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Update of joint venture to operate Coca-Cola franchise in USA

MMonterrey, Mexico, September 30, 2016 – Arca Continental, S.A.B. de C.V. (“Arca Continental” or “the Company”) (BMV: AC) informs that is continuing to work toward a definitive agreement with The Coca-Cola Company for bottling of territory in a large portion of the Southwest United States, including Texas and parts of Oklahoma, New Mexico and Arkansas.

Previously, Arca Continental announced a letter of intent with The Coca-Cola Company, along with Coca-Cola Bottling Company UNITED, to create a joint venture involving these territories.

During due diligence and transition planning, the companies concluded that it is in the best interests of all parties involved, for Arca Continental to focus on the Southwest transition, while UNITED will turn its full attention and resources to its previously announced Atlanta market transition. Consequently, Birmingham, Ala.-based UNITED will no longer participate in the Southwest joint venture.

Arca Continental and UNITED also look forward to sharing best practices, given that their expected future territories will border each other.

Arca Continental will continue to work with The Coca-Cola Company toward reaching a definitive agreement in the first half of 2017, as previously announced.

About Arca Continental
Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise in the U.S. with an outstanding history spanning more than 90 years. Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the Company serves over 85 million consumers in Northern and Western Mexico, Ecuador, Peru and Northern Argentina. The Company’s shares trade on the Mexican Stock Exchange under the ticker symbol "AC". For more information on Arca Continental, please visit www.arcacontal.com.

Update on Refranchising of Coca-Cola Territories in the Southwest United States