ROBERTO AGUILAR: TRADE RELATIONS BETWEEN MEXICO AND UNITED KINGDOM (ASÍ LAS COSAS/W RADIO/KARLA IBERIA SÁNCHEZ ) Roberto Aguilar: Mexico's trade relationship with the UK, though weak (compared, for example, to the United States) is not without its strengths. According to official statistics, the British economy has the sixth highest commercial trade rate of all EU member states. Key British companies also have a presence in Mexico and Mexican companies, such as Cemex, Gruma, Mexichem, Kidzania, El Farolito, and Grupo Financiero Monex, to name a few of the biggest examples of the companies that have a presence in the UK. 

THREE DIVIDENDS COMING IN THE MONTH OF JULY (ECONOMÍAHOY.MX p.0) July has arrived and with it come payouts for shareholders of three companies in Mexico's Consumer Price Index. These companies are Kimberly-Clark,Gruma,and América Móvil, all of which pay dividends during the first two weeks of July. The first to arrive is that of Kimberly-Clark, this coming Thursday. The following dayGruma will pay out its dividends. This corn flour and tortilla producer will pay its shareholders MXN 0.5 per share, a yield of 0.19%.

TENDENCIES AND TRENDS (EL ECONOMISTA p.7) GRUMA. Gruma managed to mitigate the volatility caused to its shares by the UK referendum, and, despite the fact that its shares recorded a decline of 1.3% on Monday, the company rose 4.18% to MXN 264 at the close of the week.

MULTIVA FINANCIAL TRENDS/MEXICAN COMPANIES EXPAND THEIR PRESENCE TO NEW TERRITORIES (EXCÉLSIOR p.13) As part of their strategy to strengthen operations, some companies on the Mexican Stock Exchange conducted acquisitions and mergers to drive their financial position. One example is Arca Continental (AC), a bottling company that not only increased its production capacity in Argentina and Ecuador but also announced an agreement signed with The Coca-Cola Company, signifying its entry into U.S. territory. Other stocks that opted to conduct operations in Mexico's northern neighbor country include Gruma, which built a new plant in Texas, and Lala, which recently announced the acquisition of Laguna Dairy's business. 

Tortillas help to prevent HPV and even cervical cancer  http://www.informador.com.mx/suplementos/2016/670552/6/tortilla-ayuda-a-prevenir-vph-e-incluso-cancer-cervicouterino.htm It also indicated that companies like Maseca have been fortifying corn flour for several years. This product is used in the preparation of 25% of all tortillas made in Mexico, and it is specially fortified with folic acid, helping not only to counteract the effects of HPV but also helping pregnant women to get the daily recommended value of this vitamin needed to prevent spina bifida in their unborn children.

TRENDS  (EL ECONOMISTA p.7) GRUMA. This food company was one of eight stocks on the Consumer Price Index to improve this week.Gruma shares gained 2.03% and closed on July 8 at MXN 269.47 per share.

10 Mexican companies found around the world http://proyectagerencia.com/blog/?p=1003  Mexico is among the eight largest industrialized food producers in the world, behind the United States, China, Japan, Brazil, and Germany. These countries generate the highest market value in the food industry worldwide. Mexico's venture into the food industry began with Monterrey companyGrumain 1973, and today it has more presence and growth outside Mexico than any other industry.

DAVID ÁNGEL/DOWN UNDER (EXCÉLSIOR p.2) Australia and Mexico have had a common attraction to direct foreign investment. In the last five years, direct investment from Australia to Mexico has experienced a dramatic increase. There have also been some significant Mexican capital investments in Australia, especially in the food and agribusiness industries. For example, the world-renowned Mexican company Gruma produces over half of all flatbreads made in Australia and exports the majority of its production to Asia. Both of these facts reflect the future of the bilateral investment relationship between Australia and Mexico, which is based on the countries' ability to leverage their potential as ports of entry to each other's respective geographical regions.

State and federal governments open community kitchens http://www.periodicoabc.mx/articulo/inauguran-estado-y-federacion-comedores-comunitarios The menu is set by the Secretary of Social Development, and the food is donated by DICONSA, along with Monterrey companies such as FEMSA and GRUMA, which provide Maseca products and other brands.

EXCHANGE RATE IMPACTS FOOD INDUSTRY COMPANIES LISTED ON MEXICAN STOCK EXCHANGE (EL ECONOMISTA p.9) The Alsea, Bimbo, Lala, and Gruma groups, all food industry stocks found on the Consumer Price Index, are looking solid and expect positive figures on reports from Q216, although the peso's depreciation against the dollar put a halt to rises in these stocks, explained José Antonio Cebeira, an analyst at Actinver Casa de Bolsa. According to Cebeira, profits will recover 48% compared to the same quarter in 2015. Bimbo and Gruma are on the same path as Alsea...

