Opportunities in the Mexican Market for Packaging Machinery 2006

Transcription

Opportunities in the Mexican Market for
Packaging Machinery 2006-2007
A market analysis prepared by:
Hanhausen & Doménech Consultores, S.C.
Prepared by Hanhausen & Doménech Consultores, S.C. exclusively for PMMI.
© Copyright June 2006, Packaging Machinery Manufacturers Institute
Index
Index ............................................................................................................................ 1
Executive Summary: .................................................................................................... 3
1.
Economic and Financial Issues: ..................................................................... 5
1.1.
1.2.
2.
Mexico’s Packaging Machinery Market Overview: ...................................... 10
2.1.
2.2.
2.3.
3.
Mexico’s Economic Outlook................................................................................. 5
Financial Issues impacting the Packaging machinery market............................. 8
Market Size. ....................................................................................................... 10
Who are the customers?.................................................................................... 12
How to win exposure. ........................................................................................ 13
Who are the Competitors? ............................................................................. 15
3.1.
Leading Packaging Machinery Suppliers. ......................................................... 15
3.2.
Customer’s Perception by Origin....................................................................... 17
3.3.
Are European, Asian or Latin American suppliers going to control the Mexican
packing machinery market?............................................................................................ 19
4.
SWOT Analysis for PMMI members: ............................................................. 21
4.1.
4.2.
4.3.
4.4.
5.
6.
Recommendations for PMMI Members:........................................................ 22
The Food Industry: ......................................................................................... 23
6.1.
6.2.
6.3.
6.4.
6.5.
7.
Strengths............................................................................................................ 21
Weaknesses. ..................................................................................................... 21
Opportunities. .................................................................................................... 21
Threats............................................................................................................... 21
Industry Overview. ............................................................................................. 23
Company Ranking by Size. ............................................................................... 24
Key Players........................................................................................................ 24
New Packaging Trends...................................................................................... 25
Company Profiles. ............................................................................................. 26
Barcel, S.A. de C.V............................................................................................ 26
Conservas La Costeña, S.A. de C.V. ................................................................ 29
DANONE de México, S.A. de C.V. .................................................................... 35
Frigorizados La Huerta, S.A de C.V. ................................................................. 39
Grupo BIMBO, S.A. de C.V. .............................................................................. 42
Grupo Gruma, S.A. de C.V. ............................................................................... 47
Helados Holanda, S.A. de C.V. ......................................................................... 50
Herdez, S.A. de C.V. ......................................................................................... 54
Martín Cubero, S.A de C.V. ............................................................................... 59
Nestlé de México, S.A. de C.V. ......................................................................... 63
Pilgrim’s Pride S.A. de C.V. ............................................................................... 69
Qualtia Alimentos, S.A. de C.V.......................................................................... 73
Sabormex, S.A. de C.V...................................................................................... 77
Sigma Alimentos, S.A. de C.V. .......................................................................... 82
The Beverage Industry: .................................................................................. 87
7.1.
7.2.
7.3.
7.4.
7.5.
Industry Overview. ............................................................................................. 87
Company Ranking by Size. ............................................................................... 87
Key Players........................................................................................................ 87
New Packaging Trends...................................................................................... 88
Company Profiles. ............................................................................................. 88
BACARDI y CIA., S.A. de C.V. .......................................................................... 89
Big Cola S.A. de C.V. ....................................................................................... 93
Cadbury Schweppes, S.A. de C.V..................................................................... 97
Casa Cuervo, S.A. de C.V. .............................................................................. 100
Grupo Modelo, S.A. de C.V ............................................................................. 103
Tequilera Corralejo, S.A. de C.V. .................................................................... 109
1
8.
The Pharmaceutical Industry:...................................................................... 112
8.1.
8.2.
8.3.
8.4.
8.5.
9.
The Personal Care Industry: ........................................................................ 137
9.1.
9.2.
9.3.
9.4.
9.5.
10.
Industry Overview. ........................................................................................... 112
Company Ranking by Size. ............................................................................. 112
Key Players...................................................................................................... 113
New Packaging Trends.................................................................................... 113
Company Profiles. ........................................................................................... 113
Bayer , S.A. de C.V.......................................................................................... 114
Boehringer Ingelheim Promeco, S.A. de C.V. ................................................. 118
Eli Lilly de México, S.A. de C.V. ...................................................................... 122
Laboratorios Sanfer, S.A. de C.V. ................................................................... 125
Merck, Sharp and Dohme de México, S.A. de C.V. (MSD)............................. 129
Novartis Farmacéutica, S.A. de C.V................................................................ 132
Company Ranking by Size. ............................................................................. 137
Key Players...................................................................................................... 137
BDF México, S.A. de C.V. ............................................................................... 139
Grupo PIMABE S.A. de C.V. ........................................................................... 142
Revlon de México, S.A. de C.V. ...................................................................... 146
Other Consumer Products:.......................................................................... 150
10.1.
10.2.
10.3.
Grupo Comex S.A. de C.V............................................................................... 151
Grupo Helvex, S.A. de C.V. ............................................................................. 156
Industrias Alen, S.A. de C.V. ........................................................................... 159
APPENDIX 1.Packaging Machinery Import Statistics 2003-2005: ........................ 163
2
Executive Summary:
PMMI commissioned the production of a
report on current business conditions and
potential opportunities for PMMI members in
the Mexican market. PMMI defined a sample
of 50 companies to conduct direct interviews,
elicit information and analyze packing
machinery demand and supply trends in the
Mexican market. The company selection
consisted of a sample of 50 of the largest
multinational and local companies in the
beverages, foods, pharmaceutical, personal
care and other consumer products segments.
This report was produced by Hanhausen &
Doménech
Consultores,
S.C.
(HDC),
www.hdc.com.mx a Mexico City based
consulting firm specialized in market
research, definition of business opportunities
and project development that has closely
monitored Mexico’s packaging machinery
market since 1999.
The Mexican packaging machinery market
continues to be a very attractive export
destination
for
PMMI
members,
as
approximately 80% to 85% of the market
demand is covered by imported machinery.
Imports of Packaging Machinery grew 4.25%
in 2005, to reach a record value of US$378.5
million in imports. In addition, the spare parts
imports reached a value of over US$ 60
million.
European suppliers have taken the largest
share of the market, but this might be
explained among other factors by a decline
in marketing activity by US suppliers.
For the production of this study, HDC
obtained information on upcoming purchasing
plans for packing machinery valued at close
to US$ 50 million at 32 of the largest
companies in the food, pharmaceutical,
personal care, beverage and other consumer
products industries as well as their perception
on market trends and supplier preferences.
The country is a few weeks away from
Presidential elections which are viewed as a
significant turning point for Mexico. The
political climate will represent a significant
factor curtailing demand for packing
machinery in Mexico over the following
months.
This report offers not only a description of
these 32 potential customers and their
upcoming procurement plans, but also
describes the overall packaging machinery
market, trends, opportunities and gives a
series of recommendations to PMMI
members to maintain and increase their
participation in the Mexican market.
As such, the report begins with a brief
overview to Mexico’s economy as packaging
machinery market demand is highly
dependant on the overall state of the
economy. Section 1 also addresses foreign
investment flows into Mexico which are
showing increasing signs of diversification
due to Mexico’s extensive list of free trade
agreements with other world economies.
This chapter also makes a detailed
comparison to the effects that the
appreciation of the Euro and the US Dollar
in front of the Mexican peso represent to
Mexican packaging machinery buyers.
Section 2 provides a description and
analysis of packaging machinery trends in
Mexico, it reviews why some countries are
increasing their presence in the market and
what this market is expected to represent in
the upcoming years.
Section 3 looks at the competitive structure
of the current Mexican marketplace, it looks
at the roles of the key packaging machinery
manufacturers – USA, Italy, Germany and
others – and what they are doing to increase
their market shares and presence. It also
looks at what the customers expect from
manufacturers as competition increases.
Section 4 provides a SWOT analysis for
American
packaging
machinery
manufacturers in the Mexican marketplace.
The SWOT analysis is offered as a valuable
tool for identifying opportunities and
challenges for manufacturers seeking to
enter or expand in this market.
Section 5 gives a series of useful
recommendations for those PMMI members
that seek to increase their participation in
the Mexican market.
These recommendations are based not only
in actions that have led other manufacturers
to win market share, but most importantly in
the opinions of what packaging machinery
3
buyers – your potential customers – expect
from suppliers to decide for one over another.
Finally sections 6 to 10, provide a brief
description of the food, pharmaceutical,
personal care, beverage and other consumer
product industries, important packaging
trends occurring in each area, as well as
individual company profiles of 32 potential
packaging machinery buyers.
In short, while the Mexican market for
packaging machinery has seen increased
competition from various parts of the world,
PMMI members have significant competitive
advantages that combined with the right
strategies can represent increased short term
sales to Mexico.
Participation in Trade Shows, particularly in
Expo Pack is critical to gain exposure and
develop contacts with interested packaging
machinery buyers as all the companies
interviewed mentioned that they attend this
show to learn about new technologies and
product offerings.
After-sales service and local support are
becoming one of the most important
purchasing decision factors in Mexico. As
manufacturing sophistication grows in Mexico
there is creating the need for providing
support to the clients and they are making
very strong decisions based on that
commitment.
This report provides concrete upcoming sales
opportunities and the necessary contact
information to access the buyers.
US suppliers can regain market share in
Mexico if they commit to a proactive
marketing and sales program.
4
1.
scenario,
including
steep
currency
depreciation could also boost investment in
highly price sensitive and globalized
activities. The direct determining factor is
the growth in production of indigenous
products (Tequila, Corona Beer, etc.) or the
degree of production competitiveness which
can be obtained either through efficiency of
through
production
factor
distortions
including exchange rate variations.
Economic and Financial
Issues:
1.1. Mexico’s Economic
Outlook.
The demand for packing machinery
equipment in Mexico is the result of an
extremely complex combination of factors
which escape the geographical boundaries
on Mexico, as the large number of free trade
agreements that this country has signed over
the past years, create an exceptionally open
and globalized economy impacted by the
decisions of both multinational companies
operating in Mexico as well as local
corporations.
The Mexican economy performed modestly
well during 2005, achieving 3.5% real GDP
growth and a declining inflation rate, closing
the year at 3.6%, the lowest inflation rate in
40 years.
Growth was again uneven throughout
sectors with some areas experiencing
growth close to 8% including the
pharmaceutical industry.
The conception that local growth is a factor
for the purchase of packing machinery
remains, but the completely opposite
Mexico's Economic Performance
5.70%
6.00%
12.00%
5%
4.40%
4.50%
10.00%
3.50%
4.00%
8.00%
3.00%
6.00%
2.00%
1.40%
Inflation
GDP Growth
5.00%
4.00%
1.00%
2.00%
0.00%
-0.20%
-1.00%
2000
2001
0.00%
2002
2003
GDP Growth
2004
2005
2006/f
Inflation
Source: HDC with information from Banco de México.
Despite not reaching the 7% growth that
remains as the objective of the
administration, growth during 2005 was
higher than in the two previous years. It is
expected that 2006 will be a better year if
there is no impact from internal political
factors or the tightening of the US Federal
Reserve does not precipitate a recession in
the US economy which would directly
impact economic growth in Mexico.
Mexico will hold presidential elections in
early June and the contrasting options will
significantly impact economic growth and
capital investment in Mexico over the
current and following years. At present there
is a 50% / 50% change of electing a pro
business president that will support
maintaining current stability or the election
of a left of center president interested in
changing what he defines as a failing neoliberal model.
Underlining the impact of the electoral result
is by no means an exaggeration as the
future of Mexico over the following years
depends on that electoral result.
5
Changing the current economic policies of
strictly maintaining macroeconomic stability
will severely impact Mexico. Especially
when the current conditions are favorable
for capital investment projects because of
exchange rate stability and declining real
interest rates.
dependant on the economic performance of
the U.S.
Capital goods imports grew by 16.9% which
is the highest growth since 1998 and is a
sign of the important capital investment
taking place in the manufacturing industry in
Mexico.
Mexico will be impacted by the FED’s
decisions, which are exogenous to local
economic forecasts. This impact will be
common to US, Mexican and all
international markets that are sensitive to
US economic policy decisions.
The government produced its annual
economic forecast document expecting
3.6% GDP growth and inflation of 3.5%.
Over the 1Q of 2006, the economy was
growing at over 5%. This higher economic
growth will potentially have a positive impact
in personal consumption and general
demand, which will translate in the need for
production expansion projects in all
industries including those which demand
packing equipment and materials.
The importance of stability, which is now,
challenged by US inflation and the potential
debasing of the value of the US dollar is that
it will significantly increase the cost of
financing of capital investment. This will be
one of the factors that could change the
currently positive investment climate in
Mexico, which continues a declining inflation
trend which has taken interest rates to
historical lows. Inflation for 2006 – excluding
unpredictable
political
factorswas
estimated at fewer than 3.5%. This would
be
an
extraordinary
achievement
considering the significant price increases
for several commodities and fuels.
Foreign direct investment in Mexico is
expected to be higher that in 2005. Over the
past years a significant portion of the
investment went to the financial and
telecommunication sectors. For this year, it
is expected that a higher portion of the
investment will be used for capacity
expansion in several manufacturing sub
sectors.
Mexico’s trade balance during 2005 resulted
in a deficit of approximately US $ 7.6 billion.
Exports reached US$ 214.3 billion while
imports US$ 221.8 billion.
Mexico’s country risk continues at
historically low levels, which is permitting
companies to access the international
financial
markets
under
favorable
conditions. Political uncertainty has made
companies switch debt into pesos over the
past few months as a protective measure in
case of an economic shock resulting from a
political crisis after the elections.
Trade with the U.S. continues to represent
close to 2/3 of total Mexican foreign trade.
Representing 60% of Mexico’s total imports
and 88% of its exports, for this reason the
Mexican economy continues to be highly
Foreign Direct Investment
30
Billion US$
25
20
15
10
5
0
2000
2001
2002
2003
2004
2005
2006/f
6
FDI Flows by Origin 2000-2005
90%
80%
70%
60%
NAFTA
50%
Europe
40%
Japan
30%
Other
20%
10%
0%
2000
2001
2002
2003
2004
2005
Source: HDC with information from Banco de México
.
The composition of foreign direct investment
to Mexico during 2005 had close to 70% of
funds originating in North America. Spain
has become an important investor in Mexico
in various areas that include the banking
and telecommunications industries, this has
creates investment “spikes” in recent years
like the payment for Mexico’s second
largest bank by the Spanish bank BBVA,
but with the exception of these unusual
transactions the normal trend is for North
America to continue representing the
leading source of FDI into Mexico. There
have been initial reports that Ford might
shift a very significant portion of their North
American manufacturing to Mexico, which
will have a very significant impact in FDI
flows into Mexico over the following couple
of years.
The free trade agreement with Japan has
been in operation of over one year. It has
not had the spectacular impact on FDI or
trade growth that resulted from NAFTA. It
will be important to follow the evolution of
this treaty even while the significant
geographical distance might be a significant
factor for experiencing increased Japanese
product presence in the Mexican market.
Importing Japanese packing machinery into
Mexico still requires the payment of import
duties on most classifications as only one
has reached full tariff elimination.
Crude oil exports represent a significant
revenue source for the Mexican federal
government. The exceptionally high price of
this commodity in 2005 provided the
Mexican government with unexpected
income to spend on a mirage of social
programs. High oil prices in 2006 are also
expected to contribute to higher government
spending during the year. The Mexican oil
company Pemex has received a growing
share of the windfall profits to initiate
exploration in deep waters, which represent
a new area of oil production for Mexico.
The Mexican Peso appreciated by almost
8.5% during 2006. This is explained by the
higher real interest rate offered in Mexico
over dollar denominated investments.
During the first half of 2006 the value of the
peso has declined by almost 9% returning
to the value observed in early 2005. The
trend of the exchange rate will depend of
interest rate differentials between Mexico
and the US and the potential speculative
impact of the upcoming Presidential
elections in Mexico. At present, exchange
rates remain very stable between the Peso
and the US Dollar and the US currency and
the Euro, so exchange rate factors are not
expected to influence the demand for
packing machinery in Mexico during 2006,
which is the opposite of what was observed
at the beginning of the decade and which
signaled the beginning of the trend that
resulted in the European dominance of
imported packing machinery market in
Mexico.
7
Peso Exchange Rate
15
$ Pesos
14
13
12
11
10
9
Abr-03
Oct-03
Abr-04
Oct-04
Dollar
Abr-05
Oct-05
Abr-06
Euro
1.2. Financial Issues impacting
the Packaging machinery
market.
The government is forecasting higher
economic growth during 2006 and reduced
inflation; both elements have positive
impacts on direct demand and the
possibility for continued double digit growth
in consumer credit. These factors will likely
impact local producers which will require
increasing production capacity and requiring
dedicating additional investments for
process and packing machinery.
Imports of packing machinery during 2005
reached US$ 378.5 million which is a
historical high. The growth trend since 2003
has remained very stable but growth has
remained moderate. This can be explained
by the explosive growth of 32.5%
experienced
during
2003.
Packing
machinery imports are growing at lower
rates than general GDP growth in Mexico.
The explanation is that the sector continues
to digest the explosive growth experienced
during 2003, which took total import value to
its highest observed levels.
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
GDP Growth
Packaging Machinery
Imports
Packaging Machinery Importe vs. GDP Growth
0.00%
-1.00%
2000
2001
2002
P.M. Imports
2003
2004
2005
GDP Grow th
Source: HDC with information from Banco de México and Bancomext.
The forecast of demand for packing
machinery in Mexico during 2006 is quite
complex. There are two opposing scenarios,
all dependent upon the performance of the
US economy, US interest rate trends and
the results of the Mexican Presidential
elections. The worst possible short term
scenario would be for the leftist candidate to
win the presidential elections. Under this
possible outcome, imports of packing
8
machinery might drop as much as 50%.
Exports of US packing machinery to Mexico
dropped by 18% during 2005, this is the
largest decline in the past six years and
signals the continued deterioration of the
US presence in the Mexican market of
imported packing machinery.
Is offering financing important to the
largest companies in Mexico?
The largest Mexican companies and
multinationals operating in Mexico pay for
their purchases with their cash flow and
have little interest in recurring to vendor
financing.
Global and local conditions point to the
likely scenario of a contraction in demand in
Mexico for packing machinery.
The
companies that were interviewed for the
production of this report indicated that most
of the companies were investing in packing
machinery to make their processes more
efficient but will hold investments in
expanding production capacity.
This situation presents a sharp contrast to
mid size companies where offering
equipment financing was a significant
sales tool utilized by European suppliers.
The companies that were interviewed for
this report represent a very significant
sample of the largest local and multinational
companies operating in Mexico. For
companies of this caliber, the possibility to
receive financing from the supplier is much
less attractive than for smaller companies.
Current political conditions in Mexico
might also explain that large companies
are not interested to incur in credit
obligations under an unpredictable
political environment which can have an
impact on economic and exchange rate
variables in Mexico.
All companies interviewed in this sample
indicated that their purchases are paid in
cash and that for the moment there is no
interest in using credit. This is also
explained by the fact that vendor credit
might be denominated in US dollars or
Euros and at this moment, local companies
are reducing their exposure to foreign
currency denominated debts to minimize the
potential impact of an abrupt speculative
exchange rate variation after the July
presidential elections.
9
2.
that have free trade agreements with
Mexico.
Local
packaging
machinery
manufacturers satisfy about 15% of the
market demand while the remaining is
imported.
Mexico’s Packaging
Machinery Market
Overview:
2.1.
Market Size.
Mexico
has
not
been
traditionally
recognized as an important packaging
machinery manufacturer, as the number of
local manufacturers is small and most of the
production
was
concentrated
in
complementary equipment and basic
machinery that lacked of any sophistication,
however in recent years some Mexican
packaging machinery manufacturers began
producing more advanced machinery and
some even developed strategic alliances
with foreign manufacturers to receive
technology in exchange to inexpensive
labor and access to a wide list of countries
There are no official figures indicating the
value of the packaging machinery market in
Mexico. Using import data and calculating
the imported equipment share in the market,
the total market value for this equipment
represented approximately US$442 million
during 2005. To this market we can add an
additional US$60 to 65 million of parts.
Packaging machinery imports (not including
parts) during 2005 reached US$378.50
million, a 4.25% increase over 2003.
Packaging Machinery and Parts Imports 2000-2005
Million US$
450
400
350
300
250
200
150
100
50
0
2000
2001
2002
2003
2004
2005
Source: HDC with information from Bancomext.
Reduced import growth can be explained by
the high import value reached since 2003
and a series of factors including the
following:
•
•
Demand for packaging machinery
during 2005 and 2006 was lower than
normal as several companies decided
to place on hold their investment plans
due to the uncertainty caused by the
Presidential elections.
pausing and waiting for the electoral
result.
•
Imports of packing machinery over the
first four months of 2006 are
significantly below the levels of 2005.
•
The possibility of packing machinery
and parts import values of 2006 passing
the 2005 record, depend mostly on the
results of the Presidential elections in
Mexico.
There was such an aggressive and
successful effort to sell packing
machinery in Mexico over the past two
years, that the market appears to be
10
Packaging Machinery Part Imports 1993-2004
70,000
Thousand US$
60,000
50,000
40,000
30,000
20,000
10,000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: HDC with information from Bancomext.
Mexico down an already traveled and failed
path of populist governments which caused
significant economic crises.
The exercise of producing a forecast for
imported packing machinery demand in
Mexico for 2006 is quite difficult as current
conditions are plagued by a series of factors
not present over the previous years.
Under current conditions there is no other
alternative than to suggest a series of
potential outcomes for 2006. Under an
optimistic scenario, packaging machinery
imports could grow between 10 and 15%
during 2006 if the outcome of the
presidential elections is viewed as positive
by local and international investors and the
FED suspends its tightening phase.
First the FED is continuing a tightening
phase which will increase financing costs,
the price of industrial materials and
production costs in the US has contributed
to a generalized inflationary environment.
The Mexican companies are concerned
about potential and likely negative results of
the Presidential elections which will return
Packaging Machinery Import Forecasts
600
Million US$
500
400
300
200
100
0
2000
2001
2002
2003
Optimistic
2004
Realistic
2005
2006/f
2007/f
Pesimistic
Source: HDC
Under a realistic scenario, Mexico will be
importing more than US$490 million in
packaging machinery by 2006. The
pessimistic scenario is the result of Mr.,
Lopez Obrador winning the Presidential
elections and creating a short term panic
among local and international investors
which severely affects economic variables
which require a couple of years to return to
stability. Under this scenario, imports would
drop by a minimum of 20%.
2.2.
11
Who are the customers?
For the production of this particular report,
the sample of companies that were
interviewed consisted of some of the largest
local and multinational companies operating
in Mexico.
In previous reports produced form PMMI
there are descriptions on the diversity of
demand for packing equipment in Mexico. In
this particular case, the circumstances are
particularly different to those found with
medium sized and small companies.
Large companies are only interested in
state-of-the-art technologies from leading
suppliers which have a solid track record in
their particular industries. In the case of
multinationals, the supplier selection
process is closely consulted with the
corporate headquarters which in most cases
provide indications on which the suppliers
should be.
Contrary to what might be expected in this
segment there is permanent flux. Suppliers
that had developed working relationships of
many years are immediately replaced for
others which appear or demonstrate to be
more committed to offering qualified,
committed and expedite service to their
clients.
There is also no perfect information in the
marketplace. Companies believe to have
more knowledge about technologies and
supplier options that what they actually
have. Some examples of this situation are
presented in following sections of this
report.
The major customer segments for
packaging equipment in Mexico are in order
of importance, the food, beverages,
consumer goods, pharmaceutical and
personal care among others.
The food and beverage industries represent
22% of Mexico’s manufacturing GDP.
Government statistics estimate that Mexican
households devote on average 30.7% of
their income to food purchases. The portion
of income devoted to these purchases
varies by income level, being 55% in the
lower economic levels and 15% in the
higher income families.
Estimates show that the food industry is the
largest packaging machinery buyer in
Mexico with approximately 40% of the total
sales in the market. The food industry in
Mexico is formed by a mix of large
international food manufacturers like
Unilever, Nestlé, Danone, Kraft, Pillgrim’s
Pride among other, several Mexican large
food companies such as Bimbo, La
Costeña, Herdez and Sigma Alimentos, and
a very large list of small and medium sized
companies that manufacture niche or
regional products.
According to the Ministry of Economy, there
are 30,173 companies dedicated to
manufacture food products. Of these, only
193 are large companies, 678 are medium
sized companies and 1,388 are small. The
remaining are micro companies with less
than 31 employees.
The Pharmaceutical industry is another
significant packaging machinery buyer in
the country with approximately 10% of the
total demand. This sector is, as in other
parts of the world, registering significant
growth rates. The Mexican drugs market
has grown at average yearly growth rates
superior to 7% during the last three years
and there is still significant room for growth
as drug imports during this period have
grown 21%.
This sector is the most sophisticated in
terms of packaging requirements and as
local and international regulations become
stricter, this sector represents heavy
continual investments in complete lines of
packaging systems.
Personal care products are also an
important packaging machinery buyer
accounting for an estimated 10% of the
demand. In this segment we also find a mix
of large international companies such as
Procter & Gamble or Warner Lambert who
have operations in Mexico, as well as small
niche Mexican companies that successfully
compete against the multinational players.
Packaging machinery investments in this
sector are mostly caused by new products
or
new
product
presentations.
As
competition is strong in this trendy market,
image change and product differentiation in
the shelf means increasing sales.
12
The beverage market is another important
customer in Mexico’s packaging machinery
market. This segment combines large
multinational companies such as CocaCola, Pepsi, and very success full
competitor Big Cola with Mexico’s two giant
beer producers Grupo Modelo, and FEMSA
Cerveza and with several other local
medium sized companies fighting for a
small share of these market niches. In the
Mexican beverage sector we also find over
60 different water bottlers, 36 milk and milk
product producers and more recently small
and medium sized companies bottling
specialty products such as energy drinks,
coffee or tea. This market is not as dynamic
as the food, pharmaceutical and personal
care markets as while product presentations
change in occasions and different materials
are introduced to bottle, in general terms the
life of each package is significantly larger
than in the other segments. While some
estimates indicate that this segment
consumes approximately 12% of the
packaging machinery sold into Mexico, the
percentage is largely relative to new
investments in bottling facilities and to new
products introduced to the market.
in Mexico. The most important trade shows
visited by Mexican packaging machinery
buyers are:
•
Laura Thompson
International Exhibitions Manager
Packaging Machinery Manufacturers
Institute (PMMI)
4350 North Fairfax Drive, Suite 600
Arlington, VA 22203 USA
Telephone: (703) 243-8555
Fax: (703) 243-8556
Email: [email protected]
Internet: www.pmmi.org
The remaining 15-20% of the packaging
machinery demand is consumed by
companies manufacturing other consumer
products such as paints, car-care products,
oils, manufacturers of packaging materials
and containers among other.
2.3.
Guadalupe Olvera
OPREX
EXPO PACK México/PROCESA
Berna No. 6, Piso 7
Col. Juarez
06600 Mexico D.F. Mexico
Phone: (5255) 5241 0400
Fax: (5255) 5514 3110
E-mail: [email protected]
Internet: www.expopack.com.mx
How to win exposure.
Mexican packaging machinery buyers like to
be informed about new developments and
product offerings in the market. They all
attend to trade shows in Mexico and a
smaller percentage travels to the most
important packaging machinery related
trade shows overseas.
Some Mexican packaging machinery
distributors
or
representatives
have
successfully marketed their brands and
products through proactive contact with
potential customers. These would include
having communication by telephone; e-mail
or through visits to potential customers.
Some companies interviewed mentioned
that European suppliers are the most noted
for “being in touch” on a constant basis.
Trade shows are the best way to generate
product exposure for packaging machinery
EXPO PACK MEXICO & Procesa:
EXPO PACK México & Procesa have
demonstrated over the last 20 years,
that they are the leading packaging and
processing
machinery
exhibitions
serving Latin America, offering the best
business and networking opportunities
for
packaging
and
processing
professionals. At last year’s show, over
30,000 visitors from 19 countries
attended EXPO PACK México in search
of real solutions and technologies to
enable them to attain the levels of
competition necessary in the global
marketplace. The next Expo Pack trade
show will take place in Mexico City from
June 27 to 30, 2006. For more
information contact:
•
Expo AMF Pharma:
Expo Pharma is the largest show for the
pharmaceutical industry in Mexico. The
last show held in March 2006 had 194
exhibitors and 10,100 visitors. Several
packaging machinery manufacturers
specialized in pharmaceutical product
packaging exhibit at this show and a
great number of decision makers attend
to learn about industry trends and new
product offerings. The next Expo Farma
will take place in the World Trade
Center in Mexico City during the last
week of March 2007. For more
information contact:
13
Lucia Huerta
Mexican Pharmaceutical Association.
Adolfo Prieto 1649, 6° Piso,
Col. del Valle, México D.F., C.P. 03100.
Telephone: (52-55) 9183-2060
Fax: (52-55) 5688-2069
E-mail: [email protected]
Internet: www.afmac.org.mx
•
Pack Expo:
Due to Mexico’s geographical proximity
to the U.S. a large number of Mexican
packaging machinery buyers attends to
Pack Expo in Chicago or Las Vegas as
they consider that this show has a
broader showcase of machinery than
the Mexican show, however we
recommend PMMI members seeking to
expand their presence in Mexico to
exhibit at the Mexican show also as this
last also reaches the small and medium
sized companies that represent a very
large share of the market. The next
Pack Expo show will be held October
29 - November 2, 2006, at McCormick
Place, Chicago, IL, USA and will feature
more than 1,600 exhibitors and cover
more than 1.2 million square feet of
exhibit space.
Another element for creating additional
product exposure for packaging machinery
is by advertising in trade Magazines. Most
companies indicated to review these
publications regularly and to use them for
finding and selecting new potential
equipment suppliers. The most widely
circulated trade magazines – relevant for
packaging machinery- are, in addition to
publications distributed by local chambers,
the following:
Reportero Industrial - Monthly
Publisher: Reportero Industrial Mexicano,
S.A. de C.V.
Tel: (5255) 5605-9962
Fax: (5255) 5605-0056
Circulation: 28,000
Audience: Manufacturing companies.
Internet:
http://www.reporteroindustrial.com.mx
Manufactura - Bimonthly
Publisher: Expansion, S. De R.L. De C.V.
Tel: (5255) 9177-4178
Fax: (5255) 5093-2602
Circulation: 115,000
Audience: Manufacturing companies.
Internet: www.manufacturaweb.com/
There are several other specialized shows
where packaging machinery manufacturers
exhibit their products in Mexico. The most
important being:
Expo Alimentaria: Food products, June 6-8,
http://www.alimentaria2006.
mexico.com/es/global/portada.htm
• Expo-Pan: Bakery and bread products,
August
12-14,
2006.
http://www.conexpro.com.mx/
• Beberexpo: Beverages, February 2007,
http://conexpro.com.mx
After trade shows, Internet is the second
most important tool to give product
exposure to packaging machinery. Some
companies interviewed mentioned to “surf
the web” searching for potential suppliers of
specialized equipment.
