First Read Coca-Cola FEMSA: Off the Call (2Q26): Off The Call: Share Gains Driven by Execution in Mexico & Brazil; Guidance Revised Upward

Research evidence excerpt

First Read Coca-Cola FEMSA: Off the Call (2Q26): Off The Call: Share Gains Driven by Execution in Mexico & Brazil; Guidance Revised Upward

a smaller operating FX gain vs 2Q25 (a significant portion). Marketing comps

should ease in 2H; the FX impact is less foreseeable.

Mexico Pack Mix: Consumers continued shifting toward affordable multi-

serve, one-way presentations (notably 3-liter), a 1Q dynamic that intensified

into 2Q and is expected to persist. Management framed it as mixed—negative

for P&L mix but positive in keeping consumers within KOF’s portfolio ahead of

the post-excise recovery—and is supporting single-serve via dedicated

coolers, with warmer weather also helping.

Mexico Refillables: Management clarified one-way multi-serve is

outperforming refillables not because refillables are weak, but because it has

drifted off the price point needed for parity with its main competitor. Closing

that gap would require a third multi-serve returnable (a 2-liter PET refillable)

—a relevant investment being tested via pilot before rollout.

Coke Zero — Mexico Runway: Coke Zero grew +24% y/y in Mexico. Under the

Brazil playbook, early-stage Zero sources growth from competitors, juices,

and water without materially cannibalizing until ~20% mix; Mexico sits at only

~4% (vs ~30% Brazil, ~9% Colombia, <2% Guatemala), implying substantial

incremental volume ahead. Sprite Zero is the next lever.

Brazil Volume & Industry: Volumes grew +5.2%, well above a NARTD industry

that returned to growth over the last three months (CSDs moving from

negative to flattish), with most industry growth in energy, teas, juices, sports

drinks, and water. The gap versus industry reflects continued share gains.

Zero-sugar (Coke Zero +15%, Sprite Zero triple-digit), double-digit flavors,