DRIVING THE TORTILLA INDUSTRY GROWTH PRIVATE SECTOR INTERNSHIPS AND LINK

Transcription

1 DRIVING THE TORTILLA INDUSTRY GROWTH PRIVATE SECTOR INTERNSHIPS AND LINK MAY, 2014

2 TABLE OF CONTENTS I. MISSION FOODS DESCRIPTION II. INTERNSHIP PROGRAMS III. INNOVATION IMPACT ON CPG S HR

3 I. MISSION FOODS DESCRIPTION

4 MISSION FOODS IS THE LARGEST SUBSIDIARY OF GRUMA, THE LEADING CORN FLOUR AND TORTILLA MANUFACTURER AND MARKETER IN THE WORLD GRUMA SAB DE CV SUBSIDIARIES NET SALES PRODUCTS PLANTS MISSION FOODS $1,520 (36%) (36%) FLOUR TORTILLAS CORN FLOUR TORTILLAS TORTILLAS TORTILLA CORN TORTILLAS CHIPS TORTILLA CHIPS 21 PLANTS 21 PLANTS UNITED STATES AZTECA MILLING (9%) CORN FLOUR 6 MILLS UNITED STATES GIMSA (30%) CORN FLOUR 19 MILLS MEXICO GRUMA SAB DE CV NET SALES 1 : $4.2b (100%) MOLINERA (9%) WHEAT FLOUR 9 MILLS MEXICO GRUMA CENTROAMERICA (6%) CORN FLOUR TORTILLAS SNACKS 4 MILLS 4 TORTILLA PLANTS CENTRAL AMERICA 2 GRUMA EUROPE (7%) FLOUR TORTILLA TORTILLA CHIPS CORN FLOUR/GRITS 5 TORTILLA PLANTS 1 CORN MILL 2 GRITS MILLS EUROPE 3 GRUMA ASIA & OCEANIA (3%) FLOUR TORTILLA TORTILLA CHIPS 3 PLANTS ASIA AND OCEANIA 4 NOTES: 1: CONSOLIDATED NET SALES LTM SEP 2013 (IN MILLIONS), INCLUDE ELIMINATIONS AND DOES NOT INCLUDE VENEZUELA OPERATIONS 2: COSTA RICA, NICARAGUA, GUATEMALA, HONDURAS, ECUADOR AND EL SALVADOR; 3: U.K., NETHERLANDS, ITALY, UKRAINE, RUSSIA AND TURKEY; 4: CHINA, AUSTRALIA AND MALAYSIA SOURCE: GRUMA S MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2013; GRUMA LATEST PRESENTATION JANUARY

5 SINCE 1977, MISSION FOODS HAS BEEN DRIVING THE EVOLUTION OF MANUFACTURING, DISTRIBUTION AND PRODUCT INNOVATION IN THE TORTILLA INDUSTRY MISSION FOODS HISTORY BUILT FOUNDATION TO IGNITE INDUSTRY GROWTH ACCELERATED MARKET PENETRATION COMPLETED NATIONAL COVERAGE FOCUSING ON PROFITABLE GROWTH ON INITIATED TORTILLA OPERATIONS IN CALIFORNIA DEVELOPED STATE-OF-THE-ART MANUFACTURING EQUIPMENT DEVELOPED THE BEST CORN TORTILLA USING MASECA CORN FLOUR BECAME THE LARGEST TORTILLA COMPANY ACHIEVED COMMANDING LEADERSHIP IN THE WEST COAST BEGAN AGGRESSIVE EXPANSION TO CENTRAL AND EAST REGIONS DEVELOPED THE LARGEST DIRECT- STORE-DELIVERY NETWORK ASSUMED INDUSTRY LEADERSHIP ATTAINED NATIONWIDE COVERAGE EXPANDED PRODUCT OFFERINGS PROVIDED BEST-IN-CLASS NATIONWIDE CUSTOMER SERVICE GAINED CATEGORY LEADERSHIP WITH TOP 10 FOOD RETAILERS EXECUTING A TRANSFORMATIONAL STRATEGY REFOCUSING IN CORE BUSINESSES ENERGIZING THE TORTILLA INDUSTRY GROWTH SOURCE: MISSION FOODS,

6 MISSION IS A CONSUMER PACKAGED GOODS COMPANY THAT HAS EARNED A COMMANDING LEADERSHIP IN THE TORTILLA MARKET, BASED ON KEY COMPETITIVE ADVANTAGES MISSION FOODS COMPETITIVE ADVANTAGES ACROSS THE VALUE CHAIN STATE-OF-THE-ART TECHNOLOGY PROPRIETARY MANUFACTURING TECHNOLOGY BREAKTHROUGH AUTOMATION NATIONWIDE COVERAGE 21 STRATEGICALLY LOCATED PLANTS LARGEST AND MOST EFFICIENT DISTRIBUTION NETWORK LEADING TORTILLA THE ONLY 2 NATIONAL - CORN TORTILLAS - FLOUR TORTILLAS - TORTILLA CHIPS RECOGNIZED AS TOP QUALITY HIGH TOP-OF-MIND COMPARABLE WITH LEADING MAINSTREAM PROVIDING HIGH-QUALITY FRESH TORTILLAS EVERY DAY FOR OUR CONSUMERS SUPERIOR CONSUMER/CUSTOMER SERVICE STRATEGIC PARTNERSHIPS WITH ALL FOOD RETAILERS PREMIUM SHELF SPACE IN STORES STRATEGIC ASSOCIATIONS WITH TOP CPG 1 s STRONG MARKET LEADERSHIP OVER $1.6b IN SALES REVENUE GROWTH 2x THE FOOD INDUSTRY 50% MARKET SHARE NOTES: 1: CPG STANDS FOR CONSUMER PACKAGED GOODS SOURCE: MISSION FOODS,

