Investor Presentaiton
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ACHI
CONSOLIDATING
ALLIANCES
During 2009, we
continued consolidating
the strategic alliance
between Herdez and Del
Fuerte; an example of the
broad experience and
consistent strategy of
Grupo Herdez.
We obtained savings in costs and
expenses by economy of scales,
concentrating the production of
vegetables in La Corona Plant and
consolidating the tuna operation
process in Chiapas. In Santa Rosa,
we optimized the operations of the
ingredients and packaging materials
warehouse and additionally, we built
a warehouse for tomato paste and
diced tomato.
We redesigned the supply chain in
logistics and distribution and closed
4 centers -one of them was the Puebla
Distribution Center in 2009- to integrate
the remaining facilities to the Group's
distribution network. In addition, we began
the construction of the Teoloyucan facilities.
The organizational structure was
transformed to make it leaner and savings
from economies of scale were obtained
in personnel from supervision levels,
promotion, service to retail chains and key
accounts, sales managers and call-centers.
In capitalizing our experience in strategic
alliances, towards the end of the year we
announced the beginning of operations of
MegaMex Foods, LLC. This alliance extends
the prevailing business between Herdez
Del Fuerte and Hormel Foods Corporation
and will be the growth platform for our
international revenues.
MegaMex as an autonomous entity includes
an independent management team with
headquarters in Chino, California and will
optimize its operation by leveraging the
main strengths of both companies such as
production, research and development and
the supply chain.
MegaMex Foods, LLC
The Herdez and La Victoria brands
have broad presence in the west
coast and southern part of the
United States while Chi-Chi's is very
strong in the northeast and Great
Lakes markets.
MegaMex
Presence
537.8
452.1
744.1
851.7
Foreign Sales
million pesos
11
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