Mexico’s Arca Expands to South America

Mexican coke bottler Embotelladora Arca has agreed to purchase Grupo Guerrero, owner of Coca Cola bottling rights in northwestern Argentina. The amount of the transaction was not disclosed but was above $10m, according to Carlos Beltran del Rio, manager of investor relations at Arca. “We are looking at expansion opportunities outside Mexico,” he says, adding that there are few Coca Cola bottlers for sale. The deal should close in the next 6-9 months, after which Arca expects to offer new products to the Argentine market. The franchise includes the provinces of Catamarca, Jujuy, La Rioja, Salta, Santiago del Estero and Tucuman. It sold approximately 80m cases in 2007.