In Brazil, in addition to Coca-Cola products, its soft drinks were Schweppes Club Soda, Tónica, and Citrus, and three guaraná drinks. In Argentina, aside from Coca-Cola products, the operation’s soft drinks were Quatro Pomelo and Quatro Limonada, three Schweppes soft drinks, three Crush soft drinks, and Tai Lima-Limon and Naranja. Embotelladora Andina invested $1 million in 1999 in Chile to offer retailers carrying its beverages–the small sweet shops, kiosks, and bakeries, for example–training in new sales and marketing techniques. Edasa opened a new Córdoba production facility in 1999 and shut down the Mendoza and Rosario plants in 2002, concentrating all drink production operations in Córdoba. The following year Edasa took over Cipet, thereby placing all business conducted in Argentina in Córdoba. Andina, in 2000, became the Coca-Cola bottler for three Brazilian territories in addition to Rio de Janeiro by purchasing them from the franchise holder for $74.5 million.
- Coca-Cola awarded the license instead to Mexican-based Fomento Economico Mexicano S.A.
- In addition, powerful Brahma cut the prices of its beer and soft drinks to frustrate the newcomer.
- It’s calculated by dividing the current share price by the earnings per share (or EPS).
- In spite of this setback, Embotelladora Andina remained the largest of Coca-Cola’s four Chilean-based franchisers and one of its anchors for doing business in South America.
- Embotelladora Andina also sold its agribusiness subsidiary in 1996 and repurchased Coca-Cola’s share of Vital in 1998.
José Antonio Garcés had been an executive in a Said enterprise before branching out into cosmetics and real estate. Alberto Hurtado Fuenzalida, also a seasoned executive and entrepreneur, named the group for a relative who had been president of Chile in the 1920s. They paid Inversiones Andes $5 million for its 75 percent of Andina. The other shares belonged to Vial Espantoso’s heirs and to public stockholders. EBITDA is a widely used measure of corporate profitability. It stands for Earnings before Interest, Taxes, Depreciation, and Amortization.
The Company owns fully consolidated subsidiaries, such as Andina Bottling Investments SA, Abisa Corp SA, Servicios Multivending Ltda, Transportes Andina Refrescos Ltda and Embotelladora Andina Chile SA, among others. On October 11, 2013, its subsidiary, Rio de Janeiro Refrescos Ltda, acquired a 100% stake in Companhia de Bebidas Ipiranga. Chilean operations were highly profitable and efficient. In Brazil, however, Rio de Janeiro Refrescos had to share income with independent distributors who could not easily be eliminated (because, for example, they operated in certain neighborhoods of the city where even the police dared not enter).
52 week high is the highest price of a stock in the past 52 weeks, or one year. – ADR (Class A) 52 week high is $13.50 as of September 06, 2023. Encyclopedia.com gives you the ability to https://investmentsanalysis.info/ cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
But Brahma had created new problems for the Brazilian operation by becoming a distributor for rival PepsiCo. Shortly after, this competition grew even stronger when Brahma and Antarctica merged to form Companhia de Bebidas das Americas (AmBev). Embotelladora Andina invested $1 million in 1999 in Chile to offer retailers carrying its beverages—the small sweet shops, kiosks, and bakeries, for example—training in new sales and marketing techniques.
Although Cipsa held a majority interest in a bottling plant in Buenos Aires, Embotelladora Andina was unable to obtain the franchise in Argentina’s giant metropolis. Coca-Cola awarded the license instead to Mexican-based Fomento Economico Mexicano S.A. Embotelladora Andina entered Brazil in 1994 by purchasing 61.5 percent of Rio de Janeiro Refrescos S.A., the Coca-Cola bottler in the nation’s former capital, for $120 million, plus the assumption of $31 million in debts.
Embotelladora Andina was founded by Carlos Vial Espantoso and other Chilean and U.S. investors in 1946 with the exclusive license to produce and distribute Coca-Cola products in Chile. Four years later, the company made a transition from the individual bottle toward the 24-bottle case, and Coca-Cola distribution was extended from the traditional sales point to a wide variety of institutions. In 1960 it opened a new Santiago plant that also served as its headquarters. The company added fruit juices in 1975 and mineral water in 1978.
