The Glass Containers business unit
manufactures and distributes glass containers for the soft drink,
beer, food, liquor and wine, pharmaceuticals and cosmetics
industries. Its customers include leading companies such as
Avon, Bacardi, Campbells, Coty, Diageo, Encore Glass, Estee
Lauder, Gerber, Grupo Cuervo, Grupo Domecq, Grupo Modelo, Herdez
McCormick, Jafra, Jeyes, Jugos del Valle, Jumex, Nestle, Pepsi
Cola, Procter & Gamble, Sauza, Tamazula, and The Coca-Cola
Company. In addition, our Glass Containers business unit
manufactures and distributes:
- Soda ash, sodium bicarbonate, calcium chloride and salt,
which are the main raw materials used in the manufacture of
glass products, and
- Capital goods such as glass forming machines and molds.
The Glass Containers business unit operates eight
manufacturing facilities in Mexico, three in Central America and
one in Bolivia, and has two recycling plants in Mexico. The
Glass Containers business unit, which exports to the United
States mainly through our subsidiary Vitro Packaging, has five
sales offices, four design centers and one distribution center
in the United States.
Strategy:
- Focus on current operations to maximize organic growth
and to take advantage of future opportunities by adding
capacity when refurbishing existing furnaces;
- Consolidate our competitive position by defending share
and margins in the domestic market;
- Use our growing position in niche markets and focus on
value added products to enhance profitability;
- Continue the promotion of innovative new product
development;
- Reduce costs and enhance operating efficiencies; and
- Maximize cash flow through growth in sales and margins
while optimizing the use of capital expenditures and assets.
Market:
- 74% non-captive market share in Mexico and approximately
3% of the glass container market in the United States, in
each case in terms of units
- Largest glass container importer in the U.S.
- Leader in Central America
| (Millions of USD) |
2007 |
2006 |
YoY% Change
|
| Sales |
1,317 |
1,214 |
8.5% |
| as a % of total consolidated sales |
51.0 |
51.0 |
- |
| EBITDA |
278 |
275 |
1.0% |
| EBITDA Margin |
21.1 |
22.7 |
- |
Results as of December. |