Femsa owned OXXO, one of Mexico’s largest convenience store chain, is anxious to expand into Texas and have been eyeing the Lone Star State for some time.
“OXXO is prepared to make a major investment all across Texas,” they recently told a Texas House committee. “We plan to open 900 stores in the next 10 years and invest more than $850 million and creating more than 6,000 jobs”
They continued, “The overall business friendly climate in the state along with the strong economy and many consumers who are already familiar with the OXXO brand, make it extremely attractive for the expansion of our stores.”
The chain operates approximately 12,400 c-stores in Mexico and Central America. OXXO is part of FEMSA Group (Fomento Económico Mexicano SAB de CV), the largest beverage company in Mexico. It is the largest independent Coca-Cola bottler in the world and an investor holding the second largest equity stake in brewer Heineken.
“We have more than 1,000 OXXO stores right on the border, on the south side of the border, and zero on the north side,” Juan Fonseca, FEMSA’s head of investor relations, said on the company’s first-quarter 2015 earnings call. “You can make the case that the consumer on both sides of the border is more or less the same demographic. And so the brand recognition and the attractiveness of that market to at least do some meaningful tests is very compelling.”
Texas is the “most attractive” U.S. state for FEMSA, he said, as “most of the Mexican border with the U.S. is Texas, certainly, the two-thirds on the eastern side of the country. … So we’re having conversations with the state of Texas.”
That expansion, however, remains contingent upon changes to alcoholic beverage laws in the state of Texas that prohibit retailers of alcohol from being owned by firms with ties to the liquor industry.
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