December 2

GRUMA INVESTS USD 216 MILLION. (OPPORTUNITIES ONLINE)

Gruma, one of the world’s largest corn flour and tortilla producers, reported totaling USD 216 million between January and September 2021. In Q1, the company invested USD 43 million to increase its production capacity at its tortilla plant in Malaysia; in maintenance and renovations as it prepared to reopen its tortilla plant in Omaha, Nebraska; progress in the construction of its new tortilla plant in Indiana; transportation and distribution equipment in Mexico, and general maintenance and technological improvements across the company. With leading brands in most of its markets, Gruma operates primarily in the United States of America, Mexico, Central America, Europe, Asia and Oceania. 

December 3

THE PANDEMIC REDESIGNS THE CONSUMER PACKAGED GOODS INDUSTRY. (EL ECONOMISTA ONLINE)

The COVID-19 pandemic has reshaped consumer habits in many industries, including Consumer Packaged Goods (CPG). According to Boston Consulting Group (BCG), the industry’s compound annual growth rate was 1.8% between 2016 and 2019, followed by an impressive 10.4% growth in 2020. According to the global consulting firm, the volume growth was driven by soaring consumer demand during the pandemic, which peaked in March 2020 as consumers rushed to physical and digital aisles to prepare for lockdown. In its 2020 study, BCG revealed that while many large and midsize companies have come back to lead the industry, 60% of the classification table comprises new entrants meeting specific consumer demands during the pandemic. Grupo Bimbo and Gruma’s participation are notable among Mexican companies. In the case of Gruma, it ranks 11^th among 15 medium-sized companies driving growth. 

December 5

GRUMA WILL SUPPORT CORN PRODUCTION SECURITY FOR MEXICAN STATES. (MILENIO ONLINE)

Amid the uncertainty caused by the new COVID-19 variant and the cuts in the Mexican farmland programs and their potential effects on the economy, the support provided by companies favoring agricultural production takes on an increasingly relevant role in the country’s economic development, especially in rural areas. In this context, several states are looking to enter into agreements with private companies to offset the lack of funds earmarked for state farmers in the federal budget, and one of the companies that have shown the strongest commitment to producers is Grupo Maseca(Gruma), a Mexican company leading the production of nixtamalized corn flour, tortillas and wraps worldwide. 

December 13

THE ACCOUNTANT. (EXCÉLSIOR 3) (DINERO EN IMAGEN ONLINE)

The Business Coordination Council (CCE, acronym in Spanish) brings in new members to work alongside Carlos Salazar. During its last special meeting, the CCE approved the incorporation to its Executive Committee of the Chamber of the Transformation Industry of Nuevo León, led by Rodrigo Fernández. The chamber is a business organization comprised of large companies such as Alfa, FEMSA, Gruma, Cemex, Arca Continental, Minera Autlán, Iberdrola, and Ternium that are also part of the so-called Monterrey Group, which has been a voice to the federal government. AMAFORE, led by Bernardo González, also joined the CCE because of the relevance acquired by the Retirement Funds Administrators (AFORES). 

December 21

BMV (THE MEXICAN STOCK EXCHANGE): 16 COMPANIES LIST SHARES VALUED AT LESS THAN MXN 5. (THE CEO ONLINE)

As of December 17, 2021, the shares of 16 of the 145 companies listed on the Mexican Stock Exchange (BMV) cost less than MXN 5, for the lowest prices in the domestic market. On the other hand, the shares of 26 companies listed on the BMV cost more than MXN 100 each, and 13 of these are listed on the Price and Quotation Index (IPC) as the most liquid issuers favored in the portfolio with their higher trading volumes. The case of Elektra stands out as the most expensive stock on the BMV, priced at over MXN 1,000. Some companies with the highest valuations include the airport groups (ASUR and GAP), Gruma, Peñoles, Femsa, Arca Continental and Banorte.

December 22

MASECA TO BUY CORN FROM THE FARMERS IN THE STATE OF TLAXCALA. (EL SOL DE TLAXCALA ONLINE)

Scientists at the National Institute of Forestry, Agriculture, and Livestock Research (INIFAP) will work with Maseca to promote the hybrid corn produced in Tlaxcala to ensure that the brand buys directly from the state’s farmers to produce its traditional nixtamalized corn flour. In the Maseca agreement, the company promised to contribute MXN 9 million for technological packages, demonstration plot experimentations, technology transfer modules for producers, courses on the cultural practices of corn, agronomic management or tools that help increase production, the development of hybrid maize grains in specific regions and connections with regional producers.

