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Guest opinion Special Report Negocios
Senasica Mexican cigars para
Mexico’s national exportadores
service for food health,
safety and quality
Mexican agrifood
Spicing up the world
X - 2015
THE FIRST AGROPARK
OF ITS KIND IN
SOUTHEAST MEXICO
Promoting sustainable regional business
development for agribusiness, logistics
and secondary petrochemical
manufacturing.
• Strategically located in Coatzacoalcos Veracruz.
• Intercontinental distribution point with access to the Gulf of
Mexico and the Pacific Ocean ports.
• 156 hectares of Class A facilities that include: 24/7 CCTV security,
telecomunications technology, water treatment plant and direct
natural gas.
• Variety of commercial options for lots and warehouses.
Parque Agrologístico
CONTACT US
Parque Agrologístico del Sureste
del Sureste
Phone. +52 (55) 5279 6700 Ext. 173
Email. ehernandez@grupoprodi.com
Table of Contents October 2015
Mexico’s Partner Guest Opinion
23 43 44
Grupo Lala México Calidad Suprema Senasica
Interview with Miguel García By Comunicación Social, México Calidad Suprema By Enrique Sánchez Cruz,
and Salvador Delgadillo Aldrete
Mexican Products in
150 Countries
By José Calzada Rovirosa
11
The Agricultural and
Livestock Sector in
Mexico
By Francisco de Rosenzweig
15
archive
photo
From
ProMéxico 07 08 Briefs 19 38 47 50
figures
Mexico’s Partner Special Report
23 Grupo Lala 34 Cooperativa Pescadores 51 AMEFAP
Interview with Miguel García Nacionales de Abulón Interview with Alejandro Turrent Silva
Interview with Celina Domínguez García
25 Grupo Azucarero México 53 Tabacalera R. Paxtian
Interview with Carlos Gabriel Orozco 36 Federación Regional de By Francisco J. Rodríguez Paxtian
Alatorre
Sociedades Cooperativas de la
Industria Pesquera 55 Puros Santa Clara
27 Femeleche By Negocios ProMéxico Interview with Nancy Hernández
By Vicente Gómez Cobo
28 Finca Sustentable Jocutla 57 Gino’s East
Interview with Eduardo Assad Azuara Interview with Jos Saldaña
Mexico in the World
30 Consejo de Productores y
Exportadores de Limón Persa 58 A policy to promote national
Interview with Leonardo Olivares Ahumada Guest Opinion cuisine
By Negocios ProMéxico
32 Inverafrut 48 Aserca
Interview with Hiram Herver
By Alejandro Vázquez Salido
The Lifestyle The Complete Guide ProMéxico
to the Mexican Way of Life Francisco N. González Díaz
CEO
Karla Mawcinitt Bueno
Communications and Image
General Coordinator
Felipe Gómez Antúnez
Director of Publications and Content
felipe.gomez@promexico.gob.mx
courtesy of josé carlos redón
Jorge Arturo Morales Becerra Contreras
Editorial Coordination
60 jorge.morales@promexico.gob.mx
Advertising
José Carlos Redón negocios@promexico.gob.mx
Recovering identity Cover Photo
through food Archive
Interview with José Carlos Redón
Editorial BOARD
photo
consejo editorial
Ildefonso Guajardo Villarreal
67 Francisco de Rosenzweig Mendialdua
62 65
photo courtesy of cptm
Enrique Jacob Rocha
Francisco N. González Díaz
Mexican
Mexico Appetite wine Embajador Alfonso de Maria y Campos Castelló
a world-class online
photo archive
Luis Miguel Pando Leyva
The harvest of
culinary By Luis Fernando Teca
an industry Francisco Javier Méndez Aguiñaga
destination By Ruth Muñiz
Rodolfo Balmaceda
By Mexico Tourism Board Ana López Mestre
Jaime Zabludovsky
Gabriela de la Riva
internacional de cine de morelia
Silvia Núñez García
71 María Cristina Rosas González
photos courtesy of festival
Ulises Granados Quiroz
69
Festival Karla I. Mawcinitt Bueno
Internacional de
Food trucks Cine de Morelia
archive
Food on four wheels
Enhancing films made
By Rodrigo Cansino
in Mexico Negocios ProMéxico es una publicación mensual editada por ProMéxico, Camino a Santa Teresa número 1679, colonia Jardines del Pedregal, delegación
photos
Interview with Paula Amor Álvaro Obregón, CP 01900, México, DF; Teléfono (52) 55 5447 7000.
Portal en Internet: www.promexico.gob.mx; correo electrónico: negocios@promexico.gob.mx.
Editor responsable: Felipe Gómez Antúnez (alta en trámite). Reserva de derechos al uso exclusivo No. 04-2009-012714564800-102. Licitud de título:
14459; licitud de contenido: 12032, ambos otorgados por la Comisión Calificadora de Publicaciones y Revistas Ilustradas de la Secretaría de Gobernación.
ISSN: 2007-1795.
atmospheric administration, and the
observatory / national oceanic and
photos courtesy of the nasa earth
national geophysical data center
Negocios ProMéxico año 8, número X, octubre de 2015, se imprimió un tiraje de 9,000 ejemplares. Impresa por Cía. Impresora El Universal, S.A. de C.V. Las opiniones
photos courtesy of los cabos
expresadas por los autores no reflejan necesariamente la postura del editor de la publicación. Queda estrictamente prohibida la reproducción total o parcial de los contenidos
international film festival
73 75 e imágenes de la publicación sin previa autorización de ProMéxico. Publicación gratuita. Está prohibida su venta y distribución comercial.
ProMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic sol-
vency. The institution might or might not agree with an author’s statements; therefore the responsibility for each text is the writers, not the institution’s, except when stated
Los Cabos Mexico otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes.
International Film seen from space October 2015.
Festival Download the PDF version and read the interactive edition of This publication is not for sale.
First class cinema Negocios ProMéxico at negocios.promexico.gob.mx. Its sale and commercial distribution are forbidden.
