habits might generate
variability in the demand
for some of our products.
Environmental issues.
Coca-Cola Trademarks
Coca-Cola’s and our
brand reputation or brand
violations could adversely
affect our business.
Competition
Competition could
adversely affect our
business, financial
performance, and results
of operations.
Cyber Incidents
Since our business is
highly leveraged by
information systems and
digital services, it could be
significantly affected in the
event of a security breach
or cyber incident that
affects the confidentiality,
availability, or integrity
of information and
information systems.
· Changes in consumer
· Offer affordable prices, returnable packaging,
preferences.
· Lower pricing by
competitors.
effective promotions, access to retail
outlets and sufficient shelf space, enhanced
customer service, and innovative products.
· Identify, stimulate, and satisfy consumer
preferences.
· Business disruption.
· Theft or unauthorized
exposure of sensitive or
confidential information.
· Regulatory non-
compliance.
· Fraud.
· Economic loss.
· Reputational damage
and/or impact on share
value.
· A systemic approach to cyber security based
on industry standards and the TCCC (The
Coca-Cola Company) Business Resilience
Framework.
· Oversight by the Board’s Audit Committee,
the senior management, and a CISO (Chief
Information Security Officer).
· Cybersecurity-focused organizational
structure.
· Risk management process supported by
periodic independent assessments.
· Personnel awareness and training program
regarding cybersecurity, social engineering,
and phishing prevention.
· Continuous investment to strengthen
the security of existing processes and
technologies.
· Security by design approach to the new
business digital initiatives.
· Continuous improvement of monitoring,
incident response, and resilience capabilities.
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Main Risk
Potential Impacts
Key Mitigation Actions
Main Risk
Potential Impacts
Key Mitigation Actions
Economic, Political, and
Social Conditions
Adverse economic
conditions, political,
and social events in
the countries 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
consumer per capita
income, which could
result in decreased
consumer purchasing
power.
· Lower demand for our
products, lower real
pricing of our products
or a shift to lower margin
products.
· Negatively affect our
company and materially
affect our financial
condition, results
of operations, and
prospects.
· Through a risk management strategy, hedge
our exposure to interest rates, exchange
rates, and raw material costs.
· Annually or more frequently evaluate, when
the circumstances require, the possible
financial effects of these conditions and, to
the extent possible, anticipate mitigation
measures.
· Usage of foresight methodologies to map
our upcoming sociopolitical risks through
analyzing key economic and social data
against upcoming political risks factors such
as elections, constitutional reforms and
increasing political repression.
· Develop scenarios and contingency plans
for adverse sociopolitical conditions (e.g.,
social revolt after an election) that allow
for business continuity considering, among
others: alternative distribution routes, stock
management to prioritize critical SKUs,
securing financial assets, etc.
Regulations
Taxes and changes in
regulations in the regions
where we operate could
adversely affect our
business.
· Increase in operating and
· Identify regulatory risks and proposals of
compliance costs.
· Restrictions imposed on
changes to regulations that directly affect our
operation or financial condition.
our operations.
· The imposition of
· Advocacy work to provide advice on
legislators’ proposed regulatory changes.
new taxes, increases
in existing taxes,
or changes in the
interpretation of tax laws
and regulation by tax
authorities may have a
material adverse effect
on our business, financial
condition and results of
operations.
Legal Proceedings
Unfavorable outcomes of
legal proceedings could
adversely impact our
business.
Weather Conditions,
Natural Disasters, and
Public Health Crises
Adverse weather
conditions, natural
disasters, and public health
crises may adversely affect
our business, financial
condition, results of
operations, and prospects.
Acquisitions and Business
Alliances
Inability to successfully
integrate acquisitions or
achieve expected synergies
could adversely affect our
operations.
· Investigations and
proceedings on tax,
consumer protection,
environmental, and labor
matters.
· Comply with applicable laws and regulations
and comply with workplace rights policy.
· Impact consumer
patterns and beverage
sales.