Most Mexican companies mentioned to
approach PMMI or the Mexican Association
of Packaging (Asociación Mexicana de
Empaque y Embalaje) as sources for
obtaining
information
on
potential
equipment suppliers. PMMI and AMME are
very good tools for increasing product
exposure in Mexico.
14
3.
Who are the
Competitors?
3.1. Leading Packaging
Machinery Suppliers.
Mexico’s packaging machinery market
continues to be dominated by imports which
satisfy from 80% to 85% of the total
demand. Mexican production has increased
and improved its quality in recent years, but
continues to be a small fraction of the
supply in the market. Mexico is an attractive
investment
destination
for
foreign
companies
investing
in
producing
equipment in Mexico, as it offers labor
savings over NAFTA and European Union
countries as well as provides duty free
access 32 countries including the US,
Canada and the European Union.
The packing machinery suppliers can be
segmented in three groups:
The leaders:
This group is comprised of Italy, Germany
and the United States. These three
countries supply 75% of the total Mexican
market. The market share participation in
this group has changed and leading
positions shifter over the past few years.
The US’ market leadership was maintained
until the late nineties, followed by fast
erosion
which
began
with
the
undervaluation of the Euro, continued with
the opening of the Mexican market to free
trade with Europe and has continued
through the strengthening of the perception
that Europeans are technology leaders in
Packing Machinery.
By end of 1998, the U.S. remained as
leader controlling 44% of the imported
packing machinery market followed by Italy
with a 21% and Germany with 15%.
On July 1999 Mexico entered into a free
trade agreement with the European Union
that contemplated a rapid phasing out of
import duties for European products
entering Mexico. Almost half of all packing
machinery could enter Mexico free of duties
immediately upon the signing of the
agreement and the rest has seen
progressive tariff elimination and became
duty free in January 2004.
The signing of the free trade agreement had
additional effects, especially interesting for
European suppliers in this market. As trade
between Mexico and the EU began to grow,
shipping companies started expanding their
services into Mexico.
Coinciding with all these developments, the
EU introduced the use of a single currency,
the Euro which depreciated form levels of
US $ 1.15 per Euro to levels of under US$
0.85 in late 2000. This steep depreciation
made European equipment relatively less
expensive to that of US based suppliers.
A combination of factors that included tariff
reductions or elimination, a significant
depreciation of the Euro against the US
dollar and improved transport services to
Mexico, and a strong focus in developing
market share in Mexico, initiated the
challenge to the US’ leadership in Mexico’s
imported packaging machinery market.
During 2003 and 2004, with the benefit of a
depreciated Euro, Italian and German
suppliers undertook an aggressive and
proactive market development program in
Mexico. Through these efforts and in spite
of a significant appreciation of the Euro, by
2005, Italy became the leading supplier of
packing machinery to the Mexican market.
By the end of 2005, Germany also exported
more packing machinery to Mexico, placing
the US in a third place.
Packaging Machinery Imports by Origin 2005
Packaging Machinery Imports by Origin 2000
1% 1% 1% 9%
3%
2%
1%
2%
4%
39%
7%
2% 2% 2%
2%3%
1%
5%
25%
4%
13%
22%
25%
24%
United States
Italy
Germany
France
United States
Italy
Germany
France
Spain
Sw itzerland
Japan
Sw eden
Spain
Sw itzerland
Japan
Sw eden
Canada
United Kingdom
Brazil
Other
Canada
United Kingdom
Brazil
Other
15
Several companies interviewed for the
production of this report indicated that while
Italian machinery has become significantly
more expensive than two years ago, it is still
price
competitive
versus
American
machinery, in many cases is more flexible
and customizable than American and their
service and financing packages are in many
occasions what makes the difference to
select them over American machinery.
The case of Germany is different, this
country continues to have an important
market share due to their image, prestige
and full-line machinery offerings, and
however the appreciation of the European
currency is making buyers to turn their eyes
to other countries as their prices have
become significantly higher. German
exports to Mexico during 2003 grew only
2% when the overall market grew more than
30%.
American packaging machinery is well
perceived and accepted in the Mexican
market, however some users consider that
American machinery is designed for largescale production and does not offers the
needed flexibility to re-configure for
packaging different products. In general
terms American packaging machinery is
preferred by large manufacturers from the
food and personal care industries, but not
so much for pharmaceutical products or by
small companies of any of the key
industries. As product differentiation is
increasing in all sectors, flexibility has
become a packaging need in all segments.
Growing Competitors:
This layer is occupied by suppliers from a
variety of countries with highly competitive
manufacturing industries such as France,
Spain, Canada, Switzerland and Japan, and
by other countries what are not recognized
as technological leaders but that are
winning market share by offering low prices,
such as Brazil and Mexico.
French packaging machinery is having good
acceptance in the Mexican market, they are
perceived
as
more
technologically
advanced than Italian manufacturers and
offering the same flexibility. France
controlled 8% of the packaging import
shares during 2003 and it has maintained
continuous growth in the last five years.
While the appreciation of the Euro has also
made French machinery relatively more
expensive than two years ago, it is
considered to be fairly priced.
Spain is another growing competitor in
Mexico, a large number of large players in
Mexico’s food industry have family links to
Spain and they prefer to work with Spanish
companies before other European players.
The language factor is also a plus for these
suppliers as they supply instructions and
provide training and service in the same
language. Spanish packaging machinery is
perceived as of similar quality and flexibility
to Italian and is well suited for small
production volumes and can be easily
adapted to pack different products.
Top Five Packaging Machinery Exporters
United States
160
Italy
140
Germany
120
M illio n U S $
Italian packaging machinery manufacturers
took advantage of the undervaluation of the
Euro to enter and expand their presence in
the Mexican market, but they also
developed service, financing and integration
schemes that are now showing that they
came to market to stay. During 2005 the
Euro appreciated in a very significant way
and despite of this, demand of Italian
machinery remained high and grew 19%
with respect to 2003.
France
100
Spain
80
60
40
20
2000
2001
2002
2003
2004
2005
Source: HDC with data from Bancomext.
Japan is another competitor that would be
worth to look at. Imports of Japanese
machinery do not represent an important
share of the market but their presence in
Mexico is expected to increase in 2004 as
Mexico signed a free trade agreement with
Japan that includes the elimination of tariffs
for packaging machinery immediately.
Japanese machinery is perceived as
technologically advanced, offering good
electronics to replace costly and nonefficient mechanics and is also competitively
priced. With the tariff elimination Japanese
suppliers will be able to offer prices that are
15% to 20% lower than in previous years.
In this market segment we also find new
competitors that are increasing their market
16
presence with low-price strategies despite
of not being perceived as technologically
advanced. Brazilian packaging machinery
exports to Mexico have grown from US$2
million in 2000 to US$10.9 million in 2003.
Brazilian
packaging
machinery
manufacturers selling in Mexico mention
that they use European technology and
economic Brazilian labor, so they are able
to offer the same benefits of European
manufacturers at significantly lower prices.
Small Players:
The third layer includes those countries that
have less than 2% share in the market. In
this category we find some interesting
statistics such as the 572% growth rate of
China, who was able to sell US$2.4 million
to Mexico in 2004 from less than
US$500,000 the previous year. Taiwan
achieved growth for its fourth consecutive
year and reached US$2.9 million. China has
not become a player in this market and
remains selling less than US$500,000.
3.2.
Customer’s Perception
by Origin.
While there are different types of
manufacturers, producing different types of
machinery in each country, in general terms
the buyer’s perception by country of origin is
as follows:
Customers perception by Country of Origin
Country
Pros
Cons
Italy
Flexible, Reliable, Good Service, Small volumes, weak construction.
Financing
U.S.A.
Technologically Advanced
Superior Engineering.
Durability.
Spare parts available fast avoiding
down-times.
Suitable for large-scale production.
Fairly Priced.
Spain
Custom-engineered solutions.
Same culture and language facilitates
personal relations.
Competitively priced.
Excellent service and support.
Access to Spanish Export Credits.
Excessive components due to American
safety regulations that in some cases not
apply to other countries.
Rigid format, requiring tooling and
important down-times for adapting to pack
different products.
Not suitable for low-speed or small volume
production.
Rigid sales policies and unwillingness to
negotiate terms.
Germany Technologically Advanced
Expensive.
Superior Engineering.
Not suitable for low-speed or small volume
Durability.
production.
Integrated lines.
Spare parts difficult to obtain.
Suitable for large-scale production.
Limited and expensive local service.
Especially strong in the pharmaceutical Slow response to customer’s needs.
industry.
France
Combines flexibility with technology.
Spare parts practically not available in
Suitable for small or large scale
Mexico.
production volumes.
Difficult to integrate with machinery from
Fairly Priced. (in some cases expensive other countries.
due to currency)
Limited and expensive service.
Access to financing.
Strict sales policies.
Rigid sales policies.
Low Durability.
Very fragile.
Do not offer integrated solutions and often
require complementing the line with other
brands.
17
Brazil
Developing significant presence in
bagging machines for Snack
applications. Leaders including Martin
Cubero consider them as unparalleled
options.
Purchased through Argentinean
distributors. Need to wait weeks for
service or repair.
Taiwan
Very low end segment of the food
industry. Migrating to mid market. Not
present in major or multinational
Companies.
Low reliability. Deficient operation manuals
China
Not yet present in largest and
multinational companies
Mexico
Becoming significant player in:
Form, fill and seal, cartoning machines
High-speed labeling machines
Conveyors
Deficient control motherboards
18
3.3.
largest local and multinational companies
that was selected for this report. The
consensus is that these suppliers continue
to compete in price that their technologies
are improving, but that they are still a few
years away from offering machinery that
would compete on technology and quality in
addition to its current sales point which is
only pricing.
Are European, Asian or
Latin American suppliers
going to control the
Mexican packing
machinery market?
The growing presence of European
packaging machinery suppliers in the
Mexican market could suggest that
American packaging machinery suppliers
are increasingly less competitive and
Mexican customers have shifted their
preferences to other types of machinery or
to other countries offering what is being
perceived as better alternatives and sales
conditions.
There was not a single company indicating
that their packing machinery supplier had
shifted production to Asia, specifically
China, to reduce production costs of the
equipment.
It is important to note that Mexico continues
to protect its market from countries with
which it has not subscribed a free trade
agreement. China is included in this list and
would face minimum import duties of 20%.
The statistics seems to confirm this
argument, but those numbers do not show
that apparently the interest of US suppliers
to aggressively pursue opportunities in the
Mexican market has declined and continues
to decline rapidly.
There is noticeable export growth from
Brazilian packing machinery suppliers to
Mexico and a series of Mexican companies
are considering that Brazilian machines
present very solid and competitive
alternatives.
Under these conditions it is very difficult to
pass judgment on European suppliers
offering better alternatives than US
suppliers.
The US remains as the leader in installed
packing machinery capacity in Mexico.
If imports of new machinery and spare parts
are combined into a graph, the result shows
a tie between Italy and the US as the
leading suppliers into the Mexican market.
The difference is that while Italy is supplying
new Machinery, the US as supplying spare
parts to its installed machinery in Mexico.
Declining market share in Mexico by US
suppliers seems to result from the
abandonment of proactive selling in the
Mexican market more that to a quantum
leap on technology, equipment and options
offered by Europeans.
There is no presence of Asian suppliers
among the companies selected on the list of
Top Five Packaging Machinery Exporters
160
United States
140
Italy
Million US$
120
Germany
France
100
Spain
80
60
40
20
2000
2001
2002
2003
2004
2005
Source: HDC with data from Bancomext.
19
Germany is the large supplier that achieved
the highest market share growth in the
imported packing machinery market in
Mexico during 2005. German packing
machinery export growth to Mexico reached
20% during 2005. The export value of
European
packing
machinery
has
surpassed US export value. In the previous
graph, the values include US spare parts.
Italy continues to be the leading supplier of
imported packing machinery in Mexico, a
position it reached since 2002. Other
European countries including Spain,
Switzerland, Sweden and France are also
starting to develop noticeable market share
in Mexico.
In relation to Asia, countries such as
Taiwan, Japan or China have very small
shares in the Mexican packaging market.
The Free Trade Agreement with Japan will
allow suppliers from this country to offer
competitive pricing, and this country could
win important market share in the near
future.
As for China and Taiwan, only a very small
percentage of Mexican companies would
purchase equipment from these countries
as packaging machinery are investments
that remain for the long term and the
perception of these manufacturers is not
related with quality and durability at present.
If quality from Asian machinery improves
and these countries offer significant savings
in both, the cost of the machine and the
operational costs, they could win some
market share but nothing to challenge the
10 largest at least in the following two years.
Brazilian suppliers are beginning to develop
a small but constant presence in the
Mexican market. As Mexico and Brazil have
not subscribed any commercial agreement,
these products are subject to import duties
ranging from 10 to 20%.
20
4.
4.1.
SWOT Analysis for PMMI
members:
Strengths.
The U.S. has long tradition and reputation in
Mexico’s packaging machinery market. U.S.
machinery is perceived as of high quality,
reliable, and efficient.
Training and customer
considered adequate.
support
are
U.S. suppliers have the geographical and
time zone advantages over European
suppliers
American machinery is perceived as highly
efficient and fast especially for large-scale
production volumes.
Dollar denominated machinery currently has
a competitive advantage versus other
currency denominated machines.
4.2.
Weaknesses.
Poor penetration in the pharmaceutical and
beverage industries, which have been
dominated by German and Italian suppliers
as American manufacturers offer partial
solutions and not integrated lines.
American packaging machinery lines are in
most cases rigid and standardized, lack of
customization and flexibility are considered
as the most important weaknesses of
American manufacturers under present
conditions.
Service packages not included or not
offered as part of the negotiation.
Don’t offer manufacturer financing and tell
the customer that he should approach Exim
Bank.
Production scales are different in the U.S.
than in most parts of the world.
4.3.
Opportunities.
Significant appreciation of Euro, CD$ and
most currencies vs. US$.
consider offering service packages to their
customers. Cost for this service can be
included in the pricing of the machine or
charged separately. (Not set-up or initial
training). Service packages help strengthen
relationships with clients and customer
confidence in the long term reliability of the
equipment being purchased.
U.S. manufacturers could stop loosing
customers by being more flexible in
payment terms or by offering to match other
financing options offered by the competition.
U.S. manufacturers could stop loosing
customers by being more flexible in
payment terms or by offering to match other
financing options offered by the competition.
U.S. packaging machinery manufacturers
should exploit advantages of high-volume
machinery to maintain and penetrate large
accounts in the Mexican market.
4.4.
Threats.
European suppliers are expanding product lines
to reach new markets. This could to cause
American suppliers to begin loosing larger
accounts to Italians who continue developing ties
with several companies in Mexico.
Japanese machinery can follow a similar
beneficial path as European due to free
trade agreement.
European suppliers are strongest in small
operations but are expanding product lines
to reach new markets. This could cause that
American suppliers begin loosing large
accounts in front of the Italian who have
developed ties with several companies in
Mexico.
Mexico’s policy to open to international
markets has created a highly competitive
environment which could be saturated by
new market entrants. Japanese machinery
will enjoy a 10-20% duty reduction
beginning in 2005, this factor will most likely
create increased trade and investment
between the two economies and new
Japanese suppliers will seek to expand their
market to Mexico. This could also happen in
the short term with Brazil and in the longer
term with other Asian countries.
U.S. manufacturers and their local
distributors or representatives should
21
5.
Recommendations for
PMMI Members:
No more NAFTA benefit other than
geography and time-zone.
Europe and now Japan have free trade
access to Mexico. The next move will likely
be more flexibility with Brazil.
Dollar value is declining rapidly and could
present short-term opportunity. Concerns on
US inflation and impact on packing
machinery costs
Re-visit lost accounts. Dollar devaluation
presents solid excuse for re-initiating a
dialogue. Offering solutions that better fit
production scales, financing options and
flexibility in payment schedules are key
elements European suppliers used to
significantly strength their presence in the
market. These factors have become key
sales drivers for the Mexican market.
The packaging machinery industry in
Mexico, as in other parts of the world is
rapidly
moving
towards
integrating
electronic
components
with
existent
mechanical technology. New state-of the art
electronics
are
enabling
packaging
machinery to be more flexible, more
productive and easier to maintain over the
long term. Upgrading existing equipment to
feature electronic control devices could be a
good way to better compete against the
highly flexible machinery that Italian and
Spanish manufacturers are offering in
Mexico. Those manufacturers that remain
only including mechanical parts will also find
a market niche in Mexico, among small and
medium sized manufacturers, but the costs
of these machines need to be extremely
competitive to be selected versus Mexican
or Brazilian manufacturers.
Strengthen relationship with client and when
possible, develop a local presence.
Assist in structuring financing, Invest in
developing a relationship with the client,
either directly or through your local
representatives.
Time to be proactive, aggressive and
creative.
Developing an effective and professional
presence in the market, honor guarantees
and offer equipment servicing are
fundamental, as the number of companies
willing to purchase from suppliers without a
formal presence in Mexico is fast
disappearing.
Marketing and promotion are critical: very
important to participate in trade shows and
industry events in target country, best way
to demonstrate a presence commitment to
potential clients and to evaluate competition
active in the market.
American
manufacturers
have
the
advantage of having geographical proximity
and similar working hours. Mexican
corporations enjoy receiving visits from
foreign experts to their manufacturing
facilities. These visits also help your
distributors to develop relationships with
plant managers and company owners that
are later involved in decisions.
22
6.
6.1.
because they address the need for an
affordable and easy way to enjoy a meal.
The Food Industry:
Industry Overview.
Mexico is the 11th most populated country
with approximately 106 million people, the
economic stability that the country has
enjoyed in the last few years combined with
a population growth of 1.6% per year,
increased demand for food products at a
faster pace than economic growth.
The demand for food products in the
Mexican market covers a very wide range
from basic grains and pulses needed to
provide basic nutrition to a large portion of
the population, to growing demand for precooked and frozen ready-to-eat products
and to gourmet varieties.
One segment presenting fast demand
growth is convenience food, where the
leading products include pre-cooked dried
pasta soups. These types of products have
been quite successful and several food
companies in Mexico are entering this
market. The growing demand for these
products (30% per year), is explained
As Mexico opens to a wider number of
international markets, growing market
sophistication,
segmentation,
and
competition are also creating demand for
functional foods and original packages as a
strategy for product differentiation.
The food and beverage industries represent
19% of Mexico’s manufacturing GDP.
Government statistics estimate that Mexican
households devote on average 30.7% of
their income to food purchases. The portion
of income devoted to these purchases
varies by income level, being 55% in the
lower economic levels and 15% in the
higher income families.
The Mexican food industry (excluding
beverages, beer, coffee and tobacco) is
estimated at over US$57 billion during
2005. Sales of the 31 most important food
companies with operations in Mexico
represented US$23.8 billion in 2004
Average growth of this sector has been
3.7% per year over the past three years.
Composition of Mexico's Food Division of the
Manufacturing GDP
Wheat Milling 8.7%
Beer Malt 8.4%
Corn Milling 10.7%
Preparation from
Fruits and
Vegetables 5.1%
Sugar 3.5%
Beverages 12.0%
Edible Oils-Fats 3%
Tobacco 2.9%
Alc. Beverages
1.8%
Coffee 1.8%
Other Food
Products 19.1%
Animal Feed 1.7%
Meats and Dairy
Products 21.1%
Source: Ministry of Economy.
23
6.2.
Company Ranking by
Size.
193 large companies represent only one
percent of the total number of food
companies registered in Mexico, however
these companies control over 90% of the
market in terms of sales.
According to the Ministry of Economy, there
are 30,173 companies dedicated to
manufacture food products. Of these, only
193 are large companies, 678 are medium
sized companies and 1,388 are small. The
remaining are micro companies with less
than 31 employees.
Large Mexican food companies operate in
similar way to large food companies from
America.
The
packaging
machinery
procurement process is a formal process
where companies analyze not only the cost
of the machinery itself, but they also
analyze costs of raw materials, supplies,
electricity, and easiness to integrate to their
current CNC equipment. In this market
niche, American manufacturers are highly
competitive, but some companies consider
that the rigidness and lack of flexibility of
American machines are making them turn
their eyes into other machinery that is easier
to reconfigure for packaging various
products.
Small and medium sized companies in
Mexico have less formal purchasing
processes; they basically select the supplier
based in the lower initial investment costs
and the capabilities of the machinery to
work with various products. These
companies require high flexibility as their
operations are small volumes and different
products in many cases.
6.3.
Kraft Foods, manufacturing a wide variety of
products
and
growing
through
a
combination of new investments and
acquisitions inclusively in U.S. This
company sells more than US$1.3 Billion.
Grupo Herdez and the growing company
Conservas la Costeña fight for the
leadership in Mexico’s canned food
products market with sales over US$500
million each.
There are no official figures of Mexican food
companies classified by sales, and the
government statistics indicate there are 193
food companies with 500 or more
employees. According to industry experts,
of those only 50-70 have sales of more than
US$100 million.
In the second step of the government’s
company classification, we find 678
companies with between 100 and 500
employees and 1,388 with between 30 and
100. These 2,066 companies represent a
very important packaging machinery
potential market, as in general terms they
register significantly higher growth rates
than the large corporations.
These companies require high flexibility and
economic machinery.
According to the Expansión Magazine’s top
latest 500 Mexican companies list, the
following are Mexico’s largest food
companies:
Key Players.
Mexico’s key players in the food industry
include the largest multinationals in the
industry, including Danone, PepsiCo’s Frito
Lay, Nestlé, Kraft, Nabisco, Conagra Foods,
Pilgrim’s Pride, Tyson, Unilever and many
others, who have billions worth of
investments in Mexico.
A second group includes the large Mexican
food companies, headed by BIMBO, the
box-bread and pastry manufacturer and
who sells over US$5 billion in food products.
Sigma Alimentos is the Mexican version of
24
Mexico’s Largest Food Companies
Company
Grupo Industrial Bimbo
Nestlé México
Grupo Maseca
Grupo Industrial Lala
Sabritas
Sigma Alimentos Corporativo
Industrias Bachoco
Gamesa
Ganaderos Productores de Leche Pura
Gruma
Grupo Herdez
Grupo Viz
Grupo López (La Costeña and Sabormex)
Pilgrim's Pride
Desc
Liconsa
Kraft Mexico
Alsea
Grupo Altex
Grupo La Moderna
Beta San Miguel
Grupo Bafar
Minsa
Hershey México
Grupo Azucarero México
Grupo Savia
Productos Gerber
Grupo Ceres
Conagra Foods
Martín Cubero
Chocolatera de Jalisco
Grupo Nutrisa
Main products
Bread, pastries, snacks.
Milk products, chocolates, cereals.
Grain Mill
Milk products
Snacks
Various Food products
Chicken
Cookies, bread, pastries, snacks
Milk products
Grain Mill
Canned products
Chicken
Canned products
Chicken
Canned Products.
Milk products.
Milk and cheese products.
Food franchises.
Grain Mill
Pastas
Sugar
Meat Products
Grain Mill
Chocolates
Sugar
Agricultural Products
Baby Food
Agricultural Products
Canned Products
Peanuts and Snacks
Chocolates
Natural food products
Sales 2004
Million US$
4,873
2,460
2,363
1,947
1,427
1,337
1,253
946
744
626
515
514
496
447
432
409
371
339
329
322
307
269
212
201
149
143
114
73
37
36
35
34
Source: Expansión Magazine, Mexico’s top 500 companies.
•
6.4.
New Packaging Trends.
Some of the most important packing trends
in Mexico’s food industry include:
•
•
Most companies are incorporating a
squeezable presentation for their
condiments.
There is growing interest in
developing packaging to protect the
products, especially for baked
tortillas, sweet rolls, cookies and
any product which the consumer
might reject because of damage in
handling or display.
•
•
Canned liquids shifting into tetrapack.
Interest in machinery to manage
promotional products during the
packing process.
Growing use of aluminized foils for
cookies and snacks.
25
6.5.
Company Profiles.
Barcel, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific
Business
Opportunities:
Food
Snacks
Toluca, Mexico
US $ Over 450 million
US $ 1.5 million
Weighing and Bagging Machines
A) Company Description
Barcel is the second largest snack producer in Mexico, following Sabritas, which is owned by
Frito-Lay. Barcel began operations after the acquisition from Kellog’s of a plant in Queretaro in
1977 and has increased production capacity through the acquisition of additional manufacturing
facilities to respond to increasing product demand. The company acquired 2 more plants, in
1982 and 1990, one in Gomez Palacio, Durango and the other in Lerma , state of Mexico.
The company operates additional manufacturing facilities in the states of Hidalgo and Yucatan.
The company is a subsidiary of grupo Bimbo and exports close to 17% of its production into the
US, European, Central and South American markets.
B) Main Products Produced and how are they packed:
The company produces a wide variety of snacks, including potato chips, corn flour chips,
various types of peanuts, coated peanuts and pork rind type, among other snacks.
Product
Tortilla chip
Tortilla chip
Tortilla chip
Flour cooked chips
Tortilla chip
Flour cooked chips
Fried potatoes
Low fat fried potatoes
Peanuts and covered peanuts.
Low fat fried potatoes
Low sodium chips
Brand
Takis
Chipotle
Tostacho
Runners
Churritos
Quechitos
Chips
Patatinas
Hot Nuts
Paprizas
Natural
Package
Aluminized Bag, BOPP-Met
Plastic Bag, BOPP-BOPP
Plastic Bag, BOPP-BOPP
Plastic Bag BOPP-BOPP
Plastic Bag BOPP-BOPP
C) Installed Packing Machinery
Barcel has over 120 packaging machines, most of those for packaging in plastic and aluminized
plastic bags. The company uses state of the art technologies for process automation and quality
control. Some of the most important packaging machines installed in Barcel include:
Current Machinery Used
Weighing and Bagging
Machine/ Pacer, Commander
Brand
Woodman
Ishida
Units
5
Origin
USA
Average Age
11
Specification
85%
10
Japan
3
85%
26
Machine/ Ishida, Apex
Machine/ Ishida, Atlas
Machine/ Yamato, Cyclone
Bagging machines
Horizontal bagging machines
Volumetric Batching and
Wrapping Machine
Bagging Machine
Labeling Machines
Coding Machines
Carton forming machine
Ishida
1
Japan
1.5
85%
Woodman
10
USA
3
85%
Matrix
N/A
Embaflex
5
15
1
USA
Spain
Mexico
1
2
2
90%
90%
85%
Matrix
Marken
Dominos
Pearson
1
76
10
1
USA
USA
USA
USA
1.5
8
4
4
85%
90%
80%
80%
In addition to this brief list, the company has several machines for palletizing, vertical and
horizontal filling machines for solids (dosifyers), form, fill and seal bagging machines, metal
detectors, labeling, codifiers, and weighing machines, among other.
Barcel had no experience purchasing European packaging machinery, although their sister
company Ricolino ( also subsidiary of Grupo Bimbo) uses some European machines, specifically
from Germany and Holland. They have a continuous manufacturing process with machinery
working at an average of 85%. Barcel was satisfied with their machines, especially those
supplied by Japanese and American companies, but in recent years there has been a significant
shift in preference for European suppliers. They consider these machines as more efficient,
precise and cost effective, especially in the area of horizontal bagging machines.
The company considers that US suppliers have been left behind in the introduction of new
technologies into their machinery.
D) Last Packaging Machinery Purchase
Barcel’s last packaging machinery purchase was in December 2005 when they acquired 2
Horizontal Bagging Machine from a European supplier.
Machinery
Vertical Bagging machines
Horizontal Bagging Machine
Brand
Matrix
N/A
Country
USA
Spain
Cost (Approximately)
$ 125,000 each
$ 145,000 each
E) Future Packing Machinery Ordering Plans. 2004-2005
Barcel will initiate the selection process for the purchase of 4 or 5 horizontal weighing and
bagging machines. This purchased is planned to increase production at their plant in the state of
Mexico. The company has not decided on the supplier but indicated they are satisfied with their
last purchase of a similar unit from a European supplier.
The company will also purchase during 2006, the auxiliary equipment to complement the
packing lines, such as coding machines, palletizing units, box form, fill and seal machines,
thermo shrink units, and other equipment.
Machinery
Weighing and Bagging Machines
Units
TBD
Origin
T.B.D
Motive of Purchase Estimate Budget
Increase in production $1.5 million dollars
F) Purchasing Policies and Financial Arrangements
Barcel buys most of its equipment directly from the manufacturers. This company purchases
spare parts from some distributors or representatives established in Mexico. Barcel has its own
specialized engineering staff in charge of the regular maintenance for each plant. When they
purchase new machinery, they request the supplier to provide training to its technicians.
27
If a major equipment problem occurs in one plant, the company requests the manufacturer to
send specialized technicians to repair the machine, if the problem is recurring and affects
productivity, the company initiates the process for replacing the equipment and black lists the
supplier which was not capable or interested in solving the problem.
G) Factors that Influence Purchasing Decisions
1.- Efficiency
2.- Price
3.- Service and spare parts availability
4.- Mechanical quality
5.- Low waste of wrapping material
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers.
Origin
United States
Japan
Spain
Technology
Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Brand: Matrix
Strengths
Easy to operate
Low Maintenance
Very Exact
Service
Good
Good
Very Good
Price
Regular
Regular
Good
Weaknesses
Spare parts availability in México
Lack of trained local rep.
I) New Origin of Suppliers from Asia.
The company indicated they have recently received a series of visits and sales calls from
Chinese and other Asian packing machinery suppliers. The company indicated that even while
pricing is very attractive, the company would not purchase from companies that have not
developed significant reputation within the snacks industry.
J) Trade Show Attendance / Trade Publication Information
Medium and high ranking engineers in Barcel, go to ExpoPack in Mexico City as a way to learn
about new technologies that might satisfy specific needs. High ranking engineers and
management travel abroad to different packaging and snack expositions, the most significant
being ExpoSnack, held in March or April in the US.
K) Specific Interest
Barcel is interested in receiving information on PMMI’s members, especially from those that
manufacture high speed bagging machines that are able to integrate or work with weighing
machines of different brands and different origins. They also want to receive details on laser
codifiers, cartooning and dispensing machines.
L) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
e-mail:
Web page:
Barcel, S.A. de C.V.
Ing. Espiridion Valdéz
Engineering Director
Carretera Mexico-Toluca Km. 54
Col. Industrial Lerma
Edo. De México, 52000
(52722) 2791155
(52722) 27911690
[email protected] , [email protected]
www.barcel.com.mx
28
Conservas La Costeña, S.A. de C.V.
Industry:
Sub Industry:
Food
Canned and bottled foods, sauces,
condiments, beans, olives, vinegar,
jellies, and other food products and
condiments.
Mexico City
US $ 290 million
US $ 2 million for 2006
Location:
Size: (sales)
Purchasing
Potential:
Specific
Wrapping
Business
Palletizers
Opportunities: Cutting machines
Labeling machines
Codifying machines
Closing machines
Washing machines
La Costeña is a 100% Mexican company that was established in 1923. It is the Mexican leader
in the production of canned hot chili peppers and preserved foods. The company is focused on
a continuous quality improvement program and has achieved all international certifications. La
Costeña today exports its products to the United States, Central and South America, Europe and
a long list of countries around the world.