7 NATIONWIDE MISSION HAS REVOLUTIONIZED THE TORTILLA INDUSTRY WITH BREAKTHROUGH AND PROPRIETARY TECHNOLOGY MISSION FOODS TECHNOLOGICAL EVOLUTION STATE-OF-THE-ART TECHNOLOGY COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP... TO INDUSTRIALIZE THE TORTILLA MANUFACTURING... STATE-OF-THE-ART FACILITIES AND AUTOMATING PROCESSES SOURCE: MISSION FOODS,

8 NATIONWIDE COVERAGE THROUGH ITS STRATEGICALLY LOCATED MANUFACTURING AND DISTRIBUTION FACILITIES MISSION FOODS FACILITIES, 2013 STATE-O-THE-ART TECHNOLOGY NATIONWIDE COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP FIFE MCMINNVILLE NEW BRIGHTON OMAHA MT TOP HAYWARD FRESNO PANORAMA OLYMPIC PUEBLO LP CHARLOTTE GOLDSBORO TEMPE LP LAWRENCEVILLE 20 DC S IN CA RANCHO CUCAMONGA ALBUQUERQUE DALLAS JEFFERSON 21 PLANTS IN OPERATION SAN ANTONIO HOUSTON LAKELAND 24 WAREHOUSES 32 DISTRIBUTION CENTERS SOURCE: MISSION FOODS,

9 NATIONWIDE MISSION FOODS HAS DEVELOPED THE ONLY TWO NATIONAL : MISSION AND GUERRERO AND SEVERAL REGIONAL LEADING MISSION FOODS BRAND PORTFOLIO STATE-O-THE-ART TECHNOLOGY COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP UNIQUE NATIONWIDE... CORN TORTILLAS 36% 8%... HIGHLY RECOGNIZED TOP-OF-MIND 1, 2013 FLOUR TORTILLAS 30% 2% 28% MISSION GUERRERO 6% NEAREST GUERRERO COMPETITOR 28% MISSION GUERRERO 9% NEAREST GUERRERO COMPETITOR MISSION S REGIONAL NOTE 1: GENERAL MARKET, FIRST MENTION, UNAIDED TORTILLA BRAND AWARENESS SURVEY. SOURCE: INSIGHTS IN MARKETING,

10 BEST-IN-CLASS CUSTOMER SERVICE EMPOWERED BY A UNIQUE NATIONWIDE DIRECT STORE DELIVERY NETWORK MISSION FOODS SUPERIOR CUSTOMER SERVICE STATE-O-THE-ART TECHNOLOGY NATIONWIDE COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP THE ONLY NATIONAL DISTRIBUTION SYSTEM DELIVERING AND MERCHANDISING FRESH TORTILLAS DAILY FULFILLING CONSUMERS TORTILLA NEEDS 2,700 ROUTES DELIVERING STRATEGIC PARTNERSHIPS WITH ALL FOOD RETAILERS AND MAJOR CHAIN RESTAURANTS MERCHANDISING 33,000 STORES STRATEGIC JOINT PROMOTION WITH MAJOR FOOD AND BEVERAGE COMPANIES MISSION TORTILLAS GENERATE 2x ADDITIONAL PURCHASES OF RELATED PRODUCTS SOURCE: MISSION FOODS,

11 THIS SUPERIOR CUSTOMER SERVICE ALLOWED MISSION TO GAIN MULTI- LOCATION SHELF SPACES IN FOOD STORES STATE-O-THE-ART NATIONWIDE TECHNOLOGY COVERAGE MISSION FOODS MULTI-LOCATION PRESENCE IN FOOD STORES LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP CHEESE SPECIALTY FOODS AISLE DELI MEAT & PRODUCE PROMOTIONAL BREAD END-CAP SOURCE: MISSION FOODS MARKETING AND SALES DEPARTMENTS,

12 MISSION FOODS HAS DEVELOPED STRATEGIC PARTNERSHIPS WITH THE LARGEST GROCERY CHAINS AT NATIONAL AND REGIONAL LEVELS STATE-O-THE-ART TECHNOLOGY LARGEST GROCERY CHAINS DOLLAR MARKET SHARE NATIONWIDE COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP NATIONAL ACCOUNTS REGIONAL ACCOUNTS WEST CENTRAL EAST NOTE 1: GENERAL MARKET, FIRST MENTION, UNAIDED TORTILLA BRAND AWARENESS SURVEY. SOURCE: MISSION FOODS MARKETING AND SALES DEPARTMENTS,

