As a trend, organic food is not new, having been around for quite a few years now. In Mexico, however, it is still less familiar, as large Mexican food companies are just making their way into this market. One of Mexico’s largest food product companies, Grupo Herdez SAB, is doing its part to help the country fight obesity by offering more organic products.
Grupo Herdez is a leader in the processed food industry, and holds a great number of brands covering different food categories including, but not limited to: tuna, ketchup, coffee, frozen yogurt, mayonnaise, pasta, canned vegetables and, now, organic foods. It has 14 plants and 8 distribution centers throughout Mexico and has a presence in the United States and Latin America.
A few years ago, the group bought Grupo Nutrisa, a company that sells frozen yogurt, vitamins and other health-related products. Though there has been a noticeable a drop in this business, Herdez’ chief financial officer, Gerardo Canavati, remains optimistic about it, stating to Bloomberg that “the frozen business represents a growth path for Grupo Herdez because we believe it’s a category that is underdeveloped.”
Aside from the frozen products, Grupo Herdez is also investing in its organic Aires del Campo line of products, in order to attract younger and more health-conscious generations. This strategy aims to further position the group in Mexico’s organic foods market, considering it is still in its growth and development stage.
Aires del Campo sales increased by 40% in 2014, and is expected to keep growing. Their products are sold in Mexico at approximately 150 Walmart stores from the 2,300 that currently exist around the country. This would suggest a highly attractive growth margin for this category of products.