The company has two major plants with fully automated processes. The company is divided in 3
production areas: the hot chili peppers line, other product line and canned products. The
Tulpetlac (Mexico City) facility manufactures mostly cans of Jalapeno peppers.
The canned and bottled products include hot peppers (jalapenos), sauces, re-fried beans, olives,
tomato sauces, jellies, mayonnaise, etc. The other product lines are those packed in plastic or
glass bottles. These production areas include 46 different product presentations. About 60% of
the company’s business comes from the canned foods segment.
La Costeña manufactures its cans for all its products. The mole (base paste made from hot
spices) and Nopal (cactus leaves) cans are manufactured at the Condimex plant in San Luis
Potosi a sister company of La Costeña.
With the continuous modernization of its facilities the company has achieved a successful
performance in the market and has been able to increase its market share worldwide. The
company exports about 25% of its production to over more than 30 countries.
B) Main Products Produced and how are they packed
As indicated, the company manufactures over 46 different products, the most important are:
Product
Hot peppers in vinegar
Chipotle Peppers
Beans
Ketchup
Mayonnaise
Brand
La Costeña
La Costeña
La Costeña
La Costeña
La Costeña
Tomato sauce
La Costeña
Hot Sauces
La Costeña
Package
Can: 1/8 , ¼,½, 1, and 3 Kg.
Can: 1/8, ¼ ,½ and 3 Kg.
Can: ¼, ½ and 3 Kg.
Plastic and glass bottles: ¼,½, 1, and 3 Kg.
Squeezable pet bottle of ¼ and ½ Kg, and glass
bottles of ¼, ½, and 3 Kg.
Squeezable pet bottle of ½ and glass bottles of ¼,
½, and 1 Kg.
glass bottles of ¼, ½, ¾ and 1 lt.
29
Seasoning sauces
Olives
Vinegar
Apple puree
Apple puree
Rice
Marmalades
Mole, smashed tomato,
ketchup sauce
Peppers
Doña Chonita
La Costeña
La Costeña
La Costeña
La Costeña
La Costeña
La Costeña
La Costeña
Combi Block (Carton)
Glass bottles: ¼ and ½ Kg.
Pet bottles: 1 Lt.
Can: ¼ Kg
Can: ¼ Kg
Can: ½ Kg
Glass bottles: ¼,½, 1 and plastic container of 25 Kg
Convi Block various sizes ¼, ½ and 1 and 3 lt.
La Costeña
Polyethylene-aluminum laminated bags.
The following table presents the installed packing machinery at the Tulpetlac and Guasave
plants. La Costeña is planning to increase this year their canned production lines to 19 lines.
The following table shows the machinery at the three main production areas in la Costeña: The
hot pepper production line, canned products, and other products. The last area uses the largest
variety of packaging presentations.
Brand
Labeling machines
New Way
Carton form machines
Cermex
Carton fill and seal machines
Cermex
Transporting box system
Stork (CSI)
Pallet forming machines
Stork (CSI)
AGV Automatic Guide Vehicle
Digitron
Wrapping plastic film
Signode
machines
Wrapping plastic film
N/A
machines
Filling piston machines
Elmar
Labeling machines
Auxienba
Pallet forming machines
Stork
Closing Machines. These
Angelus
machines have been changed
because of quality reasons.
Wrapping and form machines
Cermex /
Sidel
Coding machines for cans
Image
Coding machines for boxes
Image
Filling machines
Zolberin
Filling machines
Zacami
Closing cans machines
Ferrum
Sterilizing machines
In-house
Filling machine for semi
EMA/Sidel
viscous. (marmalade)
Filling line for Conviblock
Conviblock
Filling machine
Bosar
Palletizing lines
OCME
Case / Tray form (plastic), fill
N/A
and seal machines for
marmalade, sauce and
vinegar.
Capping Machines for plastic
N/A
bottles
Units
Origin
Average Age
19
US
12
5
Holland
2
5
Holland
2
18
Holland
8
14
Holland
20
7
Switzerland
8
1
France
10
Specification
85%
90%
90%
90%
90%
80%
85%
1
US
6
85%
25
12
2
20
US
Spain
Holland
US
12
15
8
15
80%
80%
90%
90%
4
France
2
90%
19
16
13
4
6
18
2
US
US
US
Italy
Switzerland
N/A
France
8
8
7
8
8
N/A
2
85%
85%
90%
90%
90%
N/A
95%
1
1
8
2
Holland
Spain
Italy
Spain
4
2
2
2
95%
95%
95%
90%
6
Various
4
90%
30
La Costeña’s last packaging machinery purchase was in 2005 when they acquired 4 pallets and
4 wrapping machines from Cermex. They also purchased closing and labeling machines, as
well as sterilization towers from Stork (CSI).
Machinery
Palletizing Machines
Closing Machines
Sterilization Towers
Brand
Cermex
Stork (CSI)
Stork (CSI)
Country
Holland
Holland
Holland
The purchase was the result of the company’s need to expand production capacity and improve
process efficiency. The company commonly purchases equipment directly form the
manufacturers.
Over the past two years, the company has initiated a process for replacing Stork equipment with
Cermex. Some of the machines being replaced include wrapping machines, carton form
machines and cartoning and seal machines. The company considers that switching to Cermex in
improving efficiency. The company had been working with Stork for over ten years and
considers that some of their equipment continues to represent superior options in areas like
closing machines, pallet forming and material transporting machines. The replacement of
certain machines from this supplier is an indication that La Costeña is always looking for
incorporating more efficient machinery.
La Costeña’s maintenance policies are focused on having an in-house technical staff and
provide direct maintenance for their machinery. The maintenance capabilities include the
possibility to manufacture some spare parts in their own shop. About 50% of the spare parts are
original spare part products which are bought directly from the manufacturer. Through
agreements with some of their packaging machinery suppliers, La Costeña has been able to
negotiate technical support services; additionally, the company’s employees also receive special
training for the equipment’s operation and maintenance. Around 20% of the maintenance jobs
are made by a third party. The company only uses outside technicians when the equipment is
very complex and sophisticated and a major problem has occurred.
E) Future Packing Machinery Ordering Plans.
La Costeña’s purchasing budget for packaging machinery in 2006 will be around 2 million
dollars. The strategy that La Costeña is using is the same as other years: increase efficiency of
the production process. The company is focused on complete automation. Their philosophy has
always been to permanently incorporate state-of-the-art technology as a strategy to assure
unparalleled efficiency.
They are open to learning about new technologies and machinery and to analyze new potential
equipment suppliers, only if they are able to meet the company’s standards and goals. One of
their main requirements is that new equipment must be compatible with their existing lines.
The next table shows their future short-term packaging purchases:
Machinery
Pallet Forming
Units
1
Material transport machines
2
Tray forming machines
4
Origin
Stork
(CSI)
Stork
(CSI)
Cermex
Motive of Purchase
Replacement
Estimate Budget
250,000 Euros
Improve material
transportation
Improvement
200,000 Euros
300,000 Euros
In the long term the company is evaluating a project for an automated warehouse in order to
expand the plant and have better logistics. They are currently analyzing machinery from
ThyssenKrupps’ warehouse automation subsidiary which maintained an office in Mexico and
which was recently purchased by the Spanish company Mecalux.
31
As it was mentioned earlier, La Costeña purchases its equipment directly from the
manufacturers, although, in some rare cases they might purchase the equipment with local
distributors. This depends on the machinery, the brand and the possible future post-sale
services they could receive. In some cases such as Stork, Angelus, Ferrum, OCME and Bosar
the company has signed technical support agreements with their local representatives in Mexico.
The company’s purchasing policies have remained the same, where the equipment is brought
with their own cash flow, giving a 30% advance payment and additional 30% within 30 days and
a final payment once the equipment is operating at their facility.
As a policy, la Costeña requires any supplier to be compatible with the existing lines and the
level of technical support that they are accustomed to receive. When la Costeña has to evaluate
packaging machinery, the main factors considered in this evaluation are the following:
1.
2.
3.
4.
5.
6.
Previous working experience with the supplier.
Technical support and training to la Costeña´s employees.
Innovations developed by the manufacturers to up-grade existing machinery
Brand recognition within the food industry.
Competitive pricing.
Country of manufacture.
La Costeña’s packaging machinery preferences are from European suppliers. Most of the
equipment installed in La Costeña at this time is European. Even though they do not work with
many American packaging machinery manufacturers they consider that the European machinery
has several advantages such as:
•
•
•
More flexibility in their technology and equipment usage.
Better post-sale services
Innovation in manufacturing materials and products
La Costeña showed us as an example of these characteristics with their Ferrum equipments
against the Angelus equipments.
The company mentioned that they would consider working with new suppliers and would even
consider replacing existing lines if they are shown more efficient manufacturing alternatives.
La Costeña evaluation of packing machinery according to its country of origin:
Origin
United States
Spain
Germany
Holland
France
Italy
Technology
Good
Very Good
Very Good
Very Good
Good
Good
Flexibility
Good
Good
Very Good
Very Good
Poor
Very Good
Service
Poor
Very Good
Good
Very Good
Good
Very Good
Price
Good
Average
High
Average
High
Average
La Costeña has not received any information from Asian companies producing packaging
machinery, although they have seen that every year more Asian supplier have a stronger
participation in specialized trade shows. This increases the likelihood of Asian companies
becoming strong suppliers to the industry, quite possible through manufacturing agreements
32
with leading brands. At present none of their existing suppliers has shifted machinery production
to Asia.
J) Weaknesses and Strengths of Installed Machinery.
Brand: Stork (CSI)
Strengths:
• Innovation
• Organized post-sale service
• Experience
Weaknesses:
• Distance (too far. La Costeña prefers to have a close by suppliers)
• Expensive
Brand: Cermex
Strengths:
• Has the most innovation technology in the market
• Service
• Experience
Weaknesses:
• Expensive
K) Trade Show Attendance / Trade Publication Information
The company visits mainly the PMMI’s Expo packs in Las Vegas, Chicago and Mexico City.
The company is subscribed to two trade publications focused on providing information on new
machinery and technologies; these are Técnica Industrial Alimentaria and Reportero Industrial
Mexicano. They also look for information in the internet.
L) Specific Interest
La Costeña would like to receive information of the following products in order to learn from new
suppliers and new technologies:
•
•
•
•
•
•
•
Wrapping
Palletizers
Cutting machines
Labeling machines
Codifying machines
Closing machines
Washing machines
M) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Company Name:
Contact:
Position:
Address:
Ing. Eduardo Ramón Jimenez
Director of Mechanical Maintenance (Canned Products)
Vía Morelos N° 268
Col. Tulpetlac
55400, México D.F.
(52) 5836-3636
Fax: (52) 5836-3687
[email protected]
www.costena.com.mx
Ing. Bernardo Ramírez
Director of Maintenance (Other Products)
Via Morelos N° 268
Col. Tulpetlac
33
Telephone:
e-mail:
Web page:
55400, México D.F.
(52) 5836-3600 Ext: 5304
[email protected]
www.costena.com.mx
Fax: (52) 5836-3683
34
DANONE de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing Potential:
Specific Business
Opportunities:
Food and beverages
Dairy products, bottled water,
jellies, ice cream, etc.
Mexico City
US $ 600 million
Over US $ 1 million
Conveying systems,
Labeling sleeve machines,
Case loaders for cartons,
Yogurt packaging line,
Coding machines,
Cartooning machines, and
other equipment.
Danone de Mexico begun operations in 1977 and is the market leader in yogurt, milk based
desserts and other dairy products. Its local business has expanded to include bottled water,
which is sold under the Bonafont name.
In May 2001, Danone purchased another company in the bottled water business called Pureza
AGA, with this acquisition Danone with its Bonafont brand became one of the three top bottled
water businesses in Mexico, operating 17 production facilities.
On the dairy business side, Danone has over 5,500 employees in Mexico and operates two
plants, one located in Irapuato in the state of Guanajuato and the other in Toluca in the state of
Mexico.
Danone de Mexico’s corporate headquarters are located in Mexico City.
B) Main Products Produced and How Are They Packed
Product
Yogurt
Dessert cream
Fresh cheese desert
Drinkable yogurt
Yogurt
Jelly
Yogurt with cereal
Brand
Danfrut
Dannet
Danonino
Dan’Up
DanVive
Gelatina Danny
Gran’Día
Milk based beverage
Yogurt
Drinkable yogurt and fermented milk
Fermented milk
Bottled flavor and natural water
Licuado Danone
Vitalinea
Activia
Actimel
Bonafont
Package
Polyurethane container
Polyurethane and plastic
containers
Pet and polyurethane
bottles of 300 and 600 ml,
1, 1.5 and 4 lt
DANONE’s manufacturing is conducted in a continuous process line, beginning with the molding
of resins into packages, followed by printing, coding, filling, and sealing and continues until the
products are palletized.
35
For the Bonafont products, DANONE operates complete PET lines from blowing to filling. The
company receives PET pellets as raw material and thermoforms the bottles using machinery
imported from France.
C) Installed Packaging Machinery
Machinery Type
Yogurt and cheese packaging line/ Arcil
Yogurt and cheese packaging line/ Remi Sidell
Form Fill and Seal machines
Labeling machines / Krones
End of line:
Case forming/ Aries
Cartooning machine/ Aries
Case closing and sealing/ Aries
Case forming/ Mead
Cartooning machine/ Mead
Case closing and sealing/ Mead
Coding machines
Image
Video Jet
Palletize/ Depalletize / Satelem
Conveying systems/ Tecmapack
Units
Origin
France
France
Germany
Germany
Average
Age
5
9
8
8
Specificatio
n
100%
100%
90%
90%
6
6
5
10
9
9
9
1
1
1
France
10
90%
US
5
90%
6
8
2
3
Italy
US
France
France
3
3
9
9
80%
80%
90%
80%
The company did not provide information on their water bottling lines.
D) Last Purchase of Packaging Machinery
Danone’s last purchase of packing machinery took place in 2004, with an investment over US$
3.5 million. This purchase included a complete filling system for yogurt from the French
company: Remi Sidell.
The purchase also included, two new lines for their Irapuato plant, which are used to produce
the new presentations for the Vitalinea and Actimel products.
Machinery
Yogurt filling system
Coding machines
Brand
Remi Sidell
Video Jet
Country
France
US
Cost
US $ 3.5 million
N/A
E) Future Packaging Machinery Ordering Plans.
The company had plans for the purchase of equipment during 2006, but these remain on hold
waiting for approval by their corporate office. Once approved, they will purchase a new line for
their yogurt products and other equipment needed to expand their production. In the second
semester of 2006, the company will make additional purchases of packing equipment for the
introduction of new product presentations.
The budget for the yogurt line and related equipment is estimated in US$ 1.8 million.
Machinery
Conveying systems/ Tecmapack
Labeling sleeve machines / Krones
Yogurt packaging line / Arcil
Coding machines/ Video Jet
Units
1
2
1
Origin
France
Germany
France
2
US
Motive of purchase Estimated Budget
Production Expansion
TBD
TBD
TBD
TBD
36
The company in Mexico makes purchasing decisions but the investment budgets require the
approval of Danone’s headquarters in France. New purchases are defined on a line-by-line basis
and equipment is selected considering its adaptability with existing lines.
Most of Danone’s equipment selection is based in recommendations from other Danone facilities
that have had experience with the proposed equipment. In the case a new supplier is selected,
they will require the authorization of their headquarters to proceed with the purchase.
Purchases of auxiliary equipment such as conveyors, labeling equipment, coders and other
smaller equipment, can be made by the local operation without requiring authorization from their
headquarters.
Most of DANONE’s purchases are financed with their own cash flow.
1.
2.
3.
4.
5.
Previous experience with the equipment at a Danone facility.
Equipment quality
Technical service and local support
Price
That the equipment meets Danone’s manufacturing standards.
Packaging Equipment Suppliers.
DANONE indicated they have a preference for French equipment suppliers as they have had a
long working relationship with companies like Arcil and Remi Sidell. The company has been
using these brands in their yogurt and cheese lines since they started operations in Mexico. The
company also prefers French suppliers for packing equipment.
The company informed that it is difficult to work with new suppliers for filling and other
equipment, as most of their processes are standardized throughout all their manufacturing
facilities worldwide. This has helped the company to get better equipment pricing and have a
good availability of spare parts.
The company’s evaluation of packing machinery by country of origin is as follows:
Origin
France
United States
Germany
Italy
Technology
Very Good
Good
Very Good
Very Good
Flexibility
Very Good
Good
Good
Good
Service
Very Good
Not good
Very Good
Good
Price
Good
Good
Good
Good
Danone indicated they have received information on equipment options available form several
Asian suppliers, but to consider that these suppliers do not for the moment comply with the
requirements as they do not have a solid track record in the industry. They indicated that once
these suppliers receive approval form their corporate office in France they will be in a position to
consider them as options for introducing their machines into their lines.
I) Specific Interest
The company is interested in receiving information from potential suppliers of accessory
equipment for their yogurt and cheese lines. Equipment like, labeling, coding, case forming,
cartooning and transport systems.
37
J) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Mail:
Web page:
Danone de México S.A. de C.V.
Mr. Luis Ángel de la Rosa P.
Purchasing Manager for Technical Equipment
Guillermo González Camarena #333
Col. Santa Fé
01210, México D.F.
(52) 5258-7200 Ext. 7209 Dir. 5258-7209
(52) 5292-2629
[email protected]
www.juntoscondanone.com.mx
38
Frigorizados La Huerta, S.A de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific
Business
Opportunities:
Food
Frozen Food
Aguascalientes, Mexico
US$ 90 million
Est. >US$ 1.4 Million
Bagging machines (Zip-Lock)
Laser labelers
Weighing machines
Cartooning machines
Frigorizados La Huerta is private Mexican company that begun operations in1957. The company
is a leading supplier of frozen vegetables and fruits. The company employees over 1100 workers
and exports in the US, Japan, and several European and South American markets. The
company sells under the brands La Huerta® y NutriVerde®.
The company is also the representative of the US company The Schwan´s Food Company, in
the Mexican market. This US company has presence in over 50 international markets.
The company cuts, freezes and packs its products the same day to assure freshness. The
company’s products come in 500 mg and 2 Kg plastic bag presentations in which are shipped in
carton boxes. Some of the leading products are presented in the following table:
Product
Frozen Strawberry
Froze Mango cubs
Frozen Fruit Mix
Frozen blueberry
Frozen corn
Frozen broccoli
Frozen potatoes
Frozen spinach
Frozen vegetable mix
Frozen onion rings
Frozen jalapeños
Frozen cheese fingers
Frozen water popsicles
Brand
La Huerta and Nutriverde
La Huerta
La Huerta
La Huerta
La Huerta
Nutri Fresco
Cheffry
Cheffry
Cheffry
Cheffry
Package
Plastic bag, 500gr.
Plastic bag, 500gr.
Plastic bag, 500gr.
Plastic bag, 500gr.
Plastic bag, 500gr. and 2 Kg.
Plastic bag, 500gr. and 1.5 Kg.
Plastic bag, 36 pieces.
Plastic bag, 36 pieces.
Plastic bag, 24 and 78 pieces.
The company did not provide information on their installed packing machinery as they
considered this informaiton as sensitive to their operation.
Nevertheless the company mentioned they have 10 bagging machines, 5 forms, fill and seal
cartoning machines, 2 palletizing machines, 10 coding machines and 5 labelers.
The company[‘s last purchase of packing equipment took place in 2005 , when the company
invested over US$ 730,000.00 , in the purchase of one bagging machine, one coding machine
and one palletizing.
39
The company indicated it has a budget for the purchase of packing machinery, but could not
reveal the value of the budget which it considers as confidential. Purchases will be similar to the
equipment purchased during 2005. Purchases will be gradual, begin in the second semester of
2006 and continue with the existing budget throughout 2007. Considering recent purchases, the
existing budget could be estimated at over US$ 1.4 million for purchases over the following 18
months.
Machinery
Laser labelers
Weighing machines
Cartooning machines
Units
2
4
3
1
Origin
TBD
TBD
TBD
TBD
Motive of Purchase
Replacement
Replacement
Improve process
Improve process
Estimate Budget
TBD
TBD
TBD
TBD
The company has a preference to purchase machinery directly from the equipment
manufacturers as it considers that this policy might result in savings. The company will consider
purchasing from the local representative if this presents no impact on price. The company
provides maintenance to the machinery with an in-house staff which is trained by new equipment
suppliers.
The company indicated that on new purchases it requests the supplier to provide a 2 year
maintenance service agreement which allows the company’s staff to obtain adequate
understanding and training to become self sufficient for providing maintenance to the equipment.
The purchase process for packing machinery consists in RFP from existing suppliers and two or
three new suppliers to evaluate alternatives. A fundamental requirement is that suppliers must
be experiences in the vegetable and fruit industries. The equipment used in the process must
have the required certifications to allow the product to be exported into international markets.
The company follows the standard payment policies set by the suppliers, however they prefer
50% down payment and the remaining balance after one month of operation. When the supplier
accepts these terms the company considers this a plus for the final purchasing decision.
1.
2.
3.
4.
5.
Functionality and efficiency.
Industry brand recognition.
Technical support
Durability
Price and operational cost.
The company has no preference for a particular brand or product origin. They mentioned that
they don’t judge the machinery depending on its origin as each manufacturer is different and in
all geographies there are good and bad manufacturers. In general terms they ranked the
machinery origin as follows:
Origin
United States
Germany
Brazil
Japan
Technology
Very Good
Very Good
Average
Very Good
Flexibility
Good
Average
Average
Very Good
Service
Good
Good
Good
Very Good
Price
Average
Expensive
Very Good
Expensive
40
The company indicated they have not been approached recently by low cost Asian suppliers.
The company indicated to have some Japanese equipment at the plant which is considers being
“ a real marvel”.
The company’s top management production and purchasing managers visit Empack in México,
Europe and USA. They did not comment anything about ExpoPack.
The company is interested in receiving information form packaging machinery suppliers for the
frozen food industry, particularly on manufacturers of the following equipment:
•
•
•
•
Laser labelers
Weighing machines
Cartooning machines
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Frigorizados La Huerta S.A. de C.V.
Ing. Melquíades Delgadillo Pérez
Purchasing Manager
Calle 1 No. 140
Col. Madio Kilo
20350, San Francisco de los Romo, Aguascalientes
(52449) 910-0800
Fax: (52449) 910-0830
[email protected]
www.lahuerta.com.mx
41
Grupo BIMBO, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
potential:
Specific Business
Opportunities:
Food
Box bread, bakery, pastry, pancakes, donuts, cookies,
all types of tortilla, candies, chocolates, snacks, jellies,
canned fruits, candies.
Mexico City
US$ 5.2 billion.
> US$ 1.8 million in 2006.
Horizontal flow wrappers
Vertical Bagging machine
Palletizing lines
Established in Mexico in 1945, BIMBO is one of the largest boxed-bread producers in the world
and one of the largest companies in Mexico. The company’s presence in Mexico and in several
Latin American and European countries is very strong and BIMBO controls more than 90% of
the boxed bread industry in Mexico.
The company has presence in 15 countries in Latin America, Europe and recently China. It
exports to the US and Canada as well as to the rest of Latin America. Since 1980 the company
is traded in the Mexican Stock Market (Bolsa) and is organized in six different companies under
one holding. The company has 75 manufacturing plants, over 81,000 employees and has a
nationwide distribution system with over 29,000 vehicles.
Grupo BIMBO Plants:
Subsidiary
Number of plants
Bimbo
26
Marinela
8
Barcel
4
Ricolino
8
Moldes y Exhibidores, S.A. de C.V.
1
Mexico Plants
45
Central America
3
Organización Latinoamérica
11
Bimbo Bakeries USA
13
Europe
2
Beijing Panrico Food
1
Foreing Plants
30
Total
75
BIMBO has more than 5,000 product presentations and 100 product brands. The company has
several subsidiaries, each manufacturing different products. The most important subsidiaries
are:
Subsidiary
Bimbo
Marinela
Tia Rosa
Ricolino
Products
Box bread, Integral bread, Sweet baked goods
Pastries, donuts.
Snack Cakes, Cookies
Sweet Baked goods, Tortillas
Cookies.
Enrobed Chocolate Products (marshmallow, peanuts,
almonds, etc.), Gelatin Gummies, and Bubble Gum.
42
Barcel
Suandy
Wonder
Lara
Coronado
Bimbo Bakeries USA
Beijing Panrico Food
Processing Center
Organización
Latinoamérica
Salted snacks including Potato chips, corn chips, peanuts
and other nut and seed varieties.
High quality Pastries.
Box bread, Integral bread, Sweet baked goods
Cookies.
Jams, jellies, fruit preserves, cajeta,(a typical milk -based
dessert), ates (a typical fruit paste).
Bimbo Bakeries USA is leader bakery products
manufacturer in Texas and the western part of the US. It
has 16 plants in 22 states and sells a combination of its
Mexican products as well as some premium lines under
the brands:
Oroweat, Mrs. Baird’s, Entenmann’s, Thomas´, Boboli,
Tía Rosa, Marinela and Bimbo among other.
Bakery products.
Different type of bakery products under the brands:
Tulipan for Costa Rica, Plus Vita and Ana Maria in Brazil,
Ideal in Chile among others.
The company’s packaging policies vary depending on the type of product, for example they have
maintained the same package for box-bread since the company’s foundation, but they are
continuously innovating packaging for other products in their lines, always seeking to offer a
fresh quality product. Currently Grupo Bimbo is seeking to standardize its packaging for several
product lines. They selected the US Company Davoy to provide LDEP and Aluminized Flow
Pack with a for all its Marinela, Lara and Suandy products.
Due to the company’s great number and variety of packaging equipment, they could not provide
a detailed inventory. The company only provided information on their most representative
packaging machinery.
Horizontal form, fill and seal
machines
Stretch banding machine
Cartoning machine
High-speed horizontal form, fill
and seal machines
(300 hits per minute)
and seal machines (Stand up
pouch with zipper)
and seal machines (Stand up
pouch with zipper)
Vertical Form Fill and seal
machines
Thermoforming machines
Brand
Units
Origin
Spec.
USA
Italy
Mexico
USA
Italy
Brazil
USA
USA
Average
Age
27
20
12
1
1
1
1
1
FMC
Record
+ 300
Maquipack
Doboy
8
Cavanna
2
Masipack
1
MC Automation
1
Bradman and
1
Lake
Delta
1
USA
2
90%
1
Spain
3
30%
1
Spain
3
90%
USA
Japan
Australia
USA
Germany
USA
17
10
6
6
17
12
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
Vol Pack
Bossar
Woodman
Ishida
TNA
Matrix
Multipond
Multivac
+250
+150
43
Coding machines
Metal detectors
Carton box forming machines
Tape dispensing Machines
Palletize machines
Counting product
Padovan
Markem
CEIA
Videojet
Domino
Loma
Safe Line
Goring Care
Clic Lock
N/A
N/A
Hatch Mang
+ 300
+ 100
20
5
5
Italy
USA
Italy
6
14
8
90%
90%
90%
USA
USA
USA
USA
USA
USA
Holland
10
10
8
10
5
5
3
90%
90%
90%
80%
90%
90%
BIMBO’s last packaging machinery purchase was for 11 horizontal flow wrapper lines, one
stretch banding machine and one cartoning machine. This purchase took place between 2005
and 1Q 2006, and represented investments for over US$2 million for the whole lines. These
machines were installed in the Mexico City plant of Marinela and are currently operating.
The company tested a series of flow- wrapping machines during 2004 and on 2005 decided that
they best alternative was to select Doboy as a supplier. The company also purchased a series of
plants in Brazil which were using Masipack and have begun using some of these machines in
Mexico.
Bimbo’s spends between US$ 2 million and US$ 3 million in packaging machinery per year.
Machinery
Stretch banding machine
Cartoning machine
Brand
Doboy
Cavanna
Masipack
MC Automation
Bradman and Lake
Country
USA
Italy
Brazil
USA
USA
The company has developed a US$ 1.8 million budget for the acquisition of packaging
machinery during 2006. This budget will be spent mostly in the horizontal flow wrappers
packaging project as well as in the replacement of old equipment.
Over the following few years BIMBO is defining a budget for investing in automated palletizing
infrastructure for their facilities in Mexico, as many of the plants still have manual palletizing
procedures. The company indicates this is a necessary investment considering the significant
production volume growth that is experiencing.
Decisions on potential suppliers to this project will be made in early 2007. Companies with the
capability and interest to present proposals for this project should approach BIMBO to indicated
their interest, experience and capabilities.
Machinery
Vertical Bagging machine
Palletizing lines for several plants
(Medium term macro project)
Units
Origin
Motive of Purchase
8
USA
2
TBD
Australia
TBD
Expansion and
replacement
Expansion
Improve product
handle process
Estimate
Budget
US$1.3
million
US $ 500,000
TBD
44
Over the past few years BIMBO used to consolidate the purchase of packing machinery through
their subsidiary Inter- Refacciones. Currently purchases are handled through a corporate
purchasing division, directly within BIMBO.
Bimbo has a preference for some suppliers but is continuously looking for information on new
equipment and suppliers for bakery equipment. The company visits trade shows regularly in
Mexico, the US and Europe.
When in the process of purchasing new equipment, the company invites its existing suppliers
and minimum 3 new suppliers to present proposals for the equipment. New suppliers need to
convince Bimbo as to why they should be considered as a company and not only for their
equipment. The company purchases no equipment from companies with less than 10 years in
the market and has a preference for large suppliers.
The COO’s staff evaluates the proposals and makes the purchasing decision. Purchasing terms
are negotiated on a case by case basis but usually these are 30% down payment, 55% at the
time the machinery is shipped, and the remaining 15% after installation and tests.
The company buys spare parts from the equipment manufacturers and keeps an inventory of the
most commonly required parts. Bimbo purchases complex spare parts directly from the
manufacturers and for common replacement parts, those are purchased from local shops or
manufactured in-house.
1.
2.
3.
4.
5.
Functionality
Technical Support
Price
Brand recognition in the industry
Previous experience (equipment with best results within their own facilities)
Bimbo had a packaging machinery manufacturing company until 2003 when it sold the company
to third parties. This company, called Maquindal has several manufacturing agreements to
produce equipment with assistance of various leading equipment suppliers (AMF, Baker
Perkins). Maquindal manufactures electric switchboards, power panels, automatic conveyor
systems, coolers, and conveyor systems and although it is not part of BIMBO, the sale
agreement requires Maquindal to offer preferential pricing to BIMBO.
Bimbo only purchases packaging machinery from recognized and large manufacturers and new
suppliers are required to demonstrate their experience in the bakery industry and offer extensive
support for their equipment. Bimbo’s evaluation of packaging machinery according by country of
origin is the following:
Origin
United States
Canada
Germany
Italy
Spain
Holland
Japan
Technology
Very Good
Very Good
Very Good
Good
Good
Very Good
Very Good
Flexibility
Very Good
Good
Average
Very Good
Average
Very Good
Very Good
Service
Very Good
Good
Poor
Very Good
Good
Very Good
Good
Price
Good
Good
Poor
Average
Average
Average
Average
45
La BIMBO considers that US and European packing equipment suppliers both present solid
alternatives. The second is considered to be longer lasting and this might explain a slight
preference for European suppliers especially for those machines that do not experience
significant technological change.
