Profile: Gruma SAB de CV (GMK)
7 Mar 2014
Gruma, S.A.B. de C.V. (GRUMA), incorporated on December 24, 1971, is a holding company and conduct its operations through subsidiaries. The Company is engaged principally in the production, distribution and sale of corn flour in Mexico. Its commercial names are GRUMA and MASECA. The Company has operations in Costa Rica, Guatemala, Honduras, El Salvador and Nicaragua, as well as Ecuador, which the Company includes as part of its Central American operations. Its products include tortillas, corn flour, and other tortilla related products. The Company’s subsidiaries include Grupo Industrial Maseca, S.A.B. de C.V. (GIMSA), Molinera de Mexico, S.A. de C.V. (Molinera de Mexico), Gruma Corporation, Azteca Milling, LP, Gruma de Guatemala, S.A., Derivados de Maiz Alimenticio, S.A., Derivados de Maiz de Honduras, S.A. (Gruma Centroamerica) and Industrializadora y Comercializadora de Palmito, S.A. On November 16, 2011, the Company, through its subsidiary Gruma International Foods, S.L., acquired Semolina A.S.
On April 15, 2011, the Company, through its subsidiary Gruma Corporation, acquired the business of manufacturing, distributing and selling of corn and wheat flour tortillas of Albuquerque Tortilla Company. On August 25, 2011, the Company, through its subsidiary Gruma Corporation, acquired the business of manufacturing, distributing and selling of corn and wheat flour tortillas of Casa de Oro Foods. On July 13, 2011, the Company, through its subsidiary Gruma International Foods, S.L., acquired Solntse Mexico.
U.S. and European Operations
The Company conducts its United States and European operations principally through its subsidiary, Gruma Corporation, which manufactures and distributes corn flour, packaged tortillas, corn chips and related products. Gruma Corporation operates primarily through its Mission Foods division, which produces tortillas and related products, and Azteca Milling, L.P., a limited partnership between Gruma Corporation (80%) and Archer-Daniels-Midland (20%) which produces corn flour. Mission Foods manufactures and distributes packaged corn and wheat tortillas and related products (which include tortilla chips) under the MISSION and GUERRERO brand names in the United States, as well as other regional brands. Mission Foods serves both retail and food service customers. Azteca Milling distributes approximately 40% of the corn flour it produces to Mission Foods’ plants throughout the United States and Europe. Azteca Milling’s third-party customers consist of other tortilla manufacturers, corn chip producers, retail customers and wholesalers.
The Company competes with Ole Mexican Foods, Reser’s Fine Foods, Tyson, Bimbo, Hormel Foods, General Mills and Santa Maria.
The Company in Mexico is engaged in the business of manufacturing and sale of corn flour, which it conducts through its subsidiary GIMSA. Through its association with Archer-Daniels-Midland, it has also entered the wheat milling business in Mexico through Molinera de Mexico. Its other subsidiaries engage in the manufacturing and distribution of packaged tortillas and other related products in northern Mexico, conduct research and development regarding corn flour and tortilla manufacturing equipment, produce machinery for corn flour and tortilla production and construct its corn flour manufacturing facilities.
GIMSA also produces wheat flour and other related products. It sells corn flour in Mexico mainly under the brand name MASECA. GIMSA produces approximately 50 varieties of corn flour for the manufacture of different food products. It sells corn flour to tortilla and tortilla chip manufacturers, as well as in the retail market. GIMSA sells packaged corn flour in bulk principally to thousands of small tortilla manufacturers (tortillerias), which purchase in 20-kilogram sacks and produce tortillas on their premises for sale to local markets. GIMSA also sells corn flour in bulk to supermarkets’ in-store tortillerias and snack manufacturers. GIMSA owns 19 corn flour mills, all of which are located throughout Mexico. GIMSA also owns two plants, one of which produces wheat flour and the other, corn grits and several types of corn based products. Its wheat flour brands are REPOSADA, PODEROSA and SELECTA. The Company owns and operates nine wheat flour plants, including one of which it hold a 40% ownership interest.
The Company competes with Grupo Minsa, S.A. de C.V., OPTIMASA , Trimex, Tablex, La Espiga, Elizondo, and Anahuac.
Central American Operations
Gruma Centroamerica produces corn flour, and tortillas and snacks. The Company also cultivates and sells hearts of palm and process and sells rice. It sells corn flour under the MASECA, TORTIMASA, MASARICA and MINSA brands. In Costa Rica, it sells packaged tortillas under the TORTI RICA and MISION brands. The Company operates a Costa Rican snack operation, which manufactures tortilla chips, potato chips and similar products under the TOSTY, RUMBA, and LA TICA brand. Hearts of palm are exported to numerous European countries as well as the United States, Canada, Chile and Mexico. 79% of Gruma Centroamerica’s sales volume during the year ended December 31, 2011, derived from the sale of corn flour. It had an annual installed production capacity of 350 thousand tons for corn flour and other products as of December 31, 2011.
The Company competes with Del Comal, Dona Blanca, Selecta, Bachoza and Instamasa.
As of December 31, 2011, it owned 72.86% in MONACA. In addition, it owned 57% in DEMASECA. Gruma Venezuela produces and distributes corn flour, as well as wheat flour, rice, oats and other products. It sells corn flour under the brand names JUANA and DEMASA. The Company sells wheat flour under the ROBIN HOOD, FLOR DE TRIGO and POLAR brand, rice under the MONICA brand and oats under the LASSIE brand. It operates five corn flour plants, five wheat flour plants, two rice plants, one pasta plant, and two plants that produce oats and spices in Venezuela with a total annual production capacity of 823 thousand tons as of December 31, 2011.
The Company competes with Alimentos Polar, Industria Venezolana Maizera PROAREPA, Asoportuguesa, La Lucha and Cargill.
Gruma SAB de CV
Calzada del Valle 407 Ote
Colonia del Valle
SAN PEDRO GARZA GARCIA 66220