· Implement business continuity plans and
safety protocols to protect employees and
avoid significant disruptions to our business.
· Affect plants’ installed
· Insure assets and operations against such
capacity, road
infrastructure, and points
of sale.
· Negatively affect our
business, financial
condition, results
of operations, and
prospects.
· Difficulties and
unforeseen liabilities
or additional costs
in restructuring and
integrating operations.
adverse events.
· Integrate acquired or merged businesses’
operations in a timely and effective way,
retaining key qualified and experienced
professionals.
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Main Risk
Potential Impacts
Key Mitigation Actions
Main Risk
Potential Impacts
Key Mitigation Actions
Foreign Exchange
Depreciation of the local
currencies of the countries
where we operate relative
to the U.S. dollar could
adversely affect our
financial condition and
results.
Climate Change
Adverse weather
conditions could adversely
affect our business and
results of operations.
Social Media
Negative or inaccurate
information on social
media could adversely
affect our reputation.
· Financial loss.
· Increase cost of some
raw materials.
· Adversely affect our
results, financial
condition, and cash flows
in future periods.
· Closely monitor developments that may affect
exchanges rates.
· Hedge our exposure to the U.S. dollar with
respect to certain local currencies, our U.S.
dollar-denominated debt obligations, and the
purchase of certain U.S. dollar-denominated
raw materials.
Water
Water shortages or failure
to maintain our current
water concessions could
adversely affect our
business.
· Negatively affect
· Identify sources of our operations’ CO2
consumer patterns and
reduce sales.
emissions.
· Support and comply with climate change
· Affect plants’ installed
mitigation measures.
capacity, road
infrastructure, raw
material supply, and
points of sale.
· Damage to our brands
or corporate reputation
without affording us
an opportunity for
correction.
· Identify and reduce our environmental
footprint through efficient use of water,
energy, and materials.
· Effective brand protection.
· Proactive external communication.
Raw Materials
Increases in the price of
raw materials we use to
manufacture our products
could adversely affect our
production costs.
Insufficient availability
of raw materials could
limit the production of our
beverages.
· Water supply may be
insufficient to meet our
future production needs.
· Water supply may be
adversely affected due to
shortages or changes in
governmental regulations
or environmental
changes.
· Water concessions
or contracts may be
terminated or not
renewed.
· Shortage or insufficient
availability of raw
materials may adversely
affect our capacity
to ensure production
continuity.
· Adjustments to our
product portfolio
according to availability.
· Efficient water usage.
· Execute water conservation and
replenishment projects.
· Maintain 100% legal compliance.
· Develop a water risk index, including four
issues that need to be assessed: community
and public perception risks, scarcity of water
and other inputs, regulatory risks, and legal
risks for each of our bottling plants.
· Update water risk assessment tool and work
plans that contemplate aspects such as
climate change, resilience to hydrological
stress, media and social vulnerabilities, as
well as regulations and production volumes
for each of our bottling plants.
· Secure water concessions for our production
facilities.
· Implement measures to mitigate the negative
effect of product pricing on our margins such
as hedging via derivative instruments.
· Proactively address risk of supply on our
value chain.
· Strict compliance with our Supplier Guiding
Principles.
· Strategically adjust our product portfolio to
enable us to minimize the impact of certain
operating disruptions.
For more information please visit our see 20F report.
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CORPORATE GOVERNANCE
BOARD OF DIRECTORS
DIRECTORS APPOINTED BY SERIES A SHAREHOLDERS
José Antonio Fernández
Chairman of the Board of FEMSA
Alternate: Javier Gerardo Astaburuaga Sanjines
30 Years as a Board Member
José Henrique Cutrale
Director of Sucocítrico Cutrale Ltda.