Interview with Alonso Aguilar
Para exportadores
Programa de Competitividad From
proméxico
e Innovación
México-Unión Europea
El cierre de cinco años de promover
relaciones exitosas
Por Negocios ProMéxico
83
For two decades, the Mexican tocols that allow safe food trade. The agency in
agricultural sector has managed charge of this is a decentralized organization of
to occupy a privileged position Sagarpa called Servicio Nacional de Sanidad,
in the world. In a short period Inocuidad y Calidad Agroalimentaria (Senasica,
of time it multiplied sevenfold National health service for food safety and qual-
its exports of food products, a development that ity). Twelve years after its creation, it has led to
no other country has equaled, not even those a surplus in food industry exports, and both the
considered as world powers in the agricultural public and private sectors have invested more
sector. than 500 million pesos in infrastructure. This
fotos cortesía del procei
The Mexican strategy for the rapid develop- has generated confidence in the health services
ment of this sector includes infrastructure pro- of other countries, by opening markets in Ja-
grams, services, trade, conservation of natural pan, China, Korea, the USA and the European
resources and reduction of transport costs in the Union, among others.
countryside, which led to the successful adapta- Mexico offers great advantages for the pro-
tion of the food industry to international trade. cessed food industry, with strong foreign invest-
Also, trade liberalization increased substantially ment in this area, leading to the creation of new
the traded volume of the Mexican agricultural jobs. In 2014, total exports of the sector exceed-
sector. ed eight billion dollars and the main processed
The geographical advantages of Mexico foods that were exported were sugar cane, bak-
have allowed exporting at low costs to our ery, candy and chocolate products.
breveS
NAFTA partners, as well as to Latin America Currently, Mexico has access to state-of-
De 76 78 and the Caribbean, Europe, Africa and the Asia- the-art technologies and high-quality inputs
ProMéxico Pacific region, while providing a young and that have been successfully incorporated to our
available work force. These factors allow us to national agricultural processes. Livestock and
offer savings of up to 9.1% in production costs poultry now have a higher potential, our fish
compared with other countries. production is stable and aquaculture represents
foto cortesía de elixir
ELIXIR Detox Foro Global Executive Today the great challenge of the agriculture, an opportunity of development.
foto cortesía de gape
Jugos 100% Agroalimentario 2015 research aquaculture and fisheries sectors is to increase Today, without a doubt, Mexico is a country
naturales El más importante en y cultura the production of healthy, safe and quality able to position itself among the world leaders
foto archivo
Por negocios proméxico México y América Latina organizacional
por Negocios ProMéxico
food products that are key in participating in in the production and distribution of food. The
Por Graciela Santa Cruz
81 82 85 the global market that sets increasingly higher products of our land grace the tables of families
standards to meet plant and animal health pro- worldwide.
Premio Nacional de OPORTUNIDADES Welcome to Negocios ProMéxico!
Exportación DE NEGOCIO
presidencia de la
foto cortesía de
Sinónimo de competitividad EUA Francisco N. González Díaz
foto archivo
en el mundo CEO
república
por francisco javier méndez
aguiñaga 86 88 ProMéxico
BRIEFS BRIEFS
RETAIL MANUFACTURES MANUFACTURING
Superama Opens its 253rd Bosch Inaugurates Plant T. T. Blues will Invest 123 Million
store Pesos
The German company Bosch inaugurated
The Superama chain inaugurated its store num- a thermo-technology plant in the munici- The company T. T. Blues will invest 123 million pesos and create
ber 253 in the Distrito Federal, where it invested pality of Tepotzotlán, Estado de México. 400 direct jobs at the initial stage, with a total employment
around 183 million pesos and will employ 122 These facilities—the first of their kind in goal of 800 jobs. Specialized in the manufacture of women’s
people. This branch is only part of the plan to Latin America—will produce 600,000 gas clothing, the company will be located in the coastal town of
open eleven new units in 2015. powered instant water heaters per year. Miguel Alemán in the state of Tamaulipas.
The new store keeps the focus of serving the The European firm invested seven mil- The T. T. Blues brand is totally Mexican and belongs to
premium client market in the country, whose service lion dollars and has an area of more than Grupo Sportswear, devoted to the production, distribution,
is destined for demanding customers, combined 7,600 square meters. Initially, Bosch will catalog sale and wholesale of women’s clothing, specially denim.
with basic, gourmet, and imported products. Cur- manufacture residential water heaters for
rently, the chain represents 4% of the total sales the domestic market, but it is expected to www.ttblues.com.mx
of the Walmart group in Mexico. later export to Brazil, Chile, and Colombia.
photo archive
www.superama.com.mx www.bosch.com.mx
www.edomex.gob.mx
ENERGY
Siemens Will Build Electric Substation
Siemens Innovaciones will build an electric substation in the state of Jalisco. The FOOD
German company was awarded the new contract bidding via Comisión Federal
de Electricidad (CFE, Federal electricity commission). In addition to the aforemen- Sigma Alimentos Purchases Second
tioned substation, it will have to build six feeders and three lines of 400 and 230 Packing Plant
kilovolts in the state. Siemens Innovaciones’ offer was for 23.5 million dollars, the
lowest bid and the one that obtained the highest technical score. Sigma Alimentos, an affiliate of Monterrey’s Alfa Group, acquired
the packing company Elaborados Cárnicos (Ecarni) in Ecuador. The
www.siemens.com.mx South American company has a plant of cold-cuts in Latacunga, that
www.cfe.gob.mx employs 500 people and sold 41 million dollars in 2014.
This is the second purchase by Sigma Alimentos in South America.
It had previously bought the Juris cold-meat factory. Financial analysts
photo archive
estimate that the Mexican company has invested over 100 million
dollars in acquiring both Ecuadorian companies.
photo archive
photo archive
www.sigma-alimentos.com
CONSTRUCTION
SERVICES Fibra Prologis will Invest
500 million dollars
Shinhan Bank Arrives in Mexico
The business group Fibra Prologis announced
The South Korean bank Shinhan will commence operations in an investment of 500 million dollars in the Es-
Mexico. The institution’s strategy is focused on the extension tado de México, of which 303 million will be for
of credit to companies related to the automotive sector, as building the Park Grande industrial park in the
well as the steel and electronics industries. Initially, the bank municipality of Tepotzotlán.
will open with a capital of 650 million pesos and will base its The American firm’s investment is focused on
headquarters in Mexico City. building seven industrial parks in different mu-
Shinhan Bank was established in 1982 and belongs to the Shin- nicipalities of the Estado de México, according
han Financial Group. The institution is listed on both the Korean to its 2014-2017 development plan. The project
photo archive
photo archive
and New York Stock Exchanges. includes building eight industrial units and will
create 10,000 direct jobs and 1,720 indirect jobs.
www.shinhan.com.en
www.fibraprologis.com
8 October 2015 October 2015 9
BRIEFS photos courtesy of sagarpa Cover Feature | Negocios ProMéxico
RETAIL
Home Depot will Invest 1.5
Billion Pesos Mexican Products in 150 Countries
The Home Depot will allocate 1.5 billion pesos to Challenges, Dynamics and Perspectives on
opening between five and six new stores in Mexico
this year. With these new facilities, the American Mexican Agribusiness
company will have a total of 116 units by the end
of 2015. Producing food in the countryside and in the sea is a good business, and a great opportunity that Mexico takes
The company, based in Atlanta, Georgia, has advantage of because it is a source of jobs and wealth. Mexico has the clear potential of providing its people and the
invested up to 28.5 billion pesos since arriving in world with quality food alternatives, in the best and most competitive conditions of the market.
