FEMSA Buys Another Drugstore Chain

Call it the revenge of the soda counter, Mexico-style.

On Monday, Mexican non-alcoholic-beverage powerhouse FEMSA -- otherwise known as Fomento Economico Mexicano, S.A.B. de C.V., owner of the world's largest franchise Coke-bottler, Coca-Cola FEMSA , announced that it has bought itself a drugstore chain. Specifically, FEMSA says it has bought Farmacias FM Moderna, which operates more than 100 drugstores in the western state of Sinaloa. 

The company also owns a 75% stake in the Farmacias Yza chain in southeast Mexico, bought just last month, and runs the OXXO chain of small-format stores.


The company didn't say why it is buying drugstores, other than as part of a "strategy to establish a relevant position in this attractive small-box retail segment." But the purchases do seem to provide a guaranteed retail sales outlet for the beverages its Coca-Cola FEMSA unit produces.

The article FEMSA Buys Another Drugstore Chain originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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