Grupo Herdez is a leading company in the food and beverages market, recognized for some decades for the quality of its products. Among a great variety, brands such as Herdez, Mc Cormick, Bufalo, Doña María, Carlota, and Yavaros stand out. That company has three important strategic alliances: Mc Cormick de México, with 50 years of association, Hormel Alimentos, S.A. de C.V. for the distribution of Hormel products in México, and Herdez Corporation for the distribution of Herdez products in the US. Through its subsidiaries, Grupo Herdez has 12 plants, 8 distribution centers, and 17 warehouses directly supplying close to 25,000 customers around the country.
VISION To serve for the benefit of others is a sign of perfection
"At Grupo Herdez, we aspire for perfection by means of the integral development of people, processes and products, pursued by way of continuous research, development, production and distribution of quality nutritional products for the benefit of the group and the community."
 MISSION |
"To maintain our leading position in the food market by generating real growth and constantly improving the quality, productivity and profitability of our organization, our employees and our products."
| Products and Brands |
Grupo Herdez, a leading company in the food and beverage market, recognized for the quality if its products among which our brands such as Herdez, McCormick, Bufalo, Dona María, arlota and Yavaros stand out
 Juices, Fruits and desserts |
Although the juices and Nectars market has a high growth potential, the consolidation the Herdez's products will require of more time and investment. Given the strong competition prevailing they implemented strategies expected to bear fruit in the medium-term. Leveraging-off the proven quality and prestige of their brands, one of the first step will be the implementation of key promotional campaigns and the introduction of aggressive offerings at all points of sales, so that in the year 2000 purchases are encouraged while they strive to offset the strong price wars wagged in this market.
The leader of this product line is the Herdez V8 vegetable juice that registered an increase in volume of 17,5% this last year.
News Products; 8 fruit juice, Hot 8 vegetable juice with lemon.
In regards to fruits, they maintain a strong presence in the domestic market. However, the efforts made to promote and support this line are expected to increase in this coming year.
In respect to the dessert category, an innovative introduction was made: Festin a drinkable Jelly. Reflecting the good acceptance achieved until today, this product, unique in the domestic market, will be decisively supported with commercial operations all over the country.
In general term, in 1999, the Juice, Fruits and Desserts line reached an increase of 9% in volume and 2,4% in value.
| Sauces and Dressing |
In 1999, the Sauces and Dressing line was one of the most outstanding, increasing by 2,5% in volume terms and 4.1% in value. During the year, they implemented important promotions under the Hertez and McCormick brands and, in an effort to promote products such as McCormick mayonnaise and the Hertez homemade style sauces, they implemented a variety of drawings at a national level, archiving an increase in market participation. In addition, to reinforce the Bufalo brand while also offering the consumer with a new alternative to cook with greater ease, they introduced Bufalita, a Spanish style tomato sauce.
| | Vegetables |
The vegetable line, which includes products such as legumes, mushrooms, olives and peppers, reported an increase of 10% in volume and a decrease of 0,1% in value. Reflecting the offering of very competitive prices to consumers, The Herdez legumes achieved the most growth, posting an increase in volume of 18,9%.
New product: They introduced, with great success, the Bufalo olives in an easy open presentation. This introduction was intended to improve its packaging while enhancing its image as a premium brand.
| Meat and Sea Food |
Given the difficulties encountered in the seafood sector resulting from significant competition, the meats and seafood line reported declines of 4,6% in volume and 5,2% in value at the end of the year.
As a result the immediate objective is focused on making this line much more profitable. For instance, at Herdez Chiapas, during 1999, they realized important movements in the installation in an effort to increase productivity. At the same time they renovated most of the lines to cut costs and offer the consumer more attractive prices.
New products in seafood: Tuna salad, Tuna with beans and Tuna spread.
New products in meats: Pepperoni original, hot, Italian salami, and German style.
| Various |
Pons, Tami and Soften are the brands through which Grupo Hertez entered the toiletries market. This line reported an increase of 132,5% in volume terms and a decrease of 17,9% in value.
The Soften brand includes creams, deodorants, and nail polish.
GRUPO HERDEZ S.A. DE C.V.
VALUES IN 000. OF PESOS
30th of SEPTEMBER 1999
| 1T96
| 2T96
| 3T96
| 4T96 | | Sauces and dressing | 260,381 | 398,992 | 410,624 | 596,445 | | Juices, fruits and desserts | 49,026 | 53,233 | 84,455 | 130,196 | | Vegetables | 79,964 | 83,292 | 93,122 | 162,493 | | Various | 79,277 | 100,297 | 71,995 | 132,187 | | Exports | 35,972 | 32,934 | 38,590 | 28,384 | | TOTAL | 504,620 | 668,748 | 698,786 | 1,049,705 |
| Exports |
In spite of the financial uncertainty for the year 1988, Their foreign sales increased 17% compared to 1997. Today, their products sell in 25 countries, his main market being the USA with 80% of total exports. Central America and the Caribbean represent the second most important region with 13%, the remainder is exported to countries in South America and Europe .
It is important to emphasize that not all the brands that the Group commercialises are available for export. Such is the case of McCormick, a brand that represents 52% of the total volume of the Group's sales. The participation of exports in the total volume is 8.5%.
| Acquisitions |
For always, one of Grupo Herdez fundamental objectives has been sustained growth. Reflecting the continuous implementation of important investments made in various areas of the company, the efficiency of their administration processes and production quality have both risen significantly. As a result; They have managed to consolidate their image as Mexico's leading Food Company.
Acquisitions: February 99 - The fishing vessel Arkos II
December 99 - The fishing vessel Arkos I
Apel S.A
| Research and development |
With great determination, they continued to encourage new research and development projects in the agricultural sector while supporting those projects implemented in the past. Applying the most advanced technology, with a firm step, they have manage an increase efficiency in the supply of our plants and improve the quality of their raw material and production processes. |
