October 3

SEDAGRO REAFFIRMS THE PROMOTION OF CORN PRODUCTION IN THE STATE OF MORELOS. (LA CRÓNICA DE MORELOS ONLINE) (CENTRAL DE NOTICIAS ONLINE (MORELOS)

Within the framework of National Corn Day, which Mexico celebrates on September 29, the Government of the State of Morelos, through the Secretariat of Agricultural Development (SEDAGRO), reiterates its commitment to the state’s farmland through actions designed to foster its development. For this year’s harvest, grain producers will receive support from sales activities through contract farming, which is expected to generate MXN 4 million by selling their crops to large companies like Maseca and others in the dough and tortilla industry.

October 4

GOVERNMENT AND PRIVATE ENTERPRISE SIGN ANTI-INFLATION AGREEMENT. (REFORMA 1) (LA JORNADA PP-3) (EL FINANCIERO PP-4) (EL ECONOMISTA PP-4-5) (LA RAZÓN PP-9) (24 HORAS PP-4) (LA CRÓNICA DE HOY PP-6-7) (EL SOL DE MÉXICO PP-16-17) (EL HERALDO DE MÉXICO PP-4) (REFORMA PP-7) (EL UNIVERSAL PP-21) (MILENIO DIARIO PP-14) (CONTRARÉPLICA PP-4) (Front Page Story)

The Secretary of Finance and Public Credit, Rogelio Ramírez de la O, presented the ‘Opening Agreement against inflation and high prices’ signed by the federal government and a group of food producers and distributors to maintain or reduce prices for basic products and staples through February 28, 2023. He noted that the diagnosis shows that, unlike the United States, where price increases are based on demand, in Mexico, they are based on supply, so the answer is to produce more food and have the government reduce regulatory and logistics costs to reinforce the availability of groceries. According to the official, the current maximum average price agreed to for the basic food basket is MXN 1,129 for 24 products; however, he stated that this effort is intended to reduce this price to MXN 1,039 through February 28, 2023. The companies and organizations participating in this agreement include Tuny (tuna), Dolores (tuna), Maseca (Tortillas), Minsa (tortillas), Bachoco (poultry and eggs), San Juan (eggs), Grupo Gusi (meat), SuKarne (meat), Opormex (pork), Sigrna Alimentos (pork), Calvario (eggs), Walmart, Soriana, Chedraui, and Valle Verde. 

LA MAÑANERA SUMMARY (ENFOQUE (MATUTINO) (CIRO GÓMEZ LEYVA POR LA MAÑANA) (EN LOS TIEMPOS DE LA RADIO 0)

Mara Rivera, reporter: Andrés Manuel López Obrador presented the opening agreement against inflation and high prices, seeking to ensure a maximum price of MXN 1,039 for the 24 products included in the basic food basket, implying that there will be no increase in the price of tortillas, at least until February next year. Walmart, Soriana, Chedraui, Gruma, Maseca and Minsa stand out as some of the companies that signed the agreement and several food manufacturers. López Obrador stressed that there were no coercive measures involved. 

SUMMARY OF THE PRESIDENT’S MORNING PRESS CONFERENCE (MILENIO NOTICIAS (08:00 A 09:00)

Luis Carlos Ortiz: During the daily press conference, the Secretary of Finance and Public Credit, Rogelio Ramírez de la O, presented the Opening Agreement Against Inflation and Famine, stressing that the best proposal is to produce more food and cut costs. The business people who pledged their commitment by signing this program to control inflation include Antonio Suárez Gutiérrez from Tuny, Leovi Carranza Beltrán from Grupo Pinsa-Dolores,Juan Antonio González Moreno from Grupo Gruma-Maseca, Altagracia Gómez Sierra from Minsa, Daniel Salazar Ferrer from Bachoco, Isidro Ávila Lupercio from San Juan, Jesús Vizcarra Calderón from Sukarne, and Arnulfo Ortiz from Grupo Gusi, as well as José Zaga Mizrahi from Opormex, Eugenio Caballero Sada from Sigma, Guilherme Loureiro Javier Treviño from Walmart, Ricardo Martín Bringas from Soriana, Antonio Chedraui Obeso from Chedraui, Alfonso Celis from Calvario, and Alfonso Rosales from Valle Verde.  

THEY RULE OUT THE EXISTENCE OF A MONOPOLY. (EL HERALDO DE MÉXICO 18)

Maseca and Minsa are not monopolies, they are large producers, and of the 10 million kilos of tons dedicated to the production of tortillas, they hold a 30% market share of flour, according to the Agricultural Markets Advisory Group (GCMA, acronym in Spanish). The organization’s president, Juan Carlos Anaya, who was interviewed about the roles Maseca and Minsa play in the domestic market, said, “they cannot be considered monopolies; both companies contribute 30% representing about three million tons of corn to make corn, flour while nixtamal vendors sell the other 70%.” When asked why it has been said that Maseca and Minsa are monopolies controlling the market and consequently market prices, he said that “some people lack information and knowledge about the production chains.” In this regard, Homero López García, president of the National Tortilla Council (CNT), agreed that Maseca and Minsa do not dominate the market and cannot be considered monopolies; “they are producers that hold a 30% share of the corn production market; however, the prices of this input, like the tortilla, depend on supply and demand, since food prices were released several years ago.” 