Alternate: Graziela Cutrale
Board member as of September 2022
Alfonso González Migoya*
Business Consultant
17 Years as a Board Member
Daniel Alberto Rodríguez Cofré
Chief Executive Officer of FEMSA
Alternate: Francisco Camacho Beltrán
1 Year as a Board Member
Federico Reyes García
Independent Consultant
Alternate: Eugenio Garza y Garza
30 Years as a Board Member
Ricardo Guajardo Touché*
Independent Consultant
30 Years as a Board Member
Enrique F. Senior Hernández*
Managing Director of Allen & Company, LLC
19 Years as a Board Member
Luis Rubio Freidberg*
Chairman of México Evalúa Centro de Análisis de
Políticas Públicas, A.C.
6 Years as a Board Member
Francisco Zambrano Rodríguez*
Independent Consultant and Co-Chief Executive
Officer of Desarrollo Inmobiliario y de Valores, S.A.
de C.V., Corporativo Zeta DIVASA, S.A.P.I. de C.V. and
IPFC Inmuebles, S.A.P.I. de C.V.
20 Years as a Board Member
DIRECTORS APPOINTED BY SERIES D SHAREHOLDERS
John Murphy
Executive Vice President and Chief Financial Officer
of The Coca-Cola Company
Alternate: Stacy Lynn Apter
4 Years as a Board Member
José Octavio Reyes Lagunes
Retired
Alternate: T. Robin Rodgers Moore
7 Years as a Board Member
Nikos Koumettis
President of Europe Operating Unit of The Coca-Cola
Company
1 Year as a Board Member
Mr. José Luis Cutrale, Board member, long-time advisor
and friend of our company, unfortunately passed away
on August, 2022. Mr. Cutrale contributed his talent
and business skills to our Company since 2004. As of
September 28, 2022, his son, Mr. José Henrique Cutrale
replaced Mr. José Luis Cutrale as Board Member.
Jennifer K. Mann
Corporate Senior Vice President and President of
North America for The Coca-Cola Company
Alternate: Marie D. Quintero-Johnson
Board Member as of March 2023
DIRECTORS APPOINTED BY SERIES L SHAREHOLDERS
Victor Alberto Tiburcio Celorio*
Independent Consultant
4 Years as a Board Member
Luis Alfonso Nicolau Gutiérrez*
Partner at Ritch, Mueller, Heather y Nicolau, S.C.
Alternate: Jaime A. El Koury*
5 Years as a Board Member
Amy Eschliman*
Managing Director of Retail at Google Cloud
Board Member as of March 2023
SECRETARY OF BOARD (NON-MEMBER)
Alejandro Gil Ortiz
Secretary of the Board
Alternate: Carlos Luis Díaz Sáenz
1 Year as a Secretary
* Independent Director
EXECUTIVE OFFICERS
Ian Craig
Chief Executive Officer
Gerardo Cruz Celaya
Chief Financial Officer
Karina Awad Pérez
Human Resources Officer
Nicolás Bertelloni
Chief Growth Officer
Rafael Ramos Casas
Supply Chain and Engineering Officer
Gabriel Coindreau Montemayor
Strategic Planning Officer
Ignacio Echevarría Mendiguren
Digital and Technology Officer
Fabricio Ponce García
Chief Operating Officer—Mexico
Eduardo Pereyra Méndez
Chief Operating Officer—Brazil
Aitor Ocejo Zubizarreta
Chief Operating Officer—Latin America
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BOARD COMMITTEES
PLANNING AND FINANCE COMMITTEE
The Planning and Finance Committee works with management to set
our annual and long-term strategic and financial plans and monitors
adherence to these plans. It is responsible for setting our optimal
capital structure and recommends the appropriate level of borrowing, as
well as the issuance of securities. Financial risk management is another
responsibility of the Planning and Finance Committee.
Ricardo Guajardo Touché is the chairman of the Planning and Finance
Committee. The other members include: Federico Reyes García, John
Murphy, Amy Eschliman, Enrique F. Senior Hernández and Eugenio
Garza y Garza. The secretary non-member of the Planning and Finance
Committee is Gerardo Cruz Celaya, our Chief Financial Officer.