Today, Líderes Mexicanos published its list of the Top 300 leaders in Mexico, which includes Juan González Moreno, the President, and CEO of Gruma.

MEXICO'S 50 MOST GLOBAL COMPANIES (MUNDO EJECUTIVO p.58-71), The magazine Mundo Ejecutivo, published its list of “Mexico's 50 Most Global Companies” and Gruma was ranked 20th on the general list and 11th in terms of revenue. Other countries appearing on the list included the United States, Guatemala, Honduras, Costa Rica, Ecuador, El Salvador, Venezuela, United Kingdom, Netherlands, Italy, Ukraine, Russia, Turkey, China, Malaysia, and Australia.

 19 COMPANIES ON THE CPI THAT ARE SETTING RECORDS. (EL FINANCIERO p.26) The Mexican Stock Exchange Consumer Price Index set its second highest record for the year yesterday. The companies that make up the exchange joined it in various ways on this journey. According to data from Bloomberg, this month, stocks on the CPI that hit unprecedented levels were Arca Continental, Grupo Bimbo, and Banorte. Stocks that hit record highs in June included Alsea, Asur, Gap, Banregio, and Oma. From January to May of this year, the stocks that added new brands were Femsa, Gentera, Gruma, Kimberly-Clark, La Comer, Grupo Lala, Grupo Carso, Nemak, Pinfra, Volaris, and Walmex.

GRUMA RANKED THE MOST TRANSPARENT MULTINATIONAL IN ITS COUNTRY OF ORIGIN ACCORDING TOTI.  (ZÓCALO (COAHUILA) p.0) The “Report on Transparency in Corporate Information:Multinationals in Emerging Economies 2016”, prepared by Transparencia International (TI), indicates that Juan González Moreno's Grumas tood out in the category of Information on a National Level as the only multinational that offered complete and comprehensible information on the company's involvement in subsidiaries, branches, affiliates, or joint ventures in its country of origin. The categories evaluated by this international organization were: Anti-Corruption Program, Organizational Transparency, and Reports by Country.

 THE TOP 50 (REFORMA p.6-8) Companies have an increasingly strong influence on society, including lifestyles and the political, social, economic, and cultural environment. Society also influences companies' decisions and futures, a correlation that we have been observing for a year to draw certain conclusions about the advances that various Mexican companies have taken in the area of social responsibility. We have taken it upon ourselves to emphasize and appreciate the efforts these companies make on a daily basis to improve their environments.Gruma is listed as a global producer of corn-based products on the “Top 50 Mexico” list of Socially Responsible Companies, listed in alphabetical order.

MEXICAN COMPANY TO EXPAND CORN FLOUR PRODUCTION IN GUATEMALA (20MINUTOS.COM.MX p.0) Mexico's Grupo Maseca began construction on its new corn flour production plant in the western department (state) of Chimaltenango, Guatemala. Gruma Central America’s Managing Director, José Jaikel, said that with this expansion of the El Tejar plant, they will process an additional 1,750 metric tons of flour each month, which is equal to 119 million tortillas. In statements made to Notimex, he explained that his goal is to supply the regional markets, where the company has been operating for 40 years and has 2,000 collaborators across 10 production plants.

ALFREDO HUERTA/FINANZAS 24 (24 HORAS p.15) The UN Food and Agriculture Organization (FAO) feels that in the long term, agricultural demand will grow due to two factors: first, the growth of the world's population, and second, global economic growth itself, which as we know has declined in recent years. The FAO's food price index settled at 163.4 units in June, an increase of 4.2% compared to May and just 1% compared to June 2015. Corn is the most produced grain in the world. In Mexico, corn production is targeted at human consumption, with its primary product being the tortilla, a basic household food. In the United States, on the other hand, corn is used as an export and animal crop, while in China it is used for livestock. Mexico is the world's largest producer of white corn. Tortillas continue to be prepared mainly with masa (dough) made from boiled (nixtamalized) corn, representing 65%. 35% are prepared with corn flour, especially Maseca, a brand of Gruma, Mexico's leader in the industry. Price trends for corn and flour have increased since mid-2015. Corn has seen the highest price pressure worldwide, and corn flour, despite mitigating this pressure for a time, has had to follow the trend, causing an increase in tortilla prices in 2016 despite a limited increase for the most part in 2015. Corn flour was able to contain its price increase, but in the second quarter, prices had to be adjusted due to the pressure from corn prices.

