LatinFinance - July 2013 - 37

“We also see major opportunities in
in Latin America and the South Pacific, as
providing ICT services for the business
well as the Caribbean.
communities who can now avail of much
It is now looking to add another
more affordable solutions without the
market to its portfolio, having tendered
massive upfront capital costs associated
in June for a mobile license in Myanmar,
with more traditional solutions,” Delves
in partnership with domestic firm YSH
says.
Finance and George Soros-backed
The IMF package should stabilize the
Quantum Strategic Partners.
Jamaican dollar in the near term. But with
Back home, however, the economy
a history of working in small markets, the
is set to grow slowly. IMF-led austerity
means growth in Jamaica and the Eastern company is little worried about potential
FX swings.
Caribbean is likely to be “subdued” this
“We are used to working in markets
year, says Delves.
with exchange rate movements against the
That is unlikely to dent Digicel’s
US dollar – which is our reporting currency
strategy: following years of rolling out
Slow growth
– so for us it is ‘business as usual’,” Delves
data capabilities, it will continue pushing
Based in Jamaica, Digicel operates in 31
says. LF
the products.
markets globally, with mobile networks
________________________________________________________________________________________________________________
structure loans and bonds, Delves says.
Although Latin American and
Caribbean investors hold some of the
company’s dollar bonds, Digicel is not
looking to issue in the local markets,
“largely due to the fact that they would not
have the capacity,” Delves says.
An IPO is not out of the question. “If it
made sense down the road we wouldn’t
rule it out – but it would have to make
sense,” Delves says. “We have no plans to
do so and we wouldn’t just do it because
we can.”

Corporate with the best management team

Arca Continental

________________________________________________________________________________________________________________

Charting the course
Arca Continental plans further growth in Mexico and abroad through
acquisitions in a consolidating sector

reated through the merger of
Embotelladoras Arca and Grupo
Continental in 2011, Arca Continental is
Latin America’s second-largest Coca-Cola
bottler and one of the largest in the world.
Its strategy is straightforward: to
be the leader in the food and beverage
markets in which it operates.
Last year, it bought snack food
companies US-based Wise Foods and
Industrias Alimenticias Ecuatorianas
(Inalesca) in Ecuador. Its most recent
acquisitions are expected to generate net
sales of close to $400 million. The salty
snack producers complement the soft
drink business, and will expand Arca
Continental’s operations and marketing
capabilities. They also add to the
company’s growing snack business – Arca
acquired well-known Mexican brand
Bokados in 2007.
The moves contributed to Arca
Continental’s popular following: the firm
won strong, broad support in the online

voting section of the awards selection
process.
This year, Arca Continental continues
searching for growth opportunities,
looking in particular for strong brands,
says CFO Emilio Marcos Charur.
“Our vision is to be leaders in snacks
and beverages and to create maximum
value for our clients and shareholders,” he
tells LatinFinance.
Arca plans to invest four billion
pesos this year in cementing its market
leadership in Mexico, Argentina, Ecuador
and the US. Consolidation in the beverage
sector at home and abroad has also meant
further opportunities, Charur says.
“We have our core growth in CocaCola franchises in Mexico. We initiated
the consolidation in the industry [in
Mexico] and it is not finished: there are
still eight bottlers in the country and
we have been flexible in finding best
mechanisms for consolidation,” says
Charur.

“Consolidation has not finished among
bottlers in the Americas. We are analyzing
the best options for consolidation in
Mexico and Latin America, and we look
for businesses in which we could exploit
our strengths and capacity to create value
in business.”

Local focus

The company’s fundraising strategy is
conservative, targeted mostly at local
funding. It raised 2.7 billion pesos ($218
million) in March at tighter than expected
levels in its first domestic bond issue
in two years. The sale received at least
13.5 billion pesos in orders. The Mexican
bottler priced a one billion peso 2018
tranche at 13 basis points over the TIIE
floating rate reference. A 1.7 billion 2023
peso tranche came at 5.88%, or 95 basis
points over Mbonos.
Arca has analyzed a potential crossborder debut for financing expansion
and has been in touch with banks on the
matter. But until now, attractive domestic
rates and low overall financing needs have
made a dollar issue unnecessary.
“We consider international rates very
attractive, but we need an important
need to go to the market,” says Charur.
“Given attractive rates and liquidity in the
local market, we will continue to issue
locally.” LF

July 2013

LatinFinance 37

LatinFinance - July 2013

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