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, 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) |
2009 |
2008 |
YoY% Change
|
| Sales |
914 |
1,406 |
(35)% |
| as a % of total consolidated sales |
52.0 |
54.0 |
- |
| EBITDA |
223 |
252 |
(11.5)% |
| EBITDA Margin |
24.4% |
17.9% |
- |
Results as of December. |