Mexico in 2001, and plans to continue its steady
by josé calzada rovirosa, secretary of agriculture, livestock, rural development, fisheries and food (sagarpa)
rhythm of investments due to the enormous potential
photo archive
represented by the Mexican market.
The responsibility of the food industry is to bring down post-harvest losses, and
www.homedepot.com.mx to provide the population with the neces- building efficient systems of distribution.
sary nutrients in the required quantity and Other solutions are the promotion and
quality. Addressing this challenge requires modernization of family farming, support
taking into account that in the coming de- for small producers with timely and inex-
SERVICES cades—in Mexico and around the world— pensive financing, technical assistance, and
the food demand will grow substantially modern irrigation systems, improved seeds,
Mexico Now Has a Green Port by the sum of two phenomena: popula- fertilizers, and facilitating domestic and in-
tion growth and the overall improvement ternational market access, among others.
The European Sea Ports Organization (ESPO), through ECO Sustain- of living standards. The challenge is even Situated between the two main oceans
able Logistics Chain Foundation (ECOSLC), awarded the title of Green greater if it becomes apparent that no fur- of the world, and gifted with great diver-
Port to Ensenada, Baja California, the first port in Mexico and second ther areas can be incorporated to agricul- sity and natural wealth, the Mexican terri-
in Latin America to receive this distinction. tural croplands, that water availability is tory contains nearly 198 million hectares,
The title is widely recognized in the world and projects Baja California decreasing and that climate change is a re- 11,500 kilometers of coastline and more
at the forefront of environmental protection, in addition to complying ality with still unpredictable consequences. than three million square meters of seas.
with the federal government’s policy of promoting green and inclusive Experts, researchers, authorities and Thanks to these geographical character-
growth, to preserve natural assets, while generating wealth, competitive- institutions involved in food production istics, we are the 14th largest country on
ness and employment. are studying scenarios and preparing pos- the planet in terms of our extension. For
sible solutions. National experience shows its natural vocation, topography, humid-
www.bajacalifornia.gob.mx that these solutions have to do mainly with ity, soil and communication facilities, the
the organization and association of small Mexican territory includes regions with
and micro producers, the use of innova- different levels of development and agri- Although corn—closely linked to our
tion, knowledge and technology, generating cultural and fishing potential that in sum history and culture—is the basis of our lo-
economies of scale to revitalize the role of present the nation with a mosaic of chal- cal diet and the most important crop in the
producers, value chains and agro logistics lenges and opportunities. country, many other products—hundreds
photo archive
AUTOMOTIVE
Dong Kwang Arrives in Coahuila
The South Korean company Dong Kwang laid the first
stone at its facility in the municipality of Ramos Arizpe,
Coahuila, inside the automotive cluster. The company
will invest fifty million dollars and create more than 330
direct jobs.
Dong Kwang, with forty years experience in this dy-
namic industry, has plants in Asia, Europe, and now in the
photo archive
Americas. It will devote its plant to manufacturing plastic
parts for automobile interiors.
www.coahuila.gob.mx
10 October 2015 October 2015 11
Negocios ProMéxico | Cover Feature Cover Feature | Negocios ProMéxico
of them—are served at the tables of Mexi- encourage the search for new opportunities Of course, neither the increase in pro- seeds, crops and irrigation, or the care and
cans and even reach far away countries, We are the 12 food producer in the world, the 11 in livestock products,
th th and better conditions for the sale of agricul- duction nor the accelerated expansion in feeding of animal species is fundamental for
placing the name and presence of Mexico tural, livestock and fishing products from exports is the result of chance. First of all, increasing productivity.
around the world. the 13th in agricultural crops, and the 17th in fishing and aquaculture. Mexico to the world markets. it is the realization of the efforts of work- We have also made progress in in-
More than 500 agricultural products— Due to its importance, is should be ers, employers, providers of services, dis- troducing technology to irrigation sur-
cereals, oilseeds, fruits and vegetables, stressed that the increase in more than ten tributors, and all those who intervene in faces, and as we complete the first half
ornamental plants, fodder and crops for paya, and, of course, tequila; number two in devoted to cultivating organic products in percentage points of the national partici- agrifood production: close to 6 million of this Administration, we have modern-
industrial use—, dozens of livestock, fish- asparagus, tomato, lemon, and watermelon; this country, and which is basically run by pation in the supply of major grains and men and women cultivate over 22.2 million ized 410,000 hectares out of a target of
ing and aquaculture products, and the in- and we occupy prominent places in other small producers, among them 22 ethnic oilseeds—rice, beans, wheat, soy and sor- hectares of soil; more than 760,000 people 460,000, and with the rehabilitation of Pe-
creasingly important products of the food products such as honey, nuts, and pumpkins. groups, mainly in the states of Chiapas ghum—, passing from 58.2% in 2011 to work in breeding different types of livestock mex’s Pajaritos plant in Veracruz, starting
industry, form the supply of the sector as a Export capacity has grown substantial- and Oaxaca. As a result, we are the num- more than 69% in 2014, it puts us within and poultry, whose activities are spread next year the national supply of fertilizers
result of the work of nearly seven million ly, to the degree that our agricultural trade ber one producer and world exporter of six points to reach our goal of food secu- across more than half of the national territo- will cover up to 80% of consumption,
men and women working in the fields and balance, traditionally in deficit, has accu- organic coffee. Organic production—not rity, set in accordance with international ry; and almost 300,000 are devoted to fishing which today depends basically on imports.
seas of Mexico. mulated a surplus of over 1.1 billion dollars only agricultural, but also livestock and standards at 75%. and aquaculture. The use of technology in In terms of credit, the implementa-
The food industry is a strategic pillar up to September. Products such as beef and aquaculture, as well—is consolidating as tion of structural reforms will allow us to
of the economy, generating over 8% of the live cattle recorded an increase in foreign a viable, profitable and sustainable possi- provide financing to small producers in
country’s GDP and, in the last two years, sales of more than 34% this year. Organic bility, and its products are increasingly ap- the countryside—who before were almost
has proven to be the most dynamic sector and gourmet products are a fast growing preciated by larger groups of consumers in always excluded from this benefit—, with
in terms of growth. Throughout 2015, the niche in the international food market and Mexico and around the world. lower requirements and single-digit rates,
annual growth trend in the agricultural are therefore an area of opportunity, partic- The figures prove it: Mexico has gone especially in the case of projects headed
GDP is at about 5%, which explains why ularly for small producers. The production from growing little more than 21,000 by women, to whom a preferential rate of
it is in the process of consolidating itself as of organic food concentrates the elements hectares of organics ten years ago, to more 6.5% is granted. This year funds of 55 bil-
one of the engines of the national econo- of new agriculture, implying technical mod- than 500,000 today, and from 13,000 lion pesos have been delivered by Finan-
my. Mexico is on track to become a power ernization and good practices, productivity, farmers we now have 170,000 working in ciera Nacional de Desarrollo Agropecu-
in terms of production and export of agri- safety, agro logistics and fair trade. In this this activity. ario, Rural, Forestal y Pesquero (FND, Na-
food. We are the 12th food producer in the regard, there are big opportunities offered The existence of a network of 11 free- tional finance institution for agricultural,
world, the 11th in livestock products, the by the organic and gourmet product mar- trade agreements with 46 countries, with a rural, forestry and fishery development).