But the company also indicated that most US suppliers have efficient and proactive
representatives in Mexico which assures that the equipment will receive adequate servicing,
which is also a key driver for a positive selection.
The company has recently been approached by significant number of Asian suppliers, which
offer prices which are significantly lower that US and European suppliers, BIMBO has agreed to
evaluate some of the equipment to define if they meet their technical and quality requirements,
BIMBO has not received any information from US or European suppliers which have begun
manufacturing their equipment in Asia.
Bimbo visits yearly, most packaging trade shows in Mexico, the U.S. and Europe. The company
subscribes to specialized trade publications like Packaging Digest, Packaging World, Baking and
Snack, Snack Food and Wholesale Bakery.
Bimbo is interested in receiving information from manufacturers of horizontal flow wrappers
vertical bagging machine, palletizing lines, carton closing machines, Coding machines, and
automation equipment. Interested companies must remember that Bimbo requires potential
suppliers to have extensive experience in this company’s sectors in order to be considered.
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Grupo Industrial Bimbo, S.A. de C.V.
Ing. Luis Naum Vargas
Corporate Planning Manager
Prolongación Paseo de la Reforma #1000
Col. Santa Fé, Del Alvaro Obregón
01210, México, D.F.
(5255) 5268-6848
Fax: (5255) 5268-6690
[email protected]
www.gibsa.com.mx
46
Grupo Gruma, S.A. de C.V.
Industry:
Sub Industry:
Food
Corn Flour and tortilla
products
Monterrey, N.L.
N/A
$120,000-$200,000 USD
Wrapping, palletizers and
packaging machines.
Location:
Size: (sales)
Specific Business
Opportunities:
Gruma was established in Mexico in 1949. The company’s core market remains centered
around tortillas originally the tortilla flour; today it has grown and expanded its products lines
worldwide. Gruma is considered as one of the production leaders of corn flour and tortilla
products. The company has over 10 manufacturing plants all over the world. It has operations
in the United States, Mexico, Central America, Venezuela and Europe.
The company’s objective is to improvise and modernize the traditional Mexican flour and tortilla
industry. By making vast research and development investments, the group was able to develop
a high technology for the production of flour. Today they have significant industrial, ecological
and efficient processes for the production of these products. They have position themselves as
the worldwide leaders in corn flour and tortilla production, both in production costs and product
quality.
Product
Flour
Brand
Package
Large package 90%,
package
Mazeca
10%
small
The company only provided information on their most representative packaging machinery of the
manufacturing plants in Mexico.
Machinery Type
Units
Origin
2
2
2
2
2
2
3
Germany
Italy
Italy
Switzerland
Italy
Mexican
Brazil
Filling Machines/ Foewmas
Filling Machines /Ika
Filling Machines /SGS
Filling Machines /SIG
Filling Machines /Interpak
Filling Machines /Emaflex
Filling Machines /Indomak
Average
Age
1
10
20
20
20
15
2
Specification
90%
95%
80%
85%
85%
75%
95%
Gruma’s last packaging machinery purchase took place in 2005, because the company required
expanding its packing capacity to meet their growing demand for its products. They invested on
three Indomaks to meet this goal for 2006.
Machinery
3 Flour packing machinery
Brand
Indomak
Country
Brazil
$160,000 USD
47
Although the company didn’t had the exact investment amount they told us it as approximately
$160,000 USD.
Future purchasing projects are done by the engineering department through several budgets
planning throughout the year. For 2006 Gruma´s short-term purchase plans consist on further
expansion of their facility by acquiring new flour packaging equipments. Since the results with
the Brazilian products have been positive, Gruma is looking for a similar supplier or even going
with Indomak again. Their current budget for this purchase is around $120,000 USD.
Machinery
Units
Flour packing machinery (Indomak type) 1 or 2
Origin
N/A
Motive of
purchase
Expansion
Their purchasing policies consist of a rigorous economical and technical study before the
investment is done. Estimates of required equipment are based on expected demand growth of
their products. After this, they study the operation costs and performance of the product.
After all the investment plans and estimates of the required packaging equipment are done, the
company quotes prices from different suppliers the equipment needed. Gruma buys all of their
equipment directly from the manufacturer. They prefer to do this because it’s a guarantee that
the machinery will have the best results and post-services. They have had previous bad
experiences with distributors, so as a result they work only with the manufacturer.
The maintenance of the equipments is done by a specialized technician’s team of Gruma.
These employees go through a training done by the supplier in order to operate the machines
correctly. When they have to repair a machine they prefer to use only original spare parts.
The company purchases the machinery with its own funds through negotiations done with the
vendor. They like to work with an advanced payment and when the machinery is already
working in the plant, they pay the rest. The company also takes vendor financing when
available.
The factors that affect the purchasing decisions of Gruma are the following:
1.
2.
3.
4.
Quality
Post-Sale service
Price
Brand
The company doesn’t have any brand preference but they mentioned that they prefer to work
with German equipments because of their quality and production capacity. They have had very
good results with all the German machinery; Gruma thinks Germany is the country with the best
technology on packaging equipments. Although they try to look for German products, Gruma is
open to receive information from other suppliers to learn and evaluate their technology.
Currently the company has not established any kind of business arrangement with any
packaging equipment supplier.
The company indicated that European packaging equipment suppliers have several advantages
over U.S. suppliers. The first reason Gruma prefers a European supplier is because their they
perceive the equipment as of higher quality and offering more efficiency. The second reason is
that they have had more options of different types of machinery, compared with the U.S. where
48
they have found fewer alternatives of packaging machinery. However they told us they haven’t
had that much experience with US. machinery.
The company evaluates equipment by country of origin as follows:
Origin
Germany
Switzerland
Italy
Brazil
Technology
Very Good
Very Good
Good
Very Good
Flexibility
Very Good
Good
Regular
Good
Service
Good
Good
Good
Good
Price
Regular
Regular
Good
Regular
I) Weaknesses and Strengths of the installed machinery.
Brand: Foewmas
Strengths:
• Production Capacity
• Low operation costs
• Efficient
Weaknesses: N/A
J) New Origin of Suppliers from Asia.
Gruma has not been contacted by Asian packaging manufacturing companies. They told us that
they are not interested in receiving any information from companies of this continent since they
think that the technology and quality are cheap and bad. Gruma is very sensitive on choosing
efficient and functional packaging machineries; they prefer to pay more for better quality.
The company doesn’t attend to many trade shows; they prefer to make their own research. The
only tradeshow they visit is the Expo Pack. In order to learn about new technologies they only
use the expo pack magazine and their supplier’s constant feedback information.
The company is interested in receiving information on wrapping, palletizers and packaging
machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Gruma S.A. de C.V.
Mr. Emilio Sotomayor
Engineering Director
Av. Humberto Junco Volt 2307
Col. Valle Oriente
66209 San Pedro Garza García, N.L.
(52-81) 8399-3300 ext.3970
[email protected]
www.gruma.com
Fax:
(52-81) 8399-3300
49
Helados Holanda, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Food
Ice cream
Estado de Mexico
US$770 million for Unilever and
approximately US$160 million
for Helados Holanda.
$500,000 to $1 million USD for
Purchasing
Potential:
2006
Specific Business Filling machines, packing and
Opportunities:
palletizer machines.
Helados Holanda is currently one of the largest Mexican ice-cream producers and distributors.
The company was established in 1938, before they joined the Unilver group, the company had
the idea of creating a chain of ice-cream parlors, where each store would manufacture its ice
cream products. After they saw that demand had increased dramatically, the company decided
to build a processing facility for the manufacturing of ice-creams products to supply the stores.
In the late 1960’s Beatrice foods enters into a joint-venture with this company and finances the
expansion of their manufacturing facilities. This expansion helped the company consolidate its
leadership as the largest ice cream producer in Mexico. In recent years Unilever bought Helados
Holanda and has expanded its presence even more throughout Mexico. Today they have over
40,000 points of sale thanks to the Unilever infrastructure.
Product
Scooping Ice Cream
Brand
Holanda
Package
Bulk cylinders (carton exterior, plastic interior or
plasticized carton)
Ice cream cup
Copa Cornetto
Polythene
Ice cream popsicle
Ice cream dessert
Iced popsicles (different
flavors)
Ice cream sandwich
Cornetto
Vienetta|
Holanda
Plastic Wrap
Cellophane and carton box
BOPP Bag
Mordisko
Polyfoi Bag
Filling Machines
Molds for iced popsicles
with integrated wrapping
Tetrapak SL9000
Filling machine
Wrapping machine for icecream/cookie sandwiches
Brand
Ventura
WCB
Versaline
WCB
Vitaline
Ria 14
GRAM
Hoyer
WCB
Interbreak
Units
2
1
Origin
N/A
USA
Average Age
6-7
10
Specification
85%
85%
2
USA
35
80%
1
Germany
5
90%
1
2
2
Denmark
USA
USA
5
9
3
90%
70%
95%
50
Stick dispensing machine
Coding Machines
Coding Machines
Tape wrapping machine
Interbreak Wrapping
Machine
Polocup Machine
Storkmax
VideoJet
Links
N/A
N/A
4
8
2
10
1
USA/Denmak
USA
N/A
Mexico
USA
7
7
2
4
2
85%
50%
100%
90%
90%
N/A
1
Italy
2
90%
Machinery
Liquid Filling Machine
Package
forming
machines
Spare part attachments for
the existing equipments.
These attachments will
serve for manufacturing
new products.
Brand
Tecmar
Polipac
Country
Argentina
USA
$88,000 USD
$150,000 USD
WCB
USA
$148,000 USD
These purchases where done in 2005. Helados Holanda told us that they were satisfied with the
attachments they bought for their current equipments since it has helped them to develop new
product presentations and packages without the necessity of buying a whole new machine. As a
result they have been more satisfied with manufacturers that have a flexible technology for their
machines.
For all their machinery purchases, Helados Holanda has contacted the suppliers manufacturing
facilities. This strategy has been carried out for quality and post-service reasons, according to
the company a direct contact with the manufacturing plant will have better results than a third
party. In the past, when they had troubles with the operation of equipments, the best service
and technical support was done by the manufacturer itself. Additionally, the manufacturer has
given Helados Holanda’s maintenance team a personal training for the operation and repairmen
of the machines. When the company’s staff is unable to repair the machine, the suppliers attend
the problem immediately. Clearly, Helados Holanda has followed this strategy to obtain better
services, a faster respond and better results for their production lines.
Machinery
Attachments
for
machinery
installed
Units
N/A
Origin
N/A
Motive of Purchase
To have new variants
of product
presentation.
Modification of
package presentation.
Estimate Budget
N/A
Helados Holanda’s next packing machinery purchases are not yet defined. Although, their
estimated budget for 2006 is approximately between US$500,000 and US$ 1 million dollars. The
purchasing plan for 2006 will be defined until after the summer, which is the time in which the
company defines the products that will be introduced the following year.
The company indicated that the purchase plans would include a series of add-on equipment to
accommodate new product presentation and a potentially large purchase of filling machines
might also be included in their plans.
The company reviews several aspects before selecting a supplier. There is a preference for
larger suppliers of packaging machinery, which already have an important presence in the
market. They make sure that the company has good technical support and post-sales service
and they Lastly, they launch a contest with several suppliers in order to learn more about them.
51
Besides purchases another practice for obtaining packing machinery is to reach some type of
leasing contract with the suppliers. The negotiations are for leasing terms which might also
include some elements of servicing.
As mentioned earlier Helados Holanda usually reviews its purchasing budget for packing
machinery during the summer season. The company purchases its equipment with its own cash
flow.
For equipment purchased priced at over US $500,000, it is considered as a “corporate
acquisition”. In these cases the approval process requires following a series of steps at the local
level and at their headquarters in London.
When a machine has been selected, it requires the approval – at a local level- of the supply
chain director, the manufacturing manager, the commercial director, and the managing director
and afterwards the headquarters at London approve the purchase. For smaller purchases,
Mexico’s offices are the ones in charge of approving the purchase.
Helados Holanda´s purchasing policies are done in a win-win basis. Usually they pay a 30% in
advance and afterwards the 70% remaining when the machinery is delivered and installed.
1. Meets technical and manufacturing requirements
2. Technical support
3. Spare part availability
4. Price
5. Previous experience with the supplier.
The company has no preference for any particular brand; however, they told us that they prefer
to look for suppliers that have an important presence in the market. They usually contact large
packaging equipment manufacturers. The reason for this particular strategy is because:
•
•
•
Large companies have a broader experience in the market
They always have innovations and new solutions.
The services that a large company gives to the client are much better than a smaller
supplier.
Helados Holanda also told us that they prefer European equipments than U.S. equipments. The
main reasons were that European packaging machines have more technological advancements,
better post-sale services and are more robust. Just in time spare part delivery and fast technical
support are two advantages that an American supplier would have in favor against a European
supplier. Although in the last 2 years the technical support of their American suppliers has
severely decreased.
Origin
United States
Germany
Denmark
Argentina
Technology
Good
Very Good
Very Good
Regular
Flexibility
Good
Good
Very Good
Good
Service
Regular
Good
Very Good
Very Good
Price
Regular
Good
Very Good
Very Good
In the last year, Helados Holanda has evaluated several Asian packaging manufacturers but
hasn’t done any purchase. After their machinery experts analyzed these equipments, they
52
realized that the technology wasn’t the optimum for Helados Holanda’s objectives. The company
decided that these products were of bad quality and low durability.
They also told us that none of their current suppliers have gone to Asia to manufacture their
products.
Brand: Tetrapak
Strengths:
• Known in the market
• Have years of experience
• Innovation
Weaknesses:
• Slow response to providing servicing or problem solving for clients
The company attends several expos and conferences. The three main expos and probably
considered as the best source of information for future purchasing decisions are: Expo Pack,
Pack Expo and Interpack in Germany. Helados Holanda is subscribed to several magazines,
such as Packing world and Enfasis Packaging, just to mention two of the most important
publications received by the company.
Helados Holanda is very interested in receiving pricing and product information from
manufacturers of filling machines, packing and palletizer machines.
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
web page
Unilever De Mexico, Division Helados
Ing. Octavio Reyes / José Antonio López
Manufacturing Department Chief / Manufacturing Department Chief
Assistant
Carr México-Querétaro
Cuautitlan, Izcalli
(52-55) 5899 0379
Fax: (52-55) 5899 0379 x 6637
[email protected]
www.unilever.com.mx
53
Herdez, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business Opportunities:
Food
Canned foods, sauces,
honey, mayonnaise, frozen
vegetables, juice, jellies,
mole, pasta, soy beverages,
vinegar, tuna, mustard, etc.
Mexico City (D.F.)
Over US$ 470 million
US$1 million
Labelers, cartoning
machines, pasta filling
machines, capping and can
closing machines.
Herdez is a Mexican company established in 1914 and is currently one of the leaders in
Mexico’s food processing segment. The company operates fourteen manufacturing facilities,
eight distribution centers throughout Mexico and one corporate office in Mexico City. The
company employs closet o 6000 employees for their operations.
The company is divided in seven operational units which range form company management to
the representation of imported food products.
At present, Herdez has formed a series of strategic alliances with foreign companies, some of
the most important examples include four strategic alliances (50% ownership) with global
leaders, including one with McCormick & Company, Inc., two with Hormel Foods International
Corp., (Hormel Alimentos S.A. de C.V. for distribution of Hormel products in México and Herdez
Corporation for distribution of Herdez products in the United States), and one with the Italian
company Barilla Almentare S.p.A.
The products are well recognized and valued in the Mexican market with more than 370 different
products and 500 different presentations sold in México, which includes the brands Herdez,
McCormick, Doña María, Chulavista, Barilla, Yemina, Vesta, Búfalo, Carlota, Yavaros, Solo,
Festín, Hormel, Kikkoman, Tami, Soften, Pons and Perrier, among others.
The company exports approximately 1% of its production to the US and South America.
Due to the wide range of products manufactured and packed by Herdez, it would be complicated
to list all its products and packages. Most of Herdez’s products are canned or packed in glass,
PET bottles, tetra pack, LDEP plastic bags among others. The company also has special
machinery for packing Tuna, consommé, and mole. The following table describes Herdez’s most
representative products and packages.
Product
Mushrooms
Vegetables
Fruits
8 vegetable juice
Clam and tomato cocktail
Juices
Sauces
Consommé
Brand
Herdez
Herdez
Herdez
Herdez
Herdez
Herdez
Herdez
SOLO
Package
Can, 186, 400 and 800 gr.
Can, 185, 200, 215, 225, 390 and 400 gr.
Can, 425 and 800 gr.
Can and glass bottles
Tetra pack and PET bottles
Can and tetra pack
Can, tetra pack and glass bottles
Aluminized doy pack, carton coxes and plastic
containers
54
Pasta
Honey, corn and maple syrup
Juices and jellies
Mayonnaise, mustard
dressings, spices, teas,
marmalades, etc.
Barilla
and
Yemina
Carlota
Festin
Mc Cormick
Plastic bags and carton boxes
PET and glass bottles
Tetra pack
PET squeezable and glass bottles as well as
plastic containers.
The information presented in the following table on packaging machinery refers to the
company’s plants in Mexico City and San Luis Potosi. The plant in Mexico City operates eight
packing lines for mayonnaise, mustard and sauces and the San Luis Potosi plants operates four
lines for the Barilla ventura which produces pasta products.
Overall, the company informed that it has over 65 packaging lines through out their fourteen
production facilities.
Filling-Sealing Machines for Viscous
Products/ Angelus, Pacific, Solbern, US
Bottler
Filling Machine for Powder (Consommé)
Liquid filling machine – Tetra Pack
Doy pack filling machines
Capping Machines/ Various brands
Units
Origin
8
US/
Sweden
1
4
2
8
Italy
Sweden
Spain
US/
Taiwan
US
US
US
Germany,
Spain,
Italy, US
US
US
Mexico
Cartoning Machines
Tape Dispensing Machines
Coding, Datig Machines
Printing/ Labeling Machines/ Krones,
Auxiemba, ABC, Mew Way, Burt
7
6
7
7
Case Forming
Computerized Systems
Conveying Systems to dispense boxes,
bottles, transport finished boxes, etc
Multipacking Machines
Palletizers
Shrink Packaging Machines
Stretch Packing Machines
Weighing Systems
Wrapping Machines
Specialty Machinery (All Fill)
Automatic Cartoning Machine/ Cayat
Filling Machines for semi viscous/FMC
Cap sealing machine/ Startech
Thermoforming machine
Jet coding machines
Pasta filling machine plastic bag / Envaflex
3
3
3
3
3
2
3
3
5
1
1
1
1
6
25
Palletizing machine / Columbia
Tray Packing machine / PMI
Filling liquid line / Simonazzi - SIDEL
Carton form, and seal machine / Simonazzi
3
1
1
1
US
US
US
US
US
US
US
US
US
France
Japan
US
Mexico
and Italy
US
US
Italy
Italy
Average
Age
13
Specification
4
2
3
12
100%
90%
95%
90%
15
14
14
11
85%
100%
90%
100%
10
8
13
90%
100%
100%
11
13
11
8
8
13
9
3
3
3
3
3
2
80%
90%
80%
100%
100%
90%
100%
90%
90%
100%
100%
100%
80%
1
1
1
1
90%
90%
95%
95%
90%
55
- SIDEL
Up until the late 90’s over 90% of the company’s packing machinery was supplied by US
companies. The composition has changed over the past years and at present there is a
preference for Italian, Australian and Mexican suppliers.
Herdez made its last packaging machinery purchase for their Mexico City and San Luis Potosi
plants on July 2005, when it acquired three palletizing machines and one tray packing machine
for the San Luis Potosi Plant and one filling liquid line and one Carton form, and seal machine
for the Mexico City plant. For these purchases Herdez invested around US$ 2.5 million.
Machinery
Palletizing machine
Tray Packing machine
Filling liquid line
Carton form, and seal machine
Brand
Columbia
PMI
Simonazzi - SIDEL
Simonazzi - SIDEL
Country
US
US
Italy
Italy
Over the past 2 years, Herdez has invested in excess of US$ 6 million dollars in the purchase of
packing machinery that was installed through their manufacturing plants. Because of the
significant recent purchases, the budget for packing machinery purchases during 2006 is
estimated at US$ 1 Mellon.
The most representative acquisitions planned for 2006 include:
Machinery
Wrapping machines / Clever
Labeling / Clever
Cartoning machines / PMI
Tapping machines for glass bottles
Pasta filling machines
Units
2
2
1
1
TBD
Origin
Motive of Purchase
Italy
Replacement
Italy
Replacement
US
Expansion
US
Renewal
Europe or Expansion/ Renewal
Australia
Each of the fourteen plants produces a yearly report on new equipment requirements, which is
sent to the corporate headquarters, where they evaluate the needs and decided between
equipment transfers between facilities or the purchase of new machinery.
Once the purchase of new equipment is decided, each plant selects the suppliers and informs
the corporate office for final approval. This company purchases equipment with its own funds,
usually giving letters of credit accepted by the equipment supplier’s bank as guarantee. Payment
schedule is commonly 30% in advance and 70% upon delivery.
1.
2.
3.
4.
5.
Machine efficiency
Low maintenance cost
Price
Service and spare parts availability in Mexico
Experience in the food sector
56
Most of the installed machinery at their various manufacturing plants continues to be American
but there is a clear trend for the substitution of machinery in favor of Italian, Australian and
Mexican suppliers. Company managers consider that US suppliers are now lagging in areas like
automation and robotics and that the commitment to servicing their clients has also declined.
They indicated that Asian equipment still does not have a strong pretense in Mexico as it has not
developed adequate local distribution. They indicate that what they’ve seen proposed by Asia
supplier’s represents extremely flexible and adequately priced machinery.
Another significant trend indicated by the company is that European suppliers are beginning to
establish distribution subsidiaries in Mexico and replace their existing third party representation
as this significantly increased the price of the machinery in Mexico.
The company indicated that one of their current Italian supplier has begun the manufacturing of
some spare parts in Asia. That this has had a significant impact in price reduction. The company
indicates that the supplier stands behind the quality and provides guarantees for this spare
parts.
Herdez is open to analyzing proposals from Asian suppliers. The company considers that their
equipment is becoming increasingly sophisticated and that is logical to expect they will become
a significant force in the market in the coming years.
Herdez gives regular maintenance to their equipment and only when a major repair is required,
the company brings in technicians from the supplier. The company believes that most local
representatives are well trained to sell but not service the equipment they represent.
Origin
United States
Italy
Spain
Australia
Mexico
Technology
Good
Very Good
Very Good
Very Good
Good
Flexibility
Good
Very Good
Very Good
Very Good
Very Good
Service
Regular
Very Good
Very Good
Very Good
Very Good
Price
Regular
Good
Good
Regular
Very Good
Herdez’s plant managers continuously follow equipment trends and maintain communication
with existing suppliers. They also visit trade shows and subscribe to trade magazines for
learning about new potential suppliers.
Herdez’s plant managers schedule regular visits from potential equipment suppliers, for this to
be able to know first had about the company’s requirements. Meetings should be scheduled at
each facility as equipment selection is made at that level.
Herdez prefers receiving visits from potential equipment suppliers than receiving equipment
literature as this allows suppliers to better understand their particular needs. Herdez mentioned
to be interested in packaging machinery for canned foods, beverages and bottled condiments.
Herdez Corporate
Contact:
Position:
Address:
Telephone:
e-mail:
Ing. Rafael de Regil
Corporate Operations Manager
Monte Pelvux No. 215
Col. Lomas de Chapultepec, Del Miguel Hidalgo
11000, México, D.F.
(5255) 5201-5655
Fax: (5255) 5201-5791
[email protected] Web page:
www.herdez.com.mx
57
Herdez Mexico City Plant
Contact:
Position:
Address:
Telephone:
Ing. Arturo Miranda
Plant Manager
Calz. San Bartolo Naucalpan #360
Col. Argentina Poniente
C.P. 11230 México D.F.
(5255) 5576-3100/ 5576-3891 Fax: (5255) 5358-6789
Herdez Chiapas
Contact:
Position:
Address:
Telephone:
Rafael Camacho
Plant Manager
Parque Industrial Fondeport
Francisco I. Madero s/n
C.P. 30830 Puerto Madero, Chiapas
(52-962) 628-6851, 628-6852
Herdez Ensenada
Contact:
Possition:
Address:
Telephone:
Ing. Mario Flores Luna
Plant Manager
Carr.Transpeninsular No. 86
Col. Carlos Pacheco
C.P. 22890 Ensenada, Baja California
(52-646) 176 7877
Fax: (52-6) 177-62-85
Herdez San Luis Potosí, “El Duque” Plant
Contact:
Position:
Address:
Telephone:
Ing. Ignácio Chavez
Plant Manager
Av. Industrias No. 400
Zona Industrial 1ª. sección
C.P. 78090 San Luis Potosí, S.L.P
(52-444) 137-0300
Herdez San Luis Potosí, Industrias Plant
Contact:
Position:
Address:
Telephone:
Ing. Eduardo Larraga
Plant Manager
Av. Industrias no.3815 Mz.29
Zona Industrial, 1a Sección
C.P. 78090 San Luis Potosí, S.L.P
(52-444)824-5961
Fax: (52-444) 824-6067
Hérdez Yavaros
Contact:
Position:
Address:
Telephone:
Ricardo Nieblas
Plant Manager
Av. Central Poniente, s/n
Parque Industrial Fondeport
C.P. 85251 Yavaros, Huatabampo, Sonora
(52-647) 481-0130
Fax: (52-647) 481-0134
Hérdez Guanajuato
Contact:
Position:
Address:
Telephone:
Francisco Rubin
Plant Manager
Carretera Panamericana Km. 292
C.P. 38260, Villagrán, Guanajuato
(52-411) 155-1107
Fax: (52-411) 155-2417
58
Martín Cubero, S.A de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food
Peanuts, seeds, nuts and others.
Cuautla Morelos, México
US $ 46 million
US $ 750,000
Gravimetric filling line and bagging machine, Weighing
machines, Bagging machines, Palletizing machine and
Cartooning machines
Martín Cubero initiated operations in Mexico City in 1966 as a small family-owned company. The
company evolved into one of the leading peanut and snacks companies in Mexico, producing a
long list of private label items for Sabritas. In 1990 the company moved from Mexico City to
Cuautla Morelos (45 miles). The company processes and packages several peanut and snackseed products.
Their installed production capacity reaches 80,000 tons of peanuts and seeds. The company
manufactures and packs snack peanuts for Sabritas, Mexico’s largest snack producer and also
sells peanuts in bulk, mainly for export to the U.S.
This company also produces and packs all the peanuts that are consumed in Mexico’s three
largest airlines, in Mexican busses and recently they began manufacturing snacks for Wall-Mart.
They also produce smashed peanuts that are sold for the cookie maker Gamesa and for Mc.
Donald’s.
Product
Peanuts: Dry roasted and Japanese stile
Peanuts and seeds: Salad, salad with
lemon, spicy, spicy with lemon, Japanese,
dry roasted, among others.
dry roasted, among others
dry roasted, among others
Brand
Aeroméxico, Mexicana,
Aerocaribe and Estrella
Roja, Estrella Blanca,
ADO, etc.
Sabritas
Martin Cubero
Martin Cubero
Package
Flexible poli –
propylene and
polyester (mix)
package 40 gr.
Flexible poli –
propylene and
polyester (mix)
package 100, 200,
400, 800 gr.
Flexible polyester
package 10 Kg.
Sacks 50 Kg.
Most of the company’s packaging machinery is Mexican and Brazilian. The purchasing decisions
for these machines were made more than 20 years ago when it was difficult and expensive to
import machinery and the Mexican manufacturers were highly cost-competitive.
Some of the Brazilian packaging machinery that the company owns was acquired by their
Argentinean plant and later transferred to Mexico. The company is not satisfied with the results
of these machines as they are less reliable and efficient than other alternatives in the market.
59
The most relevant packaging machinery installed in Martin Cubero (Mexico Plant) includes:
Current Machinery
Used
Vertical form fill and
seal machines
Gravimetric filling
machines
Sack filling and closing
machines
Case tapers
Brand
Units
Origin
Average Age
Specification
Masipack
Env - A – Flex
Masipack
Ishida
N/A
10
21
10
3
3
Brazil
Mexico
Brazil
Japan
USA
3
20
3
5
3
70%
90%
90%
90%
70%
N/A
2
USA
10
90%
The latest major packaging machinery purchase took place in February 2006 when the
company, through its subsidiary in Argentina purchased machinery for both plants from the
Brazilian manufacturer Masipack. For the Mexico plant they acquired 1 Vertical form fill and seal
machines and 3 Gravimetric filling machines. This project represented investments for over
US$460,000.
Machinery
Vertical form fill and seal
machines
Gravimetric filling
machines
Brand
Masipack
Masipack
Country
Brazil
US $ 270,000
Brazil
US $ 190,000
The company will purchase a new line of gravimetric filling machines for various types of peanut
product presentations. The purchase will be for increasing production capacity as product
demand continues to grow significantly. The company will conduct significant equipment
purchases over the following two years, some of the equipment will include bagging, cartoning
and palletizing machines. The company’s objective is to increase the efficiency of the packing
process though automation.
The company sets a yearly budget for modernization and expansion, however due to the
company’s policies they didn’t reveal their 2006 or 2007 budgets. We estimate that this company
will spend approximately US$500,000 million per year in the following two years. The purchasing
plans call for purchasing the following machinery in the following months:
Machinery
Bagging machines
Palletizing machine
Gravimetric filling line
Cartooning machines
Units
TBD
TBD
TBD
TBD
Origin
TBD
TBD
Brazil
TBD
Motive of Purchase
Improve process
New process
Expansion
Improve process
Estimate Budget
TBD
TBD
TBD
TBD
The company purchases its packaging machinery directly form the manufacturers and they
receive training to operate and give minor maintenance to the machines Esther from the
manufacturer or their representatives in Mexico. As some of its machinery is very old, they have
to manufacture in workshops some of the spare parts and this has caused that some of their old
machines loose precision and efficiency. In the case of the newer American and Japanese
machines, they purchase spare parts directly with the manufacturers and when major
maintenance is needed the company hires the manufacturer’s technicians.
60
For new packaging machinery purchases, the company seeks for all alternatives available in the
market. They focus in companies manufacturing machinery for packaging nuts, seeds and
snacks. The identification of potential suppliers is done through contacts, companies that they
meet in trade shows and through cambers and organizations.
The company requests the supplier to have experience packaging nuts, and in some cases it
requests the supplier to organize visits to plants where third parties are using their machinery so
they can actually see the machines in real operation.
The company follows the standard payment policies set by the suppliers, however they suggest
to the supplier to accept payment terms of 50% down payment and the remaining balance after
one month of operation. When the suppliers accept this terms the company considers this a plus
for the final purchasing decision.
1.
2.
