We think Coca-Cola Femsa's brand strength should help it endure near-term cost pressures.
In our view, Coca-Cola Femsa's third-quarter results provided further evidence of its strong brand equity (which underpins our narrow-moat rating), as cola volumes grew across all of its geographies (transactions up 3% in total), and pricing in the core Mexico and Central America segment (nearly 60% of revenue this quarter) remained robust. While the challenging macroeconomic environment in parts of South America remains a source of uncertainty, with inflation in Argentina amounting to 29% year-...
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