13th in agricultural crops, and the 17th in kets in the USA that will surely benefit with potential market of over 1.155 billion peo- The strength of the productivity and
fishing and aquaculture. Mexican products. ple—equivalent to 58% of the world GDP—, competitiveness of the agricultural sector
Our country is the number one world A good example is coffee production, and the recent signing of the Trans-Pacific is based on the international recognition
exporter of avocado, beer, guava, mango, pa- an activity that represents half of the area Protocol (TPP) for Economic Cooperation, of the sanity and safety of our products,
12 October 2015 October 2015 13
Negocios ProMéxico | Cover Feature Cover Feature | Negocios ProMéxico
as a result of the activities of regulation, Other strategies are applied to boost lation growth and rising living standards
consultation and surveillance that are car- productivity and the modernization of the that humanity is experiencing, makes the The Agricultural and Livestock Sector
ried out by Servicio Nacional de Sanidad,
Inocuidad y Calidad Agroalimentaria (Se-
countryside, including the promotion of
value chains in agrifood production, the
Mexican countryside an extraordinary
destination for productive investment. in Mexico
nasica, National Food Sanity, Safety and
Quality Service).
association of farmers to create economies
of scale and added value, which is very rel-
Mexico has the clear potential to offer its
population, and the world, quality food The Continent’s Great Provider
Thanks to the responsible efforts of evant if it is taken into account that 80% choices in the best and most competitive
both producers and authorities, Mexico is of Mexican farmers have small plots of market conditions. Almost two out of ten food products purchased by the USA from around the world are provided by Mexico.
free from classical swine fever, foot-and- land (of less than five hectares). All this brings us to the fulfillment of
by francisco de rosenzweig, undersecretary of foreign trade, ministry of economy
mouth disease, cattle screwworm, Venezu- A relatively new field which we’re the provisions of the National Develop-
elan equine encephalitis, rabbit viral hem- advancing towards is agro logistics, con- ment Plan, which conceives “a strategy to
orrhage, swine vesicular disease, African ceived as the integration of the activities build the new face of the countryside and In 2014 Mexico reached almost 26 billion ports (68%), displacing the extractive and
horse sickness, and avian salmonellosis; in the supply chain, necessary to adapt the the food industry, with a focus on produc- dollars in exports, exceeding the total ex- oil sectors (26%).
and in the case of pests that attack crops, product offering with the market demand, tivity, profitability and competitiveness, ports registered by Costa Rica, El Salvador The contribution of agriculture and
we are free of Mediterranean fruit fly, cac- for which it is necessary to coordinate pro- which is also inclusive and incorporates and Honduras together. This performance livestock to the Mexican economy (5%)
tus moth, citrus canker, Pierce disease in duction, processing and distribution in a the sustainable management of natural has positioned our country as the second remained unchanged during these five
avocado, citrus leprosis, khapra beetle and way that ensures having a product of qual- resources”, and reminds us of the social supplier of food to the USA, a market of years. By 2014, Mexico’s export structure
the red palm mite, among other pests. ity and safety in the right place, on time, dimension of the issue: rural development more than 300 million potential consum- remained largely based on manufactures
The sanity and safety system promotes and at a lower cost. and the flourishing of agriculture will only ers. Almost two out of every ten products (88%), followed by extraction and oil
photo courtesy of ministry of economy
good practices in the production and con- These expressed comparative and be meaningful to the extent that it gener- purchased by the USA in the world are (8%), and agriculture and livestock (4%).
sumption of healthy, high quality and nu- competitive advantages are attractive to ates welfare for those who live and work provided by Mexico. Free trade in Mexico brought the gradu-
tritious food, and has backed the entry of any investor seeking to consolidate a par- around them. Mexico’s countryside still al reduction of tariffs, trade restrictions
Mexican products to 150 countries in all ticipation in the increasingly global agri- concentrates the highest levels of back- Free Trade and the Performance of the and export taxes. For example, NAFTA
five continents. cultural market. Undoubtedly, the popu- wardness and marginalization. To close Agricultural and Livestock Sector took fifteen years to reach a deduction
these gaps, government and society must In 1986 Mexico joined the General Agree- of 100% with the USA and 99% with
Our country is the number one world exporter of avocado, beer, guava, work closely together in a way that pros- ment of Tariffs and Trade (GATT), and the Canada1; however, over time new types
perity can reach the rural population, and subsequent North American Free Trade of non-tariff barriers (i.e. regulations, en-
mango, papaya, and, of course, tequila; number two in asparagus, tomato, becomes a factor of peace and national Agreement (NAFTA) subscribed in 1994 vironmental, sanitary and phytosanitary
lemon, and watermelon; and we occupy prominent places in other progress. N changed Mexico’s export structure, previ- measures) have emerged, which inhibit
ously based on oil exports and the indus- the growth of exports.
products such as honey, nuts, and pumpkins.
www.sagarpa.gob.mx trial policy based on the import substitu- Currently, Mexico has a network
tion model. While in 1985 the majority of of eleven free trade agreements with 46
exports (57%) corresponded to the extrac- countries and preferential access to 1.155 uct (GDP), 53% of global trade, and 62%
tive and oil sectors, by 1990 manufactures billion potential consumers that concen- of the investments in the world. These in-
accounted for most of our country’s ex- trate 58% of global gross domestic prod- struments have contributed in expanding
Graph 1. Structure of Exports in Mexico
Extractive and oil Agriculture and livestock Manufactures
100%
80%
60%
40%
20%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
3004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Banco de México
14 October 2015 October 2015 15
Negocios ProMéxico | Cover Feature Cover Feature | Negocios ProMéxico
In a market where the main producers
compete on a global scale, with the high-
Graph 2. Agriculture and Livestock Trade in Mexico Graph 3. Growth of Agriculture and Livestock
est standards of quality and safety, Mexico
Exports in Mexico
is positioned as an essential part of the
Exports Imports Balance Trade American food market. Today, eight out of
AAGR* 2014/1993
60 ten tomatoes, cabbages and lettuces that
the USA imports come from Mexico, and 15.7% 16.9%
50
six out of every ten melons, beer malts,
pineapples, avocados, guavas and man-
goes that they purchase come from the 9.8% 9.2%
40 8.7%
Mexican countryside.