It attempts to reflect the cash profit generated by a company’s operations. The Price-to-Earnings (or P/E) ratio is a commonly used tool for valuing a company. It’s calculated by dividing the current share price by the earnings per share (or EPS). It can also be calculated by dividing the company’s Market Cap by the Net Profit.
Embotelladora Andina, at the end of 1996, was producing 71 percent of all carbonated soft drinks in Chile and 91 percent of all cola drinks there. In addition to its licensed Coca-Cola beverages, fruit juices and mineral water accounted for 14 percent of Andina’s sales in that country. In Brazil, Rio de Janeiro Refrescos was, in addition to producing and distributing Coca-Cola products, distributing Heineken and Kaiser beer brands and a brand of mineral water. In Argentina, Edasa and Inti were only producing and distributing Coca-Cola beverages. Andina’s revenues were heading toward $1 billion a year, and the company was employing 6,500 workers, compared with 350 when it was purchased in 1985.
EMIS company profiles are part of a larger information service which combines company, industry and country data and analysis for over 145 emerging markets. The 50-day moving average is a frequently used data point by active investors and traders to understand Bottom up investing the trend of a stock. It’s calculated by averaging the closing stock price over the previous 50 trading days. 52 week low is the lowest price of a stock in the past 52 weeks, or one year. – ADR (Class A) 52 week low is $8.14 as of September 06, 2023.
In spite of this setback, Embotelladora Andina remained the largest of Coca-Cola’s four Chilean-based franchisers and one of its anchors for doing business in South America. Coca-Cola, in 1996, purchased 49 percent of Vital S.A., Andina’s fruit juice and mineral water subsidiary, and 6 percent of Andina itself. The following year it purchased 5 percent more of Andina, increasing its ownership of the company to 11 percent. Embotelladora Andina also sold its agribusiness subsidiary in 1996 and repurchased Coca-Cola’s share of Vital in 1998. Market cap, also known as market capitalization, is the total market value of a company.
In addition, many local people preferred a noncola fruit drink called guaraná. Rio Refrescos was making and selling such a drink, but its brand was not as popular as those offered by rivals Companhia Cervejaria Brahma, S.A. And Companhia Antarctica Paulista Industria Brasileira de Bebidas e Conexos. In addition, powerful Brahma cut the prices of its beer and soft drinks to frustrate the newcomer. Andina’s subsidiary was forced to close one of its three plants and lay off 800 employees. In Argentina, Edasa inherited short-term debts at high interest rates and operations in Mendoza and Rosario that had been losing money for three years.
It’s calculated by multiplying the current market price by the total number of shares outstanding. Jaime Said Demaría, the oldest, was a member of a family of Arab origin, prominent in business. During the 1960s and 1970s he directed the largest rayon factory in Chile. His cousin José Said Saffie was the most successful member of the clan, active in banking and real estate as well as industry.
Also in 1995, the company, with the approval of Coca-Cola, entered Argentina by purchasing majority control of Embotelladoras del Atlántico, S.A. (Edasa), the parent company for the Coca-Cola bottlers in the Mendoza and Rosario territories, for about $45 million. It brought its stake in this enterprise to 95 percent the following year, when it also acquired the Córdoba territory and bottling plant, this time from parent Coca-Cola itself, by purchasing a 79 percent interest in Inti S.A.I.C. for $68 million. Edasa, which established its headquarters in Córdoba, also acquired full control of Complejo Industrial Pet S.A.I.C. (Cipsa), supplier of plastic bottles for the Coca-Cola system in Argentina, Paraguay, and Uruguay, for $76 million.
Another $20 million was raised in a Santiago stock offering. During 1995 the company began production of plastic bottles in Chile–primarily for its own use–through a subsidiary, Envases Multipack S.A. Near the end of 1996 Rio de Janeiro Refrescos opened a $36 million plastic bottle production facility. During 1995 the company began production of plastic bottles in Chile—primarily for its own use—through a subsidiary, Envases Multipack S.A. Near the end of 1996 Rio de Janeiro Refrescos opened a $36 million plastic bottle production facility. Coca-Cola’s soft drinks accounted for 86.6 percent of Embotelladora Andina’s net sales in 2003. The company accounted for 66.8 percent of total soft drink sales by volume in its Chilean territory, 54 percent in its Brazilian territory, and 52.1 percent in its Argentine territory. In Chile, its soft drinks, aside from Coca-Cola products, were Quatro, NordicMist Ginger Ale and NordicMist Tónica, and Tai.