RANKING OF THE 50 MOST SUSTAINABLE COMPANIES IN MEXICO. (MUNDO EJECUTIVO 3-14-34) (MUNDO EJECUTIVO 34-39)

The criteria used to rank the top 50 companies with the strongest sustainability rates in Mexico were 62 trigger points, assigning a different value to each one, divided into five sections, for a total of 100 points; that is, companies can receive up to 100 points. I.46. II. Gruma. Clients, consumers, shareholders, suppliers, employees, community, and government, among others, are all part of the group focused on being up to the challenge to meet the goals. Company employees took the organizational climate survey and highlighted assistance in disaster situations, as they learned about the company’s Social Responsibility initiatives and activities centered on continuous development within a corporate framework.

December 24

’MULTI-LATIN POWER’ IS CENTERED ON MEXICO, BRAZIL, CHILE AND COLOMBIA. (CAPITAL MADRID ONLINE (SPAIN) 0)

Mexico, Brazil, Chile and Colombia’s largest companies are the main players in regional globalization, leading the Top 100 Companies in the global market. The list, which measures the current and potential degree of globalization of Latin American companies, ranks Mexico as the country in the region with the strongest promotion of its domestic companies abroad. Together, the 100 Top Multi-Latin companies in the ranking earn most than half of their income from sales abroad, and over one-third of their employees are hired outside the country of origin. Together, they have 1.1 million employees. The Top 10 of the most internationalized companies in the region have broad Mexican strokes and colors seen through seven companies, including Orbia, Bimbo, Cemex, América Móvil, Nemaki, Grupo Alfa and Gruma.

December 27

CORPORATE MINUTE BY ROBERTO AGUILAR. (EL SOL DE MÉXICO 24)

GBM and its top picks for 2022. In March, Grupo Bursátil Mexicano (GBM), the brokerage firm led by Pedro de Garay, received two awards from the BMV, led by José Oriol Bosch. The first and most relevant of these awards were for operating transactions worth more than one billion pesos, marking a historic milestone in the local stock market, which even deserved a commemorative plaque installed in the Stock Exchange Museum (MUBO); and the second for having been the intermediary with the strongest growth in transactions completed, totaling MXN 296.175 billion. Both awards corresponded to the 2020 financial year, and we expect to see the Mexican Stock Exchange Group endorse that position again this year. GBM just released its “2022 Top Picks” with highly attractive potential returns measured by the target price calculated by the brokerage firm’s team of business analysts. The top picks of high and medium liquidity stocks include Alfa, Cemex, Femsa, Grupo México, Grupo México Transportes, Gruma, Kimber, Liverpool, OMA and Pinfra, and those with the highest yields in this group include Pinfra with its L series and its projected growth at 192%, Femsa with 108%, and Alfa with 61%. 

December 28

TOP 1,000 COMPANIES IN MEXICO. (MUNDO EJECUTIVO 22-61)

Mundo Ejecutivo magazine publishes a ranking of the Top 1,000 Companies in Mexico, where Gruma was ranked 62^nd.

SOW RESISTANCE TO REAP SUCCESS. (MUNDO EJECUTIVO 10-182-192)

The baking industry registered a positive trade balance totaling USD 777 million in the first half of 2021. Bread production in Mexico is highly segmented into small independent and artisan producers. In this segment, Bimbo holds a little over 20% market share. Gamesa, owned by PepsiCo, leads the cracker and cookie segment with close to 50% market share, followed by Bimbo with 35%, and Nabisco with its 5%. Other participants in the market are Cuétara and Mac’Ma. Corn products manufacturer Gruma and its global Mission brand are the tortilla production leaders and hold a significant share of the tortilla chips, tostadas and flatbreads (wraps, pitas and pizza crust) market. Gruma operates 22 plants in the United States, two in England and others in Russia, Holland, China, Malaysia and Australia.

December 30

FINANCIAL COMMENTARY BY ROBERTO AGUILAR(NUESTRA MAÑANA EN EL HERALDO TV)

Roberto Aguilar, collaborator. Every year, the large brokerage firms pick their favorite stocks to buy for the next year. Experts from a brokerage firm with strong operations in Mexico revealed Grupo México, Cemex, Alfa, Gruma, Kimberly, Liverpool, OMA, INFRA as their top picks, with the best performer in this group being a highway operator in Mexico, as logistics and transportation continue to grow. We also have companies closely linked to local consumption, such as Bachoco, Pharmacy chain Fragua, and Nemak and Quo.