 Multinationals
Continue Their Long Successful History
When many think of Mexican coffee, they imagine beans being grown in mountain regions akin to Colombia, in the Chiapas or Oaxaca states, before being brewed in a drip coffee maker. But when you mention coffee to Ivan Zurita, Executive President of Nestle Mexico , he will offer you a cup of Nescafe instant coffee.
A staple of his company's comfortable position in Mexico with 18 factories, 33 distribution centers and turnover of more than $1.8 billion, instant coffee is only one of the many products Nestle elaborates here. Producing over 350 different food items, Nestle is behind household names in Mexico like Nido, Carnation, Maggi, Parma, Kermato, Abuelita and Carlos V. |
It also bottles Sta. Maria brand water. Nestle Mexico President Ivan Zurita thanks the skilled workforce and stable government policy for its sustained growth rate of 10%, and expects turnover to reach $2.3 billion annually three years from now. On a yearly basis, Nestle invests more than $140 million, stimulating economic progress. Only 4% of its products are exported, primarily heading to the NAFTA markets, and Central and South America.
Grupo Herdez is the market leader in processed foods and sends little more than Nestle to export markets, at 6%. But it expects that number to increase, as Europe is likely to demand its authentic Mexican condiments and prepared foods. With an array of products, the company distributes several brands including McCormick, Campell's soups, Kimberly Clark, Unilever, Jergens and Dial soaps, as well as typical Mexican condiments and foods like Doña Maria, Carlota and Bufalo to name a few. Its 50-50 joint venture formed with McCormick in 1947 is one of the oldest bi-national ones to date. And it is hoping to form more with the companies from the Old Continent, offering its well-established distribution channels and experience in the market. More than half its sales are derived from dressings and sauce sales, with fruit and juice products lagging at 14% of sales. The company has only tested the waters in export markets, but says it must expand abroad if it is to stay competitive.
Another success story of a European corporation that has long thrived and become a part of Mexico is Volkswagen . It has produced Volkswagen bugs for years on end, and when you go to any Mexican city, the curved top of the bug is sure to be the principal sight you see in a traffic jam. Its Puebla manufacturing plant is the world's only production center for the New Beetle, although it also puts out Jettas. Its other plants keep up with demand for Golfs, Sedans, and Derbys. |
MEXICO