TRENDS  (EL ECONOMISTA p.7) GRUMA. The prognosis for the food industry is encouraging, despite the possible effects of exchange rate volatility. Gruma's shares closed high, at 0.43%.

JONATHAN RUIZ/PARTEAGUAS (EL FINANCIERO p.19) Feeding people. A foreign entrepreneur based in Mexico promises a solution to the demand for food caused by a growing population: breed locusts. Locusts are his livestock. I don't know if perhaps this source of protein will someday become a staple in the Mexican diet, but in this country, like the rest of the world, the population is growing, and people need to eat. Mexican companies such as Gruma, Bimbo, Lala, and Grupo Bafar grow in size each day to the point that they have become major transnational companies that sell their products in the United States, Asia, and Europe. Working towards a degree in food engineering, such as the one offered at the National Polytechnic Institute (when it's working) seems like a reasonable option. Subjects like cellular biology and food chemistry seem interesting, at least.

ANALYSTS SEE POSITIVE OUTLOOK FOR GRUMA (EL ECONOMISTA p.10) The scenario is looking positive in the second quarter for Gruma, the world's largest corn flour producer. Stock experts from Banco Santander expect growth in the company's profits to be 42.1% during the second quarter of the year. Banco Santander added that Gruma's total sales between April and June this year reached MXN 16.456 billion, representing a 15.2% growth over the same period in 2015 (MXN 14.28 billion). The EBITDA of the company, which is a major producer and seller of corn flour, reached MXN 2.618 billion during the second quarter, resulting in an increase of 16.3% over the same period last year. Gruma's shares recorded a loss of 3.6% during the second quarter, but this year the company has reported a cumulative profit of 12.9%.

GRUMA INCREASES EBITDA BY 18% (EL NORTE) Grupo Maseca (Gruma) increased its EBITDA by 18% in the second quarter with respect to the same period in 2015, an increase driven by operational improvements, the exchange rate, and higher levels of consumption in Mexico; the figure reached MXN 2.642 billion. In its report, the world's largest corn tortilla and wheat flour producer explained that from May to June of this year, its sales reached a total of MXN 16.348 billion, representing a 14% increase. Its sales volume improved 2% over comparable periods.

DÓLAR FUERTE AYUDA A GRUMA (EL ECONOMISTA 1-8)(LA JORNADA 23) (EXCÉLSIOR 2) (EL UNIVERSAL 5) (EL FINANCIERO 20) (LA RAZÓN 24) (EL SOL DE MÉXICO 2)(REFORMA 6) (LA CRÓNICA DE HOY 24) (EL NORTE (ON LINE) 0) (NEGOCIOS EN IMAGEN ) (ENFOQUE FINANCIERO )  (MÉXICO GLOBAL CON JESUS UGARTE) La empresa productora y comercializadora de harina de maíz más grande del mundo, Gruma, durante el segundo trimestre del 2016 reportó buenos resultados, sobre todo en lo referente a sus utilidades, las cuales mostraron un incremento de 31.1%, al pasar de 1,081 millones a 1,417 millones de pesos. De acuerdo con el reporte de resultados enviado a la Bolsa Mexicana de Valores, Gruma destacó que el aumento de doble dígito en las ganancias se derivó básicamente por la depreciación del peso mexicano frente al dólar estadounidense, tras realizar sus ventas en el exterior, específicamente las efectuadas por Gruma Corporation, subsidiaria de la emisora regiomontana en Estados Unidos. En el reporte, la empresa líder en venta de harina de maíz destacó que en el periodo abril-junio de este año, sus ingresos netos registraron un crecimiento de 14% con relación al mismo periodo del año anterior, para alcanzar una cifra de 16,348 millones de pesos. El incremento en las ventas deGruma se derivaron básicamente por Gruma Corporation y por las ventas de Grupo Industrial Maseca, su subsidiaria en México.

GRUMA INCREASES EBITDA BY 18% (EL NORTE) Grupo Maseca (Gruma) increased its EBITDA by 18% in the second quarter with respect to the same period in 2015, an increase driven by operational improvements, the exchange rate, and higher levels of consumption in Mexico; the figure reached MXN 2.642 billion. In its report, the world's largest corn tortilla and wheat flour producer explained that from May to June of this year, its sales reached a total of MXN 16.348 billion, representing a 14% increase. Its sales volume improved 2% over comparable periods.