Billions of dollars
The advancement of Mexican agri-
30 cultural products in the most demanding
market in the world is a strong sign of the
20 competitiveness that this sector has ac- World Latin America and European Union Asia North America
quired. In addition to obtaining preferen- the Caribbean
10 tial access to agricultural products, trade * Average Annual Growth Rate
liberalization has also resulted in produc- Source: Banco de México
0 tive links with our NAFTA partners. Today
Mexico has access to advanced technology new competitors and the greater diversity of ensuring a supply of sufficient, acces-
and high quality materials that have been of goods brought about by trade liberal- sible and healthy food. To meet these chal-
-10
successfully incorporated into our nation- ization, Mexican farmers began to focus lenges, it is necessary to promote efficiency
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
3004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
al agricultural processes. The benefits of their production on their competitive ad- and profitability, especially in neglected
this linkage have extended to the harmo- vantages. Agricultural specialization cre- subsectors, thus forging an even more
Source: Banco de México
nization of regulations and legislation, de- ates greater profitability in the domestic competitive sector, capable of adapting its
signed to ensure high standards of health and international markets, positioning supply in a flexible manner to the chang-
trade liberalization in Mexico with those ure was 9.1 billion dollars. Also, in the last The Distribution of Agricultural and safety for agricultural and livestock Mexico as the world’s leading provider ing demands of exacting consumers, both
countries, while serving as a framework year the trade balance deficit reached its and Livestock Exports products exchanged in North America, of beer malt, tomato, avocado, raspberry, national and international.
for reducing or eliminating technical bar- lowest point in the past eighteen years, to- Although the annual growth of agricultural having a positive impact on productivity blackberry, pumpkin, guava and mango. In 2013 the country produced 3,357
riers to trade. taling 558 million dollars. and livestock exports that Mexico des- and agricultural and livestock profitability. Also, Mexico is the second largest supplier tons of wheat, of which 22% were des-
The food industry has successfully tines to the NAFTA region are less (9.2%) of cucumber, asparagus, lemon, onion, wa- tined to foreign markets. The remaining
adapted to international trade by design- Imports in comparison to exports to the rest of the Challenges and Opportunities in termelon, Brussels sprouts, papaya and co- 2,620 tons remained to satisfy the do-
ing a Mexican strategy that includes in- Since trade liberalization, agricultural and world (13.4%), 80% of our agricultural the Mexican Agricultural and Live- coa powder, among other products. mestic market. However, only 38% of the
frastructure programs, services, market- livestock imports have increased fivefold, trade is still concentrated in North America, stock Sector Mexico has become food dependent national demand was covered. To remedy
ing, natural resource conservation, and totaling 26 billion dollars in 2014. The with sales of over twenty billion dollars. The To counteract the effects of the entry of on other countries and faces the challenge the lack of supply, Mexico imported 4,167
reduction of transport costs in the coun- main suppliers of food products to Mexico USA ranks second as importer of agricul- tons of wheat mainly from the USA (70%)
tryside, which have been the condition- are the USA, Canada, Chile, Spain, and Chi- tural and livestock products in the world, and Canada (25%). This translates into
ing engine for agricultural and livestock na, concentrating 87% of Mexico’s agricul- with purchases of over 118 billion dollars in an apparent domestic consumption7 that
development2. tural and livestock purchases. The main 2014; i.e. more than 8% of total agricultural
Graph 4. US Agriculture and Livestock Imports: mostly depends on imports.
Two fifths of the economically active products imported from abroad are corn, and livestock imports in the world.
Main Suppliers To achieve a distributed and sustained
population in Mexico work directly or wheat, beans and fava beans, pork, poul- Thanks to the trade preferences con- development, consistent with the dynamics
indirectly in agricultural and livestock try and beef, milk, cream and turnip seed, tained in the NAFTA, Mexico has estab- of other economic sectors in the country, it
21.1%
activities. However, migration from the which together represent 42% of Mexico’s lished itself as the second largest supplier 20.1% 1993 is necessary to seize the opportunities that
countryside to the city has caused the sec- purchases from around the world. of food, contributing 17% of purchases, still exist in rural areas.
17.4% 2014
tor to lose relevance in terms of its con- five percentage points more than in 1993, Free trade represents an opportunity for
tribution to the gross domestic product. Exports the year prior to the entry into force of the strengthening competitiveness in the Mexi-
While in towns of less than 2,500 inhab- In the same period, Mexican agricultural Agreement. can agricultural sector, provided it is not
itants the main productive activity is ag- exports multiplied by seven, reaching over The increase in the share of agricultur- 10.9% exposed to unfair competition from pro-
riculture and livestock (51%)3, in towns 26.6 billion dollars in 2014. Mexico is al products in the US market is a clear sign ducers of other countries that, on occasion,
with more than 15,000 inhabitants bare- positioned as the third largest exporter of the competitiveness forged in the past enjoy certain additional benefits. Free trade
ly 2% is devoted to the agricultural and in Latin America and the Caribbean6. 22 years of free trade with the USA, a pe- substantially increased the volume traded
livestock sector4. The main buyers of Mexican agricultural riod in which Mexico has been the country 4.1% 4.0% 3.9% 3.6% in the Mexican agricultural sector. How-
3.2%
products are Germany, Canada, the USA, that has managed to increase its partici- 1.6% ever, although overall significant increases
The Importance of Agriculture and France and Japan, which together concen- pation the most. As Mexico increased its in trade flows were detected in the sector,
livestock in Foreign Trade trate 85% of our exports. Mexico’s main share of the US market, major competi- the results have been unevenly distributed
Canada Mexico China France Italy
In 2014, agricultural and livestock trade in exports are vegetables, tubers, fruits and tors like Brazil, Canada, China and France in the various subsectors.
Mexico reached 51 billion dollars5, almost citrus, concentrating 40% of our agricul- lost relevance as agricultural and livestock Production in the agricultural sector
Source: US Department of Commerce
six times more than in 1993, when the fig- tural sales to the world. suppliers to the USA. covers almost one third of the national
16 October 2015 October 2015 17Negocios ProMéxico | Cover Feature Figures | Negocios ProMéxico
You might have a piece of Mexico on your table!
Worldwide, Mexico is the…
Graph 5. Apparent Domestic Consumption of Wheat in Mexico 1st exporter 2nd exporter 3rd exporter 4th exporter 5th exporter
Imports Production - Exports
8,000 II II
7,000
Thousands of tons
6,000
5,000 4,167
1,741 2,794
4,000 3,585 1,847
3,000
Avocado Guava and mango Papaya Salsa* Tomato Lime and lemon
2,000 3,931 3,582 2,945 2,980 2,625
1,000 1,978
0
1990 1993 2000 2004 2009 2013
Source: Banco de México and INEGI II II
II II II II
territory, concentrating a great variety of Today, eight out of ten tomatoes, cabbages and lettuces that the
climates, water availability, soil qualities
and diversity of ecosystems. Mexico has USA imports come from Mexico, and six out of every ten melons,
the opportunity not only to react appro- beer malts, pineapples, avocados, guavas and mangoes that they
priately, but also to position itself as one of Shelled walnuts Broccoli and Strawberry Fresh bluefin Frozen orange Cocoa powder
purchase come from the Mexican countryside. cauliflower tuna juice with added sugar
the world leaders in food production and
distribution.
