VEPASA: Opportunity that arose from the crisis

The option selected by the founders of Ventas del Pacífico S.A (Vepasa) involved taking advantage of the existing infrastructure (i.e., storage rooms, personnel, internal organization of the Bottling Company), and improving the distribution mechanisms in order to survive the devaluation of the quetzal (the national currency.)

In the early days of this company, two salesmen would travel with each trailer of the Company. One of them distributed Pepsi Cola and the other one, other consumer products with which Vepasa started its business. This strategy lasted only three months, since it was enough to enable the company to buy their own vehicles.

During the first seven years, the company consolidated its operations in the 22 provinces of the country. To this date, the business has been growing steadily each year. From three product lines at the beginning, distribution grew to 60 in 1991, and after diversifying its services, four years ago, the number of national and foreign articles distributed reached 175. Their products leave the company's storage rooms, not only through a horizontal distribution process (in special routes and weekly visits) but also according to a pre-sale system, where orders have been placed in advance from wholesalers, supermarkets and convenience stores.

To be able to use both distribution systems is one of Vepasa's main attractions for new clients. The job of the Special Markets Department which takes care of the convenience stores chains adds to these advantages and reduces operation costs.

The strategy, according to the General Manager, María Luisa Monge de Cáceres, is not to follow TQM nor reengineering theories by the letter, but rather to take the best of each of both models and use it in the organization's management, according to cultural behavior of Guatemalans depending on the region they live and work, which will be covered by the Company's distribution services.