3.
4.
5.
Functionality.
Industry brand recognition.
Price and terms.
Spare parts availability.
Training.
The company has preference to purchase the machinery directly with the manufacturers, or their
representatives in Mexico. The company has preference for not using Mexican distributors as
they charge high overprices and adds little value.
Every time that they purchase a new machine, they require the supplier to provide training for
operations and maintenance.
The company has no preference for a particular brand or product origin. They mentioned that
they don’t judge the machinery depending on its origin as each manufacturer is different and in
all geographies there are good and bad manufacturers. In general terms they ranked the
machinery origin as follows:
Origin
United States
Spain
Germany
Brazil
Japan
Technology
Good
Average
Very Good
Average
Very Good
Flexibility
Good
Very Good
Average
Average
Very Good
Service
Very Good
Average
Good
Good
Very Good
Price
Average
Good
Expensive
Good
Expensive
The company indicated it has received information and evaluated the options presented by
several Asian suppliers. The company is still not convinced by the technology or the quality of
the proposed machines. The company indicated that the machines are very competitively priced
and that some of the suppliers are establishing representation in Mexico both for generating
sales as well as for providing servicing.
The company’s top management and production manager visit Expo Pack in México and Brazil
as well as Snack Expo in USA.
61
The company is interested in receiving information form packaging machinery suppliers for the
snack industry, particularly on manufacturers of the following equipment:
•
•
•
•
Vertical form, fill and seal machine for different types of peanuts, seeds and nuts.
Weighing machines
Sack fill and close machines
Cartooning machines
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Grupo Martin Cubero
Ing. Edgar Suárez
Production Manager
Calle 10 de Abril # 44
Col. Gabriel Tepepa
62742, Cuautla Morelos, México
(52735) 354-1820 Ext. 109
Fax: (52735) 354-1868
[email protected]
www.martincubero.com.mx
62
Nestlé de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food and Beverages
Beverages, Milk products, nutrition
and ice cream, prepared dishes,
cooking aids and pet care, chocolate,
confectionery and biscuits
Mexico City
$2 billion USD
$1 million USD
New packaging developments in the
food and beverage industries. All kind
of bottle and packaging machines.
Also can manufacturing machines.
The Nestle group is one of the largest food companies in the world with 224,541 employees and
479 factories world-wide. The company has experienced explosive growth in Mexico over the
past ten years because of a combination of growing product demand and the acquisition of a
long list of local food companies. Nestle started production in Mexico in 1930 with the
production of soluble coffees and chocolates. By 2006 the company operates 13 manufacturing
plants which produce from coffees and power bars to pet foods. The Mexican operations export
to the several international markets including the U.S., Central America and the Caribbean.
Nestle is not only Switzerland's largest industrial company, but it is also the world's largest food
company. Its products are available in nearly every country in the world. Nestles’ global
manufacturing policies have a direct impact on their operations in Mexico. The company’s top
objective has been to improve manufacturing efficiency at all its plants.
Nestle's diverse brands have allowed the company in Mexico to establish a significant market
share in throughout diverse processed food product sectors. Currently the company has
products that go from ground coffee to canned food products. Their six corporate brands,
Nestle, Nescafé, Nestea, Maggi, Nido and ProPlan contribute a 75% of the group's total sales,
with the Nestlé brand by itself contributing 40%.
Product
Roast & ground coffee
Soluble coffee
Infant foods
Water
Other beverages ( teas,
chocolate powders,
specialty milks, syrups)
Breakfast cereals
Performance nutrition
Culinary products
(bouillon, soups,
seasonings, prepared
dishes, canned food,
pasta, sauces)
Brand
Nespresso, Bonka
Nescafé, Taster's Choice,
Ricoré
Nestlé, Nestogen,
Cérélac, Neslac, Nestum
Nestlé Pure Life and
Santa Maria
Nestea, Nesquik, Milo,
Carnation, Caro
Package
Vaccum Bags
Glass jars, PP bags and steel cans
Nestlé, Cheerios, Trix,
Gold, Fibra Max, etc.
PowerBar
Maggi, Buitoni and
Crosse & Blackwell
Polypropylene bag in carton box.
Glass jars & Steel cans
Pet bottles
Steel cans
Aluminized bag
Glass jars and Polypropylene bag in
carton box.
63
Ice cream
Chocolate and
confectionery
Pet Care
Nestlé, Frisco and Camy
Nestlé, Crunch, KitKat,
Galak/Milkybar, Smarties,
Baci, After Eight, Baby
Ruth, Butterfinger, etc.
Friskies, Alpo
Sticks and plastic containers
Aluminum foil, plastic bags, and carton
boxes.
PP Bags
The following table presents and updated description of Nestles’ the installed machinery in
Mexico. In recent years, the company has increased their European machinery purchases
because they indicate to have had better results. For example, they no longer buy any Angelus
machinery from the US, as they have switched for Ferrum, a packaging manufacturer from
Switzerland. This equipment has given the company better and more production capacities as
well as better post-sale services. Service was a key factor in the decision.
Units
Origin
Average Age
Albro
Nalbach
Volpack
6
6
9
UK
USA
Spain
15
15
7
Specification
(%)
85
85
Variable
Embaflex
9
Mexican
8
Variable
Triangle
1
USA
17
Variable
11
4
Switzerland
USA
6
10
85
85
Closing Machines
Labeling Machines
Labeling Machines
Labeling Machines
Coding Machines
Carton Forming Machines
Carton Forming Machines
Pallet Forming
Levelers
Paletizers
Stick Packs
Thermo forming machines
Soudronic
Nalbach
Pneumatic
Scare
Angelus
Burt
Krones
Sacmi
Videojet
KistersKayat
Packmatic
Ocme
Bh
Samoui
Shmuker
Serac
16
6
6
2
>20
8
1
4
2
2
6
3
USA
USA
Germany
Italy
USA
USA
Brazil
Italy
USA
Spain
Italy
France
85
85
85
85
85
85
85
85
85
85
85
85
Liquid filling machines
Can closing machines
Serac
Ferrum
2
3
France
Switzerland
5-15
5-20
5-20
5-20
7
10
2
10
2
2
3
2 have 15
years and 1
has only 1
year.
4
1
Powder Filling Machine
Volumetric Filling Machine
Forming and Sealing
Machine
Forming and Sealing
Machine
Forming and Sealing
Machine
Weld Sealing Machines
Screw Capping Machines
Brand
90
90
Nestle makes all of their purchases through their international purchasing company: Nestrade.
All machinery evaluations, studies, negotiations and purchasing terms are done by Nestle itself
but then the final purchasing decision is responsibility of Nestrade. Nestle’s Mexican offices
justifies the investment requirements and then seeks approval from Nestrade. Their last
purchase of packaging machinery was in 2005 where they acquired a carton former and a stick
pack. The reason for these purchases was that the company needed new trays to form different
kinds of carton boxes. These recent purchases were required to produce new packing
presentations.
64
Machinery
1 Carton Former
1 Stick Pack
Brand
Kayat
Shmuker
Country
USA
Italy
$225,000
$200,000
When Nestle decides to purchase new machinery, different processes are done in order to
justify the investment. For example, they usually buy machinery to expand production capacity
at a plant or to begin the production of new products, automation of existing lines or replacement
of old equipment.
Nestle has a policy where they try to satisfy most of the maintenance needs through their inhouse technical staff. When a new machine is purchased, Nestle requests their supplier to train
their in-house maintenance staff. When major repairs are necessary, these are conducted by
the equipment manufacturers with which Nestle negotiates service agreements. Nestle
purchases original spare parts, to assure that their equipment operates according to its
specifications.
The company’s packing machinery purchasing budget for 2006 is approximately: $1 million USD
Machinery
Doy Pack type
filling machines /
Mespack or Efitek
Carton
forming/
PackMatik
Can
closing
machines / Ferrum
Units
1 or 2
Origin
Spain
Expand facility
N/A
1
Brazil
Change of old Units.
$110,000 USD
N/A
Switzerland
Replacement of
Angelus equipment.
N/A
The company recently acquired two Packmatik machines from Brazil. This purchase resulted
from having received very attractive pricing and the expectation that the equipment will provide
better performance over the previous supplier. They indicated that – in their experience- these
machines have provided more flexibility, better operating capacities and cost reduction over
those of US based, KistersKayat, which was their previous supplier. Nestles’ future purchases
will focus on continue replacing KisterKayat with Packmatik. The company indicates to be
receiving adequate service form the supplier.
The company will also initiate a program to replace its existing can closing machines. The
previous supplier was Angelus, but Nestle considers that the company has either lost interest in
Mexico or in Nestle as the response to the companies requests has been inefficient. The
company has been late in meeting equipment delivery dates and has demonstrated little interest
in maintaining its business relationship with Nestle Mexico. The company is considering Ferrum
as the new supplier for can closing equipment.
Ferrum’s has improved as a supplier both in terms of servicing the clients as well as the
incorporation of new technology into their machines. This company has showed good quality,
experience and compromise, and fast delivery . Ferrum’s strengths according to Nestle Mexico
include:
•
•
•
•
•
•
More durable
Excellent quality
Better price
Excellent delivery services and post-sale services
Flexible
Fast spare part product delivery
65
Nestle’s purchasing unit, Nestrade, is responsible for the negotiation with suppliers, negotiating
purchasing terms, obtaining financing and all aspects related to purchase closing. Nestrade is in
charge of consolidating the different purchases done by Nestle´s plants worldwide. After the
plants negotiate prices with the suppliers, Nestrade tries to obtain preferential conditions.
Currently, the company has established several agreements with some packaging machinery
manufacturers.
Nestle´s only commercial agreement is with the company Soudronic a company dedicated to the
manufacturing of cans. With other machinery suppliers the company only works with financial
agreements at the moment of the negotiation.
When Nestlé Mexico selects a new machinery supplier, they evaluate at least three alternatives.
The Mexican operation prefers to purchase from suppliers with which they have worked in the
past and have demonstrated to be reliable. The decision factors in Mexico include the revision
of the following aspects:
1. - Equipment reliability and experience at other plants (if any)
2.- Equipment flexibility and compatibility
3.- Service
4.- Delivery Time
5.- Price of the equipment.
The company has no particular preference for any brand. The only existing business
arrangement as mentioned earlier, is with Soudronic. This brand has worked several years with
Nestle and is considered by the company as one of the best welding machinery manufacturers
because of their quality and good service. Nestle considers both American and European
machinery as excellent technologies but in the last few years, they have had better results with
the European suppliers.
Nestle mentioned that they have noticed a significant and continuing decline in client service
commitment and quality by US suppliers. Especially on commitments to firm deliveries and postsale service. They mention that they consider that over the past three years US suppliers have
become careless in regards to maintaining good relationships with clients.
The company also mentioned that they have begun evaluation a series of Latin American
packaging equipment suppliers and that they consider to have found excellent technologies and
innovations. Currently, the company is planning to purchase new machinery from Brazil since
they consider their technology, prices and flexibility as optimum for Nestle’s production
objectives.
Origin
United States
Germany
Italy
Switzerland
Technology
Good
Very Good
Very Good
Very Good
Flexibility
Regular
Good
Good
Good
Service
Bad
Good
Good
Good
Price
Regular
Regular
Regular
Good
66
Brand: Shmuker
Strengths:
• Efficient
• Known in the market
• Easy to use
• Good spare part deliveries and prices
Weaknesses:
• Expensive Spare Parts
Brand: Angelus
Strengths:
• Robust
• Easy to use
Weaknesses:
• Expensive Spare Parts
• Bad Service
• No compromise
• Defected machinery
The company has not received any proposal from Asian packaging machinery suppliers, but has
had meetings with a few companies. Nestle considers that these suppliers are offering very good
pricing but that they are still years away from incorporating the technologies or having the quality
required by Nestle. , but they have met some suppliers. Although they do not have any kind of
policy that restricts the purchasing of machinery from Asia, it all depends on the internal tests
and evaluations done by the company. However, Nestle is not considering to study and to learn
more about these manufacturers for the moment since the technology and services are not
sufficient for the company’s standards. However, they mentioned that the prices and the
flexibility of the equipments are very attractive.
For the future, if Asian suppliers demonstrate that they could meet with all of Nestle´s
requirements they could be considered as potential suppliers. Nestle doesn’t know of any
current supplier that has gone to Asia in order to reduce manufacturing costs.
Nestle has an extensive list of expo which they visit during the year. Among the most important
shows are Pack Expo, Expo Pack, Interpac, and Hispac. Another important information source
for the packaging industry is different magazines such as Industria Alimenticia and Packing
Digest magazines. The company also works with the internet as a source to find more about the
latest technologies and news of the industry.
The company is constantly analyzing packaging machinery options. Nestle is recognized as an
innovative company so they are particularly interested in new packaging developments in the
food and beverage industries. All kind of bottle and packaging machines. Also can
manufacturing machines.
Company Name:
Contact:
Position:
Address:
Nestlé México, S.A. de C.V.
Ing. Gabriel Valencia Mulkay
Underdirector for Packaging Unit
Av. Ejército Nacional No 453
67
Telephone:
Fax:
e-mail:
Web page:
Col. Granada
C.P. 11520, México D.F.
(5255) 5262-5000 ext. 1625 Direct line: (5255) 5262-5052
(5255) 5262-5472
[email protected]
www.nestle.com.mx
68
Pilgrim’s Pride S.A. de C.V.
Industry:
Sub Industry:
Location:
Size:
(employees)
Purchasing
Potential:
Specific
Business
Opportunities:
Food
Chicken and Egg Products
Tepeji del Rio, Hidalgo
5,000
$150,000 USD
Sealing vacuum machines and
Thermo filling machines
Pilgrim's Pride was established in 1946 and has become the second largest vertically integrated
poultry company in the US . The company’s leading products include chicken eggs and meat.
Operations in Mexico begun 17 years ago and at present consist of three processing facilities
and 17 distribution centers. The processing plants operate under TIF Mexican federal standards,
which are similar to USDA standards.
Most of the product presentations in the Mexican market are similar. The following table
provides some further details on their leading products:
Product
Whole Chicken
Value added Chicken
(Chicken with flavor)
Value added Chicken
Value added Chicken
Package
In bulk (20 kilos presentation) in plastic box.
5 to 10 kilo presentation (cardboard box)
Unicell Tray
Vacuum plastic bag
The company provided descriptive and not complete information on their existing machinery
including packing infrastructure. The company indicated that they have a combination of
equipment from US and European suppliers but that the origin of the machinery is not a factor
considered in supplier selection or purchasing decisions.
Tray pallet machine
Pallet machines
Vaccum sealers
Vaccum sealers
Slicing machines
Sausage machines
Marinating machines
Brand
Pacmac
Units
10
Origin
USA
Ozzi
Ultravac
N/A
Ros Slicers
Sadman
Domit
2
1
1
1
1
2
Spain
Holland
USA
USA
Germany
USA
Average Age
4 w/10 years
6 w/ 5 years
5
3
2
3
8
15
Specification
85%
80%
80%
85%
85%
85%
85%
69
The company’s most recent machinery purchase was in 2005 with the objective of improving
presentation quality. Pilgrims’ is interested in continuously improving the packaging and
presentation of their products.
Machinery
Marinating machines
2 Bag sealing machines
Brand
Magnum
N/A
Country
Holland
USA
40,000 Euros
US$5,000
E) Future Packing Machinery Ordering Plans and Purchasing Policies
The company follows a careful procedure for the selection of machinery suppliers. The company
emphasized its interest in improving product presentation as it considers that it has a direct
impact on product perception by consumers.
Machinery
Thermo filling machine
Units
1
Origin
USA
Motive of Purchase
Improve product
presentation.
Estimate Budget
TBD
The machine in the table is just an example of the type of equipment that Pilgrims is planning to
purchase over the following few months. The company has a minimum purchasing budget of
US$ 150,000 for 2006. The engineering department is continuing a series of evaluation its
packing infrastructure at their three plants to define the specific equipment they will be interested
in purchasing.
The maintenance department at Pilgrims is responsible for the selection of potential packing
machinery suppliers. It is not uncommon to receive recommendations from the corporate office
in the US regarding suppliers of packing machinery which could be useful for the operation in
Mexico. If the selection of the supplier is made at the local level, the maintenance office makes
sure that suppliers’ proposed equipment meets the standards of the equipment already in
operation at their Mexican plants.
Experience with the supplier in the US operation of the company carries a significant weight in
the supplier selection process. The company normally requests detailed equipment information
and proposals from two or three potential suppliers. The company looks for the following:
1.- Experience in the industry
2.- Maintenance requirements
3.- Solid servicing capabilities and spare parts availability
4.- Capacity to diligently solve major maintenance or repair needs
F) Financial Policies and Arrangements
In those cases where the equipment and supplier selection are carried independently of the
headquarters in the US, the operation in Mexico requires to present an ROI analysis as well as a
report indicating the process and reasons for selecting a particular parking machinery supplier.
The corporate office in Mexico is responsible for authorizing the purchase.
The company’s payment policies are 30%-40%-30%. The first payment is when the company
signs the purchase order, second payment is alter the company tests the machinery and the
third is once the equipment is in operation at the plant in Mexico.
1.
2.
3.
4.
5.
Flexibility
Spare parts availability
Servicing
Pricing
Brand, supplier reputation and possible pre-existing relationships with headquarters
70
The company indicated they do not have a preference for any particular equipment supplier and
that they are most interested in working with suppliers which are committed and reliable,
especially in terms of spare part availability and fast response to potential repair or maintenance
needs.
Over the last few years, Pilgrims´ impression of European suppliers has improved. <They
consider that in their particular industry, US machines are more solid and lasting, but have also
created more serious maintenance problems, which have caused to stop production lines. They
indicated that in the perception US suppliers are very good and solid companies but that they
Europeans have very fast cached up and passed their competitors, especially as they are very
focused on client needs and in developing a long term business relationship.
The company indicated that European equipment is simpler, easier to operate and require
substantially less maintenance.
Origin
United States
Germany
Spain
Technology
Good
Very Good
Good
Flexibility
Regular
Very Good
Good
Service
Good
Regular
Good
Price
Regular
Regular
Good
The company has no information nor has it been in contact with Asian suppliers. They indicated
that do not have interest for the moment in locating Asian suppliers as they consider that
machinery from that region continues to be of lesser quality than other existing options. The
company is also unaware of any of its suppliers moving manufacturing to China as a strategy for
cost reduction.
Brand: Pacmac
Strengths:
• Good technology
• Availability of spare parts
Weaknesses:
• Expensive
Pilgrim´s indicated that attending trade shows fro machinery and packing machinery are
fundamental for learning about trends in the sector. The company visits Expo Pack and a poultry
expo in Atlanta.
The company also follows production trends in the sector by subscribing to specialized
publications.
The company is interested in thermo forming and vacuum sealing machines.
Company Name:
Contact:
Position:
Pilgrim’s Pride S.A. de C.V.
Pedro Muñoz
Maintenance Manager
71
Address:
Antigua Carretera Mexico-Queretaro km 72.5
Col. San Mateo 2nda sección.
42850 Tepeji del Rio, Hidalgo
Telephone:
e-mail:
web page
(52-773) 733-9229
[email protected]
www.pilgrimspride.com
72
Qualtia Alimentos, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Cold cuts and cheese
San Nicolás de la Garza, N.L.
40 million dollars
TBD
Vacuum packaging machine,
Thermo forming machines.
And a broker that distributes
machinery spare parts in
Mexico.
Xignux Group is the holding company of Qualtia Alimentos. The holding company has seven
different business units and 27,000 employees. The company has sales and manufacturing
presence in various countries in the American continent. Today they operate 35 manufacturing
plants and 50 distribution centers throughout Mexico, the US, Brazil and Argentina. Xignux
entered into the food business in 1976 and in 1994 entered into a joint venture with Sara Lee
from the US.
Qualtia Alimentos is dedicated to the cold cuts and dairy products. In Mexico the company has
3 production plants. Two of them are dedicated primarily to the production of cold meats and
dairy products. The third facility only produces cheese products. The plants are located in San
Nicolas de la Garza, Nuevo León; Tepotzotlán, State of Mexico; and Queretaro, Queretaro. Kir,
Duby, Zwan and Caperucita are four of Qualtia’s brands that have had a successful market
share in the cheese and cold meats industry in both Mexico and in international markets. Today,
over half of the company’s production in Mexico is exported to over 40 countries.
Product
Hams
Salami
Sausages
Pâté
Bacon
Franks
Turkey products
Cheeses
Brand
Package
Vacuum polyethylene film
Vacuum aluminum film
Tipper tie
Shrieked polyethylene (Bag/Pouch)
Various
Vacuum polyethylene film and Plastic
containers
Kir, Duby
Peperami
Kir / Swan / Duby
Swan
Kir / Duby
Kir / Swam / D’Pavo
Kir / Swan / Duby / D’Pavo
Caperusita / Creso
The company’s packaging machinery is focused mainly on vacuum packaging. They have had
successful results with both European and American machinery. The following table presents
some examples of their current packing machinery:
Machinery Type
Vacuum packaging/ Multivac
Vacuum packaging/ Tiromat
Vacuum packaging/ Alcar
Vacuum packaging/ Rapid Pack
Sausage cramming machines/ Tausen
Units
Origin
5
3
1
1
10
Germany
German
US
US
US
Average
Age
10
10
10
2
6
Specification
85%
85%
90%
95%
73
Sausage cramming machines / Hadman
Smoked machines/ Alcar
Injectors/ Metalquina
Mill machines/ Weyler
Vacuum packaging/ Tipper Tie
Pealing machine/ Apollo , Townsend
Frankfurt and sausage loading machines/
Warwick
Planet products (out of operation)
Cheese filling machine/ Drake
Coding machines/ Video Jet
6
3
3
3
4
4
2
Germany
US
Spain
US
US
US
US
6
7
15
5
4
21
6
100%
85%
80%
85%
85%
85%
85%
2
1
5
11
US
US
US
US
20
12
2
6
90%
90%
90%
Machinery
1 Thermo forming machine
Brand
Tiromat
Country
Germany
N/A
Qualtia did not purchase packing machinery during 2005. The last purchase was in 2004
consisting of a $500,000 dollar investment to expand packing machinery. Qualtia is committed
to continuously looking for better product packing options as those improve product presentation
and shelf life.
The upcoming packing equipment purchasing budget will be developed over the second half of
2006. The company indicated to be experiencing excellent results from their existing suppliers
and will purchase from those suppliers. According to the company, Multivac has been the best
supplier in the past year because of their quality, service, technology and production capacity of
their equipment.
Machinery
Vacuum packaging/ Multivac
Thermo forming machines/Multivac
Thermo forming machines/ Multivac
Units
N/A
N/A
N/A
Origin
Germany
Germany
Germany
Motive of
purchase
Expansion
Expansion
Expansion
Qualtia has the policy of purchasing directly from equipment manufacturers to obtain better
pricing on both equipment as well as spare parts. The company works with local distributors to
receive maintenance and equipment repairs. packing machinery purchasing policies include
purchasing directly from the manufacturers.
All purchasing decisions are made at the company’s headquarters in Nuevo Leon. The company
‘s payment policy includes upfront payment when the order is placed, milestone payments and a
final payment once the equipment is in operation for two months at the plant.
Equipment purchases are commonly from existing suppliers. In the case the company will
purchase equipment not available from current suppliers they will request information from at
least three supply options. The purchasing decision process receives input from the engineering
and maintenance department and the purchase is conducted by the purchasing department.
For future purchases one of the most important decision making factor is the availability of post –
sale service.
74
1.
2.
3.
4.
5.
6.
Capacity to provide timely service
Previous work experience with the supplier
machine construction quality and functionality
Price
Spare part availability
Workers and production safety
As mentioned earlier, the company indicated that they prefer to purchase machines from existing
suppliers. The company has had good working experience with Tiromat and Multivac due to
their advanced technology, quality, equipment safety and service.
Company indicated to be interested in working only with suppliers which can offer a fast
response to spare parts, repairs or maintenance needs.
The company has no preference between European or American packaging manufacturers as
they consider that suppliers from both regions present viable alternatives. They indicated that
US suppliers are less vertically integrated that their European competitors and that this
sometimes creates problems, as usually slows the process for obtaining spare parts.
Origin
United States
Germany
Spain
Technology
Good
Very Good
Good
Flexibility
Good
Very Good
Good
Service
Good
Good
Regular
Price
Regular
Regular
Good
Brand: Tiromat
Strengths:
• State-of-the-art technology
• Easy to Use
• Good Technical Assistance
Weaknesses:
• Difficult availability of spare parts
The company has not been in contact and has no information on potential suppliers from China.
The company indicated interest in learning about this options as they have heard that product
quality and technology are improving at the time of offering very competitive pricing.
The main trade shows that Qualtia visits are Pro-Empaque, Expo Pack and Pack expo. They
told us that in these expos allow to obtain excellent information on trends in their sector. The
company is also subscribed to specialized magazines with concentration on their industry.
The company is interested in receiving information for high speed and large volume vacuum
packing systems, thermo forming machines, and a broker that distributes machinery spare parts.
75
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Qualitia Alimentos, S.A. de C.V.
Mr. Carlos de la Cruz
Purchasing Manager
Av. Conductores #600
Col. Lagrange
66490,San Nicolás de los Garza, Nuevo León
(52-81) 8030-3000
Fax:
(52-81) 8030-3038
[email protected]
www.qualtia.com
76
Sabormex, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing potential:
Specific Business
Opportunities:
Food,
personal
care,
beverages
Canned beans, coffee, sports
drinks, shampoo, catsup,
dressers,
canned,
fruits
vegetables and hot peppers,
marmalades, vinegar among
others.
Puebla, Puebla
US$ 4 million for 2006
Tray erecting and filling
machines, metal detectors,
palletizers, laser codifiers and
cleaning equipment for plastic
bottles (blowers).
A) Company Description:
Sabormex is a privately held Mexican company established in 1964. At present they operate one
plant located in Puebla and their headquarters and distribution center is located in Mexico City.
The company produces various product categories with over 60 different presentations. Their
brands include “La Sierra” for canned beans, instant soups and chilaquiles (tortillas soaked in
hot pepper sauce), “Legal” for ground and soluble coffees, “Clemente Jacques” for catsup, salad
dressings and condiments, canned, fruits vegetables and hot peppers, marmalades, vinegar,
“Enerplex” for isotonic refreshments, “Magnaflex” for shampoos and “Tazza” gourmet coffe.
Sabormex exports mainly into the Hispanic market in the US as well as other world markets
including El Salvador, Guatemala, Venezuela, Colombia, Panama, United Kingdom, Spain and
Germany.
The company was acquired by La Costeña in late 2000 and the group continues to modernize
and automate all their production lines. The company recently acquired the can beans line from
Nestle and they will commercialize the brand under the name Maggi through 2006, after this
year they will incorporate the production to La Sierra brand.
B) Main Products Produced and How Are They Packed:
Product
Beans
Beans
Coffee
Sports beverage
Shampoo
Soup
Chilaquiles
Catsup
Dressers
Hot peppers
Vegetables
Fruits
Marmalades
Brand
La Sierra
Maggi (Nestle)
Legal
Enerplex
Magnaflex
La Sierra
La Sierra
Clemente Jacques
Clemente Jacques
Clemente Jacques
Clemente Jacques
Clemente Jacques
Clemente Jacques
Package
Cans
Cans
Plastic bags, cans and glass flask
PET bottle and glass bottle
PET bottle
Styrofoam cups, metallic bags
Plastic bags and cardboard box
Squeezable PET, glass bottles and can
Squeezable PET
Can and glass bottles
Can
Can
Glass bottles
77
Vinegar
Clemente Jacques PET bottles
C) Installed Packaging Machinery:
The following table contains the complete packing machinery inventory of Sabormex in the
Puebla plant.
Tray Erecting and Filling Machines /
CERMEX (Sidel)
High speed plastic bag pouching machine /
Cloud
Try case cartoning machine / PMI
Tray Stretch Banding Machine / Polipack-six
pack
Bag Packing Machinery / Triangle, Envaflex,
EMZO, SERPAC
Can Sealing Machines / Angelus
Can Filling Machines / ELMAR
Shrink wrapping machine (six pack) / ARPAC
Filling machine (soluble coffee) / Nalbach
Filling machine / HEMA
Filling machine / Tremark
Can closing machine / Ferrum
Can filling machine / Ferrum
Capping machine / Packwest
Capping machine / Zalkin
Capping machine / Arnol
Capping machine / Regina
Bottle orienting machine / Posimat
Bottle orienting machine / US Bottler
Liquid filling machine / Sympack – BC
Cartoning machine / Samovi
Cartoning machine / Econocorp
Filling machine / Ronchi
Labeling machine / Auxiemba
Labeling machine / Bear
Labeling machine / Taxta
Labeling machine / Clevern
Pre-gummed Label Applicators / Neway
Gravimetric filling machines / Solbern
Gravimetric filling machines / Envaflex
Pallet dismantling machines / Krones
Conveying systems / CSI
Pallet machines 7 CSI
Bean Cleaners / Cnippen – Mercator
Bean Washing and Rinsing Machines / Olney
Batch sterilizing machines / Jersa
Batch sterilizing machines / STOCK
Orbital pallet wrappers / Lantech
Codifiers / Paragon, Linx, Video jet, Sanazzi,
Markem, Marshal, Taptone
Units
Origin
Specification
France
Average
Age
1
4
1
USA
1
95%
1
3
USA
USA
1
9
95%
80%
8
USA/ MEX
Argentina
Spain
USA
USA
USA
USA
France
France
Switzerland
Switzerland
USA
France
Italy
USA
USA
USA
USA / Italy
Spain
USA
Italy
Spain
USA
Spain
Italy
USA
USA
Mexico
USA
Holand
10
80%
16
16
N/A
10
12
1
4
4
N/A
N/A
N/A
N/A
15
18
14
12
18
N/A
8
8
5
9
14
N/A
12
14
5
80%
80%
80%
80%
80%
80%
90%
90%
80%
80%
80%
80%
90%
85%
85%
85%
85%
80%
80%
80%
80%
80%
80%
85%
85%
80%
90%
Holand
USA
USA
Mexico
Germany
USA
USA, Italy
5
14
14
11
11
5
N/A
90%
80%
80%
80%
80%
70%
85%
6
5
1
1
2
1
4
1
1
3
1
1
4
1
1
11
1
1
4
4
1
3
5
4
3
2
2000
mts.
2
3
2
2
8
2
56
95%
78
Metal detectors / Peco, Fortress, S&H,
Taptone and Thermo Gorinker
Weightier / Ishida
Ink dispenser / Bedford
Adhesive dispensing systems
Tape dispensing machines / Little David
12
USA
N/A
95%
1
1
40
5
Japan
USA
USA
USA
N/A
N/A
16
N/A
N/A
N/A
80%
N/A
D) Last Purchases of Packing Machinery.
Sabormex’s last purchase took place during 2005 and 1Q 2006. The following list shows their
latest purchases. They spent around $3.1 million in 2005-2006 period.