THE 300 MOST INFLUENTIAL LEADERS IN MEXICO (LÍDERES MEXICANOS p.228-232) The magazine Líderes Mexicanos published a list of the 300 Most Influential Leaders in Mexico; Juan Antonio González Moreno, President of the Board and CEO of Gruma and Gimsa, was ranked 128th. Background: 1998: assumes presidency of Azteca Milling in United States; 2006: Gruma begins operations in China under the direction of Juan González Moreno; 2012: assumes position as President and CEO of Gruma; 2013: is recognized as Businessman of the Year by the Association of Mexican Businessmen in the United States (AEM). González has held various positions at Gruma, including Director of Special Projects for Gruma Corporation, Subdirector of Central and Eastern Regions for Mission Foods, Director and Subdirector of Sales for Azteca Milling, and CEO of GIMSA and Gruma Asia-Oceania. GIMSA is the largest producer of corn flour in Mexico. It has 18 distribution plants across the country, with an estimated annual capacity of 3 million metric tons of corn flour. This year, the company signed an agreement to create The Mission Foods Texas-Mexico Center, which is the world's first center to research Mexico-Texas relations.

THE 300 MOST INFLUENTIAL LEADERS IN MEXICO (LÍDERES MEXICANOS p.233-236) The magazine Líderes Mexicanos published a list of the 300 Most Influential Leaders in Mexico; Carlos Hank González, President of Grupo Financiero Banorte, Vice President of Gruma, and CEO of Grupo Hermes, was ranked 141st.

GRUMA TO EXPAND MEXICALI PLANT TO SUPPLY THE U.S. MARKET (EXPANSIÓN/empresas) Mexican company Gruma, one of the largest producers of corn flour and tortillas, announced its decision to increase the capacity of its Mexicali plant to continue to grow its operations in the United States. “We decided to increase our capacity at the Mexicali plant instead of expanding the factory we currently have in California,” said Raúl Cavazos, Corporate Director of Finances and Strategic Planning, during an analyst’ conference. The board of directors also announced an increase in the capacity of the Indiana plant, although it reiterated that over the next few years the Mexicali plant will be the primary supplier to the U.S. “In other words, in the next 20 years we will see operations in Mexico continue to support the United States,” he added.

IRASEMA ANDRÉS DAGNINI/CLEAR ACCOUNTS (LA RAZÓN) During the second quarter of this year, Gruma's revenues reached MXN 16.348 billion, resulting from a 14% increase in net sales and 2% increase in sales volume, driven by Gruma Corporation and Grupo Industrial MASECA. Gruma's EBITDA grew 18% with respect to the same quarter last year, reaching MXN 2.642 billion, and its liabilities ended at USD 704 million dollars, a 1.3 ratio compared to its EBITDA. The company's net profits for the period were MXN 1.501 billion, well above the 345 million reported one year prior.

ROGELIO VARELA/CORPORATE (ÍNDICE CORPORATIVO) Some of the companies with the highest performance during the second quarter were Gruma, run by Juan González, which managed to achieve a double-digit increase in sales, free cash flow, and good profitability, which explains the high performance of the stock so far in 2016, which has been a very difficult time for the market.

GROWTH FOR GRUMA (EXCÉLSIOR TV) Juan Carlos De Lassé: U.S. sales drove Gruma's figures, with the country's sales representing upwards of 70% of the total sales of the company's products.

Reporter: Gruma, a corn products manufacturer, increased its sales by 14% during the second quarter; its revenues were recorded at MXN 16.348 billion. These results enabled operating profits to recover 19%, ending at MXN 2.191 billion. From April to June, foreign sales represented 74% of the company's total sales. Gruma's operations in the United States continue to benefit from sales to snack producers, food services companies, and restaurants, which take advantage of the popularity of Mexican food in the U.S.

SIS AND GRUPO MASECA SIGN PARTNERSHIP AGREEMENT TO AID WOMEN (DIARIO CO LATINO (EL SALVADOR) p.0) The Secretariat of Social Inclusion, Vanda Pignato and Axel Villanueva, General Manager of MASECA in El Salvador, signed a partnership agreement as a strategic alliance to contribute to the development of Salvadoran women attending the Economic Autonomy Module at “Women's City,” an event that Mexican ambassador to El Salvador Francisco Javier Olaverría will attend as a guest of honor. “We signed an agreement between the Secretariat of Social Inclusion and Grupo MASECA that binds us to work together to promote comprehensive development, from a professional point of view, for female entrepreneurs by supporting them with training sessions, counseling, and technical assistance,” stated Vanda Pignato. Axel Villanueva, General Manager of MASECA in El Salvador, explained that the company has always encouraged the idea of “social responsibility” with its social commitment to helping to develop the towns in which it has a presence.