DARÍO CELIS / THE FOURTH TRANSFORMATION. (EL FINANCIERO PP-6)

Tortillas are a basic consumer product that is part of the 24 products that affect inflation. It has been falsely said that Minsa, chaired by Altagracia Gómez, and Gruma,headed by Juan González Moreno,are a duopoly that distorts the price of that food product. Nothing is further from the truth. First, both companies compete against each other by using corn flour as an input, representing only 30% of the tortillas consumed by Mexicans. The bulk, 70%, is in the tortillas made from nixtamalized dough in thousands of tortilla shops across Mexico that are Minsa and Gruma competitors. 

October 5

GUANAJUATO PRODUCERS SIGNED AN AGREEMENT TO SELL 490,000 TONS OF CORN TO MASECA. (EL DÍA 7)

Representatives of 13 corn-producing organizations across the state signed an agreement with Grupo Gruma Maseca to formalize the purchase and sale of 490,000 tons of grains that they will produce during this agricultural cycle. Paulo Bañuelos Rosales, Secretary of Agri-Food and Rural Development, represented Governor Diego Sinhue Rodríguez Vallejo at the event since the state managed the entire process, serving as the liaison between producers and the company. “There is no question about the fact that this is very important, primarily because of the benefits it will bring to producers while putting Guanajuato on the map since Maseca is a company that seeks quality grains, and this partnership speaks highly of the state. “This commitment is very important because producers face the uncertainty of who they are going to sell to in each agricultural cycle, as well as the volumes and sales price they will receive for their harvests, and the parties who signed the agreement will not have to worry about this anymore,” explained the Secretary.

October 7

ABOUT THE REGIOS, THOSE FROM MONTERREY. (EL NORTE ONLINE NUEVO LEÓN)

Yesterday, an army from Grupo Maseca, chaired and directed by Juan González Moreno, went shopping in Guanajuato, where they signed an agreement, with help from the state government, with the representatives of 13 corn-producing organizations to buy 490,000 tons of grains during this agricultural cycle. The one who crunched the numbers was the corporate deputy director of Supplies of Grupo Maseca,Saúl Vásquez Pérez since he feels that the grain purchased through this agreement will be equivalent to 25% of what they use for their products in Guanajuato. One good piece of news.

CARLOS RUIZ GONZÁLEZ / NEW YORK REFLECTIONS. (EL FINANCIERO 10)

After a few days in New York, I reflect on Mexico’s presence in this city made of steel. There are many Mexican products in New York. In medium-sized supermarkets, you can see Herdez sauces and almost all brands of Mexican beer, although Corona stands out everywhere, especially in ads, on the street and, above all, on the menus of Mexican and non-Mexican bars and restaurants. Why have they done so well? As it happens when we try to explain a phenomenon, there are multiple causes. In terms of processes, Mission brand tortillas, made by Gruma,better known for its Maseca brand, caught my attention. I am impressed by how they have managed to bring technological innovation to an ancient industry and leverage the Mexican food boom—which is more of a permanent trend than a fad—along the way.

October 8

MORE THAN 70% OF TORTILLAS ARE MADE WITH THE NIXTAMALIZATION PROCESS OR CORN DOUGH. (SDP NOTICIAS.COM ONLINE 0)

The tortilla market in Mexico has two inputs: the corn dough made by industrialists or the traditional nixtamal used by 71% of the close to 100,000 tortilla shops in Mexico. The others are the flour mills represented primarily by Maseca and Minsa. Both are Mexican and collectively hold only 23.6% of the domestic market share. The remaining 5% is held by Diconsa, according to information published by the Agricultural Market Consulting Group (GCMA). In Mexico, about 10 million tons of tortillas are consumed annually, most of which are produced with traditional corn dough and sold in nearly 70% of the tortilla shops operating across the country.

October 9

THEY WILL MAKE WORKERS PERSPIRE. (EL UNIVERSAL PP-20) (EL UNIVERSAL ONLINE) (Front Page Story)

The Association We Want Active Mexicans (QUEMA) advises private companies to implement simple exercise routines during the workday to encourage workers to engage in minimum physical activities while at the office. QUEMA worked with the Mexican Institute for Certification and Standardization (LMNC) to design a certificate that companies can obtain to guarantee their promotion of physical activity and healthy habits among their employees by implementing a one-year workout program. Last year companies such as Arca Continental, Coca-Cola FEMSA, Coppel, Financiera Contigo, GEPP, Jugos Del Valle-Santa Clara, Corporación Rica, Grupo Bimbo, Grupo Lala, Grupo Martí y GRUMA obtained their certifications and supported more than 106,000 of their employees in achieving healthy habits.