Our country’s biodiversity has po- • the implementation of clear and de- to ensure long-term food sustainability. To
sitioned us as leaders in the production fined policies that establish safety reg- achieve this goal, constant innovation in
of fruits and vegetables. Our country’s ulations and compliance with health technologies, quality standards and food II II II III III III
geographical advantages present us with standards and food safety. safety are required.
privileged opportunities to export to our It is also necessary to properly chan-
NAFTA partners on our northern border General Considerations nel the economic agents of the industry
at low cost; to Latin America and the Ca- As a result of the trade policy that Mexico towards the possibilities and opportuni-
ribbean on our southern border; to Europe undertook more that two decades ago, ties offered by trade liberalization of the
and Africa on the Atlantic Ocean, and to the Mexican agricultural sector has estab- magnitude that characterizes the network Melon and Asparagus Frozen bluefin Decaffeinated Celery Eggplant
watermelon tuna coffee
Asia on the Pacific Ocean, together with lished itself as a major player in the world. of trade agreements subscribed by Mexico.
a demographic bonus that underlines the Despite having an export structure highly Mexico has the opportunity not only to
young and available workforce factor. concentrated in manufactures, from 1993 react pertinently, but also to position itself
Among the instruments to support the Mexico has managed to multiply seven- as one of the world’s leaders in the produc-
production processes and efficient promo- fold its exports of food products. Such de- tion and distribution of food products. N III III III III
tion of the use of natural resources, it is es- velopments cannot be observed by other
sential to continue with the following efforts: countries considered as world powers in www.economia.gob.mx
• technological innovation in the pro- the agricultural sector, such as the USA,
duction and distribution processes, Germany, China, Canada, and the Nether- 1 The poultry, sugar and dairy sectors were excluded
• rural development funding to consoli- lands, which together multiplied their ex- in negotiations with Canada
Chewing gum Raspberry Chilli Cucumber Shrimp and Prepared or
date a sustainable and efficient agricul- ports only four times in the same period8. 2 Challenges and Opportunities of the Agricultural
prawn preserved citrus
tural system, As a result of the trade policy of the System of Mexico, Sagarpa
• spreading information on the opportu- present administration, the government has 3 Followed by retail trade (10%) and construction (8%)
nities for expansion in different mar- worked closely with the private sector to 4 INEGI
kets, whether domestic or international, meet the particular sensitivities expressed 5 Banco de México; the agricultural sector includes
Chapters 1 and 2 (excluding fishing) of the tariff rate
• infrastructure development (roads, ports, individually and precisely by each subsec-
6 In Latin America, after Brazil and Argentina; 23rd
telecommunications, energy, etc.) in ac- tor, and has set concrete goals to potentiate place in the world
cordance with international standards to their opportunities in different markets. 7 Apparent domestic consumption: food availability
equip producers with competitiveness, To date, Mexico has been successfully for human consumption, whether by national
focusing positively on the supply chain. inserted into the globalization process, po- production or imports, after discounting exports and
other uses
The efficient coordination of these links sitioning itself as an important agricultural Cookies Pork**
8 World Integrated Trade Solution (WITS); USA, three Natural honey Onion, shallot Confectionery Fresh and
determines the level of competitiveness and livestock sector player in the world. times; Germany, four times; China, six times; Canada, and garlic not containing refrigerated
of the chain as a whole, and However, there remains a long way to go five times; and the Netherlands, three times cocoa beef**
Sources: Global Trade Atlas, SAGARPA y/and Euromonitor International, Official statistics on FDI flows to Mexico / * In Latin America / **In terms of volume
18 October 2015 October 2015 19Negocios ProMéxico | Figures Figures | Negocios ProMéxico
PROCESSED FOOD INDUSTRY PROCESSED FOOD PROVIDER
SIZE OF THE INDUSTRY IN MEXICO COMMERCE IN MEXICO
IN MEXICO
Size of the processed food market in Mexico, 2014
TO THE USA (2014)
IN 2014, THE MEXICAN
BUSINESS INTELLIGENCE UNIT 2015 PROCESSED FOOD INDUSTRY Category Market value AAGR
2014 (MUSD) 2014-2019
2014 % share
in Total INDUSTRY’S EXPORTS REACHED
MANUFACTURER IN AMERICA Value
A VALUE OF 8.2 BILLION
INDUSTRY INDICATORS IN MEXICO (2014) Bakery 27,177 3.6% 40.3%
DOLLARS, WHICH REPRESENTS
Dairy 13,221 4.8% 19.6%
180,013 economic units*, 2014 Consumption: 143.9 OUT OF THE 10 MOST A 10% AAGR FOR THE 2007-2014
mainly located in Estado de billion dollars IMPORTANT COMPANIES IN Candy 4,764 4.0% 7.1%
México, Puebla, Oaxaca, DF, 2014-2020 AAGR**: 3.8% THIS GLOBAL INDUSTRY THAT PERIOD.
and Veracruz Sauces, dressings and
HAVE A PRESENCE IN MEXICO 4,046 4.1% 6.0%
condiments
2014 FDI***: 433 Sweet and salted snacks 3,670 4.4% 5.4%
Total employees in the Main exported products:
food industry: 795,236.
million dollars cane sugar, bakery, Dehydrated dry and
2,477 4.0% 3.7% DESTINATION OF THE MEXICAN
2004-2014 FDI: 16.3 chocolate and non-cocoa processed foods
billion dollars candies.
INDUSTRY’S EXPORTS, 2014
Canned foods 2,251 3.6% 3.3%
Destinations: USA (68%), * Economic units include offices, manufacturing
Refrigerated foods 2,127 5.5% 3.2%
2014 Production: 135.5% 2014 VALUE 2013-2014
Japan (5.5%), Canada (2.5%), plants and distribution centers. Oils and fats 2,182 4.7% 3.2% COUNTRY 2014 SHARE %
billion dollars **AAGR: Average Annual Growth Rate (MILLIONS USD) GROWTH
2014-2020 AAGR**: 4% Hong Kong (2.2%) and ***Foreign Direct Investment (FDI) Baby foods 1,190 4.4% 1.8%
Guatemala (2.1%).
