Case Studies

The Pandemic’s Impact on Arca

The first half of 2020 is a tale of two continents for Arca.  Mexico represents almost 50% of Arca’s profits.  Before COVID-19, Mexico was enduring anemic economic growth due to the business-deterring policies of President Andrés Manuel López Obrador, commonly…

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Arca’s Progress in the U.S.

We enjoyed hosting Arturo Gutierrez, Arca CEO, and Jean Claude Tissot, President of Arca Coca-Cola Southwest Beverages (CCSWB) division, in Birmingham in December.  Our discussion covered strategic capital allocation considerations and tactical in-market operational activities.  We have been following Arca’s…

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Visiting Arca’s Operations in Houston

Since acquiring the business in 2017, Arca Continental has been working hard to transform the culture of the Coca-Cola Southwest Operating Unit.  Arca has made tremendous progress in this territory, which includes almost all of Texas and parts of Oklahoma,…

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Honoring Pancho Garza

If we ever create a business hall of fame, one of our first inductees will be Francisco “Pancho” Garza Egloff.  Pancho has been the Director General (CEO) of Arca Continental since the company was formed in 2001 when three family-owned…

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Adding to Our Investment

After Trump’s election, stock market participants sold most Mexican stocks indiscriminately.  While fears of a cancellation of NAFTA remain legitimate, we took the opportunity to underwrite all of the relevant names on our watch list and separate the ones that…

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Arca’s International Footprint

Arca Continental bottles Coke products in northern Mexico, Ecuador, Peru (through its controlling stake in Lindley), and northern Argentina, and the company will soon control the bottling rights for almost all of Texas along with parts of Oklahoma, New Mexico,…

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Arca’s Customer Focus

Pancho Garza and his colleagues comprise one of the best management teams in the world, and they bottle and distribute Coke products in the best Coca-Cola market in the world (Northern Mexico).  They relentlessly focus on whom they call the Boss — the customer — which is good for…

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