OPPORTUNITIES INTO GROWTH ROUTES
The entrepreneurial spirit of Grupo Herdez has led us to explore new growth opportunities that, with a business approach based on knowledge of our customers and consumers, we transform into realities for our value chain.
Our proprietary products and brands, business partnerships and distribution agreements that comprise the portfolio are the basis of our market leadership today. In 2015, we achieved record sales of Ps. 16,356 million. Half of this growth was due to the acquisition of Helados Nestlé®; the rest was possible thanks to the organic growth of the rest of the business lines.
LAUNCHES
During 2015, we transformed our product range in Mexico with the launch of Herdez® soups and chowders, McCormick® mustard specialties, varieties of Búfalo® sauce and Barilla® gluten-free pasta, as well as the launch of Herdez® Guacamole Salsa in the United States. Herdez® took on the soups and chowders to capitalize on its strong positioning in prepared food and thus became the second most important player in that category. The five varieties launched were asparagus, corn, mushroom, lentil and poblano chili.
Búfalo® entered the marinade sauce segment with the launch of extra spicy chicken wing sauce, and the chamoy segment with a spicy flavored sauce characteristic of the brand. The launches were advertised through television, movie theater and social network campaigns.
The three new varieties of McCormick® mustard emerged as an option for more demanding tastes, in a category that the brand has led for more than 65 years. The varieties launched were dijon, honey and pepper.
Our goal in the pasta category is to increase per capita consumption in Mexico; to this end, we launched Barilla® gluten-free pasta, whose ingredients are corn and rice. In addition, we updated Vesta® with a new, warmer image and the slogan “The taste of being together”, to strengthen the emotional bond with consumers.
We expanded the Nutrisa® portfolio with products such as the soft ice cream cone with less than a hundred calories and the first taro flavored popsicle on the market. We also added new flavors to the existing range of soft ice cream with choco-hazelnut, cranberry, and taro, and hard ice cream with cranberry-natural, natural 0% sugar, pineapple-coconut and tamarind flavors.
At Aires de Campo® we incorporated products such as apple juice, coconut flour, natural yogurt, Oaxaca cheese, quinoa, vinegar, whole and semi-skimmed milk, as well as launching a line of herbal teas with relaxing, digestive and anti-flu properties.
CONSOLIDATION OF NEW PRODUCTS AND MARKETS
In 2015, Doña María® mole celebrated seventy years since it transformed one of the most iconic Mexican dishes into a practical version for consumers. In this context, we expanded its portfolio with two new varieties: almond mole and poblano mole with chocolate, which have grown at double-digit rates since their launch.
McCormick® closed the year with record sales. McCormick® mayonnaise increased its market share, while brand awareness among consumers remained high. We achieved domestic goals with growth in the north of the country, where we are challenged to grow at a faster pace. Strategies such as the “Cooking unites us” television program and product tastings at various points of sale are examples of our efforts in the year to leverage our opportunities in that region.
Meanwhile, MegaMex products have more than a third of household penetration in the United States. On the west coast alone, where penetration of Mexican food is high, close to 50% of consumers purchase one of our products during a visit to the supermarket.
The distribution of Herdez® Salsa and Wholly Guacamole® also continued to expand, with double-digit growth in both consumption and market penetration. This is possible thanks to the emotional connection that the brands have achieved with consumers through their Mexican authenticity, as well as offering healthy options such as all-natural Wholly Guacamole® and La Victoria® organic products.
EXPANSION OF THE FROZEN SEGMENT
Following the acquisition of Nutrisa® in 2013, the incorporation of the Helados Nestlé® business in Mexico in March 2015 gave Grupo Herdez presence in all sales channels in the ice cream category: convenience, institutional, owned stores, modern and traditional.
Helados Nestlé® is among the leaders of the ice cream and frozen desserts category (particularly in the kids and teens segments), with a portfolio that includes brands such as eXtreme®, Mega®, Nestlé® and PelaPop® and a network of over 49,000 points of sale in Mexico.
This acquisition also included an ice cream plant in Lagos de Moreno, Jalisco, distribution equipment and freezers, and an exclusive long term license to market and sell the Helados Nestlé® brands in Mexico. In addition, the agreement included retaining the employees of this division, enabling the Group to guarantee the continuity of the business and conservation of talent. The transaction increased the scale and capabilities of Grupo Herdez in the frozen segment and doubled the size of the ice cream business within the portfolio.