During the year, we markedly accelerated the evolution of our customer-centric B2B omnichannel multi-category commercial platform.

Build Out
An Open Omnichannel Platform

To enable the digital re-evolution of our business, we’re expanding an omnichannel multi-category commercial platform that will seamlessly interact with other interconnected platforms and encompass our business-to-business (B2B), direct-to-consumer (D2C), indirect, and digital trade channels.

B2B TRADITIONAL OMNICHANNEL
COMMERCIAL PLATFORM

Our goal is to build a profitable, customer-centric omnichannel B2B platform across our multi-category product offerings, with a differentiated end-to-end customer experience.

During the year, we markedly accelerated the evolution of our customer-centric B2B omnichannel multi-category commercial platform. Through our multicategory omnichannel platform, we’re connecting every point of contact in real time for our large base of traditional trade clients—strengthening our successful pre-sale model and contact centers with digital touch points to amplify our customer service, including direct messaging, web portals, mobile apps, and electronic data interchange (EDI)—so they can interact with us whenever, wherever, and whichever way they want.

We processed more than 5.5 million orders on digital channels in 2021.
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We are serving over 500 thousand registered clients, including almost 300 thousand active purchasers monthly, on our B2B platform.
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Digital channels represent approximately 6% of our company's total orders.
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Our platform puts the customer front and center. With that in mind, we’re building out our omnichannel platform around them, offering a growing array of customer-centric options and features to serve them better across multiple points of contact. For example, to build upon the personal customer experience our clients enjoy, we’re offering them pre-seller visits, plus a mobile app—which we’re scaling up companywide. The app’s latest version provides clients with a wider selection of features, including digital order tracking, promotions, and a developing loyalty program.

Our large base of traditional trade customers is rapidly embracing the digital options available on our B2B omnichannel platform. Notably, we are serving over 500 thousand registered clients, including almost 300 thousand active purcharsers monthly, on our B2B platform—which enables seamless order taking with an enhanced customer experience and lower cost to serve—in Argentina, Brazil, Central America, Colombia, and Mexico. Indeed, customers’ preference for our robust omnichannel platform is clearly reflected in their growing acceptance and rising orders, while amplifying the performance of new categories across our product portfolio.

Overall, we processed more than 5.5 million orders on digital channels, generating close to US$360 million in sales, representing roughly 6% of our company's total orders and a triple digit increase in orders and revenues as compared to 2020.

BRAZIL: ALMOST 270,000 ACTIVE CUSTOMERS EMBRACE OUR B2B OMNICHANNEL PLATFORM

During 2021, our Brazilian operation reached approximately 270,000 active users —including over 130,000 monthly buyers— on our B2B omnichannel multi-category commercial platform. Appealing to customer demand for a one-stop solution, our platform enables our large base of traditional trade clients to not only place an order for their favorite brands/categories whenever, wherever, and whichever way they choose, but also take advantage of a constantly evolving array of features—from digital order tracking to product promotions, and a customer loyalty program.

For the year, our Brazilian traditional trade customers generated over US$280 million on our B2B omnichannel platform. Notably, digital purchases represented over 30% of our Brazilian clients’ total orders or approximately 9% of total revenues by year-end 2021.

Pre Seller Chatbot App Website
All clients Medium and small-sized clients Medium and small-sized clients Large and medium-sized clients
This year, we reached an inflection point—with digital purchases accounting for over 6% of our total orders or almost US$360 million.

DIRECT TO CONSUMER

Our goal is to develop a profitable and scalable D2C business model to market our company’s products and services directly to our consumers’ homes, acting as a benchmark in the market. Aligned with this goal, our mission is to become households’ favorite D2C platform throughout our operations, offering top-class service.

Building on the year’s historical expansion of our D2C home delivery routes—from almost 800 routes to more than 1,200 routes serving almost 600 thousand households in Mexico—we recently began the deployment of our consumer-centric D2C omnichannel platform in those routes, including the home order-entry platform and Coca-Cola en tu Hogar website, supported by our digital (ERP) order fulfillment system. At the end of 2021, our D2C omnichannel platform was integrated and tested to serve home delivery routes in major Mexican cities.

As a fundamental component of our omnichannel multi-category platform, we look to expand and consolidate our integrated D2C omnichannel platform in Mexico during 2022. Also, we will carry on the development of new functionalities to increase our household penetration while continuing to evolve with a focus on the consumer.

Vision

Develop a profitable and scalable standardized model to sell products directly to the consumer at home, being a reference in the market

Mission

Be the favorite B2C platform for consumers in KOF’s operations offering top class services

  • Personalized attention
  • Direct support to consumer
  • Living the experience
  • Penetration
  • Immediacy
  • Practicality
  • Shopping experience
  • Loyalty plans
  • Different payments means
  • Multi- functionality

HISTORICAL D2C HOME DELIVERY EXPANSION

This year, we achieved the historical expansion of our D2C home delivery routes—from almost 800 routes to over 1,200 routes serving more than 600 thousand households in Mexico. We also started the implementation of our D2C omnichannel platform, including the order-entry platform and Coca-Cola en tu Hogar website, supported by our digital (ERP) order fulfillment system. For the year, we generated double-digit revenue growth in the home delivery channel; moreover, in those routes in which we deployed our D2C omnichannel platform, we increased the average ticket by enlarging the mix of our non-jug water portfolio.

