At the same time, we are also aware that we have to do this in a disciplined manner. And that’s why our state, for example, focalizing geographically not only certain areas of Mexico we’ll continue to expand in the regions where we are — make sure that we capture all the growth that is there. We are applying the model that we have. We are confident also at this stage that given that this is a different format and a different value proposition for consumers that there is no or very limited cannibalization with our OXXO stores. So that’s what I can say about the format itself. Eugenio, do you want to add something?
Eugenio Garza: Yes. No, just with regards to your second question on spirits, I mean, clearly, the pandemic kind of brought that category to the forefront of the OXXO value prop, and that continues to be strong. Beer sales are now I mean back to where they were, if not higher than prior to the pandemic, but the consumption pattern, people trying higher graduation drinks is still there and is still strong.
Paco Camacho: And the other thing, just to add one bit of color, additional color and I guess that we spoke about it in another meeting we had. But remember that in Bara, for example, just to talk about the format and the value proposition, there is a big component of private label. So private label, it’s an important part of the equation. It is more important in certain categories. It keeps growing in general. So that speaks to the type of format and value proposition that we have in Bara.
Alan Alanis: Got it. That’s critical. Thank you. Appreciate it. Congratulations.
Operator: The next question comes from the line of Rodrigo Alcantara from UBS. Please go ahead.
Rodrigo Alcantara: Hi. Good morning, good afternoon. Thanks Paco, Eugenio, Jorge, for taking my quesotin. So a couple of months ago, our Banorte friends came back to LAX [ph], right? I mean this clearly demonstrated the relevance of your proximity format. So my question would be on the opportunities you see or you are working on for to take data should the retail made opportunities at the store level or perhaps partnering with e-commerce guys other strategies or then you see to take the most from the proximity format that you have in Mexico results? Thank you.
Paco Camacho: Yes. I mean, Rodrigo, those are all been very relevant points, and that’s kind of part of the agenda for the ongoing plan, more and more the digital business. Obviously, it’s a business in and of itself, but the digital opportunities associated with the store model and the digital element of combination of physical and digital is something that is part of the plan and something that also slowly rolling out. I mean, there are very significant efforts going on with regards to building out a retail media network within the stores and using the insight of the stores also as specific advertising platforms to generate traffic. We will have eventually the ability to determine which customers are coming into the store.
If they have the spin up or not and then tailor the advertisements to the actual demographics of the store customers that are at any given point in time. So all of that is creating, I mean, tremendous opportunities on that side as well. And again, the more the digital platform is growing, the more we know that there are opportunities well above just the basic products that we offer right now, which is wallet basically with a loyalty program attached to it. I mean there are significant opportunities there on the credit side, on different financial products and in the future with a broader SKU mix and just the OXXO stores to deliver to those customers through other channels and other means. So those are all very exciting initiatives that I think are being slowly opened up, and we’re just at the tip of the iceberg at this point.
Jorge Collazo: And Rodrigo, I think that you have — your question, it reflects basically the number of opportunities that that pop up every time we talk about the digital and the connection with the store. And the way we are reading that is that, I mean, clearly, for our digital proposition the link with the story is an enormous competitive advantage. And that vegetal ecosystem, as Eugenio reference to, is of tremendous value for the consumer. And all the — and the priority of the team is to make sure that we not only tap into that to create value, but also importantly, to help consumers’ lives and to help them in their day-to-day and to open new possibilities for — on the financial side, but also importantly, on their journey as consumers.
Rodrigo Alcantara: I see that. That’s very clear. Thanks for that. But I’m asking on the retail media per se, right, because we have seen how the retailers, let’s see, Walmex, for instance, already have €2 billion pesos business, right, highly margin accretive. So just curious if for you guys, do you think that — I mean, they are still in an early stage about that? And how far do you think we could get on the retail media?
Juan Fonseca: Yes, Rodrigo, it’s Juan. I mean, I think, retail media is — I mean basically, we’ve thrown two or three pitches in the top of the first inning to talk about something that’s kind of involved these days with World Series starting. No, this is just tip the iceberg, as I can say it. I mean, at the end of the day, a lot of it goes back to the 30 million times today somebody is going to interact with our stores. That number will continue to grow. And so the potential is really important. We haven’t really spoken a lot lately about a couple of other things that are happening on the fulfillment side, you’d mentioned partnering on the e-commerce side. Obviously, the 21,000, 22,000 stores, whether it’s directly as we’ve been doing it with Amazon for a number of years or exploring the use of lockers or other ways that we can participate.
And the last milestone point, which, again, we’ve done a lot of work on that, and we’ve identified that it’s for a certain subset of our average transactions that are really big enough to kind of sustain the cost of delivery. But there are other things that are happening kind of in the — behind the curtain, all of which are part of the long-range plan and along all of which we are making progress.
Rodrigo Alcantara: I see. Exciting. Thank you, Juan, Paco. Congrats on the results.
Juan Fonseca: Thank you.
Paco Camacho: Thank you.
Operator: Our next question comes from Héctor Maya from Scotia Bank. Please go ahead.
Héctor Maya: Hi. Thank you for taking my question. So it’s definitely very encouraging seeing the robust result in Mexico. So congratulations on that. It was also very interesting to see the growth with Spain. I mean it seems you are well on track to reach the 10 million user target that you have mentioned a year ago. So seeing this, I just wanted to know if this — I mean if at this stage, you have more clarity in how much more you could accelerate this? And what could be the potential economics in your plan to leverage these very critical mass to integrate part to supply mom-and-pop stores in the traditional channel in Mexico? Thank you.
