MEXICO CITY (S&P Global Ratings) Nov. 1, 2019--Coca-Cola Femsa S.A.B. de C.V. (KOF; global scale: A-/Negative/--; national scale: mxAAA/Stable/--) announced that the arbitration with Heineken N.V. has ended in KOF's favor. The arbitration stemmed from disagreements between Cervejarias Kaiser Brasil, S.A., a subsidiary of Heineken, and the Coca-Cola System in Brazil over contracts to distribute beer in that country. According to the ruling, KOF will continue distributing Kaiser's portfolio, including Heineken beer, in Brazil until March 19, 2022. In our view, arbitration resolution is important for KOF's credit profile, given that about 8% of its consolidated sales, or 25% of its revenues in Brazil, come from the beer distribution. This also confirms our view of KOF's satisfactory business risk profile,