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 particular 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 chairman of the Corporate Practices Committee is Luis Rubio
Freidberg. Pursuant to the Mexican Securities Market Law, the chairman
of the Corporate Practices Committee is elected at our shareholders
meeting. The other members include: Jaime A. El Koury and Luis A.
Nicolau Gutiérrez, and two permanent non-member guests, Daniel
Alberto Rodríguez Cofré and José Octavio Reyes Lagunes. The secretary
non-member of the Corporate Practices Committee is Karina Paola
Awad Pérez, our Human Resources Officer.
AUDIT COMMITTEE
The Audit Committee is responsible for reviewing the accuracy and
integrity of quarterly and annual financial statements in accordance
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 procedures for receiving, retaining and addressing
complaints regarding accounting, internal control and auditing matters,
including the submission of confidential, anonymous complaints from
employees regarding questionable 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 ordinary administrative expenses incurred by the
Audit Committee in the course of its duties.
Victor Alberto Tiburcio Celorio is the chairman 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 shareholders meeting. The other members are: Alfonso González
Migoya and Francisco Zambrano Rodríguez. Each member of the Audit
Committee is an independent director, 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
Gerardo Estrada Attolini, FEMSA’s Administration and Corporate Control
Department Officer.
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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 establishment of an
integral ethical system.
Our ethics management is based on:
• Prevent illicit behaviors that may affect our hu-
man capital and our heritage
• Detect improper acts through open communica-
tion channels
• Respond and provide feedback to our organiza-
tion to build trust
Our system is comprised of three fundamental el-
ements: the →Code of Ethics, the Ethics Commit-
tee, 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 be-
havior inside and outside of our organization, and
guides our correct decision-making based on ethi-
cal principles. Our recently updated Code includes
important topics such as Human Rights, Inclusion
and Diversity, Discrimination, Violence and Harass-
ment, Conflicts of Interest, Misuse of Information,
and Anti-corruption.
Specifically, regarding the subject of gifts, courtesies
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, mon-
ey, gifts, advantageous conditions, salaries, trav-
el, commissions or anything else of value to ob-
tain any undue advantage or benefit of any kind.
• We do not give or offer gifts to government officials.
• We only accept, give, or offer gifts of a promo-
tional nature, occasional and of symbolic value.
• We only provide hospitalities in accordance with
our Corporate Policy and the applicable legal
provisions.
• When a client or a supplier offers an invitation,
which implies a trip outside the city or to attend
a sporting event or any other entertainment, we
shall comply with this Code of Ethics and other
Internal Guidelines and must obtain prior neces-
sary approval to attend such invitation.
Ethics Committee
The Ethics Committee is the oversight and control
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.
Unsubstantiated
31%
In review
45%
Complaints
by Status
Substantiated
24%
Operational
12%
Financial
Information
2%
Complaints
by Topics
Human Resources
86%
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, suppli-
ers, third parties or anyone who has a rela-
tionship with Coca-Cola FEMSA can use the
system anonymously.
A group of investigators analyzes the com-
plaints impartially and confidentially and, if
a violation of the Code is found, corrective
measures are applied.
In 2022, we received 1,371 complaints; some
of which were related to work environment and
leadership, operational and financial information.
To strengthen our culture, our workers sign a
Letter of Compliance to our Code of Ethics. Its
purpose 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 viola-
tion of the Code that they know.
For further information and access to the full doc-
ument of our Code of Ethics please access one of
the following links:
→Spanish
→English
→Portuguese
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EMPLOYEE TURNOVER
As mentioned in the Culture chapter, retaining top-tier
talent is a priority for KOF, which is why we have worked
on offering our employees a flexible benefits program, an
optimal and inclusive work environment, and competitive
remuneration. To keep track on the effectiveness of our
initiatives and in our effort to consistently optimize them,
we track our employee turnover rate, which can help
spot any areas of improvement and make sure that our
employees desire to remain with the company.
%
2
.
0
2
%
1
.
9
1
%
7
.
2
1
%
0
.
