MEXICO CITY - PepsiCo Inc.'s biggest bottler outside the United States, Grupo Embotellador de Mexico SA de CV of Mexico City, is adding to its territory. The firm, known as Gemex, announced it agreed to acquire the San Luis Potos¡ franchise in Mexico, owned by the Gomez Madrazo family, for US$21 million. The sum includes US$16.5 million cash and US$4.5 million of debt absorption.
Meanwhile, Gemex reported its profit for the second quarter of 1996 reached nearly US$228 million - a 208 percent growth in real terms against the same period of 1995. Gemex also reported its capital spending in the first six months totaled US$30 million, and included its purchase of machinery for plastic twist-off caps.
The San Luis Potos¡ Pepsi franchise has two plants with capacity of 16.4 million unit cases, a 15 percent market share and average sales of 7.2 million cases over each of the past three years. Gemex, which produces other fruit-drink brands as well as Pepsi, and runs Electropura, Mexico's largest bottler of purified water, controls most of Mexico's Pepsi bottling territories.
Gemex, in reporting its quarterly results, revealed that the less-volatile U.S. dollar/Mexican peso exchange rate and decreases in resin prices had helped improve its gross margin.
Electropura had second-quarter sales of 10.2 million 5-gallon purified water bottles, an 8 percent rise compared with the second quarter of 1995. Gemex also launched a new, nonreturnable, 11/2-liter PET Pepsi container during the latest quarter.
Gemex is selling the trademark rights in Mexico of its recently launched fruit drink Power Punch to the Mexican subsidiary of PepsiCola for US$4.5 million.