DIGITAL & ANALYTICS HUB:
DRIVE AGILE, DIGITAL RE-EVOLUTION

Our digital and analytics hub is enabling us to re-evolve the way we work across the company. To win in both the market and our industry, we’re driving an agile methodology, mindset, and culture that will accelerate the deployment of our omnichannel commercial platforms and solutions holistically via an end-to-end process that connects strategic planning with quick delivery of the best value proposition for our customers, consumers, and business through agile cells—ranging from distribution and planning optimization to our B2B, D2C, and indirect omnichannel platforms.

Through our digital and analytics hub, we’re re-evolving our advanced analytics and data management capabilities to produce valuable insights, tools, and solutions for any area of the company through agile cells of data scientists, data engineers, and initiative leads. Among our aggressive pipeline of analytic solutions, an agile team of data engineers, scientists, and business translators is working to design and install the suggested order process for our B2B platform, based on a machine-learned algorithm that enables us to predict the number of products our clients’ need to prevent out of stocks. In this way, we’re improving the customer experience by tackling two key pain points for our traditional trade clients: increase the sales and reduce the risk of out of stocks of their preferred products.

Moreover, our price and promotion optimization cell is addressing one of the most important gain points for customers—product promotion—while enabling us to improve our promotional return on investment in our Argentina, Central America, Colombia, and Uruguay operations. With this and other solutions, we’re capturing the voice of our customers, working closely with them to quickly develop and deploy their favorite features and to enhance their overall customer experience.

CONTINUOUSLY EVOLVING MARKETING CAPABILITIES: ENABLE HOLISTIC, OMNICHANNEL CUSTOMER EXPERIENCE

We’re re-evolving and leveraging our marketing capabilities—from revenue growth management (RGM) to dynamic initiative management (DIM) and digital marketing—to develop not only a winning multi-category portfolio, but also a holistic omnichannel experience for our customers and consumers.

To fully capitalize on our advanced analytics capabilities, our DIM process aligns the marketing and commercial strategy across our day-to-day operations to select, prioritize, and schedule granular initiatives that the sales force team executes for specific customers within the traditional and modern trade channels. During 2021, we implemented over a million targeted initiatives through our DIM process every month across our operations, improving our point-of-sale execution scores and customer engagement.

Additionally, we’re improving our RGM capability with our advanced commercial analytics platform, enabling our Brazil, Colombia, and Mexico operations to create greater customer value by maximizing our price, portfolio, and promotion optimization. We’re also centralizing our price and promotion optimization capability and tools within our operations.

SUPPLY CHAIN ENABLERS:
FACILITATE COMMERCIAL RE-EVOLUTION

Our omnichannel multi-category strategy leverages our leading-edge supply chain enablers to enhance our customers’ experience when they interact with us, while re-evolving our capabilities to win in the market and the industry.

Digital Distribution

Through our evolving Commercial Control Tower, we monitor and manage our entire commercial and distribution operation, enabling both real-time and dynamic routing. With the deployment of dynamic routing across our secondary distribution fleet in Brazil, Mexico, Colombia, Guatemala, Panama, Costa Rica, Argentina, and Uruguay, we’re able to offer 24/7 order entry. Thanks to this enabler, we enjoy the flexibility to plan vehicles’ routes on a daily, weekly, and monthly basis, thereby optimizing available delivery resources and distances traveled to serve our customers.

Moreover, with the continuing evolution of our Digital Distribution 2.0 platform, we completed the rollout of real-time routing across 100% of our Brazilian operation’s secondary distribution routes, serving 35,000 clients per day. With real-time routing, we adapt our delivery process—from pre-sellers’ visits to digital apps—to unplanned daily events, constantly integrating and analyzing traffic, road, climate, and other conditions to define the most efficient delivery sequence and route, thereby fulfilling our sales promise while improving customer service and engagement.

Aligned with our omnichannel multi-category strategy, we further deployed our order-tracking platform to enable customers to track their orders—created on any commercial channel—from the moment of shipment to delivery. Already deployed in Argentina, Brazil, and Mexico, we plan to develop this digital tool for our other operations while accelerating our digital distribution journey.

Warehouse Optimization & Digitalization

During the year, we optimized our warehouses to manage our growing multi-category product portfolio, while continuing the systematic deployment of advanced picking solutions, including both real and optimal picking.

Utilizing voice and digital images, these advanced picking solutions improve our warehouses’ level of service through the assertive assembly of mixed pallets according to each client’s specific needs, maximizing load and route optimization while increasing productivity. Building on the integration of real picking across 100% of our Brazilian operating units last year, we rolled out this solution to 42 operating units across 6 different operations, while we finalized the implementation of 28 additional operating units with optimal picking, completing the rollout plan in all our Brazilian operating units.

KEY FINANCIAL ENABLER: DESIGN AND DEPLOY DIGITAL PAYMENT SYSTEM ACROSS ALL CHANNELS

As part of our digital re-evolution, an agile cell is working to design and deploy a safe, frictionless, end-to-end digital payment solution to customers and consumers across all channels. Thus far, we’ve rolled out the digital credit card payment feature to almost 600 thousand households throughout our over 1,200 D2C home delivery routes in Mexico. We’ve also enabled 1,200 customers to make digital QR code payments, along with over 6,600 customers who pay digitally through our B2B web portal in our Argentine franchise territories.