2
1
%
2
.
9
%
7
.
9
WOMEN
MEN
■ Involuntary ■ Voluntary
TOTAL
Y
R
A
T
N
U
L
O
V
N
I
&
R
E
V
O
N
R
U
T
Y
R
A
T
N
U
L
O
V
E
E
Y
O
L
P
M
E
Turnover by
Country
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Mexico
Nicaragua
Panama
Uruguay
Total KOF
Involuntary
Turnover by
age group
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Mexico
Nicaragua
Panama
Uruguay
Total
Involuntary
Voluntary
8.23%
13.71%
5.69%
6.39%
116.73%
17.70%
2.54%
5.16%
11.66%
19.10%
5.33%
6.38%
8.37%
11.49%
3.39%
12.09%
9.24%
1.19%
9.61%
9.65%
Turnover
Women
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Mexico
Nicaragua
Panama
Uruguay
Total KOF
Involuntary
Voluntary
7.33%
12.48%
6.79%
6.39%
15.56%
13.04%
3.99%
4.35%
18.38%
12.00%
17.09%
9.85%
11.60%
11.80%
9.43%
14.74%
12.97%
4.35%
19.04%
12.72%
Turonver
Men
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Mexico
Nicaragua
Panama
Uruguay
Total KOF
8.36%
13.95%
5.28%
6.39%
124.48%
18.30%
2.32%
5.25%
9.53%
20.20%
Involuntary
Voluntary
30 or less
30-50
50+
18.40%
15.40%
7.61%
9.09%
268.82%
25.44%
5.28%
9.66%
27.70%
28.67%
5.81%
13.26%
5.51%
5.52%
69.01%
11.61%
2.37%
3.65%
10.84%
13.67%
3.74%
9.57%
2.87%
4.32%
25.67%
10.17%
0.00%
5.58%
1.18%
9.35%
Voluntary
Turnover by
age group
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Mexico
Nicaragua
Panama
Uruguay
Total
30 or less
30-50
15.14%
9.13%
15.32%
18.48%
4.36%
20.09%
12.82%
2.32%
26.44%
16.76%
3.23%
5.45%
7.12%
10.01%
2.84%
6.08%
9.47%
1.10%
8.08%
5.75%
3.69%
5.69%
7.20%
11.43%
2.92%
11.75%
8.66%
0.87%
6.63%
9.17%
50+
0.23%
1.44%
0.00%
0.86%
3.80%
1.41%
3.73%
0.00%
2.36%
1.37%
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INDEPENDENT
LIMITED
VERIFICATION
REPORT:
PERFORMANCE
METRICS
Av. Ejército Nacional 843-B
Antara Polanco
11520 Mexico, D.F.
Tel: +55 5283 1300
Fax: +55 5283 1392
ey.com/mx
Independent Limited Assurance Report
To the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V.:
Scope of our Work
We have been engaged by Coca Cola FEMSA, S.A.B. de C.V. (“KOF” or the “Company” to perform a ‘limited assurance
engagement,’ as defined by International Standards on Assurance Engagements, here after referred to as the engagement,
to report on KOF’s selected performance indicators included (“Subject Matter”) and presented in the Annual Integrated Report
(the “Report”) and mentioned in the annex A; corresponding to the period from January 1st to December 31st 2022.
Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did not perform
assurance procedures on the remaining information included in the Report, and accordingly, we do not express a conclusion
on this information.
Criteria applied by Coca Cola FEMSA, S.A.B. de C.V.
In preparing the selected performance indicators, Coca Cola FEMSA, S.A.B. de C.V. applied their internal developed criteria,
as well as those based on what is set forth in the GRI Standards (Criteria).
system of quality control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a
reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not
provide all the evidence that would be required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal controls when determining the nature and extent of our
procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not
include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the selected
performance indicators and related information and applying analytical and other appropriate procedures.
Our procedures included:
•
•
•
Interviews with the responsible persons to obtain an understanding of the data management systems and processes used
to generate, disaggregate, and report information related to each Criteria.
