Baking & Snack - March 2006 - 28

BAKER OF THE YEAR

in Mountain Top, PA, (see Baking
& Snack, Page 41) and acquisition
of the tortilla and chip operations
of CHS, Inc., a farmer cooperative
based in Inver Grove Heights, MN,
which included three facilities.
An additional tortilla plant was acquired in Las Vegas, NV, and distribution centers now operate in Beltsville,
MD; Kansas City, KS; Omaha, NE; and
Boise, ID, as well as several others in

into smaller sales regions, we are able
to spend more time servicing current
customers and go after new customers," Mr. Senise said. "This has been a
huge success for new growth areas."
In addition to geographic focus,
Gruma has sequentially emphasized
various product categories in recent
years to spur growth. For example, the
company dubbed 2003 as its "year of
the corn tortilla," unfurling a new pro-

We try to be everything to everybody,
and that requires flexibility mainly in
packaging ... different flavors, shapes,
sizes, package counts.
- Guillermo Gonzalez, senior vice-president, manufacturing

states where the company already operated, such as Texas and California.
Tortillas are delivered to retail customers through approximately 1,800
independent direct store delivery
routes who also have the ability to
carry other products, except for our
company routes in Southern California. Mr. Senise estimated that 85%
of Mission sales are handled by the
DSD system with the remaining 15%
warehoused in the Northeast, its
newest distribution area. The company is currently exploring distribution methods into that region, and
with the new Pennsylvania plant,
routes may be added or revised.
With accelerated growth, Mission
aggressively added capacity to its various tortilla plants. In 2005 alone, the
company commissioned 25 new lines,
according to Guillermo Gonzalez, senior vice-president, manufacturing.
In addition to expanding its
physical assets, Gruma restructured
its business map from three regions
(West, Central and East) in 2002 to
four in 2003, five in 2004 and six
(Northwest, Southwest, North Central, South Central, Northeast and
Southeast) in 2005. "By redefining

30 / BAKING & SNACK / March 2006

cess innovation the company said offers improved taste and texture. Sales of
corn tortillas climbed 26% that year.
The following year was the "year
of the wheat tortilla," and the company witnessed 14% growth in wheat
tortilla sales compared with the prior
year. "We ran many consumer panels
to determine the good and the bad
aspects of our wheat tortillas," Mr.
Senise said. "Our findings indicated
that our products were already rated
as one of the best in the category.
However, that didn't stop us from
looking for ways to improve. We
came to realize that because our customers were regionalized, we must
regionalize as well by selling the right
tortilla - thicker, thinner, more
elastic - in the right region."
The company's 2004 double-digit
growth occurred at the same time
sales of baked foods as a category
decreased 3%.
In 2005, the focus was on chips and
other fried products. This strategy centered on new products and new packaging that portrayed a more authentic
look and taste. "We added more than
seven new product lines and multiple SKUs," said Mike Crane, vice-

president, retail sales. "These new
products required new packaging
technologies including flow wrappers, robotics and 'brown bag' fillers. Our most recent forecast was
for 11% growth in chip sales - in a
category that isn't growing."
NOW AND THE FUTURE. Mission
declared 2006 the "year of healthy
products." The company introduced
a multigrain tortilla that is a
whole-grain product made
from seven grains (wheat, rye,
barley, oats, triticale, corn and
rice). The multigrain tortillas
are offered in fajita and wrap
sizes. A 49-g tortilla has 140 Cal
and 5 g of dietary fiber.
The company also debuted
a "heart healthy" tortilla that
includes omega-3 fatty acids. It
is available in flour and wholewheat varieties. In addition, Mission
is looking to launch a baked corn tostada, and the company's entire line is
now trans fat free.
Par-baked flour tortillas are being introduced to food service in a
whole-grain variety. "As one of the
market leaders, we have a responsibility to have a presence in all
emerging trends," Mr. Senise said.
"We don't expect these products to
surpass current offerings, but if this
is what consumers are interested
in purchasing, and it is part of the
health and wellness trend, then we
will be there with our products."
One of Gruma's goals is to be part
of every meal whether as a breakfast
burrito, peanut-butter-and-jelly tortilla roll-up or a quesadilla for dinner or snack. Even dessert is in the
realm of the company's portfolio.
"In a way, we promote family togetherness because meals with tortillas
can be individualized by each member
of the family," Mr. Senise stated. "They
are fun, customizable, quick and easy.
The Internet has been very useful in
introducing new ideas to consumers
and food service vendors."
"From their neutral flavor to the

Baking & Snack - March 2006

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