These names may not mean much to you. What do these signs represent? What are the consequences of this merger? Let us explain.
Foodvenience… Food what ?
Let's start with a pun that makes you smile. You need a bit of knowledge of English but it's nothing too complicated.
Think local shops... It's easy, it's accessible... the opposite of inconvenience. Then, think about food, something you can quickly buy and consume to better manage your busy schedule... fast food... Food.
Bingo... The term Foodvenience is born!
Why this term? This is because it reflects the main activities of two major players in local commerce.FEMSA and Valora , not to mention them.
These two behemoths of the sector have just confirmed their merger. Who are they? Which brands are part of their portfolios? What will be the strategy of this new entity?
Heavyweights
We were talking about behemoths. FEMSA is not a name that resonates with local or food businesses, but this group carries a lot of weight. Especially in Mexico and Latin America.
FEMSA has 320,000 employees, a presence in 13 countries, 3,600 pharmacies, an extensive network of service stations and a turnover of more than CHF 27 billion.
It is also the bottler for Coca-Cola in Latin America and a major shareholder of the brewer Heineken.
Valora has 15,000 employees and a network of sales outlets in Switzerland, Austria, Germany, the Netherlands and Luxembourg. That's 2,700 businesses under management.
Well-known brands
So, if you're not a fan of Mexican highways and cities in Latin America, the brands of the FEMSA group won't mean much to you. However, they are known to the general public on site.
Closer to home, the brands of the Valora Group are more familiar.
K Kiosk, the reference press area.
Brezelkönig, bakeries offering sandwiches, pastries and of course, pretzels.
Ok.- The energy drink.
And many more... So many brands known in our countries but also throughout Europe.
Why this merger?
We were referring to Europe. FEMSA has identified Valora as their anchor and development point on the continent. Wishing to extend their activities beyond their historical borders, the merger with Valora makes sense. Similar businesses, strong brands, an already well-established European distribution network... Everything is in place to ensure a successful international deployment. It cost a few billion, but this acquisition allows FEMSA to take a radical leap forward in a very short period of time. It's priceless.
And Valora? In addition to an interesting financial transaction for its shareholders, the group will be able to rely on its know-how and formidable economic firepower in a highly competitive market where major players are competing to ensure their growth.
And what about credit?
Good question! A priori, there is no natural link between the main activities of the two aforementioned companies and yet... Valora owns bob finance, a specialist in online personal loans.
In a world where digital technology plays a major role in our daily activities, having a fintech that develops and deploys digital solutions makes sense.
Of course, these are not pretzels or energy drinks, but services that are offered online, on any technological medium.
When everything went virtual, your purchases, your reservations, your hobbies... Having a team of seasoned developers, connoisseurs of European purchasing habits, mastering analytical and promotional tools, the possible synergies are obvious.
Apart from the collaborative interests between the various entities of a group, today's holding companies are diversifying their activities. This makes it possible to take advantage of the growth of various sectors and to share the risk in the event of a recession or crises as we have experienced in the past and, to a lesser extent, today.
Merging values?
Recently, Credaris and Milenia announced their merger. This alliance has created the leading credit player in Switzerland. The first in terms of the number of loans granted, the first in terms of the number of banking partners... And above all, the first, in our eyes, in terms of quality and personalization of the service.
Here, too, technology acts as the backbone of a strategy dedicated to making the user experience even smoother, faster, more satisfying...
However, the real key to such a merger lies in the synergy of values, the coherence of an approach rooted in common behaviors and beliefs that aim at the common good. However, this does not mean copied values. Strength often lies in difference. Each entity in a group can live its own values, keep its autonomy, make its own identity vibrate... As long as all these positive energies lead to a goal that is, for once, common and at the service of the greatest number.
It is therefore at the human level that the difference is made. FEMSA and Valora have certainly understood this, as have Milenia and credaris. This is all the more inspiring as the respective approaches tend to improve the service provided to their customers but also to develop activities, support employment, and maximize common potential.
The hoped-for result? Opportunities for employees who are part of the journey, a better customer experience, more personalized services, and healthy companies that benefit from the investments made and the risks taken.
Towards other mergers?
No one knows... These are often operations that need to be carefully thought out and well executed. It takes time. Above all, it has to make sense.
As far as credit is concerned, also known as personal loans or consumer credit, the sector already has serious players, capable of covering needs throughout the country and partners of sound and recognized financial institutions. All of this is under the aegis of the regulatory authorities and governed by a law designed to protect the interests of customers and avoid cases of over-indebtedness.
As long as mergers are at the service of the common good and tend to further professionalize a sector that is sometimes mistreated in the sphere of public opinion, it will be to the advantage of the professionals who work in the sector and, above all, to the advantage of the clients who wish to carry out their projects with transparent, reasonable and personalized financing conditions.