Analytical procedures such as validations of ratios and proportions or expected results and trends considering the correct
application of calculations and formulas in the documentation submitted for the Criterion in question.
Inquiries to responsible persons regarding each of the Criteria to explain deviations from expected results and trends and
to be able to correct or document them.
Coca Cola FEMSA, S.A.B. de C.V. ’s responsibilities
Conclusion
Coca Cola FEMSA, S.A.B. de C. V’s management is responsible for selecting the Criteria, and for presenting the selected
performance indicators in accordance with that Criteria, in all material respects. This responsibility includes establishing and
maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the
Subject Matter, such that it is free from material misstatement, whether due to fraud or error.
EY’s responsibilities
Our responsibility is to express a conclusion on the presentation of the indicator included in Annex A based on the evidence
we have obtained.
We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits
or Reviews of Historical Financial Information (‘ISAE 3000’), and the terms of reference for this engagement as agreed with
Coca Cola FEMSA, S.A.B. de C.V on February 16, 2023. Those standards require that we plan and perform our engagement
to obtain limited assurance about whether, in all material respects, the Subject Matter is presented in accordance with the
Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including
an assessment of the risk of material misstatement, whether due to fraud or error.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusions.
Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants and have the required competencies and
experience to conduct this assurance engagement.
EY also applies International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance and Related Services Engagements, and accordingly maintains a comprehensive
Member Practice of Ernst & Young Global Limited
Based on our procedures and the evidence obtained, we are not aware of any material modifications that should be made to
the selected performance indicators as of December 31, 2022; for it to be based on the Criteria.
Other Information
The notification to the Global Reporting Initiative (GRI) about the publication of the Report, following the guidelines of the GRI
standard 1: Foundation, Reporting with reference to the GRI Standards, Notify GRI (the organization shall notify GRI of the
use of the GRI Standards and the statement of use by sending an email to reportregistration@globalreporting.org), is the
responsibility of the Company and we have been informed that it will be done within 5 business days following the issuance of
this conclusion.
Mancera, S.C.
A Member Practice of Ernst & Young Global Limited
C.P.C. Luis F. Ortega Sinencio
March 27, 2023
Mexico City, Mexico
Member Practice of Ernst & Young Global Limited
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INDEPENDENT
LIMITED
VERIFICATION
REPORT:
PERFORMANCE
METRICS
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
102-7
(2021)
301-2
306-4
(2020)
306-5
(2020)
Total number of employees
All countries of operation
Use of recycled PET resin
All countries of operation
Waste not destined for disposal
All countries of operation
Waste for disposal
All countries of operation
Reported
information
97,213
14.3
85.7
31.8
45.1
5.9
26.62
98.5
1.5
Unit
Total number of employees
% female gender
% male gender
% Age range under 30
% Age range 30 - 50
% Age range over 50 years old (%)
% Recycled vs. virgin resin
% Recycled waste
% Waste for disposal
1,933,774,046.99
MJ Thermal energy consumption
302-1
Energy consumption in the organization
All countries of operation
1,480,272,064.84
MJ Renewable energy consumption
302-3
303-3
(2018)
303-4
(2018)
303-5
(2018)
IP
305-1
Energy intensity
All countries of operation
Water withdrawal
All countries of operation
Water discharge
All countries of operation
Water consumption
All countries of operation
Water consumption efficiency*
All countries of operation
751,374,020.64
MJ Energy consumption from other sources
5.97
30,241
8,564
30,241
1.46
Liters of beverage produced/MJ
Mega Liters
Mega Liters
Mega Liters
Ratio, liters of water consumed per liter of
beverage produced
Direct GHG emissions (Scope 1)
All countries of operation
554,500.71
tons of CO2e
305-2
Indirect GHG emissions from energy generation (Scope 2)
All countries of operation
52,105.72
tons of CO2e
305-3
Other indirect emissions (Scope 3)
All countries of operation
3,182,146.35
tons of CO2e
GRI
Name of the disclosure or performance indicator
Scope of the information
403-9
403-10
Total incident rate (TIR)
All countries of operation 1
Lost time incident rate (LTIR)
All countries of operation 2
Reported
information
0.90
0.61
Unit
Cases per 200000/ Worked hours
Cases per 200000/ Worked hours
1 Does not include Venezuela
2 Does not include Venezuela
* This indicator was developed by Coca Cola FEMSA and is defines as the liters of water it was necessary to consume to produce one liter of beverage.