MORE THAN 70% OF ALL TORTILLAS ARE MADE WITH A NIXTAMALIZATION PROCESS OR CORN DOUGH. (EXCÉLSIOR ONLINE) (NOTICIAS DE MÉXICO ONLINE)

Two sources of inputs for the tortilla market in Mexico: dough industrialists and traditional nixtamal, representing 71% of the nearly 100,000 tortilla shops that exist in Mexico. The others are the flour mills represented primarily by Maseca and Minsa. Both are Mexican and collectively hold only 23.6% of the domestic market share. The remaining 5% is held by Diconsa, according to information from the Agricultural Market Consulting Group (GCMA). Juan Carlos Anaya, president of the GCMA, explained some of the inaccuracies that have been disseminated in recent days, noting the potential for a market concentration by flour producers. That is completely false. “They cannot be considered monopolies since both companies collectively hold less than 30% of the market share of corn, representing the nearly three million tons of corn used to make corn flour; the other 70% is sold through nixtamal dough vendors.”

October 12

INVESTMENTS. (MILENIO DIARIO 18) (BLOOMBERG ONLINE (USA) (EXCÉLSIOR 3) (DINERO EN IMAGEN ONLINE)

Gruma places MXN 4.5 billion in bonds. Global flour company Gruma made a public offering of stock certificates totaling MXN 4.5 billion as part of its strategy to raise MXN 10 billion. This first issue was for a five-year term and was rated AAA(mex) on a local scale by Fitch Mexico and mxAA+ by S&P Global Ratings. The funds will be used to prepay bonds and manage debt.

October 19

THE U.S. DRIVES 13% OF TOTAL GRUMA CASH FLOWS. (EL NORTE 11) (REFORMA 6) (EL NORTE 13) (REFORMA 3) (EL ECONOMISTA PP-22) (EXCÉLSIOR 1) (EL FINANCIERO 20) (MILENIO DIARIO 22) (EL SOL DE MÉXICO 16) (24 HORAS 16) (EL HERALDO DE MÉXICO 22)

The great American appetite for tortillas and other corn products boosted Gruma’s global results. Gruma increased its consolidated annual EBITDA by 13% in Q322 to stand at USD 208 million, thanks to the increase in its production volumes and revenues in the U.S. and other countries across the globe. Global income reported by the world’s largest corn tortilla producer was up 21% YoY to stand at USD 1.438.7 billion. Its largest market, the United States, contributed 57.4% of its total sales worldwide, with USD 826.2 million reported in sales in that country for a 25% annual increase. “In the United States (Gruma) reported a solid performance in its tortilla business thanks to the continued and stable growth of its ‘Better for You’ product line and the launch of new healthy presentations,” the company said. In its financial report, Gruma announced that it sold 1,093,000 metric tons worldwide, for a 4% increase YoY. The rest of its divisions also supported its quarterly results.

ROGELIO VARELA / CORPORATE NEWS. (EL HERALDO DE MÉXICO 19)

Follow the Money. Gruma and its CEO Juan González Moreno, reported a 21% growth in net sales in Q3 this year, while its EBITDA was up 13%, with revenues outside of Mexico being its strong card. During this period, the corn flour and tortilla giant invested USD 95 million in Mexico and the United States...

GRUMA REPORTS 4% GROWTH IN SALES VOLUME (ENFOQUE MATUTINO)

Martín Carmona: I want to tell you about Gruma. This is when companies send their reports to the Mexican Stock Exchange (BMV), and this Mexican company, which has an important presence in the world, reported that its sales volume grew 4% while its net sales were up 21% in the third quarter, thanks to the growing increase in tortilla consumption worldwide and Gruma’s innovative strategies to meet consumer preferences. The United States is the country that contributed the highest sales volumes, with a 4% growth. There is no doubt that Gruma has a significant presence in Europe and Asia.

FINANCIAL MARKETS (EN LOS TIEMPOS DE LA RADIO)

Alfredo Huerta: Gruma reported positive third-quarter results, supported by its operations in the United States. Net sales were up 21%, and its volume grew 4%. Gruma sales from its operations outside of Mexico represent 75% of its total and 78% of its EBITDA.

MILENIO NEGOCIOS (MILENIO NOTICIAS (06:00 A 07:00)

Conductor: Gruma, the corn flour and derivatives producer, reported USD 208 million in operating cash flows in Q322, 13% above the figure reported in the same period last year. In its financial report sent to the Mexican Stock Exchange, the company noted that the growth was driven by its business in the United States, which reported a 25% growth in income and 33% growth from higher sales volumes due to the stable growth of its Better for You brand.