Machinery
Tray Erecting and Filling Machines
High speed plastic bag pouching
machine
Try case cartoning machine
Filling machine (solids, liquid and
oily products)
Brand
CERMEX (Sidel)
Cloud
PMI
Tremark
Units
4
1
Country
France
USA
1
1
USA
France
The company recently approved a US$ 4 million dollar budget for the purchase of new
machinery. Most of this investment will be destined for cleaning, packing and palletizing
machinery.
Among the most immediate purchases, Sabormex is considering the following:
Machinery
Tray Erecting and Filling Machines /
CERMEX (Sidel)
Horizontal pouch machine / Rovema
Palletizing unit / SCI
Palletizing unit / OCME
Palletizing units / Lantech
Metal detectors / Fortress
Laser codifiers
Cleaning equipment (blowers) / Paxton
or Sonic
Units
Origin
Motive of
purchase
4
France
Expansion
Estimated
Budget
‘000
US$900
1
3
2
2
4
4
5
USA
Holland
Italy
USA
USA
TBD
USA
Replacement
Automation
Automation
Expansion
Replacement
Replacement
Expansion
US$300
TBD
TBD
US$190
US$280
TBD
TBD
F) Purchasing Policies and Financial Arrangements.
Sabormex key vision in regards of equipment and machinery purchases is that they must
contribute to a permanent effort to maintain a world-class state of the art production standards.
The second criteria are to select equipment that most efficiency allows to increase production
capacity to face growing demand.
The company produces a list of the required equipment and visits trade shows to evaluate which
particular machines and suppliers can satisfy their needs. In most cases they request the
supplier to arrange for a visit to see the equipment in operation at some facility. They regularly
visit Expopack in Mexico City, Las Vegas and Chicago as well as Interpac in Germany. When
selecting equipment, they also take into consideration the equipment recommendations they
receive from their –sister- companies like La Costeña.
The company used to consider Angelus as the leader in can closing machinery and purchased
exclusively from that supplier for machines with that purpose. The company considers that
79
service quality plummeted and has begun a program to replace all Angelus machines for Ferrum
from Switzerland. The company is interested in working with suppliers which are committed to
their clients and willing to support them with adequate servicing.
The company gives the supplier a down payment and sets a payment schedule during the time
before the delivery process. A final payment is made once the machine is operating at their
facility. During the –start-up – process for new machinery, the company expects the supplier to
provide training to their maintenance staff. The training includes; indications as to the correct
operation of the machine, basic trouble fixing , as well as how to replace the most commonly
used spare parts. All major maintenance or service should be performed by the manufacturer.
G) Factors That Influence Purchasing Decisions.
1. Increase productivity of their current processes
2. Recommendations from other users of the proposed machinery.
3. Proved experience within Mexican market
4. Technical support
5. Price.
H) Comments on Preferred Brands and Existing Business Arrangements With Packing
Equipment Suppliers:
The company when selecting new equipment considers both North American as well as
European suppliers. The company does not purchase Asian machinery as it considers that the
materials used by these suppliers are of lesser quality, than those of other machinery suppliers.
Sabormex´s evaluation of packing machinery according to its country of origin:
Origin
United States
Spain
Germany
Italy
France
Switzerland
Technology
Very Good
Very Good
Very Good
Very Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Very Good
Very Good
Very Good
Service
Good
Very Good
Good
Good
Very Good
Very Good
Price
Good
Good
Regular
Good
Regular
Good
The company indicated that their perception on Asian equipment is that the price is good but the
quality is low, They made the comment like it would be like purchasing disposable equipment,
They indicated to know that there are significant technology and quality progresses being
achieved by these suppliers which could change the landscape in a few years.
The company indicated to be unaware of any of their current suppliers shifting production to
China to reduce equipment costs,
J) Trade Show Attendance / Trade publication Information:
The trade shows they attend are primarily PMMI’s Expopack (Mexico, Las Vegas and
Chicago).The company constantly receives equipment brochures from various suppliers. The
company also receives several trade publications that present information on new machinery like
Mundo Alimentario, Énfasis Alimentario, Industria Alimentaria and Carnilac.
K) Specific Interests
Sabormex is interested in receiving information on metal detectors, palletizers, laser codifiers
and cleaning equipment for plastic bottles (blowers).
80
L) Contact Information:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Sabormex, S.A. de C.V.
Ing. Javier Segura Orive
Director of Manufacturing and Engineering
Calz. La Viga #1214
Col. Apatlaco
11570, México D.F.
(5255) 5448-2142 /61
(5255) 5448-2125
[email protected]
www.sabormex.com.mx
81
Sigma Alimentos, S.A. de C.V.
Industry:
Sub Industry:
Food
Processed meats, yogurt,
cheese and prepared meals.
Monterrey, N.L.
Over US $ 1.5 billion.
Over US$ 3.5 million
Location:
Size: (sales)
Specific Business
Opportunities:
Sigma Alimentos is a Mexican company established in 1971 and is the market leader in Mexico
in the production and distribution of processed meats, pre-cooked meals, and dairy products.
Sigma Alimentos is a subsidiary of one of Mexico’s largest industrial groups called Grupo Alfa. In
2005, the company sold around US$ 1.7 billion employs about 23,000 people and produced over
890,000 metric tons of processed food.
Sigma Alimentos is divided in different companies operating in the processed foods sector. The
most important division is cold meats where they have a 63% market share in Mexico. They
have a dairy products division which has a 31% share of the local market, followed by a precooked meals company with a 6% share.
The company has twelve plants for processed meets, thirteen for dairy (yogurt, cheese and
other products), 3 for processed pre-cooked meals and 1 for beverages. The company has 114
distribution centers throughout Mexico. The company exports their products into the US,
Guatemala, Honduras y Nicaragua and has production operations in El Salvador and Dominican
Republic. At present the company has more than 3,000 freeze vehicles.
In 2004 the company entered into a agreement with Grupo Chen which was the leader in the
dairy market in northern Mexico. This allowed Sigma to become the leader in the cheese market
in Mexico. In 2005, the company acquired the facilities of New Zealand milk in Mexico and an
additional company in the Dominican Republic,
Product
Brand
Sausages, hams, turkey ham, bacon,
salami, cheese or ketchup stuffed
franks, clown-face shaped bologna and FUD
mini hotdogs.
Prosciutto, Italian Salami, Pepper
Salami, Canadian Loin, German Leg of San Rafael
Ham, spiced sausages (Chorizo),
Frankfurt Sausage and turkey products.
Salami, Ham, spiced sausages
Chimex
(Chorizo), and sausages.
Salami, Ham, bacon, spiced sausages
(Chorizo), sausages and sliced hams.
Viva
Barcelona ham, Spanish chorizo and
turkey line.
Iberomex
Low end Hams
San Antonio
Package
Vacuumed plastic, shrink
thermoformed plastic and tripper
tie.
tie.
tie.
tie.
tie.
Vacuumed plastic and shrink
thermoformed plastic
82
Sausages, Bacon and sliced hams.
Oscar Mayer
High end hams, sausages, aged meats, Tangamanga
salamis and other specialties.
Hams
Galicia
Hams (exclusively for Republic
Dominican market)
Turkey ham
Hams, hotdogs, baloney, chorizo,
bacon, specialty dishes, etc.
Jamón Picnic
(Sosúa)
Checo
Vitta
Hams (exclusively for Costa Rica)
Zar
Yoghurt
Yoplat, Yopli,
Yopsi, Yop,
Yoplus, Chen,
Chenet and NorMex
Cheese
Noche Buena,
Chalet, La Villita,
Chen, Franja,
Eugenia,
Camelia,
Norteño,
Country
Valley,Sosúa
Beverages
Café Olé
Solé (Soy
beverage)
Mutton ( Barbacoa), Spiced Pork ( Pibil), El Cazo
Chicken in Mole sauce, to other typical Mexicano
treats such as “Flautas”, Tamales and
“Dobladitas”, etc.
Chicken nuggets, fish fingers, French
fries and pizzas
Fried Chicken, Seasoned Fried
Chicken, Chicken Wings, BBQ
Chicken Breasts, Chicken Supremes,
Chicken and Broccoli Fettuccini,
Lasagna, Mozzarella Nuggets and its
delicious Coconut, Chocolate, Banana
and Lemon Frozen Pies.
Chicken nuggets, cheeseburger, pizza
slices with vegetables, potatoes and
dessert, as well as a dish for breakfast
or lunch including waffle bars, syrup,
potatoes and dessert.
tie.
tie.
tie.
Vacuumed plastic
tie.
Polyethylene containers and
tetra brick.
Shrinking wrap and Polyethylene
containers.
Glass bottles
Polyethylene containers
Plastic bags
Sugerencias del Plastic bags and carton boxes
Chef
Plastic bags, trays and carton
Banquet and
Healthy Choice, boxes
Kid Cuisine
Plastic trays and carton boxes
83
The information we present in this profile was obtained from the cold meats and dairy divisions,
so the information we received is related to the 25 plants operated by this divisions and
represents the largest machinery inventory.
Machinery Type
Vacuum packaging line / Multivac
Thermoform packaging line / Horizontal/ Tiromat
Bag, form fill and seal/ Koch
Horizontal thermo form fill and seal machine / MH
Packaging line Case Ready with modified
atmosphere / Ross
Coding machines/ Video Jet, Image
Units
Origin
60
35
35
10
6
Germany
Germany
Germany
USA
Germany
+150
USA
Average Specification
Age
8
95%
9
95%
9
85%
7
85%
4
85%
6
90%
D) Last Purchase of Packaging Machinery
This division’s last purchase of packing machinery took place in December 2005, when they
invested US$ 3.4 million dollars to purchase two horizontal thermoform packing machines from
the German supplier Multivac.
Machinery
Thermoform packaging/ Horizontal
Brand
Multivac (2 lines)
Country
Germany
Cost
US $ 2,400,000
The company purchases equipment on a “manufacturing projects” basis and most new
purchases are related to production expansion in their various lines as result of growing demand
for their products.
The cold meats and dairy divisions are developing a series of projects to expand production and
renovation of old equipment in most of their manufacturing plants. This will imply the purchase of
at least one new packing line for each facility. They consider that the equipment will most likely
be a combination of Tiromat and Multivac. They have not defined potential suppliers for other
related equipment. The projects also call for the renovation of existing equipment and
automation of some processes.
The company is also planning the launching of a new product for which they will need additional
packing equipment for pasta.
Sigma has a budget of over US$ 3.5 million for packing machinery purchases in 2006 and 2007
period.
Machinery
One new packaging line Multivac
Wrapping machine for multi-packaging
with thermoformed polyethylene film
Thermoform seal and plastic tray form
for cheese products
Metal detectors
Capping machines
Cartoning machine
Automatic palletize
Units
Origin
Germany
T.B.D.
Motive of
purchase
Expansion
Renovation
Estimated
Budget
US$ 1.2 million
T.B.D.
2
2
2
T.B.D.
Renovation
T.B.D.
T.B.D.
2
1
2
T.B.D.
T.B.D.
T.B.D.
T.B.D.
Improve security
Expansion
Expansion
Expansion
T.B.D.
T.B.D.
T.B.D.
T.B.D.
84
Sigma indicates they have a well defined purchasing process. The company evaluates technical
proposals from various potential suppliers (minimum 2), including proposed technology and
servicing plan. Once the finalists are selected they purchase through a tender process. The
company selects the supplier that presented the best technical proposal and offered better
pricing.
Sigma Alimentos requires for its investment budgets to by approved by its parent company;
Grupo Alfa. The parent company assigns internal resources or arranges for financing. The
company also considers vendor financing alternatives.
1. Quality and Efficiency
2. Price
3. Technical support and service
4. Brand recognition
5. Experience on the food business
Sigma Alimentos has a strong preference for vacuum packing equipment from two suppliers;
Multivac and Tiromat. The relationship with these companies started several years ago, Sigma is
very satisfied with the machinery and the serviced they are receiving in Mexico. The suppliers
have dedicated technical staff in Mexico to service the Sigma account.
As for other packing machinery the company indicated not to have a special preference for any
supplier as long as the proposed equipment complies with specific manufacturing requirements.
The company is open to evaluating new equipment technologies for their particular
manufacturing and packing applications.
The company indicated that they would only purchase from leading equipment suppliers, which
for the moment would exclude any Asian supplier. The company indicated they would never
purchase Asian made equipment for their processing or packing operations which are critical.
The company indicated to be unaware of any of their supplier shifting production to Asia to
reduce costs. Sigma comentó que hasta el momento no ha considerado equipo de origen
Asiático,
The company evaluated suppliers by country of origin as follows:
Origin
United States
Germany
Italy
Japan
Technology
Very Good
Very Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Regular
Service
Good
Very Good
Good
Regular
Price
Good
Regular
Regular
Good
J) Specific Interest
The company is interested in receiving information on equipment for their dairy and processed
foods divisions including Thermoform seal and plastic tray form for cheese products, metal
detectors, capping machines, cartoning machine and Automatic palletize equipment.
85
K) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Mr. Santiago Sanpayo
Purchasing Manager for Imported Equipment and Supplies
Av. Vasconcelos #203 Ote.
Col. Residencial San Agustin
66260, Garza García, N.L., México
(52-81) 8152-5100
Fax:
(52-81) 8152-5174
[email protected]
www.sigma-alimentos.com
Mr. Mario Guzman
Plant Manager - Processed meets plant
Av. J. Cantú #1320
Col. Buenos Aires
64800, Monterrey, N.L., México
(52-81) 8748-1000
Fax:
(52-81) 8152-5126
[email protected]
Sigma Alimentos Lácteos, S.A. de C.V.
Mr. Daniel Chávez
Packaging Superintendent of Dairy Products Div.
Av. Vasconcelos No. 203 Ote
Col. Residencial San Agustin
66260, Garza García, N.L., Mexico
(52-81) 8152-5100
Fax:
(52-81) 8152-5140
[email protected]
Sigma Alimentos Congelados, S.A. de C.V.
Mr. Guadalupe Salinas Garza
Plant Manager for the Prepared Meals Division
Ave. Industrial Alimenticia # 760
Col. Parque Industrial
67735, Linares, N.L., Mexico
(52-821) 212-6099
Fax:
(52-821) 212-5625
[email protected]
86
7.
7.1.
The Beverage Industry:
Industry Overview.
Mexico continues as the second largest
market for soft drink products in the world
with
an
estimate
average
annual
consumption of 39.1 gallons per capita. The
Mexican refreshment industry produces
close to 4 billion gallons par year.
The global consolidation tends in the
beverage industries are also present with
Mexican companies. Examples include the
acquisition of Panamco by Femsa and the
recent acquisition of Kaiser brewery in
Brazil.
There is also growing competition between
local producers and multinationals including
Coke and Pepsi. The local companies are
being able to maintain and in some
instances grow market share in some
segments of the soft drink market.
According to ANPRAC in Mexico there are
approximately US$ 2 billion invested in
bottling equipment for refreshments, and the
companies invest on average US$40 to 60
million in bottling and packaging equipment
per year.
In terms of beer, Mexico is the third largest
beer producer in the world, with a
production of more than 69.4 hectoliters per
year. The Mexican beer Corona is the #1
imported beer in the U.S. and the single
brand with higher exports in the world.
Mexico’s per capita beer consumption is
14.1 gallons per person, being higher in the
northern region of the country. Beer
production in Mexico is controlled by two
large
groups,
Grupo
Modelo,
the
manufacturer of Corona beer, and FEMSA,
who control 95% of the total market. The
remaining 5% is split between imports and
microbreweries.
The most popular presentation in the
Mexican beer market is returnable bottle,
which accounted for approximately 60%
percent of domestic beer shipments in
2005. Sin embargo está ganando mucho
terreno la lata con nuevas presentaciones
de productos que tradicionalmente se
envasaban en botella de vidrio.
Experts in the sector estimate that the
popularity of the returnable bottle is
attributable to its lower price to the
consumer.
While
returnable
bottles
generally cost approximately twice as much
to produce than non-returnable bottles,
returnable bottles may be reused as many
as 30 times before being recycled.
Therefore, beer producers are able to
charge lower prices for beer in returnable
bottles.
7.2.
Company Ranking by
Size.
Mexico has a wide number of beverage
producers, other than refreshments and
beer, the country has an important base of
tequila bottlers, rum bottlers, juice
manufacturers, and water bottlers. In each
category there are a few very large
companies with over 500 employees and
hundreds of small producers.
7.3.
Key Players.
In the refreshments industry, FEMSA, the
owner of the Coca-Cola license for the
country controls close to 45% of the
refreshments market. PEPSI is the second
largest refreshment producer in the country
with a 30% share. The dominance of these
companies in the Cola market is being
successfully challenged by Big Cola which
has a minimum 5 to 7% of the market.
Mexico’s largest beverage bottlers include
the following:
Beer Production in Mexico
(In thousand hectoliters)
Grupo
2005
%
Grupo Modelo
44,820.00 63%
FEMSA
25,930.00 37%
Total
70,750.00 100%
Source: FEMSA’s annual report.
87
Company
Coca-Cola Femsa
Grupo Modelo
PepsiCo de México
Femsa Cerveza y Subsidiarias
Embotelladora Arca
Grupo Continental
Grupo Embotelladoras Unidas
Jugos del Valle
Casa Cuervo
Big Cola
Grupo Embotellador Bret
Main products
Refreshments
Beer
Refreshments
Beer
Refreshments
Refreshments
Refreshments
Juices
Tequila
Refreshments
Refreshments
Sales 2004
Million
US$
4,227.00
4,074.00
2,776.00
2,270.00
1,260.00
907.00
453.00
383.00
310.00
306.00
177.00
Source: Expansión Magazine, Mexico’s top 500 companies.
7.4.
There is still significant growth in the bottled
water market and every company that has
the possibility to distribute the product is
interested in developing a bottled water
brand.
Containers with spaceship or robot shapes,
etc.
7.5.
Company Profiles.
Juice manufacturers and some milk
manufacturers are also changing product
presentations by introducing a cap to their
tetra pack type presentations.
Mexico will require high capacity beverage
lines that can decorate de containers with
specific promotions.
There is demand for PET blowers to
produce bottles with over 3 liters of
capacity. Lower price and higher content
are competitive strategies in the lower end
of the market.
Continued interest in the development and
distribution of low cal beverages in 250 to
300 ml presentations.
There is growing interest for European
technology for aluminum can closing
machines.
Companies are using new materials for
thermo shrink that would provide more
resistance to transport the product. This
eliminates the carton boxes.
Interest in developing special containers for
juices targeting the children market.
88
BACARDI y CIA., S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Rum - Alcoholic Beverages.
Mexico City
US$ N/A
US$ 150,000
Laser coding machines
Bacardi and Company was originally established in Cuba in 1862. During the 1930’s the
company initiated its international expansion which included the opening of a bottling facility in
Mexico City. The existence of manufacturing assets outside of Cuba, allowed the company to
survive after its property was seized by the communists in 1960. These assets included facilities
in Puerto Rico, Mexico and Brazil.
The company experienced tremendous growth during the 1970’s and is success has continued,
being currently recognized as one of the world's top ten international brand names.
In Mexico, the company owns several distilleries and three bottling plant located in the Tultitlan
State of Mexico which is totally automated, La Galarza in the State of Puebla and Arandas Plant
in the State of Jalisco which is partially automated. The company also has its Mexican
headquarters at this facility. The company has 450 workers at their bottling plant and 115 at their
headquarters.
In 2002 Bacardi acquired the well positioned tequila brand Cazadores. The company also has
the distribution of a Brown Forman product lines and Grey Goose Vodka for Mexico.
Product
Rum
Brand
Bacardi Blanco,
Añejo, Solera
and Oro
Tequila
Cazadores
4 Vientos and
Camino Real
Rum cocktails Bacardi Breezer
Brandy
Viejo Bergel
Package
Glass bottles, plastic caps, labels and carton boxes
Automatic de-palletizing
Automatic de-palletizing
Rinsing machines:
Air cleaning machine
Brand
Units
Origin
A-B-C Packaging
Machine Corp
OCME
Procomac
Horix AB
KRONES, Inc
GAI
US Bottler
US Bottler
4
USA
Average
Age
8
1
1
1
3
1
4
5
Italy
Italy
USA/Italy
Germany
Italy
USA
USA
6
6
7
4
10
9
10
89
Filling machine
Closing Machine (Caps)
Cold glue labeling machine
Labeling machines
Ink code printers
Ink jet printers
Wraparound case packing machine
Drop packing machine
Automatic Palletizing
Cartoon coding machine
Horix
KRONES
Horix AB
Zalkin
Capen
Alkoa
Arol
KRONES
JB
GAI
Hoppmann
Videojet
Videojet
OCME
Akron
Meyer
OCME
Foxjet
Marsh
3
2
2
7
1
1
1
8
1
1
7
7
8
7
2
1
7
4
4
USA/Italy
Germany
USA/Italy
France
USA
USA
Italy
Germany
USA
Italy
USA
USA
USA
Italy
USA
USA
Italy
USA
USA
19
4
7
6
16
28
7
8
8
15
6
8
8
10
14
17
4
9
4
Bacardi’s packing line operates with excellent efficiency. They operate a 600 meter long chain
conveyor line and 90 packing machines.
D) Last purchases of Packing Machinery:
In the period 2003-2004 this company spent US $4,600,000 on packing machinery, when
Bacardi acquired a complete bottle rinsing, filling, capping line from Krones as well as
complementary packaging equipment to increase their production capacity.
Machinery
Bottling line
Cartooning, thermo shrink sleeve
machine, labeling, inspection
equipment, among others.
Brand
Country
Krones Germany
N/A
N/A
Bacardi has a limited budget for packing machinery because it has recently performed significant
investments The only assigned budget for 2006 is for the purchase of a series of laser coding
machines, the company will spend US$ 145,000 for this project.
The company indicated they have stopped some production lines as product demand has
stalled, This has created that the company has excessive production capacity for the moment
which eliminates short term potential demand for packing machinery. The company indicated
they have an ambitious export program for the European and Asian markets which they will
launch at the end of 2006. This focus on exporting to generating additional demand might in the
medium term (2007 – 2008) initiate additional significant demand for packing equipment at this
company in Mexico.
The company has its worldwide headquarters in Monte Carlo. This office gets involved in
equipment purchasing decisions as they have some worldwide agreements with equipment
suppliers, but the final purchasing decision is reached in Mexico.
The company is open to purchasing equipment from new suppliers, but will compare the
proposed equipment with that of their existing suppliers. The company also evaluates new
90
suppliers by verifying their existing client base and their sales penetration into major
manufacturers.
Once a purchasing decision has been reached, the headquarters in Monte Carlo negotiate the
price and payment terms with the suppliers. The company usually gives a 50% down payment
on the equipment and the final payment is made once the equipment is in operation at their
facility.
As for machinery from US or German suppliers, purchases are usually made directly to the
equipment manufacturer.
When they purchase new equipment, the suppliers are responsible for installing the machine
and providing training to Bacardi’s employees. The Training process for Bacardi’s technical staff
usually lasts between one and two months. This staff will be responsible for equipment
maintenance and will also change some spare parts.
The company has had good results with custom manufacturing some spare parts in Mexico. This
has given the company savings of up to 70% in some components.
1. Quality of the equipment
2. Technology.
3. Reliability
4. Service and Technical Support
5. Price
H) Comments on Preferred Brands and Existing Business Arrangements With
Packing Equipment Suppliers:
Bacardi indicated to have a preference for European machinery suppliers for most of its
processes, as the company considers that European equipment has better quality and superior
technology.
Specific brands are sometimes purchased because of previous good experience with the
machinery and service, and because Bacardi would like to standardize the packing machinery.
Bacardi’s policy is to purchase packing machinery for among the three top companies in each
category of machinery.
I) Trade Show Attendance / Trade publication Information:
Bacardi visits the ExpoPack trade show in Mexico every year and Trade shows in the US,
Germany and Italy. They are subscribed to trade publications like Packaging World and Control
Engineering; they also receive information from various equipment manufacturers.
J) Specific Interests
Bacardi is interested in receiving information in general on the production and packaging of
alcoholic beverages and particularly of laser coding equipment.
K) Contact Information:
Company Name:
Contact:
Position:
Contact:
Position:
Address:
Telephone:
BACARDI Y CIA. S.A. DE C.V.
Ing. David Muñoz Alcantara
Engineering and maintenance Manager
Ing. Pablo Ismael Martinez
Packing maintenance Manager
Autopista Mex-Qro # 4431
Tultitlan, Estado de Mexico
(5255) 58 99 09 00, (5255) 5899 09 92
91
Fax:
e-mail:
(5255) 58 99 09 27
[email protected]
[email protected]
92
Big Cola S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverage
Soda, water and beer
Mexico City
N/A
30 million USD (worldwide)
All kind of packaging machinery for the
beverage industry.
Big Cola is part of the beverage multinational Peruvian Company Ajegroup. The group entered
the Mexican market approximately 5 years ago and has achieved significant market share in the
cola market in Mexico. They have generated concern between the two major beverage
companies in Mexico (Coca-cola and Pepsi-cola) because of their competitive prices and high
quality products. The company has an accumulated capital of 80 million dollars in the three
plants of Mexico, corporate offices and the 40 distribution centers. It is expected that the
company will invest other 20 million in assets for the next year.
Ajemex is planning to expand in Mexico by having 5 more distribution centers, increase their
production lines and by the introduction of two new products in the market: Big Chela (Big Beer)
and Free World, a bottled natural water product. They are also working to add a new flavor to
their soda brand “First”.
The beverage market sales in Mexico is estimated to be over 12 thousand million liters per year,
of which Ajemex sold 1,100 million liters with Big Cola and First. This represents almost 10% of
the volume sold in Mexico.
Product
Big Cola
First
Brand
Ajemex
Ajemex
Package
Plastic bottle
Plastic bottle
C) Installed Packing Machinery:
Brand
Complete Lines: wrapping, Krones
thermo forming machines,
packaging
machines,
blowing machines, etc.
Complete lines.
Sidel
Units
Origin Average Age
3
Germany
3
5
France
3
Specification
90%
85%
D) Last Packaging Machinery Purchase:
In 2005 Big Cola Mexico did two important packaging machinery purchases. In order to expand
productivity in Mexico they bought a complete line for their plants in Guadalajara and Monterrey.
Big Cola did not reveal how much was their investments in these equipments, however they did
mention that they have been in an expanding project inside Mexico. The following table shows
these recent purchases:
Machinery
Complete lines from blowing
Brand
Mezal
Country
Brazil
N/A
93
machines
to
packaging
machines.
Complete lines from blowing
machines
to
packaging
machines.
Sidel
France
N/A
The company prefers to purchase their machinery directly from a local representative of the
manufacturer. Sidel and Krones have a representation in Mexico and Big Cola has worked
satisfactorily with these local distributors. They have had a very good service in both technical
and maintenance support. With Mezal they have contacted the manufacturer in Brazil directly.
Big Cola’s machinery maintenance staff receives a personal training from the manufacturers.
This has helped to diminish costs since Big Cola’s employees are capable of repairing and
managing the production lines of the company. Whenever they have had major problems, their
suppliers kindly assist the maintenance crew of Big Cola to solve the problem. The company
told us that the best usage of equipments is when original spare parts are used for their
repairment. Although it is more expensive, in the long-term their machinery will have a longer
productive life.
Big Cola has a specific way to choose their suppliers. Their purchase and decision making
policies concerning packaging products are the following:
•
•
•
Knowledge and experience of the supplier
Market share of the supplier
Previous testing of the equipments in order to evaluate their quality and efficiency.
They currently work with only three brands since they already know how they work and the
quality of the product. Big Cola prefers to standardize their equipments in order to work more
efficiently and faster in case a problem occurs with the machinery.
The company has an average worldwide budget of 30 million dollars for packaging machinery
purchases in the near future. For the next 2 years they are having several purchases for the
plants in Mexico. Since they entered the Mexican beverage market, the company has been
working strategically to expand their presence in the country. Today, with three plants in the
“industrial triangle” of Mexico (Guadalajara, Mexico City and Monterrey), the company has been
able to penetrate successfully to this industry. In 2006 they will increment and expand these
plants. The following chart shows their future ordering plans:
Machinery
Complete Lines (Blowing
Machine, Filling Machines,
capping machines, Labeling
machines, conveyors, pallet and
paletizers.)
Units
6 to 8
units
worldwide.
3 units in
Mexico
Origin
N/A
Motive of Purchase
Expansion
Estimate Budget
3 to 5 million
dollars per line
F) Purchasing Policies and Financial Arrangements:
Big Cola works with two types of financial policies. The first is done by a 50% advanced
payment and a 50% after it is installed. The second is a 30-70% agreement. The company
does not have any purchasing or financial agreement with their suppliers. They just follow one
of these two financial policies.
G) Comments on Preferred Brands and Existing Business Arrangements with
The company has focused their investments on Sidel and Krones because they have had a very
satisfactory outcome with these machines. The automation and technology managed by these
94
companies are considered by Big Cola as unique and the best for the beverage industry. It has
helped them to improve and have better production lines and processes.
The company thinks that the European machinery products are better than those from the
American for several reasons:
•
•
•
•
•
The technology is considered to be more advanced
The European products have more innovation and state-of-the-art machinery.
They are easier to use.
Big Cola has experienced fewer technical and service problems with European
suppliers.
The post-sale service is much better
Origin
United States
German
France
Brazil
Technology
Good
Very Good
Very Good
Good
Flexibility
Good
Good
Good
Good
Service
Good
Good
Good
Regular
Price
Regular
Regular
Very Good
Regular
H) Factors that Influence Purchasing Decisions
In order of importance, the key purchasing decision factors considered by Big Cola at the time of
purchasing new machinery include:
1
2
3
4
5
Knowledge of the brand
Brand’s market share.
Price
Technical Support
Acquirement costs of spare parts
Brand: Krones
Strengths:
• Efficient
• Good reputation in the market
• Good Technical Assistance
Weaknesses:
• High technical support costs.
The company has evaluated several Asian suppliers and considers that the technology has
made significant progress in recent years and that the equipment is flexible and easy to operate.
One of the company’s suppliers, Sidel, has been one of their suppliers that have begun to
pursue opportunities in the Asian Market. They are currently manufacturing some of their
products in that region.
The company visits trade shows in Mexico and in several other countries. Expo Pack is the
preferred expo for the company since they find different types of manufacturers and they learn
about new technologies and trends of the packaging machinery industry. They usually explore
the Internet or beverage magazines to obtain information on what is going on with the market.
The company is interested in learning about packaging machinery suppliers manufacturing all
kinds of products concerning the beverage industry.
95
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Big Cola Mexico S.A. de C.V.
Ing. Julio Marroquin
Quality Control Manager
Parque Industriales San Miguel Manzana A lote 8
74160 Puebla, Puebla, Mexico
(52-227) 275-9000 ext.2224 Fax: ( 52-22 7) 275-9000
[email protected], [email protected]
96
Cadbury Schweppes, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Mineral water, carbonated
beverages, tomato and clam
mixer, bottled natural water.
