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Balances and Transactions with Related Parties and Affiliated Companies (Tables)
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Summary of Balances and Transactions with Related Parties and Affiliated Companies
The consolidated statements of financial positions and consolidated income statements include the following balances and transactions with related parties and affiliated companies:
 
 
  
December 31,
2019
 
  
December 31,
2018
 
Balances
  
   
  
   
Due from The Coca-Cola Company (see Note 7)
(1) (8)
  
Ps.
802
 
  
Ps.
1,173
 
Balance with BBVA, S.A. de C.V.
(2)
  
 
6,798
 
  
 
11,509
 
Balance with JP Morgan Chase & Co.
(2)
  
 
—  
 
  
 
27
 
Balance with Grupo Scotiabank Inverlat, S.A.
(3)
  
 
510
 
  
 
503
 
Grupo Industrial Saltillo S.A.B. de C.V.
(3)
  
 
—  
 
  
 
169
 
Due from Heineken Group
(1) (3) (7)
  
 
2,915
 
  
 
2,572
 
Other receivables
(1) (4)
  
 
390
 
  
 
565
 
 
  
 
 
 
  
 
 
 
Due to The Coca-Cola Company
(5) (6) (8)
  
Ps.
4,417
 
  
Ps.
3,893
 
Due to BBVA, S.A. de C.V.
(5)
  
 
1,696
 
  
 
4,093
 
Due to Heineken Group
(6) (7)
  
 
4,308
 
  
 
4,753
 
Due to Grupo Financiero Scotiabank Inverlat, S.A.
(5)
  
 
104
 
  
 
170
 
Other payables
(6)
  
 
2,003
 
  
 
1,402
 
 
(1)
Presented within accounts receivable.
(2)
Presented within cash and cash equivalents.
(3)
Presented within other financial assets.
(4)
Presented within other current financial assets.
(5)
Recorded within bank loans and notes payable.
(6)
Recorded within accounts payable.
(7)
Associates.
(8)
Non-controlling
interest.
Summary of Transaction with Related Parties
Balances due from related parties are considered to be recoverable. Accordingly, for the years ended December 31, 2019, 2018 and 2017, there was no expense resulting from uncollectible balances due from related parties.
 
Transactions
  
2019
  
2018
  
2017
Income:
  
 
  
 
  
 
Services to Heineken Group
(1)
  
Ps.3,380
  
Ps.3,265
  
Ps.3,570
Logistic services to Grupo Industrial Saltillo, S.A. de C.V.
(3)
  
—  
  
255
  
457
Logistic services to Jugos del Valle
(1)
  
553
  
369
  
587
Interest revenues from BBVA, S.A. de C.V.
(3)
  
1,456
  
1,469
  
1,002
Interest revenues from Grupo Financiero Scotiabank Inverlat, S.A.
(3)
  
447
  
—  
  
—  
Other revenues from related parties
  
404
  
242
  
243
 
  
 
  
 
  
 
Expenses:
  
 
  
 
  
 
Purchase of concentrate from The Coca-Cola Company
(2)
  
Ps.34,063
  
Ps.32,379
  
Ps.30,758
Purchases of beer from Heineken Group
(1) (6)
  
25,215
  
27,999
  
24,942
Purchase of coffee from Caffenio
(5)
  
—  
  
—  
  
2,397
Purchase of baked goods and snacks from Grupo Bimbo, S.A.B. de C.V. 
(3)
  
6,194
  
5,763
  
4,802
Advertisement expense paid to The Coca-Cola Company
(2) (4)
  
1,756
  
2,193
  
1,392
Purchase of juices from Jugos del Valle, S.A.P.I. de C.V.
(1)
  
4,477
  
4,537
  
3,905
Purchase of sugar from Promotora Industrial Azucarera, S.A. de C.V.
 (1)
  
2,728
  
2,604
  
1,885
Interest expense and fees paid to BBVA, S.A. de C.V.
(3)
  
144
  
230
  
53
Purchase of sugar from Beta San Miguel
(3)
  
655
  
651
  
1,827
Purchase of sugar, cans and aluminum lids from Promotora Mexicana de Embotelladores, S.A. de C.V.
(3)
  
—  
  
739
  
839
Purchase of canned products from IEQSA
(1)
  
682
  
596
  
804
Purchases to AdeS Alimentos y Bebidas
(1)
  
497
  
592
  
—  
Purchase of inventories to Leao Alimentos e Bebidas, L.T.D.A.
(1)
  
1,867
  
2,654
  
4,010
Advertising paid to Grupo Televisa, S.A.B.
(3)
  
115
  
113
  
107
Insurance premiums for policies with Grupo Nacional Provincial, S.A.B.
(3)
  
—  
  
12
  
32
Donations to Fundación FEMSA, A.C.
(3)
  
195
  
232
  
23
Donations to Difusión y Fomento Cultural, A.C.
(3)
  
61
  
63
  
44
Donations to ITESM
(3)
  
215
  
192
  
108
Other expenses with related parties
  
319
  
423
  
742
 
(1)
Associates.
(2)
Non-controlling
interest.
(3)
Members of the board of directors in FEMSA participate in board of directors of this entity.
(4)
Net of the contributions from The Coca-Cola Company of Ps. 2,274, Ps. 3,542 and Ps. 3,436, for the years ended in 2019, 2018 and 2017, respectively.
(5)
On May 22, 2018 the Company completed the acquisition of an additional 10% of
non-controlling
interest of Café del Pacífico S.A.P.I. de C.V. (Caffenio).
(6)
Favorable resolution of Arbitration in Brazil on October 31, 2019, the arbitration tribunal in charge of the arbitration proceeding between Coca-Cola FEMSA and Cervejarias Kaiser Brasil, S.A., a subsidiary of Heineken, N.V. (“Kaiser”), issued an award confirming that the distribution agreement pursuant to which Coca-Cola FEMSA distribute Kaiser’s portfolio in the country, including Heineken beer, shall continue in full force and effect until and including March 19, 2022.
Commitments with Related Parties
Commitments with related parties
 
Related Party
  
Commitment
  
Conditions
Heineken Group
  
Supply
  
Supply of all beer products in Mexico’s OXXO stores. The contract may be renewed for five years or additional periods. At the end of the contract OXXO will not hold exclusive contract with another supplier of beer for the next 3 years. Commitment term, Jan 1
st
, 2010 to Jun 30, 2020.
Schedule of Key Management Remuneration
The aggregate compensation paid to executive officers and senior management of the Company were as follows:
 
   
2019
   2018   2017 
Short-term employee benefits paid
  
Ps.
2,163
 
  Ps.1,885   Ps.1,699 
Postemployment benefits
  
 
48
 
   37    48 
Termination benefits
  
 
411
 
   88    74 
Share based payments
  
 
610
 
   401    351