We’re firm believers, that the companies that are going to work perform are those that are preferred by their clients. It’s sort of a precondition for us, Carlos.
Carlos Laboy: Thank you.
Operator: Thank you. Our last question comes from Rodrigo Alcantara of – UBS. Please go ahead.
Rodrigo Alcantara: Hi, good afternoon. Thanks for taking my question, Ian, Gerry, Jorge. So the first one would be, we spoke a lot about partly either in Mexico rather clearer the results. And how is it evolving, right, just taking the same discussion there to Brazil, where it appears that you have been achieving both buy the goods, price, revenue per unit case, and also ball and go. So I was wondering though, so if you can comment on what would be or you can summarize, but the commercial strategy there in Brazil? And the second one would be more on leverage target, let’s say in, we know you say right, that you’re going to raise your CapEx on capacity additions and so on, right? And we also know that the M&A opportunity so there, right.
So I was just curious on which lab but at the same time, your cash balances are quite solid, right. So just curious if you have any idea or any target for next year regarding how levered you want to be some way to from anticipate dividend distributions, et cetera for next year? Those would be my two questions. Thank you.
Gerardo Cruz: Hi, Rodrigo, how are you? In terms of Brazil, the strategy have been the same over the last couple of years, a big push on Coke, no sugar, also growing single-serve that’s growing 26% or so in Brazil, if I remember correctly, single-serve mix as well. I think we’re getting about one point of singles or mix, should be around 25% is still 10 percentage points below Mexico. So there’s plenty to be done there to get to a portfolio makeup like Mexico or Guatemala. And then we decided to concentrate on growing profitable NCD. So there was a big realignment in the NCB portfolio in Brazil, and all of those segments, isotonic I think it’s almost 40% growth. Stills growing as well, energy, I think that’s 40, juices, which are now we’re basically out of the premium juices which were not very profitable and more introduced drinks.
And low content juice also growing double-digits. Remember, we had a big adjustment in our supply chain strategy for juices in Brazil. So that’s just normalized this year. So I would say it’s a continuation of the strategy. And it is doing well for us. It was a tough year at the beginning of the year share-wise, it’s been starting to respond over the last couple of months. And as Brazil continues to be for us, where we roll out all of our newer digital offerings, and our multi category strategy. So we have multi category growing 50%, we saw the rollout of the 4.0 version happening first in Brazil. They’re always very flexible folks willing to try out new things. Things are going well in Brazil.
Jorge Collazo: On the second part of your question, Rodrigo, regarding leverage just very quickly to point out, even though you saw us end up 2022 with a considerable excess cash position. Now looking at our growth perspectives, our excess cash basically goes to zero in the following years with our plans of expansion and commitment to growth. And I guess you hit the nail on the head, our issue is a leverage issue, even in that projected scenario, we see our leverage continuing to get lower. So we certainly have to address our low leverage perspectives. Having in mind that our required investments for organic growth does not solve the leverage issue. The second issue that we’re going to pursue actively but very disciplined, is inorganic growth, we certainly in the same sense that we want to grow our business and has been highlighted throughout the call, how the numbers are delivering, we also want to grow inorganically and we want to continue to consolidate the system.
So that’s going to be a priority going forward. After that, if nothing materializes, we can certainly take into account any uses of cash to redistribute to our investors, but that’ll be the third priority in that org.
Rodrigo Alcantara: That’s clear. Thank you for the answer, Gerry.
Gerardo Cruz: Yeah.
Operator: Thank you. As we have no further questions, I would like to hand the call back over to Ian Craig. Please go ahead.
Ian Craig: Thank you very much for your interest in Coca-Cola FEMSA and for joining us on today’s call. Please be reminded that our Investor Relations team is available to answer any remaining questions. We look forward to speaking to all of you again soon. Thank you.
Operator: Thank you. That concludes today’s conference. You may now disconnect.