Mexico City
US$ 3 to 4 million
Multi-packing (Cartooning),
Integrated bottling line, camping
and labeling processes,
palletizers and depalletizers,
bottle blowers and tray film
machines
Cadbury Aguas Minerales is the Mexican subsidiary of Cadbury Schweppes from the U.K. The
local company was acquired in 1992 from a Mexican group that bottled mineral water under the
brand name Peñafiel. Cadbury had plans to divest from the beverage segment, most assets
world wide were sold to Coca Cola, but in the case of Mexico, the antitrust authority did not allow
this company to be sold to Coca Cola.
This company is one of the largest mineral water and carbonated beverage bottlers in Mexico,
with three plants located in Tehuacán, Puebla; Tlajomulco de Zuñiga, Jalisco; and Tecate, Baja
California. Cadbury closed a fourth plant in the State of Mexico in 1999.
The company has continued to manage the company and will be moving forward with a series of
investments. Over the past three years, the company has invested over US$ 40 million in plant
modernization and for the purchase of process and packing machinery.
Cadbury produces various brands in Mexico and packages its products in more than 120
different presentations. Including returnable and non-returnable glass, six sizes of PET bottles
and aluminum cans. Cadbury also utilizes some other plastic and cardboard containers.
Shipments are prepared in plastic boxes, film-covered cardboard trays and cardboard boxes.
Cadbury’s most important carbonated waters and other beverages are:
Peñafiel (Flavored and non-flavored carbonated waters), Crush (Orange flavored carbonated
soft drink), Extra Poma (Apple flavored carbonated soft drink), Etiqueta Azul (Carbonated water),
Canada Dry, Aguafiel (Mineral water), Squirt (grape fruit carbonated water), Clamato (tomato
and clam juice) and Snapple (Teas and juice fruts)
In addition to the products manufactured by Cadbury in Mexico, the firm distributes Schweppes,
Mott’s and Dr. Pepper.
Brand
Units
Origin
Bottle blowers
Sidel, Kurpp
Simonazzi (Sidel)
15
Cappers
Case forming
Alcoa, F. Zalkin
Pearson, Hartnes
6
9
France/
Germany
/ Italy
U.S.
U.S.
Average Specificatio
Age
n
6
70%
10
10
70%
80%
97
Coding, marking, stamping
De palletizers
Fillers
Wrap labelers
Labeling machines
Packing
Palletizers and depalletizers
Tray and film (Multi packaging)
Wrapping
Domino
Acmi
10
6
U.S.
Italy/
5
7
90%
80%
Monasis, Meyer,
Crown
Polyclad
Alfa
Hartness, Meyer
12
U.S.
10
75%
12
4
20
4
4
7
70%
80%
65%
Acmi
N/A
Lantech, Orion,
Acmi
10
10
11
Canada
France
Germany
U.S.
Italy
France
U.S./
Italy
4
3
8
80%
80%
70%
Approximately 60% of Cadbury’s installed packaging machinery is from the Europe, 20 %
Canadian and the remaining 20 % European. The equipment origin is different in other countries
since in the U.K. most machinery is European.
Hace aproximadamente 3 años, la empresa contaba con 70% de maquinaria de empaque
instalada en sus 3 plantas, actualmente esto ha cambiado radicalmente, ya que la tendencia de
la empresa es hacia equipo Europeo, ya que lo consideran de mejor calidad con un servicio
superior al de USA.
D) Last Purchases of Packaging Machinery.
Cadbury’s last purchase was in February 2006 when they invested US$ 800,000 for bottling
blowers for PET for their Jalisco facility.
Machinery
Bottle blower machine
Brand
Sidel
Country
France
The company is defining the specific equipment purchases they will fund with an existing US$ 3
to 4 million dollar budget for packing equipment that will be spent over the following 24 months.
The purchase will include filling lines, capping machines, labelers, palletizers and de-palletizers,
bottle blowers and tray film machines among others.
Cadbury develops yearly investment plans incorporating product demand and equipment
requirements at their facilities. Purchasing decisions under US$ 500,000 are made locally,
whereas larger purchases require authorization from London.
When in the process of acquiring machinery, Cadbury requests proposals from at least 3
companies. For major investments they retain a consultant to conduct an open bidding process.
Decisions are made locally but require approval from London.
Most purchases are self-financed, paying 50% in advance and 50% against delivery.
As for spare parts the company keeps an inventory and gets its local technicians to be trained by
equipment suppliers to be able to provide – in-house- regular maintenance. As for major repairs,
Cadbury uses the equipment manufacturer’s technicians, which they indicate to be very
expensive.
98
•
•
•
•
•
•
Previous experience and company -wide experience (Which equipment is giving best
results within facilities worldwide)
Customer support and technical service (cost and quality)
Speed, ease of operation, flexibility of equipment
Price of the equipment ( including transport and tariffs)
Quality and brand reputation
Credit terms and conditions.
Cadbury at present has no specific agreements with any manufacturer or supplier of packaging
machinery. In those cases when several companies of the group, require similar new machinery,
the headquarters in London negotiates an agreement with a supplier.
Cadbury mentioned, as some of their preferred suppliers, the following companies; for bottle
blowers: Simonazzi (Italy) and Sidel (France), which they said to be solid companies’ with
important presence in their sector.
Cadbury’s evaluation of packaging machinery according by country of origin:
Origin
United States
Canada
Germany
Italy
France
I)
Technology
Good
Very Good
Very Good
Very Good
Very Good
Flexibility
Regular
Good
Very Good
Very Good
Good
Service
Good
Good
Good
Good
Very Good
Price
Good
Good
Poor
Average
Poor
Trade Show Attendance / Trade publication Information:
Cadbury attends most packing related shows in Mexico and the U.S., and they receive
information from London on European trade-shows. They don’t review specialized publications
frequently.
Cadbury is seeking for companies with experience in the interaction of PET bottling lines, which
can also install, test and provide training to their technicians for providing in-house maintenance.
Cadbury is interested in the following equipment:
•
•
•
•
•
Multi-packing (Cartooning)
Integrated bottling line
Capping and labeling processes complete lines,
Palletizers and depalletizers
Bottle blowers and tray film machines
Company Name:
Contact:
Position:
Address:
Telephone:
Telephone:
Telephone:
Cadbury Schweppes, S.A. de C.V.
Ing. Antonio Avalos
Technical Manager
Manuel Ávila Camacho No. 24
Torre del Bosque piso 10
Col. Lomas de Chapultepec
11000, México D.F.
(52) 5249-9143
[email protected]
www.cadburymexico.com.mx
99
Casa Cuervo, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverage
Alcoholic Beverages.
Jalisco, Mexico
US$ 2.5 million
Bottle filling machine,
de-palletize machine,
form, fill and
cartooning machine
Casa Cuervo is private Mexican company that initiated its business over 200 years ago with
tequila production in the state of jalisco. At present the company has incorporated additional
liquor production and also distributes international liquor brands in Mexico, The company has
been very successful in the US market.
Company’s current production includes a wide variety of tequila brands, brandy, rum, vodka,
cocktails and other liquor products. The company has three production plants in the state of
Jalisco with a production capacity of 5 million boxes per year. This is the most important tequila
producer in Mexico and exports 60% of its production into 135 countries.
Casa Cuervo has more than 60 product presentations and 20 product brands. The company has
three production facilities, each manufacturing different products. The company has a
headquarter offices in Mexico City.
Product
Tequila
Brand
José Cuervo, Tradicional,
Azul and Reserva de la
Familia.
Rum
Cuervo
Vodka
Cuervo
Brandy
Cuervo
Ready to drink José Cuervo Margaritas
Margaritas
Package
Glass bottles, plastic caps, labels and four pack
carton boxes
Cuervo has 6 complete bottling lines with different packing machinery equipment in their three
production plants. Over 65% of their current packing machinery infrastructure is from Europe
and the rest is from US manufacturers. The company provided information on their most
representative packaging machinery.
Bottling filling machine
Labeling machine
Labeling machine
Brand
MBF
Irundin
ZEPF
AVE
Auxiemba
Krones
Units
Origin
2
2
1
1
3
2
Italy
Spain
USA
Italy
Spain
Germany
Average
Age
6
6
3
2
6
6
Spec.
95%
95%
95%
95%
95%
95%
100
Labeling machine
Labeling machine
Box filling machine (bottles)
Palletizing machine
Codifier machine
Codifier machine
AVE
SIG
Hartness.
Samovi
Video Jet
Marken
1
1
3
2
7
2
Italy
Italy
USA
Spain
USA
USA
2
N/A
N/A
N/A
4
2
95%
N/A
95%
95%
90%
90%
Casa Cuervo last packaging machinery purchase was a complete bottling filling machine MBF
(Italy) and one labeling machine Auxiemba (Spain) both machines were acquired in 2005 with an
investment of US$ 2 million. The bottling filling machine was acquired directly from the
manufacturer and the labeling machine was acquired from a rep located in Mexico City.
Casa Cuervo spends between US$ 1 million and US$ 2 million in packaging machinery per year.
Machinery
Labeling machine
Brand
MBF
Auxiemba
Country
Italy
Spain
The company has developed a US$ 2.5 million budget for the acquisition of packaging
machinery during 2006. This budget will be spent mostly in one bottling filling machine, one depalletizing machine, one box forming machine and one box filling machine (bottles),
Machinery
Units
Origin
Motive of Purchase
1
De-palletizing machine
1
Probably
Italy
TBD
Box forming machine
1
Box filling machine (bottles),
1
Expansion and
replacement
Expansion and
replacement
Expansion and
replacement
Expansion and
replacement
Italy or
US
Italy or
US
Estimate
Budget
TBD
TBD
TBD
TBD
All purchases of packing equipment need to be supported and justified with technical and
economical feasibility studies. Casa Cuervo makes the purchasing decisions at a corporate level
in Mexico City with a previous presentation of the technical and financial teem justified the
project.
If purchasing new equipment, the company invites its existing suppliers and minimum 1 new
supplier to present proposals for the equipment. New suppliers need to convince Casa Cuervo
as to why they should be considered as a company and not only for their equipment.
The company buys spare parts form the equipment manufacturers and keeps an inventory of the
most commonly required parts.
The company indicated that it has begun a standardization program to reduce the number of
equipment brands it has at their facilities. The idea is to make it easier to provide maintenance to
the equipment and to stock a smaller number of spare parts.
The company indicated that they do not base equipment purchasing decisions on who is the
leader in the segment, The company makes independent evaluations and invited the interested
101
supplier to make a case on his behalf. The company compares potential suppliers with at least
two alternatives before closing a purchase. The recent purchase from the Italian supplier MBF ,
is an example of how the company is open to working with lesser known companies.
6.
7.
8.
9.
10.
Functionality
Price
Technical support
Spare parts local availability
Commercial considerations (flexibility for payment)
Casa Cuervo has a preference for some suppliers but is continuously looking for information on
new equipment and suppliers for the beverage industry, specifically for bottle filling lines and
equipment. The company indicated to consider that Italian and Spanish suppliers have the most
advanced technology and equipment in this area. They consider US suppliers to have lagged
very significantly in this industry.
The company indicated to be very satisfied with the service they are receiving from European
suppliers, which visit their facility at least two times per year. The company indicated that their
current suppliers respond promptly to any equipment repair or emergency maintenance need,
The company has the perception that Us suppliers have lost interest in the Mexican market as
sales calls and contact are almost inexistent.
Cuervo’s evaluation of packaging machinery according by country of origin is the following:
Origin
United States
Germany
Italy
Spain
Technology
Good
Very Good
Very Good
Very Good
Flexibility
Regular
Regular
Good
Good
Service
Regular
Regular
Good
Good
Price
Average
Poor
Good
Good
I) Trade Show Attendance / Trade Publication Information
Casa Cuervo visits yearly, the packaging trade show in Mexico ExpoPack. The company
subscribes to specialized trade publications like beverage packaging world, among others.
Casa Cuervo is interested in receiving information from manufacturers of Bottle filling machines,
de-palletize machines, form, fill and cartooning machines, laser coding machines, and
automation equipment. Interested companies must remember that Casa Cuervo requires
potential suppliers to have extensive experience in this company’s sectors in order to be
considered.
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Casa Cuervo, S.A. de C.V.
Ing. Pedro Jimenez / Ing. Ramiro Garza
Planta Manager / Production Manager
Periférico Sur No. 8500
Col. El Mante
45601, Guadalajara Jalisco, Mexico
(5233) 3134-3300
[email protected] , [email protected]
www.cuervo.com
102
Grupo Modelo, S.A. de C.V
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Beer.
Mexico City (headquarters)
US$ 4 Billion
US$ 4 million.
Beer bottling equipment in
General. Washing machines,
pasteurizers, conveyors,
paletizers, packaging and
fridge pack equipments.
Grupo Modelo was established in 1925 and is considered as the leading brewer in Mexico.
Their brands have obtained worldwide recognition and their product Corona, has become the
leading imported beer in the US market. The company through its various beer brands, has an
estimated 70% market share in Mexico’s beer market.
The company has 7 plants and more than 60 bottling lines. Their annual production capacity is
around 6.0 billion liters of beer. Grupo Modelo produces 10 different beer brands. Their most
important brands are Corona, Modelo, Victoria and Pacifico. The Corona brand is the single
most important brand in Mexico accounting for 37 percent of the domestic beer market and is
the #1 imported beer sold in the U.S. Today Grupo Modelo is a publicly traded company. The
company exports five beer brands to around 150 countries and imports Anheuser-Busch’s
Budweiser and Bud Light into the Mexican market.
Managerial control of this company has remained in local hands in spite of the growing
importance of the Anheuser-Bush Companies, Inc., who by late 1998 owned a 50.2% stake in
the company. Anheuser-Bush has indicated no interest in managing the company, but controls 6
of the 11 seats at their board of directors.
.
Product
Beer
Brand
Corona, Corona light, Negra
Modelo, Modelo Especial, Modelo
light, Victoria, Estrella, Pacifico,
Leon, Montejo. Tropical
Package
Glass bottles with 190, 325 and 940 ml
capacity for the local market and glass
bottles with 7, 12 y 24 oz. capacity for the
export markets.
340 ml Aluminum cans
30 and 60 lt kegs
24 oz. aluminum cans
Grupo Modelo has a specific strategy for its packaging machinery. This strategy is based on the
standardization of all the equipments. The company tries to have the least possible packaging
machinery brands in order to decrease maintenance and spare part costs. By having fewer
suppliers Grupo Modelo is able to resolve machinery problems faster.
The company has over 60 bottling lines with one to four machines of each type per line. The
following is the current packaging machinery of their 7 facilities:
103
Depalletzing machines
Brand
OCME
Meyer
Barry
Hartness
Bottle cleaning machines
Simonazzi (Sidel)
Barry
SEN-K45
Filling and closing machine
SIG- Simonazzi
Meyer
Cemco / Fran Corp
Hansa
Pasteurizer
Simonazzi
Barry
SEN
Labeling machines
Alfa-SIG
Krones
JAGENBERG
Wiring machine
Angelus
Keg filling machine
Comak
Case Packers
Meyer
Barry
Hartness
High speed palletizing units OCME
(120 boxes x minute)
SEN
Courrier
Bottle inspection machines
FILLTECH
Omnivision
Optiscan (Barry)
Ejector machine
Stratech
Box coding machines
Lumonic
Videojet
Box
forming
cleaning Dexter
dispensing machine
Box forming machine / RA Parson
Cosedora x grapa
Tray forming machine
SWF Machinery
Tray forming machine / OCME
thermoshrink
Wrapping machines
Lantec
Robopack
ITW
12 pack packaging machine Mead
Fridge Pack
Thiele
Total units
100
12
1 –2 per line
68
1 – 3 per line
56
1-3 per line
Origin
Italy
USA
USA
USA
Italy
USA
Germany
Italy
Germany
N/A
N/A
Italy
USA
Italy
Italy
Germany
Germany
USA
USA
USA
USA
USA
Italy
Italy
1-4 per line
3-4 per line
USA
USA
USA
Germany
USA
USA
Mexico
USA
USA
Italy
USA
Italy
4
2
France
USA
Grupo Modelo indicated that they have been replacing some of the Meyer and Barry equipments
with Simonazzi since they have a technical arrangement with the latter. In general they told us
they haven’t had problems with their machinery.
104
Their most recent equipment purchase took place in 2004 and 2005, their investment was
approximately US$ 30 million. The company bought several types of packaging machinery in
order to expand production capacity.
Machinery
Packaging Machines
Brand
Hartnes
Rajones
Case and tray thermo forming OCME
machine
Country
USA
USA
Italy
Units
25
10
6 complete systems
Grupo Modelo is constantly evaluating the productivity at each line. Their future packaging
machinery strategies are based on the company’s needs for expansion and increasing
productivity. The company is permanently interest in learning about the latest technologies for
its industry. The company incorporates a new machine as soon as it learns that it can improve
the efficiency of their operation and be const effective.
A short term priority will be the standardization program for their machinery at all their facilities.
Their next purchase will be on the renewal of 5 lines which are presented in the following table:
Machinery
Units
Origin
Washing machines
Pasteurizers
Conveyors and systems of transportation
Packaging
Paletizers
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
Motive of
purchase
Renewal
Cost
‘000 000
US$ 5 to 6
per line.
They told us that even though they are open to learn about new suppliers and brands, they will
try to work with their current suppliers because of the standardization policies.
Grupo Modelo has set several policies to acquire new machinery. Their first step is to evaluate
the productivity at each line and depending on the results and cost / benefit analysis of new
equipment alternatives they make decisions regarding the possibility to purchase new
machinery.
The company has a corporate engineering department that controls, checks, and evaluates their
production facilities and the performance of their equipments. If a new machine is needed the
company analyzes 2 or 3 packaging machinery manufacturers. After revising the quality, price,
maintenance, and technical support, the engineering department director with its team creates a
technical and economical evaluation of the 3 manufacturers. During this process they also
evaluate the previous experience they have had with the supplier and in the case of new
suppliers they look for the brand’s market share and recognition in the industry.
After making a detailed comparison of the advantages and disadvantages of each supplier the
department decides which new equipment is going to be bought. They told us that the
maintenance cost is a major factor in the decision for replacing existing equipment.
Even though the company requires their new suppliers to have a good technical support and
maintenance services, they have their own maintenance team. When they have minor problems
with the equipments, their team has the responsibility to resolve the conflict. The suppliers
105
maintenance team is required if major problems emerge. As a policy, all the spare part products
are bought directly from the manufacturers. However, they maintain an inventory of the most
commonly used spare parts which they purchase form the equipment manufacturers.
The company usually purchases the equipments through their own cash flow and in some cases
it has rented machines with the option to purchase the machine at a later time. Grupo Modelo
does not use any kind of credit. They usually pay on a 30-70% scheme.
1. Equipment quality
2. Ease of operation
3. Low maintenance and operation costs
4. Spare part availability
5. Price
As mentioned earlier, Grupo Modelo has a standardization policy for their packaging machinery.
The following is a list of the companies preferred by Grupo Modelo:
•
Currently the company has a joint-venture with Simonazzi. This company gives
technical assistance to Grupo Modelo’s packaging machinery plant (Inamex) in order to
help them manufacture some of the packaging equipments in Mexico and help the
company to reduce import and freight costs. Today Inamex is manufacturing
pasteurizers, washing machines, bottle transport machines with Simonazzi’s know-how
manufacturing techniques. Also all the equipments for glass bottles are bought through
Simonazzi.
•
Some of the carton boxes are usually bought from OCME. As they indicate that this is
the only equipment that has worked for them as they re-use the carton boxes. The
technology for these machines was specially developed for Modelo in 1995.
•
Also for carton boxes they like to work with Hartness since they have also designed a
machinery to re-use the product several times.
The company has no preference between European or U.S. packaging manufacturers. What
matters for Grupo Modelo is if the supplier meets their requirements and if it would be
compatible with their existent machinery in order to have a standardization of equipments.
However, they mentioned the main differences between European and US equipments is that
Europeans have more technological advances and better technical and post-sale services. In
the last three years the Europeans, according to Grupo Modelo have advanced faster in
packaging technologies.
Origin
United States
Italy
France
Technology
Good
Very Good
Good
Flexibility
Good
Very Good
Very Good
Service
Regular
Good
Good
Price
Regular
Good
Good
106
Brand: Hartness
Strengths:
• Low maintenance costs
• Flexible
• Robust
Weaknesses:
• Slow availability for technical support
Brand: OCME
Strengths:
• Excellent technology
• Good Service
• Good Price
• Flexible
Weaknesses:
• N/A
Grupo Modelo is very precocious on selecting their packaging machinery suppliers. Quality is
the primal factor for the selection of packaging equipments. In the last years, Grupo Modelo has
seen an increase of Asian packaging manufacturers, especially in trade shows and expos.
However, the company told us that they do not want to take the risk by buying and investing on
cheap and probably low quality products. According to what they have heard on the market,
Asian packaging suppliers have yet not reached top technological and quality equipments. They
know that Sidel, Krones and others have embarked some of their manufacturing plants to Asia,
but all the products manufactured by these companies in Asia are exclusively for that market.
K) Trade Show Attendance / Trade publication Information:
For the selection of new equipment and potential suppliers, Grupo Modelo has several strategies
but the two best ways to find this kind of information is by attending packing machinery trade
shows and by receiving information by their current and potential suppliers.
Grupo Modelo follows up with new technology developments in their industry by visiting trade
shows in Germany, specifically Interbrau and Drintek. They indicate that as these shows take
place every 4 years, they really see a technological evolution from one show to the next. They
told us that the have also visited Expo pack and Pack expo in the last years.
The company receives trade publications but they are more interested in the information sent to
them by potential suppliers.
L) Specific Interests
Grupo Modelo is interested in receiving information on state-of-the art technologies for beer
bottling as well as for Fridge Pack equipments. Also on washing machines, pasteurizers,
conveyors, paletizers, packaging and fridge pack equipments.
M) Contact Information:
Company Name:
Contact:
Position:
Address:
Grupo Modelo, S.A. de C.V.
Ing. Jesús Falcón Aguilar
Bottling Operations Director
Campos Eliseos #400, 14th floor
Col. Lomas de Chapultepec
107
Telephone:
Fax:
e-mail:
web page:
11000, Mexico, D.F.
(5255) 52 81 01 14
Ext. 2113
(5255) 52 81 10 40
[email protected]
www.gmodelo.com
108
Tequilera Corralejo, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (employees)
Purchasing
Potential:
Specific
Business
Opportunities:
Beverages.
Alcoholic Beverages
Penjamo, Guanajuato
150
Not defined
Bagging machines
Polyethylene foam machines
Tequilera Corralejo is a 100% Mexican Company dedicated to the production of tequila. The
company has been in the market for ten years and has been able to develop local and
international market share for its products. The bottle has a particular blue color with an
elongated design and according to the company, it is one of the highs quality tequilas in Mexico.
The company’s sales growth over the past five years have averaged 20%. The company’s only
production facility has a capacity of 5 million liters of tequila per year. The company has been
able to export into 15 countries.
The company has 4 products. The list below shows these product brands and packaging:
Product
Tequila
Tequila
Tequila
Tequila
Brand
Package
Corralejo Blanco
Glass bottles, labels
Corralejo Reposado
Corralejo Añejo
Corralejo
Triple Glass bottles, labels
Destilación
Corralejo has three complete bottling lines from the same supplier. Equitopack is a Spanish
packing machinery that has been able to adapt to Corralejo’s needs. Since the special bottle
design, Equitopack’s machinery flexibility has been perfect for the company’s tequila production
processes. They have been acquiring this brand for the last three years. Their last purchase
was last year. The next table shows the bottling lines information:
Brand
Bottle Washing Machine, bottling filling Equitopack
machine, labeling machine, codifier
machine (Complete bottling line)
Units
3
Origin
Spain
Average Age
1-3
Spec.
95%
The company’s last packing machinery purchase was a complete bottling filling machine from
the same brand Equitopack. This line was bought as the company continues growing at a very
significant rate. They told us that they stayed with the same brand since the results have been
excellent and that the Spanish company has been able to create the right machinery for
Corralejo’s particular needs.
Machinery
Complete bottling line
Brand
Equitopack
Country
Spain
109
The company is currently considering the development of new products which will create a need
to purchase additional packing machinery. The company is considering entering into a growing
and profitable niche which is a type of “coolers” which are canned mixed beverages. The
company is interested in companies with experience in aluminum containers, as the product will
have a bottle shape.
The company considers that some of the equipment that will be required for the project includes
the following:
Machinery
Units
Origin
Motive of Purchase
Can Production Machine
1
N/A
Bottle Washing Machine
1
N/A
Expansion, new
products
Expansion and
replacement
Estimate
Budget
N/A
N/A
Corralejo has a purchasing policy that is followed for every purchase. In order to choose a
packing machinery supplier the company implements a selection process that consists of
several technical, economical and cost-benefit studies. In order to approve a supplier, the plant
manager studies each company and decides which one would be the most feasible for
Corralejo.
The company has no preference on a particular brand but prefers to work with suppliers that are
flexible and are willing to manufacture equipments that will adapt to the company’s bottle design
necessities. The company also requires suppliers to give a special training program to their
engineers in order for them to be able to fix any kind of problem. Since Corralejo has a
preference to purchase equipments directly from the manufacturing plant, they also require
suppliers to send a technician on a regular basis to check the machinery.
The financial arrangements are done when they sign the contract. Usually Corralejo prefers a
30% advance payment and when the equipment is installed give the 70% remaining. In the past
they have worked on a 50-50% scheme because of negotiation reasons.
11.
12.
13.
14.
Functionality
Price
Technical support
Brand
Tequilera Corralejo has no brand preference and any kind of business arrangement with any
packing manufacturing company. The company is continuously looking for manufacturers that
will adapt to their necessities. Since their bottle design is unique, Corralejo is open to learn on
companies that are able to manufacture custom made equipments.
They have noticed that US equipments lack on flexibility. They researched and found that US
equipments have a strong technology but haven’t been able to fulfill their necessities. On the
other hand, European equipments have increased on technological advancements as well as on
flexibility. They commented that Europeans are giving better services and adapting to
companies necessities. For example, their current supplier has created an equipment that
successfully satisfies their packing processes.
110
Although the company has not experience completely with US equipments the evaluation of
packing machinery according by country of origin is as follows:
Origin
Technology Flexibility
United States
Germany
Spain
Good
Very Good
Good
Poor
Good
Very Good
Service
Regular
Good
Good
Price
Regular
Regular
Good
Tequilera Corralejo rarely visits trade shows and expos. They have only attended the ExpoPack
in Mexico but they do not go in a regular basis. The company is subscribed in specialized
manufacturing magazines and receives information on new technologies from Krones.
Corralejo would like to receive information from manufacturers of can production machinery and
bottle washing machines.
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Tequilera Corralejo, S.A. de C.V.
Ing. Miguel Roa
Plant Manager
Ex Hacienda Corralero s/n
36921 Penjamo, Mexico
(52-469) 696-4104
[email protected]
www.tequilacorralejo.com.mx
111
8.
8.1.
The Pharmaceutical Industry:
Industry Overview.
The Mexican pharmaceutical and drug product market reached approximately US$ 9.1 billion in
2005, of which US$2.7 billion are imports and the rest is produced locally. Imports have grown at
an important pace averaging 23% per year over the past three years while the total drugs market
has grown 9% from 2001-2005.
The market is composed of patent drugs, representing 20% of volume and 77% of value and
generics, which continue growing in importance in the market. The key driver for this growth is
purchases to supply government run health services, which are interested in minimizing drugs
prices. Private sector purchases are concentrated in patent drugs.
The market for generic drugs is estimated at nearly US$ 2.3 billon of which over $800 million are
imported and the rest produced locally by 425 pharmaceutical companies. There is growing
imports of generic products including the strong market share development of the Canadian
company Apotex which signed a joint venture with Farmacias Benavides.
International pharmaceutical companies manufacturing in Mexico supply 45% of the generic
market and control production of patent drugs.
Public and private health systems have completely independent operations in Mexico and the
population seeks public services out of necessity and not of choice. The government provides
health services for most employees through the national social security institute (IMSS) funded a
mandatory payroll tax to all employers and fees to employees. Government workers receive
similar services through a parallel system called ISSSTE and the rest of the population, with no
private or public coverage can receive medical services through the ministry of health
(Secretaria de Salud).
Private health providers offer world-class services while government services are deficient;
shortages of supplies are common and estimated at 30%. These difficulties are even more
evident in rural areas where only the most basic care is offered. The government estimated that
health services coverage reached 90% of the population and that quality of services measures
70 in a scale of 100.
Some of the segments in the Mexican pharmaceutical market that have experienced the highest
growth during the past five years are; vitamins, herbal products and nutritional supplements,
which are expected to continue growing at average rates of 15% per year. Competition in these
segments is intense and new investment is expected for the construction of additional
manufacturing facilities in Mexico to satisfy both growing local demand and for exporting to other
Latin American countries.
8.2.
Company Ranking by Size.
Through reviewing local regulations it will be clear why the leading drug manufacturers are
mostly international pharmaceutical companies manufacturing in Mexico, including Abbot,
Syntex, Roche, Aventis Pharma, Glaxo Wellcome, Novartis, Wyeth, Pfizer, Bohereinger
Ingelheim, Bayer, Janssen, AstraZeneca, Pharmacia Upjohn, Merk Sharp and Dohme, Eli Lilly,
SB Pharma, BYK Gulden, Sanofi Synthelab, Bristol, Murk among others.
There are also local pharmaceutical companies active in the market of manufacturing drugs, but
it is uncommon for a company without local manufacturing facilities to be directly involved in this
business segment
112
8.3.
Key Players.
Mexico’s largest pharmaceutical companies include:
Top Pharmaceutical Companies in Mexico
Sales 2004
Million US$
702.60
662.00
558.00
492.00
425.00
368.00
238.00
177.00
168.00
62.50
Company
Pfizer
Merck Sharp & Dohme de México
Grupo Novartis de México
Glaxo SmithKline México
Bristol Myers Squibb de México
Boehringer Ingelheim Promeco
Eli Lilly de México
Ciba Especialidades Químicas México
Merck México
Organon Mexicana
Source: Expansión Magazine, Top 500 Mexican companies.
8.4.
8.5.
Company Profiles.
The industry is facing a significant challenge
consisting in the falsification of products
which are sold through street vendors or in
flea market type environments.
Some pharmaceutical companies, including
Astra Zeneca, have begun to close their
product boxes with hologram stickers and
most companies in the sector will follow this
trend.
The introduction of child protecting blister
applications as well as increasingly
sophisticated capping solutions for child
protection.
The industry indicates to be constantly
receiving suppliers offering RFID solutions,
but that there are no short term plans to
incorporate this technology for replacing bar
codes.
113
Bayer , S.A. de C.V.
Industry:
Sub Industry:
Pharmaceutical
Pharmaceutical and medical
products.
Mexico City
$700 million USD
1.5 million Euro
Any packaging machinery for
the pharmaceutical industry.
Location:
Size: (sales)
Specific Business
Opportunities:
Bayer begun operations in Mexico in 1929 and currently operates three manufacturing facilities,
located in Mexico City, Lerma and Santa Clara.
The company employs over 2,400 people and generates sales of US$ 700,000. Some of the
leading company brands include Aspirina, Alka-Seltzer and Tabcin.
