SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF JUNE
2004
FOMENTO ECONOMICO MEXICANO, S.A. DE C.V.
(Exact name of Registrant as specified in its charter)
Mexican Economic Development, Inc.
(Translation of Registrant's name into English)
United Mexican States
(Jurisdiction of incorporation or organization)
General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, NL 64410 Mexico
(Address of principal executive offices)
(Indicate by check mark whether the
registrant files or will file annual
reports under cover of Form 20-F of Form
40-F.)
Form 20-F x Form 40-F
--- ---
(Indicate by check mark whether the
registrant by furnishing the information
contained in this Form is also thereby
furnishing the
information to the Commission pursuant to
Rule 12g3-2(b) under the
Securities Exchange Act of
1934.)
Yes No x
--- ---
(If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82--.)
FEMSA and Heineken Join Forces in the U.S.A.; Deal Provides FEMSA with
a Powerful Platform and Increases Heineken USA's Leadership Position
in the Key U.S.A. Import Segment
MONTERREY, Mexico and AMSTERDAM, Netherlands--(BUSINESS
WIRE)--June 21, 2004--Fomento Economico Mexicano, S.A. de C.V.
("FEMSA") (NYSE:FMX) (BMV:FEMSA UBD) (BMV:FEMSA UB), and Heineken NV
("Heineken") (AEX:HEIN) announced today that FEMSA Cerveza and
Heineken USA have reached a definitive agreement that will make
Heineken USA the sole and exclusive importer, marketer and seller of
FEMSA's beer brands in the United States.
The three-year agreement signed between Wisdom Import Sales LLP,
FEMSA Cerveza's wholly owned subsidiary, and Heineken USA is expected
to become effective towards the end of the year, 120 days after FEMSA
completes its announced repurchase of a 30% stake of FEMSA Cerveza. At
the end of the three-year period both parties will discuss how they
will take this commercial relationship forward.
Under the terms of the agreement, Heineken USA will assume
responsibility for the marketing, sales and distribution of the beer
brands Tecate, Dos Equis, Sol, Carta Blanca and Bohemia across the
United States.
Strategic fit for FEMSA
FEMSA's brands have traditionally thrived in the Southwestern
United States, and joining forces with Heineken will provide the
necessary commercial muscle to expand the focus East of the
Mississippi river and realize the brands' full potential.
In addition, the attributes and positioning of the Heineken brands
in the U.S.A. fit well with those of FEMSA's brands, such that the
combined portfolio will be ideally suited to serve the full spectrum
of import market segments and preferences.
Strategic fit for Heineken
Heineken's strategy in the U.S.A. is to grow its premium brands
within the import segment, the fastest growing beer segment in the
U.S.A. Expanding its portfolio with the strong premium and specialty
brands of FEMSA fits this strategy perfectly. Heineken USA will
benefit from greater scale and from the broader portfolio of brands,
which will allow Heineken USA to increase its leadership in the import
segment.
Mexican beer has become popular with American consumers beyond
geography or national heritage. FEMSA's Mexican quality brands
strongly complement the already successful combination of Heineken and
Amstel Light. Furthermore, through FEMSA's brands Heineken will more
broadly participate in the Hispanic market, the fastest growing
demographic group in the U.S.A.
The FEMSA brands add about 1.8 million hectoliters to Heineken's
volumes in the U.S.A., bringing the total Heineken volume to 7.9
million hectoliters (+28 %). The combined market share in the imported
beer segment in the U.S.A. will be approximately 26%.
Javier Astaburuaga, co-Chief Executive Officer of FEMSA Cerveza,
commented: "We are extremely pleased with this agreement. Teaming up
with Heineken represents a great opportunity for the distribution and
marketing of our brands in the key U.S. market going forward. Our
portfolios are very complementary, and we are confident that the
combination of our quality beers and well-known brands with Heineken's
top-notch market execution will prove a formidable one."
Marc Bolland, member of the Executive Board of Heineken NV,
commented: "The relationship we have announced today will increase our
leadership in the import segment. Heineken USA will benefit from a
broader portfolio of strong premium brands and a larger scale."
FEMSA is the leading beverage company in Latin America. It
controls an integrated beverage platform that comprises the largest
Coca-Cola bottler in the region, Coca-Cola FEMSA; the second largest
brewer in Mexico and important beer exporter to the United States,
FEMSA Cerveza; and Oxxo, the largest and fastest growing convenience
store chain in Mexico with over 2,800 stores. For further information
regarding FEMSA please visit www.femsa.com.
Heineken N.V. is the most international brewer in the world. The
Heineken brand is sold in more than 170 countries and the company owns
over 115 breweries in more than 65 countries. With a total volume of
109 million hectolitres Heineken ranks second in the world beer market
in profitability. Heineken strives for an excellent sustainable
financial performance through marketing a portfolio of strong local
and international brands with the emphasis on the Heineken brand,
through a carefully selected combination of broad and segment
leadership positions and through a continuous focus on cost control.
In 2003 net turnover amounted to EUR 9.3 billion and net profit to EUR
798 million. Heineken employs over 60,000 people. For further
information regarding Heineken NV please visit
www.heinekeninternational.com.
This is a joint press release of FEMSA and Heineken NV
CONTACT: Fomento Economico Mexicano, S.A. de C.V.
Investors:
Juan F. Fonseca, (52) 818-328-6245
juan.fonseca@femsa.com.mx
or
Alan Alanis, (52) 818-328-6211
alan.alanis@femsa.com.mx
or
Media:
Jaime Toussaint Elosua, (52) 818-328-6202
jtouelo@femsa.com.mx
or
Carolina Alvear Sevilla, (52) 818-328-6046
calvsev@femsa.com.mx
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
FOMENTO ECONOMICO MEXICANO, S.A. DE C.V.
By: /s/ Federico Reyes
----------------------------
Federico Reyes
Chief Financial Officer
Date: June 21, 2004