Frozen foods 883 4.2% 1.3% USA 5,587 67.6% -4.4%
Pasta 660.1 4.7% 1.0% Japan 456 5.5% -14.0%
PRODUCTION AND CONSUMPTION IN MEXICO
Ice cream 601.3 2.0% 0.9% Canada 209 2.5% 56.4%
Production Consumption
In 2014 the Mexican processed food industry reached a produc- Spreadables 523.4 5.5% 0.8%
In 2014 the Mexican processed food industry consumption Hong Kong 183 2.2% 39.1%
tion value of 135.5 billion dollars; it is expected to grow at a 4% reached a figure of 143.9 billion dollars; it is expected to grow at a Snack bars 410.3 8.2% 0.6%
Annual Average Growth Rate (AAGR) in the 2014-2020 period. 3.8% AAGR in the 2014-2020 period. Noodles 388.7 5.4% 0.6% Guatemala 177 2.1% -1.0%
AAGR: 4% 174 179 AAGR: 3.8% 174 179 Ready to eat Venezuela 118 1.4% -25.4%
167 167 385.8 5.2% 0.6%
158 158 foods
Spain 113 1.4% 64.7%
143 144 Food substitutes 326.5 5.8% 0.5%
137 138
138
131
139
132 Soups 167.2 2.5% 0.2% UK 105 1.3% 76.6%
Total 67,451 4.1% 100% Vietnam 78 0.9% 54.5%
Netherlands 76 0.9% 34.9%
In 2014 the size of the market* of the Others 1,159 14.0% -5.8%
processed foods industry in Mexico had a
total value of 67.4 billion dollars. It is Total 8,261 100.0% -2.2%
expected that the value of the market for
Source: Global Insight
the 2014-2019 period will grow at an
Annual Average Growth Rate of 4.1%.
2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
Mexico: processed food production in Mexico Mexico: processed food consumption in Mexico The categories with the highest sales in the
(Billions of dollars) 2014-2020 (Billions of dollars) 2014-2020 Mexican market in 2014 were bakery, dairy
and candy, with a combined share of 67%
of the national market.
6,142
* Note: it refers to industry sales in the national market.
Flows of FDI received by Source: Euromonitor
the processed food
3,640
industry (millions of
dollars), 2004-2014
1,685
1,548
602
433
333
1,051
-168
976
151
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
20 October 2015 October 2015 21Negocios ProMéxico | Figures photos courtesy of grupo lala Mexico’s Partner | Negocios ProMéxico
COMPETITIVE COSTS
Grupo Lala
MEXICO IS A PROFITABLE COUNTRY FOR Contributions to the
ESTABLISHING FOOD INDUSTRY PRODUCTION Industry
UNITS. IN 2014, THE NET EARNINGS OF THE MEXICO
OPERATION REACHED A TOTAL VALUE OF 37.1 Conquering the consumer According to Miguel García,
some of the innovations that
BILLIONS DOLLARS, REPRESENTING 10% OF THE the company has made date
INDUSTRY’S GLOBAL INDICATOR. back to over 49 years ago.
The Lala Group is a Mexican company with more than 65 years of experience
“In the 1970s, with the ex-
manufacturing, innovating and marketing milk and dairy products under the highest pansion towards northeastern
PROCESSED FOOD INDUSTRY COST SAVINGS PROCESSED FOOD INDUSTRY NET standards of quality with widely recognized brands. and southern Mexico, we be-
INDEX, 2014
OPERATING EARNINGS IN SELECTED gan the conversion of packag-
interview with miguel garcía, deputy director of institutional relations, grupo lala, by luis
Netherlands
COUNTRIES (BILLIONS OF DOLLARS) 2014 ing milk from glass bottles to
fernando teca
waxed cardboard, representing
Canada
Mexico
France
Japan
1,3%
a fundamental change to the
USA
0,7%
UK
0,2%
From 2000 Grupo Lala ex- in 2015, which in a challenging pasteurizing milk. “Currently, dairy industry in Mexico. In
0%
perienced a period of rapid environment has allowed us to the company operates eighteen the 1980s we launched dairy
Australia
Germany
Italy
-1% -0,7%
growth, both organically and achieve a double-digit rate of plants in Mexico and Central products with long shelf life,
-3%
through acquisitions. In 2013 profitability,” says Miguel Gar- America. Our main market is thanks to ultra-high tempera-
-3,7% the group successfully com- cía, Deputy Director of Institu- Mexico, and our operations in ture (UHT) milk aseptic pro-
-5,1% pleted its initial public of- tional Relations at Grupo Lala, Central America are developing cesses. This innovation enabled
fering on the Mexican Stock adding that during the past a growing presence. In Mexico a storage and distribution net-
Exchange, and with the pro- year, up to September 2015, we have fifteen plants and 156 work without refrigeration,
ceeds consolidated its market the company has grown cumu- distribution centers. In Gua- which resulted in the strength-
a 79,993
16,021
11,032
19,556
70,257
37,101
17,897
9,270
6,955
7,475
-9,1% position while maintaining a latively 6.7% in sales and 22% temala we have a factory and ening of the dairy industry in
strong balance sheet. in net profits. four distribution centers, and in Mexico,” says García.
ACCUMULATED FDI PER BRANCH OF “Since 2014 the company Lala’s roots stem from the Nicaragua we have two plants A momentum and sup-
SA
a
n
il
ai ia
o
In a
Ca nd
Ru a
di
in
pa
ic
az
d
si
ss
ACTIVITY (BILLION DOLLARS) U has undertaken projects to re- joint efforts of farmers of the and five distribution centers. port for the company was
na
ex
la
Ch
ne
Br
Ja
M
configure its productive assets, La Laguna region in northern Grupo Lala employs 34,000 the creation of the Center for
do
2004-2014
Th
In
Processed and maximize the efficiency of Mexico in the 1940s; hence workers, 31,000 of which are in Research and Development
Bakery and its operations. We are satisfied their name. In 1949 they began Mexico and the rest in Central (CRD), “currently one of the
meats 353 tortillas 178 with the results achieved so far de process of collecting and America,” says García. main areas of research in the
Pet food 547 MEXICO PROVIDES 9.1% SAVINGS IN
global dairy industry, which is
MANUFACTURING COSTS IN THE
constantly innovating to dif-
PROCESSED FOODS INDUSTRY, ferentiate our products and to
COMPARED TO COSTS IN THE USA AND
Lala received the 2015 Superbrand award, granted by Superbrands Limited, and
continue counting on the pref-
Dairy OTHER COUNTRIES. international organization devoted to assessing major global brands. erence of the consumers,” says
products
the executive.
1.524
MEXICO CITY AND MONTERREY
Grains, seeds, oils HELD FIRST AND SECOND PLACE,
and fats 5.830
Sugars, chocolates, RESPECTIVELY, IN THE RANKING OF
and candy 2.250 AN ANALYSIS OF CITIES WITH THE
LOWEST COSTS.
