Baking & Snack - March 2006 - 30

BAKER OF THE YEAR

FOLLOWING CUSTOMERS. Vertical integration has been a part of
Gruma's strategy since the company
entered the American market in 1977.
All corn flour used by Mission is
supplied by Gruma's affiliate, Azteca
Milling. Azteca Milling's first corn
mill was built in Edinburg, TX, in the
early 1980s. Since then, additional
corn milling plants have been added
in CA, TX, KY and IN, which was

demographic trends of our time -
the growth of the US Hispanic population. The US Hispanic market increased 85% between 1990 and 2003,
from 21.9 million to 40.5 million,
according to the US Census Bureau.
Today, more than one in eight people
in the US are of Hispanic origin.
Also in 2003, the US Hispanic
population became the country's
largest minority group. Hispanics
represent 13.8% of the US population and a $580 billion economy. The
nation's Hispanic population reached
41.3 million as of July 1, 2004, accord-

recently expanded with the installation of a third corn processing unit.
While Gruma is an important
global flour miller, the company has
no US wheat flour milling capacity
and purchases flour from three different suppliers, Mr. Senise noted.
Another part of its vertical integration includes a sister company,
Tecnomaíz, which handles most of
the equipment design, engineering and fabrication for the Mission
plants. The company also operates
lines from other equipment manufacturers. New processing lines added last year bring the total number
of lines to more than 170.
Mission's growth is powerfully fueled by one of the most compelling

ing to national estimates. Hispanics
accounted for about one-half the national population growth of 2.9 million between July 1, 2003, and July 1,
2004. and the Hispanic growth rate
of 3.6% was more than three times
the total population growth rate.
Still, accurately tracking this group
as it moves into new geographic regions would be difficult under any
circumstances. "We track Mexican
immigration by staying in close contact with various organizations that
provide services to this community,"
Mr. Senise said.
"This has major market potential
for tortillas, but such consumers
look for a more authentic version
that reminds them of home," he con-

growing trend of fusion foods, tortillas accommodate today's eating
habits," Mr. Garrett added.

32 / BAKING & SNACK / March 2006

tinued. "We have Guerrero brand
products with the slogan of 'little
piece of Mexico.' These are Mexicandesigned products for Mexican immigrants, and sales have been good."
GROWING EQUITY. Food service
has opened new frontiers for the
company, and R&D is a major contributor to that success. "We established relationships with universities
and researchers to determine eating
habits and purchasing trends," Mr.
Smith said. "Future growth will come
from new products, new regions and
markets as well as continued enhancement to product quality and efficiency of operations."
But growth has come from all
sectors during the past four years
- food service and retail, geographical and international, generic
growth and new products. Growth
also comes from improved quality
and operational efficiency.
"The market for tortillas is huge
with plenty of room for regional
players, and there are many out
there," Mr. Crane said. "Consider the
fact that the industry is estimated to
be more than $6 billion strong. An
increase of only 1% represents a major impact on our business."
Gruma's strategy on acquisitions
includes maintaining and supporting the acquired brands as brand
loyalty is important to consumers.
To boost its relationship with retailers, Mission began to calendarize
its marketing plans a year in advance
detailing what it will do in promotional and media spending and the
timing of new product launches. For
its largest retail and food service customers, the company established a
national account group.
Food service branding is not as
important as retail for the brand and
company equity. "Most of our customers do not place tortilla brands on
menus, but it is the service, support,
consistency and quality that they
value above all else," Mr. Smith noted.
"We are proud to be able to work

Baking & Snack - March 2006

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