TENDENCIES AND TRENDS (EL ECONOMISTA p.7) GRUMA. The company reported an increase of 31.1% in its net profits during the second quarter. There was also a 17.8% increase in its EBITDA and a 14% increase in its revenues. During the week, the company's stock rose 1.98%.

PUSH FOR MINING, RETAILERS, AND AIRPORTS (EXCÉLSIOR p.1-12) The Mexican stock market, riding on the coattails of Wall Street, is soaring. Mexico alone, along with the S&P 500 and the Dow Jones, can joke about being on top of the world, basking in the light of its new record highs. The rest of the world's markets will have to recover quite a bit of distance to reconquer their far-off records. The other industry staying afloat on the CPI is consumer goods, one of the Mexican economy's strongest areas. If the industry doesn't improve even further, it's only because last year was already such a winning one. In fact, a handful of companies have reached new record highs this year (Bimbo having done so last week). Profits this year have been a highlight for Bimbo (28%), Coca-Cola FEMSA (23.4%), Alsea (16.2%), La Comer (17%), and Gruma (14.2%), all of which had profits higher than the CPI.

GRUMA ATTAINS GOOD NUMBERS IN U.S. (MILENIO TV (8:00 to 10:00)) Bárbara Anderson: We started the week off with good numbers from Gruma; the company is pleased with the success it is having in the United States; the company has taken some significant measures to cover the growing demand in this market. First, it increased the capacity of its Mexicali plant; this is good news since the same could have been done with its California plant, but the increase in consumption is such that its production capacity will also grow in the Indiana plant. The company reiterated, however, that over the next few years the Mexicali plant in Mexico will be the main supplier for the United States. In harmony with the growing trends, Gruma also announced the construction of a new plant in Dallas and the reopening of a corn flour plant in central Mexico. According to a report the company released about Gruma's operations in the United States, they are continuing to benefit from corn flour sales and tortilla sales to snack producers, fast food chains, and restaurants. The interest in the company's goods is not just related to nostalgia from Hispanics in the U.S.; Mexican food has become very popular in the main U.S. market.

ELITE MEXICAN STOCKS INCREASE OPERATING FLOW BY 10% IN 2Q16 (EL FINANCIERO p.32) Companies that make up the sample of the Mexican stock market's CPI reported positive results in the second quarter of 2016, aided by the strength of consumption in Mexico, improved cost control, the growth of new business, recuperation of the prices of some commodities, and the depreciation of the peso against the dollar (which favors companies that export to or have operations in the U.S.). Some companies have revenues in dollars since they export and therefore have operations in the U.S. or products whose prices are in USD, allowing them to benefit from the conversion of their income into pesos. This is the case for companies such as Cemex, Grupo Bimbo, Gruma, Peñoles, and Alfa.

THE 500 TOP COMPANIES/TOP 50 IN MEXICO (AMÉRICAECONOMÍA p.108) (AMÉRICAECONOMÍA p.66-67) The magazine América Economía publishes a list of the 500 Biggest Companies in Latin America; on the list of the Top 50 in Mexico, Gruma takes 47th. On the list of the 500 Biggest Companies in Latin America, Gruma took 137th. In the food industry, Gruma was ranked in 8th place.

BAJA CALIFORNIA PRODUCERS BEGIN CORN HARVEST. (EL SOL DE MÉXICO p.2) In 2015, 200 hectares of cornfields were established in Mexicali Valley, but this year the area increased to 800 hectares. This shows a slow but favorable outlook for the cultivation of the grain; yesterday was the symbolic official start of the harvest season. The president of the State Corn Producers Association of Baja California, Juan Meléndez Valle, announced this and performed a symbolic harvest ceremony at one of his plots of land, attended by producers as well as authorities from the agriculture industry. Regarding sales, he said that there are agreements with two large buyers in Tijuana and with Maseca.

2016 CANCEROTÓN REACHES ITS GOALS, COLLECTING MXN 30 MILLION.(MILENIO DIARIO p.34) Cancerotón (a televised marathon to raise funds to fight cancer) achieved its goal for the third year in a row, raising MXN 30,402,000. These funds will be used to build a Cancer Prevention Clinic in Torreón, Coahuila, Mexico, a part of the country that has drawn a great of attention due to the high number of cancer cases reported. Children, young people, adults, and the elderly, government offices, news media, celebrities, and business people, including some donors, participated in the major achievement the Cancerotón reached this year, proving that private initiatives and civil society can achieve grand goals for many cancer patients, when united for a humanitarian cause. Some of the major companies that participated in the event included Fundación Lala, Ahmsa, Delta Electric, Cemex, Gruma, Kreativ, Farmacias del Ahorro, Banorte, Simsa, Cimaco, and Telmex, among others.