Others .983
Fruits, vegetables,
and prepared foods 4.728
IN THE 2004-2014 PERIOD, THE MAIN
COUNTRIES THAT INVESTED IN THE
FOOD INDUSTRY WERE:
NETHERLANDS, USA, SWITZERLAND,
Source: Secretariat of Economy JAPAN, LUXEMBOURG, AND SPAIN.
22 October 2015 October 2015 23Negocios ProMéxico | Mexico’s Partner photos courtesy of grupo azucarero méxico Mexico’s Partner | Negocios ProMéxico
Limited, an international orga- “For Lala, quality is a pri- The sugar industry is
nization devoted to assessing ority. Our milk is classified as Grupo Azucarero México emerging from a long period
major global brands. one of the best in the world
for its quality. To achieve this, More than Sugar of low prices. National pro-
duction has dropped because
Lala’s Markets we evaluate the totality of our cane cultivation ceased to be
Lala’s main markets are in products during the different attractive. However, since all
Mexico and Central America. stages of the production pro- GAM is dedicated to the production and sale of sugar and sugar cane derivatives; it raw materials and cycles go up
The group began operations in cesses, so that we guarantee to generates its own energy and recently ventured into the business of stevia. and down, “today the situation
Guatemal in 2008, and quickly our consumers products that of the sugar industry is good,
gained a relevant position. “In comply with the international interview with carlos gabriel orozco alatorre, financial director of grupo azucarero méxico, by luis and many mills have been able
fernando teca
2014, Grupo Lala acquired the standards. Our plants are cer- to invest and streamline like us.
assets of Eskimo, a Nicaraguan tified according to the Safe Mexico has become a competi-
food company that produces Quality Food Institute (SQFI) Grupo Azucarero México (GAM) and the third one is in El Do- that we don’t require. Most of tive producer in the region,”
mainly ice-cream, milk and oth- system, backed by Global Food is a subsidiary of the Cultiba rado, Sinaloa. GAM also owns them belong to our sector: they says Orozco.
er dairy products; and this year Safety Initiative (GFSI),” says holding, a public company 49% of the stock of the Benito are bottling companies,” says
we inaugurated a dairy plant in García. with ties to soft drink bot- Juárez mill in the southeastern Orozco. Stevia, a powerful
San Benito, Nicaragua, which tlers in Mexico. GAM owns state of Tabasco. “The devel- The executive says that sweetener
will allow us to consolidate our Future Challenges three mills and participates in opment of the company in the the company has maintained Trends in sugar consumption
presence in the region thanks With the acquisition of Eskimo a fourth, where they process past years has been a constant a 15% constant growth in around the world are chang-
to its strategic location,” says and the inauguration of the their own cane and, since last search for improving and mak- the past three years. Recently, ing. GAM ventured into the
García. Tipitapa plant in San Benito, year, are also producing ste- ing the sugar production pro- agreements with the USA were business of stevia which, like
The distribution network the position of the company has via—from the cultivation of cess more efficient to lower modified, allowing Mexico to sugar, is a natural product that
is the key to success for reach- consolidated in Central Amer- the leaf to the refined prod- costs,” explains Carlos Gabriel retain the right to supply the does not undergo any chemi-
ing consumers. Currently, in ica. This is the beginning of a uct—and recently began to Orozco Alatorre, Financial Di- sugar deficit of our neighboring cal modification, and its com-
Mexico they operate more regional platform for manufac- generate energy with bagasse. rector of GAM. country. “We have a close rela- position is not altered in the
than 6,300 delivery routes turing, distributing and selling These are the company’s main A result of this efficiency tionship with the US sugar mar- production process. “Stevia is
with 165 distribution centers, products in Nicaragua, El Salva- activities. process has been the genera- ket, where we sell from 20% the only natural non-caloric
allowing them to reach over dor, Honduras and Costa Rica, The mills are strategically tion of the necessary energy to to 30% of our production. The sweetener. We were interested
500,000 customers daily and by replicating the Mexican mod- located. The largest one is in operate the mills, and even sur- market has gained increasing in participating in this market
offer over 600 products. Add el of offering nutritious products Tala, Jalisco. The second one is plus energy. “We have custom- certainty about the fate of sug- because it is a complement to
to this the ability to distribute with the best quality. Currently, located in Taretan, Michoacán, ers that purchase the energy ar,” says Orozco. sugar and allows us to be more
to 15,000 outlets across Cen- Grupo Lala employs over 1,000 competitive and provide bet-
tral America where they offer workers in Nicaragua. ter deals, according to the new
Eskimo products in modern “This year has been key
Trends in sugar consumption around the world are changing. GAM ventured into consumer trends,” explains the
and traditional distribution for the company, because in the business of stevia which, like sugar, is a natural product that does not undergo any executive.
channels with operations in 2015 we consolidated our chemical modification, and its composition is not altered in the production process. Currently, GAM is develop-
Costa Rica, El Salvador, and foray into Central America. ing stevia leaves in the north-
Honduras. If the populations The results of this invest-
of these countries, plus Nica- ment and the implementation
“For Lala, quality is a priority. Our milk is classified as ragua, are taken into consid- of business strategy with fo-
one of the best in the world for its quality,” says Miguel eration, Lala has the potential cus on productivity and ef-
García. of addressing a universe of 26 ficiency have been reflected
million consumers. in the strong financial results
Miguel García says that achieved in the third quarter,
The CRD involved an in- line of soy and almond based last year Lala invested al- with an increase of 29.3% in
vestment of 150 million pesos, beverages. most 3.5 billion pesos, of net profits of 976 million pe-
and is the innovation platform The Kantar World Panel which 69% went to growth sos. This exceeds our expecta-
for the strategy aimed at re- has recognized the brands and productivity initiatives, tions for 2015, but commits us
sponding to consumer demand. Lala and Nutrileche, position- and the remaining 31% to to extend these results in the
In the past year the company ing them as second and fourth maintenance. From January coming years.”
launched new products such as brands (respectively) of most to September 2015 the com- In the investment process
Grekos, a Greek yogurt, and recognized consumer prod- pany made additional capi- and recent launch of Lala’s San
Break, ready-to-drink tea, fla- ucts in Mexico, and as one of tal investments of over 1.6 Benito plant, ProMéxico accom-
vored milk, coffee with milk the leading dairy companies in billion pesos, 53.6% for im- panied the group in the process,
and several varieties of lactose- Latin America. Also, for their provements in plants and equip- through its proximity with its
free milk for easy digestion. On level of consumer recall, Lala ment, among others, and the counterpart ProNicaragua. N
top of that they developed the received the 2015 Superbrand remaining 46.4% for opera-
“Soy Salud” (“I Am Health”) award, granted by Superbrands tional maintenance. www.grupolala.com
24 October 2015 October 2015 25You can also read
