CapSource is currently working with Fontaine
Trailer Company (Haleyville, AL),the world's largest manufacturer
of flat bed trailers, and Roll-Tite
(Norwich, Ontario) the top designer/supplier of flat bed tarping systems
to develop the next generation of curtain-side trailers for the beverage
industry.
Mexico consumes more soft drinks per capita than any other country in
the world.
FEMSA is the largest
producer/distributor of bottled drinks in Latin America. Its Coca-Cola
FEMSA unit is the largest Coca-Cola bottler in Latin America and second
in the world, producing one out of every 10 Coke products globally.
Its FEMSA Cerveza unit is the second largest brewer in Mexico. FEMSA
also operates OXXO, the largest convenience store chain in Mexico with
over 4,000 units.
Trailers currently
used for beverage distribution have significant shortcomings, among
them weight and maintenance cost. FEMSA expressed a desire for a better
trailer, one that would address these problems without sacrificing payload.
CapSource's Mexican operating unit, RESALTA, in consort with its partners
Fontaine and Roll-Tite, has been working closely with FEMSA on a new
design. RESALTA introduced the new design at a trade show in November
2005. Industry interest has been very strong. FEMSA has been testing
prototypes and indications are that it meets or exceeds expectations.
We believe the market
for this trailer may exceed $50 million per year.
CapSource is actively
seeking and pursuing other product development opportunities consistent
with the overall strategic plan.
