Digital Engagement and Channel Investment to Buoy Volumes as Coke Femsa Adapts to Sugar Tax Hikes

We believe Coca-Cola Femsa deserves a wide moat rating, as we think brand affinity from its status as wide-moat Coca-Cola's largest bottler by volume, coupled with cost advantages from extensive manufacturing and distribution scale, should reinforce its durable competitive position and maintain excess investment returns for more than 20 years.