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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 Assurance Report
To the Board of Directors of Coca Cola FEMSA, S.A.B. de C.V.:
Scope of our Work
We have been engaged by Coca Cola FEMSA, S.A.B. de C.V. (“KOF” or the “Company”) to perform a reasonable assurance
engagement,’ as defined by the International Standards on Assurance Engagements, hereafter referred to as “the
Engagement”, to report on KOF’s net proceeds allocation and use for the eligible projects based on the established criteria in
KOF’s Green Bond Framework (“Subject Matter”) included and presented in the Annual Integrated Report (the “Report”) and
mentioned on Annex A; for the period from January 1st to December 31st, 2022.
Other than as described in the preceding paragraph, which sets out the scope of our Engagement, we did not perform
assurance procedures on the remaining information included in the Report, and accordingly, we do not express an opinion on
this information.
Criteria applied by Coca Cola FEMSA, S.A.B. de C.V.
In preparing the net proceeds allocation and use for the eligible projects based on the established criteria in KOF’s Green Bond
Framework, Coca Cola FEMSA, S.A.B. de C.V. applied the criteria set forth in the Green Bond Principles published by the
“International Capital Market Association” (Criteria). Such Criteria were specifically designed for the construction and
reporting of Subject Matter as a result; the Subject Matter information may not be suitable for another purpose.
Coca Cola FEMSA, S.A.B. de C.V.’s responsibilities
Coca Cola FEMSA, S.A.B. de C.V’s management is responsible for selecting the Criteria, and for presenting the Subject Matter
in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal
controls, maintaining adequate records, and making estimates that are relevant to the preparation of the Subject Matter, such
that it is free from material misstatement, whether due to fraud or error.
EY’s responsibilities
Our responsibility is to express an opinion on the presentation of the Subject Matter, included in Annex A, based on the
evidence we have obtained.
We conducted our Engagement in accordance with the International Standard for Assurance Engagements Other Than Audits
or Reviews of Historical Financial Information (‘ISAE 3000’), and the terms of reference for this Engagement as agreed with
Coca Cola FEMSA, S.A.B. de C.V on February 16, 2023. Our responsibility according to the previously mentioned Standards
require that we plan and perform our Engagement to obtain reasonable assurance about whether, in all material respects, the
Subject Matter is presented in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the
procedures selected depend on our judgment, including an assessment of the risk of material misstatement, whether due to
fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our Independence and Quality Control
Member Practice of Ernst & Young Global Limited
We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional
Accountants (including the International Independence Standards) issued by the International Ethics Standards Board for
Accountants (“IESBA”) and have the required competencies and experience to conduct this assurance engagement.
EY also applies International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance and Related Services Engagements, and accordingly maintains a comprehensive
system of quality control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Description of procedures performed
The procedures performed focused on the following:
• Conducted interviews with relevant personnel to understand the business and reporting process, including the
sustainability strategy principles, and management
• Conducted interviews with key personnel to understand the reporting period, including the process for collecting,
collating, and reporting the information in accordance with the Green Bond Principles
• Checked that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the
Criteria
• Undertook analytical review procedures to support the reasonableness of the data
•
Tested, on a sample basis, underlying source information to check the accuracy of the data
Opinion
In our opinion, the net proceeds allocation and use for the eligible projects based on the established criteria in KOF’s Green
Bond Framework included in the Annual Integrated Report of the Company for the period from January 1st to December 31st,
2022, is presented, in all material respects, in accordance with the Green Bond Principles criteria issued by the “International
Capital Market Association” (Criteria).