13 IN FOOD SERVICE, MISSION HAS BUILT STRONG PARTNERSHIPS WITH LEADING RESTAURANT CHAINS AND DISTRIBUTORS FOOD SERVICE CUSTOMERS STATE-O-THE-ART TECHNOLOGY NATIONWIDE COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP RESTAURANT CHAINS DISTRIBUTORS SOURCE: MISSION FOODS MARKETING AND SALES DEPARTMENTS,

14 BASED ON THIS COMPETITIVE ADVANTAGES, MISSION SALES GROW AT TWICE THE RATE OF THE OVERALL FOOD INDUSTRY STATE-O-THE-ART TECHNOLOGY NATIONWIDE COVERAGE LEADING SUPERIOR CUSTOMER SERVICE UNEQUALLED MARKET LEADERSHIP 1,800 MISSION FOODS NET SALES, TORTILLAS RETAIL AND OTHER PRODUCTS (DOLLARS IN MILLIONS) 1,600 1,400 1,317 1,339 1,316 1,391 1,471 1,542 1,200 1, ,099 1, NOTE 1: ADVANCED MONTHLY RETAIL TRADE REPORT, DECEMBER 2013; MONTHLY RETAIL TRADE REPORT, NOVEMBER US CENSUS BUREAU, 2014 SOURCE: MISSION FOODS PANORAMA SALES, WEB FINANCIALS,

15 II. INTERNSHIP PROGRAMS

16 HUMAN CAPITAL HAS BEEN THE MOST VALUABLE RESOURCE FOR MISSION FOODS DEVELOPMENT IN EVERY STAGE OF MISSION DEVELOPMENT, HUMAN CAPITAL HAS BEEN THE KEY SUCCESS FACTOR START-UP GROWTH COMPANY MAJOR PLAYER MISSION HAD TO DEVELOP THE TORTILLA INDUSTRY IN THE USA MANUFACTURING EQUIPMENT TECHNOLOGY DISTRIBUTION PRODUCT INNOVATION THE ORGANIZATION HAD EFFECTIVELY COMBINED BOTH: THE MEXICAN AND THE USA BUSINESS CULTURES 116

17 INTERNSHIP PROGRAMS WERE ESTABLISHED IN MEXICO TO CAPTURE AND DEVELOP THE RIGHT TALENT FOR OUR BUSINESS MANY MEXICAN EXECUTIVES AND TECHNICAL EXPERTS HAVE COME TO WORK FOR MISSION FOODS MANY OF THEM WENT THROUGH OUR INTERNSHIP PROGRAMS TODAY, WE HAVE THE BEST TALENT TO MANUFACTURE THE HIGHEST-QUALITY TORTILLAS IN USA 257 VISAS HAVE BEEN PROCESSED FOR MEXICAN CITIZENS TO WORK IN OUR ORGANIZATION IN THE USA, MAINLY IN THE AREAS OF: MANUFACTURING TECHNOLOGY ADMINISTRATION SOME EMPLOYEES HAVE COME TO THE USAIN A TAILOR-MADE PROGRAMS FOR MISSION FOODS 17

18 IN 2014, MISSION FOODS IS IN THE PROCESS TO ASSEMBLE A MORE STRATEGIC INTERNSHIP PROGRAM TO SUPPORT MISSION S FUTURE TALENT NEEDS CLEAR DEFINITION OF MISSION FUTURE TALENT NEEDS DERIVED FROM OUR STRATEGIC PLAN PROJECTS DEFINITION ACCORDING WITH OUR CORE COMPETENCES AND FUTURE STRATEGIC NEEDS UNIVERSITIES SELECTION ALIGNED TO DEFINED PROJECTS 18

19 II. INNOVATION IMPACT ON CPG S HR

20 IN THE FUTURE, MISSION FOODS WILL HAVE NEW NEEDS FOR HIGHLY-QUALIFIED TALENT IN ORDER TO COMPETE WITH CONSUMER PACKAGED GOOD COMPANIES (CPG) IN THE PAST TWO DECADES, MANY CPG COMPANIES HAVE ACHIEVED GROWTH SUPPORTED BY GROWING ANALYTICAL CAPABILITIES THIS ANALYTIC CAPABILITES HAVE SUPPORTED CPG COMPANY S AND HAS BEEN A DRIVING FORCE FOR SUSTAINBLE GROWTH THE NEW CONSUMER TRENDS, NON- TRADITIONAL COMPETITION, AND NEW INNOVATIONS ARE CHANGING CPG LANDESCAPE CONSUMER UNDERSTANDING AND INSIGHTS DETAILED KNOWLEDGE OF SHOPPING CYCLE PROCESS SHOPPERS INFORMATION SOURCE: FORMULA FOR GROWTH: INNOVATION, BIG DATA & ANALYTICS. DELOITTE AND GMA: 20

21 CPG COMPANIES WILL BE COMPETING WITH ALL OTHER INDUSTRIES FOR ANAYTICAL-TRAINED TALENT SOURCE: FORMULA FOR GROWTH: INNOVATION, BIG DATA & ANALYTICS. DELOITTE AND GMA: 21