Mexican soft drinks firm Coca-Cola Femsa said Monday it planned to use its strong cash balance as a "war chest" for the possible acquisition of smaller bottlers. Coca-Cola Femsa's cash balance at the end of June was around $326 million, more than its long-term debt, and the company said it may use it to build up its market position. "Basically, the idea we have with this cash balance is more of a war chest for acquisitions if they are available, if they are there in the future," Chief Financial Officer Hector Trevino said in a conference call with analysts. "We think consolidation within the industry will continue and that, at some point in the future, we will find a suitable opportunity for this cash balance," he said. The company, which is majority-owned by Mexican beverage giant Fomento Economico Mexicano (Femsa), produces Coca Cola Co. products at eight bottling facilities in Mexico and one in Buenos Aires. It accounts for about 24 per cent of Coca-Cola sales in Mexico and 35 per cent of Coca-Cola sales in Argentina. Coca-Cola Co. owns a 30 per cent equity stake in Coca-cola Femsa.