Mancera, S.C.
A Member Practice of Ernst & Young Global Limited
C.P.C Luis F. Ortega Sinencio
March 27th , 2023
Mexico City, Mexico
Member Practice of Ernst & Young Global Limited
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COC A-COLA FEMSA | 2 022 Integra ted Repo r t | 1 10
Annex A Green Bond Proceeds Allocation by category- for the period of January 1st to December 31st,
2022
The following data was assured by EY in strict accordance with our established procedures. This information is presented by
the company in its Annual Integrated Report.
Category
Figure
Unit
Total investment
314.74
Millions USD
Circular Economy
160.83
Millions USD
Climate Change
146.84
Millions USD
Water Stewardship
7.07
Millions USD
INDEPENDENT
REASONABLE
VERIFICATION
REPORT:
GREEN BOND
Member Practice of Ernst & Young Global Limited
Investor Relations
Jorge Collazo
Lorena Martin
Marene Aranzabal
José Enrique Solís
kofmxinves@kof.com.mx
Sustainability
Luis Darío Ochoa
Rosaura Castañeda
Fernanda Turcott
Daniel Insulza
Yunuen Velázquez
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
COCA-COLA FEMSA, S.A.B. DE C.V.
Mario Pani N° 100
Col. Santa Fe Cuajimalpa 05348, Ciudad de Mexico,
Mexico (52 55) 1519 5000
Independent Accountants
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
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
$ High
68.91
59.15
56.23
55.15
$ Low
67.49
57.65
54.64
53.40
U.S. Dollars per ADS
Quarter ended
Dec-31
Sep-30
Jun-28
Mar-29
$ High
56.52
58.94
52.93
48.97
$ Low
47.53
51.99
46.56
42.21
2022
$ Close
67.88
58.39
55.28
54.95
2021
$ Close
54.38
56.27
52.93
46.20
KOFUBL MEXICAN STOCK EXCHANGE Quarterly Stock Information
Mexican Pesos
Quarter ended
Dec-30
Sep-30
Jun-30
Mar-31
$ High
133.22
118.81
113.16
109.80
$ Low
131.05
116.02
110.56
106.28
Mexican Pesos
Quarter ended
Dec-31
Sep-30
Jun-28
Mar-29
$ High
114.98
117.34
105.71
100.95
$ Low
101.17
104.14
93.88
87.79
2022
$ Close
131.84
117.67
111.34
109.53
2021
$ Close
111.54
116.32
105.47
94.41
ABOUT OUR
INTEGRATED REPORT
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 Commis-
sion, or the “SEC,” and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursuant to the rules and reg-
ulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make electronically 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 beverages of The Coca Cola Company, offering a wide
portfolio of 134 brands to a population of more than 270 million. With over 97 thousand employees, the company markets and
sells approximately 3.8 billion unit cases through more than 2 million points of sale a year. Operating 56 manufacturing plants
and 249 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of
its stakeholders across the value chain. The company 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
From our headquarters in Mexico City, we present the 2022 edition of our Integrated Report. This report
was developed following the guidelines of the International Integrated Reporting Council (IIRC) and in
accordance with the GRI (Global Reporting Initiative) Standards, as well as material indicators of the
SASB (Sustainability Accounting Standards Board) for the Non-Alcoholic Beverage Industry. Furthermore,
this report elaborates on our annual Communication on Progress (COP) to the United Nations Global
Compact, included by FEMSA in its 2022 report.
The information contained in this report corresponds to the period from January 1 to December 31, 2022.
It includes data from the countries where Coca-Cola FEMSA, S.A.B. de C.V. has operations or a majority
share. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and
Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, and Uruguay.
The company 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.
CHIEF FINANCIAL OFFICER
GERARDO CRUZ CELAYA
1. For comparability purposes, the non-financial quantitative data for 2022, 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