Product
Alka-Seltzer
Aspirina
Aspirina
Efervecente
Antibiotic
Creams
Bayer
Bayer
Bayer
Brand
Package
Sealed plastic bag
Blister PVC aluminum
Sealed plastic bag
Bayer
Bayer
Blister
Tube
The company has a very large base of packing machinery at its manufacturing plants. The
following table presents some of the most representative machines in its operations:
Machinery Type
Units
Origin
Sealing Machines/ Sibler
5
Germany
Blister machines/ Bosch
Blister Machines/ Ulhman
Blister Machines/ Cam
Cartoning Machines/ IWKA
Carton Machines/ Bosch
Carton Machines/ Cam
Pallet machines/ Pester
Pallet machines/ Mab
1
4
1
3
1
1
3
1
Germany
Germany
Italy
Germany
Germany
Italy
Germany
Italy
Age
One has 1
100%
year and
the rest 15
years.
15
95%
2
100%
15
95%
3
100%
15
100%
20
95%
2
100%
15
95%
The company indicated that all their machinery is specially designed for the specific operations
of Bayer.
114
Over the past three years, Bayer has invested over 4 million Euros in packing machinery for its
plants in Mexico. Bayer’s last purchase was in 2005 when they purchased polyurethane
wrapping machine.
Following we present a table with the most recently purchased machinery:
Machinery
3 Packaging machinery lines
1 Pallet Machine
Brand
N/A
Pester
Country
N/A
Germany
N/A
N/A
The company purchases from suppliers that are able to meet with very strict guidelines and that
in most cases are specialized on the pharmaceutical industry. The company indicated to
purchase the finest equipment available for each of their applications. The company is currently
in the process of purchasing two complete packing lines from the German supplier Ulhman and
another from Italian supplier Marquesina. The combined investment for both lines is estimated at
3.5 million euros. This purchases will be to replace existing lines which are becoming obsolete.
In addition to these purchases, they expect to buy an additional packing line in the 2007-2008
period.
Machinery
Complete packaging line
Units
1
Origin
TBD
Motive of
purchase
Replacement
The company indicated to follow very strict guidelines for equipment and supplier selection. The
procedures are followed every time that the operation managers decide there is need for
additional equipment. The company performs a technical feasibility and economic analysis and
develops a budget for the purchase of the machinery. The maintenance department produces a
series of documents describing the technical specifications of the required equipment and
provides the information to interested suppliers. The company commonly receives three or four
equipment proposals. The proposals are analyzed and a purchasing decision reached. All the
machinery used by Bayer is custom made to meet very specific technical characteristics,
produces specifically for their. Common purchasing terms used by Bayer are the following:
•
•
•
•
Up 40% advance payment
Additional 30% payment after passing the --- testing
20% payment at the delivery of the machinery
The remainder is paid after approval by the maintenance department which is
responsible for performing operational testing of the equipment.
Some elements that come into play during the evaluation for the selection of a supplier or its
equipment include the following:
1.
2.
3.
4.
5.
Machine capabilities
Technology
Service
Price
Spare parts and training
115
As a result of the strict guidelines followed by Bayer and the need to have suppliers produce
equipment to specifications, the company has a preference for a few suppliers. They indicated
that in this group of preferred companies we could find companies like Sibler for folded paper
packing, Ulhman for Blisters and Pester for polyurethane wrapping machines. Bayer indicated to
have had excellent results with the use of machinery from these suppliers. The equipment from
these companies can handle large volumes at very high speeds and they are receiving excellent
service in Mexico. The pharmaceutical industry considers these companies as the best packing
machinery suppliers for their industry. In any case, Bayer indicated to be open to receive
information from other suppliers and that even while they have excellent experience with existing
suppliers they are always available to initiating a dialogue as the possibility always exists to find
better alternatives,
Bayer considers that European countries specially Germany and Italy are the strongest in
packing machinery, because of their technology as well as the quality of the equipment
construction. They also indicate that suppliers from these countries are more interested in
assuring client satisfaction and developing a long term business relationship.
The company indicated to have had little contact with US suppliers, to consider their
technologies as very advanced but that they do not consider their machinery as robust as the
European.
Origin
Germany
Italy
Technology
Very Good
Very Good
Service
Very Good
Good
Price
Good
Good
** Bayer made no comments on equipment flexibility as all the equipment they use is designed
and constructed for specific processes.
Brand: Ulhman
Strengths:
• Robust
• State of the art technology
• High volume capacity
Weaknesses: N/A
Bayer has not been approached by Asian packing machinery suppliers and has no interest in
searching for new potential suppliers which base their competitive strategies on price and not on
superior technology, machinery quality or specific experience and products developed for the
The company attends several trade shows including Expo Pack, Expo Farma and the
international trade show in Pharma and packing in Germany. The company also reviews trade
publications to remain updated on trends and technologies to the pharmaceutical industry.
The company is only interested in suppliers that consider to have state of the art technologies
and that are specialized on the pharmaceutical industry.
116
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Mail:
Web page:
Bayer de Mexico S.A. de C.V.
Mr. Alfredo Velez
Maintenance Director
Carretera Mexico-Toluca. Km 52.5
Lerma, Estado de Mexico, Mexico
(52-55) 5728-3000 ext. 4985
(52-55) 5728-3000
[email protected]
www.bayer.com.mx
117
Boehringer Ingelheim Promeco, S.A. de C.V.
Industry:
Sub Industry:
Pharmaceutical
Pharmaceutical products,
patent drugs and related
products..
Mexico City
US$ 370 million
TBD
Hologram stickers and end of
line coders.
Location:
Size: (sales)
Specific Business
Opportunities:
Boehringer Ingelheim is the fourth largest pharmaceutical company in the world. Its operations in
Mexico result from the combination of two companies, Boehringer Ingelheim and Promeco. The
company operates a plant in Mexico City and a veterinary products plant in Guadalajara.
Total sales in Mexico for both divisions reached approximately US$ 370 million during the year
2005, making it the fifth largest pharmaceutical company in the Mexican market. Close to 10% of
the local production is exported into the Us and Canadian markets.
The plant in Mexico City was inaugurated in 1998, called the Promeco complex and is located in
the Xochimilco area. The complex is comprised by a production plant for oral solids, a plant for
the production of liquids, a quality control lab and a state-or- the art warehousing facility. The
operations of the Promeco facilities have been certified by the Mexican ministry of health, the US
FDA and the Canadian TPP.
The investments for the Promeco plant were part of Boeringer Ingelheim’s OPINA (Optimization
of the Pharmaceutical Industry in North America) project.
Some of the products that are manufactured and / or packed at these facilities are sold in the
Mexican market under the following names: Bipasmín®, Buscapina®, Gotinal®, Isodine®, Lonol®,
Lonol Sport®, Mobicox®, Bisolvon®, Bisolpent®, Bremagan®, Viramune®, Pharmaton®,
Prodolina®, Mucosolvan®, Venastat® and Mensifem® .
Product
Ointment / Gel
Hypodermic
injection products
Cough and other
syrups
Iodine based
products
Brand
Lonol
Various brands
Package
Flexile tube
Glass Ampoules
Bisolvon, Bisolpent,
Mucosolvan, among
others
Isodine douche, foam,
solution, gargle
Glass bottles
Plastic bottle
After the product is in its container it is packed in cartoon box.
118
The following list presents the packing machinery installed at the liquids production plant:
Weighers
Printing machine
Dynamic scale
Viscous filling machine
Cartooning
Scale
Tape dispensing machine
Coding machine
Cartooning M-80
Tape dispenser machine
Shrink and retractile oven
Orienting flask machine
Unwrapping machine
Bottle blower machine
Filling liquid 200 bottles x min
Cartooning MA-400
Box form machine
Bottle washer machine
Filling machine 100 bottles x min
Box form machines
Multi-packaging (flasks, spray,
instructive)
Scale
Tape dispensing machine
Coding machine
Horizontal filling machine for semi
viscous
Blister machine
Brand
Units
Origin
Metler-Toledo
Jaime
BOSCH
COMADIS
IMA-150
BOSCH
Multipack
Leatus
Marchessini
Multipack
AXON
OZAF
Multipack
Neri
Farmomac
Marchessini
BFB
Libra
IMA Farmomac
BFB
Marchessini
8
1
1
1
1
4
1
6
1
1
1
1
1
1
1
1
1
1
2
1
1
Switzerland
France
Germany
Italy
Italy
Germany
Italy
Germany
Italy
Italy
USA
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Average
Age
8
8
3
10
8
2
9
6
14
14
7
N/A
6
6
6
9
5
11
8
2
3
BOSCH
Miltipack
Leatus
Farmomac
1
1
1
1
Italy
Italy
Italy
Italy
3
3
3
2
IMA C-80
1
Italy
1
The company stopped the production of injectable products in Mexico. The machinery they had
in Mexico was sent to Spain where they are concentrating the world-wide production of
injectable products.
The company’s last purchase took place in 2005 when they acquired a blister machine for
tablets to replace an old machine. The machine was acquired directly from the manufacturer
IMA based in Italy.
Boehringer Ingelheim Promeco does not develop specific budgets for the purchase of new
packing machinery. Equipment purchasing plans are the result of specific manufacturing
projects. The company is analyzing changing some product presentations and to do this they
would require to purchase a blistering line and a new packaging line for tablets in flasks.
The company mentioned that they could also replace some old machinery during the course of
2007 but these projects are undergoing the approval process.
119
At the IB Promeco plant they make economic cost-benefit analysis for all their lines every year. If
they propose any new equipment is must have a payback of three years, this is a prerequisite for
the purchase to be approved.
If a purchase is approved, the company selects the equipment between at least three options. A
final decision is reached jointly between the managerial committee in Mexico and the corporate
headquarters is Germany.
•
•
•
•
The new equipment is compatible with their existing machinery, and helps develop a
trend for equipment standardization.
Service
The equipment’s flexibility and reliability
Price
The company mentioned that the best machinery for their industry is made in Germany, but that
these machines are very expensive. They also mentioned to like Italian equipment as it is
flexible, easy to operate and they have received very good technical support.
The company indicated they are inclined to purchasing machinery that is similar to the one they
are already using, as their personnel are already familiar with this equipment and suppliers. This
is important to them because in the liquids area they manufacture a wide range of products but
they cannot justify a dedicated line for each product. As products share the same production
line, there is need for cleaning the machinery and related equipment at least twice a week. It is
because of this constant configuration and cleaning, that the company has a preference for
equipment with which they are familiar, something they expect can reduce down-time.
They also mentioned that establishing a business relationship with a particular supplier also
generates several advantages. They can negotiate better pricing, get spare part kits at reduced
prices to other benefits.
As for maintenance, they indicate that this is performed by their own staff. Most of the spare
parts are purchased form the local representatives of their equipment suppliers or directly from
the manufacturers. The plant also has a shop where they manufacture those spare parts that are
most commonly replaced.
The company has a series of corporate agreements with several packing machinery suppliers
including IMA, Multipack and Marchessini, all from Italy. When the company has a need for new
equipment, they first check that such machine is not available at some of their facilities worldwide. If the machine is not available they proceed with the purchase of new equipment. The
following step is to contact the suppliers with which they have pre-existing business relationships
and corporate agreements. If these suppliers are not adequate for the requirement, the
corporate office in Germany suggests alternative suppliers. If the suggestions fail to yield viable
options, the operation in Mexico initiates the search for potential suppliers.
Boehringer Ingelheim Promeco’s evaluation of packing machinery according to its country of
origin:
Origin
United States
Germany
Italy
France
Technology
Good
Very Good
Very Good
Good
Flexibility
Low
Good
Good
Good
Service
Average
Good
Good
Good
Price
Good
High
Average
Average
120
I) Trade Show Attendance / Trade publication Information:
The representatives from this company visit only one trade show in Mexico which is ExpoFarma,
which is focused on the pharmaceutical industry. They do not visit other shows as they indicate
that their equipment purchases are sporadic.
The company is interested in receiving information on packing security features which help
identify the product as original and not a copycat produced for sale in the black market. The
company is interested in learning if laser imprinted holograms might be an option for satisfying
this need. The company’s interest is to help the consumer be completely sure that he is
receiving an original product. The company at this point has no information on potential
suppliers. This procedure to use holograms in product boxes, is something already being done
by Astra Zeneca in Mexico.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
e-mail:
web page:
Boehringer Ingelheim Promeco
Q.F.B. Laura G. Acosta Rodriguez
Manager of liquids production
Maíz # 49
Xochimilco
16090, Mexico D.F.
(5255) 56 29 83 00 Ext. 8114
(5255) 54 20 85 82
[email protected]
www.promeco.com
121
Eli Lilly de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Trade mark drugs, prescription, over the
counter products, and other medical
specialty products
Mexico City
US $ 300 million
US $ 2.5 to 3 million for 2006
Complete blister line.
Eli Lilly in one of the leading multinational pharmaceutical companies and has been active in
Mexico for over 60 years. The company is currently producing 40 products in close to 70
different presentations. in 1876 in Indianapolis, Indiana, in the Midwestern section of the United
States.
Eli Lilly in Mexico is one of the top 5 pharmaceutical groups in Mexico controlling around 12% of
the Mexican pharmaceutical market. The manufacturing facility located in Mexico City exports
their products to 20 countries and this represent 17% of their production of more that 4 million
items per year.
Eli Lilly produces a wide variety of drugs, most of which are packed in blister or glass bottles.
The most representative products are:
Media
Capsules
Tablets and Liquid
Tablets
Tablets
Injections
Capsules
Tablets
Capsules, tablets and liquid
Brand
Prozac
Keflex
Evista
Zyprexa
Humulin
Strattera
Symbyax
Ilosone
Package
Blister
Bottle and Blister
Blister
Blister
Vial
Blister
Blister
Bottle and Blister
95% of Eli Lilly’s packaging machinery is Italian or German. The company considers Italian
pharmaceutical machinery to be the most technologically advanced and quite flexible for
adapting to various packing applications. Some of its most important packaging machinery
includes:
Units
Origin
Carton Filling Machine/ BOSCH
Ampoule Filling Machine/ Cozzolli
Capping Machine / BOSCH
Labeling Machines / Newman
Cartooning / CAM
Laser labeling machine (Holograms)/ Neri
Blister Machines/ Uhlman
PVC Wrapping Machines/ Package
1
1
1
4
2
7
3
1
Germany
Italy
Germany
USA
Italy
Italy
Germany
USA
Age
3
90%
23
99%
1
99%
13
90%
11
95%
5
50%
11
80%
23
99%
122
Wrapping Machine/ CAM
Tablet Filling Machine/ Cremer
Container Orienting Machine/ Palace
Printing, Imprinting Machines/ Hapamatic
Cartooning machines/ Uhlman
Tablet and Capsule Machinery
Tray machines
6
1
3
3
3
11
20
Italy
Germany
USA
Italy
Germany
Italy
Mexico
11
5
5
11
11
13
13
99%
98%
98%
80%
80%
80%
70%
Lilly’s last packaging machinery purchase took place in 2005 when the company acquired
capping machines, an inserter machine and de-blistering machine.
Machinery
Capping Machine
Instructive inserter
machine
De-blistering machine
Brand
BOSCH
GUK
Country
Germany
Germany
US$ 500,000
€$ 100,000
SEPHA
Germany
€$ 50,000
Lilly is planning the purchase of a complete blister packaging line. It will be made up of 5
machines that include: palletizer, grapping, hologram label, cartooning, and blister. This machine
could also include a separate tablet counting and dispensing unit. The primary suppier being
considered is the German-based manufacturer IMA but the final selection will be made in late
2006.
Machinery
Complete blister Line
UV flexographic print /
Romaco
On line weight verifier
Color vision inspection
machine
Units
1
1
1
1
Origin
Europe or Tablet line expansion
US$ 2.5 million
USA
Switzerland
Improve quality
TBD
Metler
Toledo
Systech
USA
TBD
USA
TBD
Eli Lilly Mexico defines its own packaging machinery needs and usually buys directly from the
equipment manufacturer. The purchasing decision process includes the evaluation of at least
three equipment alternatives. Serious consideration is placed on the vendors’ capacity to provide
good service, and they require that the supplier has other machinery functioning in Mexico. They
consider this eases the process to receive service and spare parts.
Eli Lilly notifies its purchasing plans to the Headquarters located in the US but usually the
selection process and the purchase is made with local resources.
For machinery purchases of over US$ 50,000, the company has to receive an authorization from
their corporate office in the US.
1.- Regulation compliance
2.- Performance
3.- Service and spare parts available in Mexico
4.- Price (which can be negotiable)
123
Lilly’s main concern with its European suppliers is that distance is a factor that makes service
and speed of service a problem. This also has a negative impact on general equipment
maintenance in Mexico as the delivery times for spare parts are quite long. They usually like
manufacturers to have some kind of representative in Mexico that will stock the most common
spare parts and be competent in providing training to their technical staff. The company also
complained about the high cost of service of representatives of European machinery in Mexico.
The company does not have a specific preference for any brand and did not give an individual
brand example at the meeting. Nevertheless, they consider that the strengths of all their
machinery are that they all share similar technologies thus can be switched around the process
lines so as to save money on purchasing more machinery. The flexibility of their group of
machines is held highly in the company. The main weakness of all their machines is that most
of the service has to be done through the representative in Mexico, which in some cases don’t
have spare parts inventories and have very slow response.
Origin
United States
Germany
Italy
Switzerland
U.K.
Technology
Good
Very Good
Average
Good
Good
Flexibility
Good
Good
Very Good
Good
Good
Service
Very Good
Good
Good
Good
Good
Price
Good
Bad
Average
Average
Average
The company considers that US machinery is not a good choice for the pharmaceutical industry,
as their equipment is viewed as fragile and in constant need to replace spare parts. On the other
side, they estimate that European equipment is more robust and longer lasting but the
operational and maintenance costs are very high and spare parts are not readily available in
Mexico. They indicated that sometimes they have to use US or Mexican spare parts while they
receive the original from the European equipment manufacturer.
Eli Lilly has an internal global network database in which they can get information on new
technologies, as well as access reviews from around the world for different manufacturers. This
is a reliable way to be sure of the quality of machinery and service that each provide. For this
reason, the attendance to international trade shows is very limited. The attendance to ExpoPack
and Expofarma in Mexico, on the other hand, is a must for them.
The company is interested in learning about complete blister lines that members of PMMI could
offer.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
e-mail:
Web page:
Eli Lilly de México, S.A. de C.V.
Ing. Marcela Carreras
Conditioning Manager
Calz. De Tlalpan 2024
04200, Mexico City
(5255) 5484 3813
(5255) 5484 3866
[email protected]
www.lilly.com.mx
124
Laboratorios Sanfer, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Trade mark Oncology drugs,
OTC consuming,
Pharmaceutical, natural, vet
and other medical specialty
products.
Mexico City
$150 million USD
$1 million USD
All kinds of pharmaceutical
packaging machinery.
Laboratorios Sanfer is a pharmaceutical company with approximately 300 products sold into the
human and veterinarian markets in Mexico. The company manufactures its own products and
also produces private label formulations for multinational pharmaceutical companies such Smith
Kline Beecham, Astra Medica, Servier, Sanofi, Cooper Biomedical, Blistex, Daiichi
Pharmaceuticals and Kiowa Hakko. About 80% percent of the company’s production is sold in
Mexico and the rest is exported to diverse markets including Dominican Republic, Guatemala,
Honduras, Peru and Panama.
The company has three manufacturing plants in Mexico, two in the Lerma area in the state of
Mexico and one in the Vallejo area of Mexico City. The facilities produce patent drugs,
ointments, creams, health supplements, injectable formulations and vitamins among many other
products.
Product
Treda
Laflon
Pedagox
Pramusine
Analton
Sinalgia
Package
Blister
Blister
Blister
Blister
Tube
Tube
The company uses blister packs for all their tablets, capsules and coated pills; they use tubes for
the cream products and box packages for their glass ampoules for liquids and powder products.
The company has a large variety of machinery installed in their plants in Mexico. Usually the
company prefers to buy European products than American equipments due to quality reasons.
Sanfer´s installed packaging machinery is as follows:
Machinery Type
Units
Origin
Form, fill and seal machines/ IMA
Cartoning and Blister machine/ IMA
Vertical cartooning machine/ IDK
Labeling machine/ NERI
Hooding machines/ Rotobrap
3
6
2
6
1
Italy
Italy
Germany
Italy
Mexico
Age
12
85%
10
75%
25
85%
5
65%
29
25%
125
Weighing systems/ Mettler House
Cap closing machines/ Ulhman and
Mar
Coding and marking
machines/Happa
Labeling Machines/ Jowe
Sterilization machines/Amsco
Volumetric filling machines/Mar
Sachet form and fill
machine/Volpack
Viscous filling machine/ N.A.
Tablet Counting Machine/ King
Tube filling Machine/ Unipack
Cartoning Machine/ MARQUESINI
Capsule Filling machine/BOSCH
Filling machine/ PERRI
30
2
USA
Germany and Italy
9
19
70%
5
Switzerland
29
80%
4
4
2
2
Germany
US
Italy
Spain
27
24
22
10
85%
40%
60%
85%
1
1
1
1
1
1
N/A
U.K.
Italy
Italy
Germany
USA
10
9
10
5
5
4
80%
75%
80%
90%
70%
85%
Sanfer’s last packaging machinery purchase took place in 2005 where they bought one blister
machine from IMA for $250,000 USD. This equipment was bought with the purpose of having a
more advanced blister machine. The company also invested in 2004 around 1 million USD in
order to expand its existing machinery. The company is constantly investing and researching on
best quality pharmaceutical packaging equipments.
Machinery
Blister machine
Brand
IMA
Country
Italy
$250,000 USD
Sanfer follows specific procedures for a selection process of equipment and suppliers. The
company will invest over US$ 1 million during 2006 for the purchase of new packing machinery.
Some of the purchases will include the following:
Machinery
Labeling machine
Blister machine
Units
1
1
Origin
Germany
Germany
Motive of
purchase
Replacement
Replacement
The department of operations management is responsible for defining equipment needs and the
selection of potential suppliers. The selection process follows a series of steps which initiate with
the definition of the reason for the purpose, be it either the replacement of an obsolete machine
or the need to expand capacity of improve the productivity of a particular process or line.
The people from Sanfer like to visit facilities where the proposed machine is in operation. Once
the operations management office makes a decision regarding a supplier and a specific
machine, they request final authorization from the top management of the company which needs
to be presented with a financial cost-benefit analysis of the purchase.
Sanfer has an internal maintenance department which is trained by the equipment suppliers to
be able to service the machinery.
126
Payment policies include an initial payment once the company signs a purchase order for the
supplier, the payments continue upon delivery, installation and the final payment once the
equipment is in operation.
1.
2.
3.
4.
5.
6.
Technology
Operational characteristics
Flexibility to adapt to existing lines
Secure machines
Service
Price
Sanfer indicated to have a clear preference for European packing machinery suppliers. The
company considers that its existing Italian and German suppliers are the packing machinery
leaders for the pharmaceutical industry. undoable prefers to buy their packaging machinery from
European suppliers. They mentioned that in general European machines are efficient, durable,
and flexible for adapting to their existing lines, that they are easily operated and maintained. As
for US equipment, they indicated that most machinery is technologically obsolete and originally
conceived for the food industry, making it not a good option for their specific needs.
Although they do not have a preferred brand, they told us that their first purchasing evaluations
are done with Italian and German suppliers such as IMA, Bosch and IDK. Sanfer indicated that
their most important need besides equipment efficiency and reliability is flexibility, as the broad
product lines require the constant adaptation of the equipment to various types of products and
presentations.
Sanfer’s evaluation of packaging machinery by country of origin:
Origin
United States
Germany
Italy
Spain
France
Technology
Good
Very Good
Very Good
Average
Very Good
Flexibility
Average
Good
Very Good
Average
Average
Service
Average
Average
Good
Bad
Average
Price
Good
Average
Good
Good
Average
127
Brand: IMA
Strengths:
• Robust
• Trust worthy
Weaknesses:
• Price of both the equipment and spare part has increased to much
Brand: Marchessini
Strengths:
• State-of-the-art innovations.
• Service
• Good Price
• Trust worthy
Weaknesses:
• Poor spare part availability.
The company has been contacted by several Asian manufacturers over the past few years.
Sanfer considers that these suppliers compete on price and not technology, which is the key
purchasing decision for the company. The company indicated to have been offered very
attractive pricing but that the proposed equipment had obsolete technology.
At the moment they indicated no interest in trying to locate potential equipment suppliers in Asia.
They indicated that none of their existing suppliers has shifted production into China as a price
reducing strategy.
The company visits trade shows to be updated on packing machinery trends in their industry as
well as review the information they receive from their existing and interested suppliers. The
company visits ExpoFarma and Expo -Pack in Mexico, InterHex in the US and Achema in
Germany. This last takes place every two years and is regarded as the most important
Pharmaceutical show in Europe.
Sanfer would like to receive information from packaging machinery manufacturers that have
capabilities to compete against European suppliers. They are interested in receiving g general
information packaging machinery specialized on the pharmaceutical industry.
Company Name:
Contact:
Position:
Address:
Telephone:
E-mail:
Internet:
Laboratorios Sanfer, S.A. de C.V.
Ing. Agustín L. F. Madrigal
Operations Director
Calz. De Tlalpan #550
Col. Moderna
03510, México D.F.
(52) 5590-0266
Fax: (52) 5579-9784
[email protected]
www.sanfer.com
128
Merck, Sharp and Dohme de México, S.A. de C.V. (MSD)
Industry:
Sub Industry:
Pharmaceutical
General pharmaceutical
products and vaccines
Mexico City
US$ 662.00
TDB
Potential interest for RFID.
Location:
Size: (sales)
Specific Business
Opportunities:
Merck Sharp and Dohme initiated a presence in Mexico in 1932. At present the company
operates a single manufacturing facility located in Mexico City.
The company is one of the leading pharmaceutical companies in Mexico, offering a wide variety
of drug products and vaccines.
B) Installed Packaging Machinery
The company indicated to follow very strict guidelines in terms of the release of information
related to their production technologies. Because of this situation, the company was not willing to
provide sample information on their packing machinery inventory. However, the company
indicated that the majority of its packing machinery suppliers were European companies. The
company follows production and packing trends for its industry and selexcts potential suppliers
based on the companies that are developing a leading role in specific equipment for the
C) Last Packaging Machinery Purchase
Even while the company was not willing to provide information on their stock of packing
machinery, they indicated that their last purchase was for blister equipment, which they
purchase from an Italian supplier.
Machinery
Blisters
Brand
N/A
Country
Italy
N/A
D) Future Packaging Machinery Ordering Plans.
Since their Mexican facilities are practically new, the company told us that they do not have yet
established a budget for additional packaging machinery. However, they have been analyzing
the possibility to implement the use of RFID coding for its products. As most of the products are
packed in blister, any introduction of new products or production lines will require additional
investments in blister equipment.
Machinery
Units
Origin
For RFID
N/A
N/A
Blisters
N/A
N/A
Motive of
purchase
Replace bar
codes
Expansion
129
E) Purchasing Policies and Financial Arrangements
The selection processes for packaging machinery in MSD is done by first detecting a necessity
in their facilities. Once they know what they need, the company creates a market research in
order to learn on new technologies and manufacturers. The production department analyses the
possible suppliers and makes a report which is then sent to the corporate offices in the U.S.,
where they make the final decision. It is more common that the corporate offices decide which
suppliers MSD Mexico must look for, than the results from the market research.
The company has a policy where they purchase all of their equipments directly from the
manufacturer’s facilities. This is done with the purpose of receiving better services. As a result
of this policy, MSD has indeed received a more personal post-sale service. Additionally, they
receive personal training from the manufacturers for their maintenance staff.
All the financing decisions and payments are done directly at the corporate offices in the U.S.
F) Factors that Influence Purchasing Decisions
1.
2.
3.
4.
5.
Cost-Benefit advantages
Price
Technical Support
Spare part availability
Brand
The company didn’t comment on a preferred brand or an existing business arrangement
because of confidential policy reasons. However, they told us their impression on U.S.
equipments vs. European packaging equipments. These are as follows:
MSD thinks that American packaging equipments have decreased on their technology and
quality. They told us that the US equipments have had several operation failures as well as a
poor post-sale service. In the last year they also had problems on receiving the spare parts on
time. MSD told us that US equipments have also increased in price.
On the other hand, European manufacturers have improved importantly on their technological
advances for packaging machinery. MSD has received a high-quality technical and service
support from their European suppliers. They told us the post-sale service is twice as better from
Europeans than Americans.
H) New Origin of Suppliers from Asia.
MSD has manufacturing plants Singapore where they indicated to use packing machinery from
Asian suppliers. The company considers that in a few years, Asian suppliers will represent very
significant competition in the packing machinery industry.
The company visits trade shows as the best way to learn about technology trends in its industry
and to learn about potential equipment suppliers.
Since the company likes to research first what is in the market, they usually attend to all the
important expos of packaging machinery.
MSD would like to receive information from packaging machinery manufacturers that have stateof-the-art pharmaceutical packaging machinery.
130
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web page:
Merck Sharp and Dohme de México S.A. de C.V.
Mr. Alejandro Romero
Production Chief Manager
Av. Division del Norte 3377
Col. Xotopingo
04610 Mexico D.F., Mexico
(52-55) 5722-1600
Fax:
(52-55) 5722-1600
[email protected]
www.merck.com
131
Novartis Farmacéutica, S.A. de C.V.
Industry:
Sub Industry:
Pharmaceutical
Patent drug and veterinary products, and other
specialty pharmaceutical products
Mexico City
US $340 million
TBD
Location:
Size: (sales)
Purchasing
Potential:
Specific
Identity control equipment and auxiliary equipments
Business
for their machinery.
Opportunities: Labeling Machines
Codifiers (Laser Jet)
Cartoning machines
Novartis initiated operations in Mexico over 50 years ago. In 1996 the company adopted the
Novartis name after the merger of the Ciba and Sandoz operations. Currently they have two
manufacturing plants in Mexico, one in Mexico City where the company manufactures humanhealth products and the other is located in Guadalajara, Jalisco, where they manufacture
veterinary products and Gerber products.
The pharmaceutical facility in Mexico works with a variety of patent drugs, health care and
optical products. In these facilities all the packaging processes are done with the most strict
standards. Additionally to the manufacturing of certain pharmaceutical products, the company
also imports some finished products from its subsidiaries in Europe, some of the imported
products are re-packaged in Mexico for its sale.
The company currently has three operating divisions in Mexico that produce drugs for the
treatment of cancer, rheumatism, arthritis, central nervous and respiratory systems, skin and
bones among other products. In 2005 the company expanded their generic drugs products in a
global level, acquiring new product lines. Novartis today is considered to be a major
conglomerated producer of health products
Product
Rheumatism control
products
Brand
Butasolidina
Arthritis control products
Butasolidina
Anti inflammatory
Voltaren
Generic products and
antibiotics
Sandoz
Package
Oral products in blister and carton box, glass
ampoule for intravenous application in blister and
carton box, aluminum container for viscous and
carton box.
ampoule for intravenous application in blister and
carton box, aluminum container for viscous and
carton box.
ampoule for intravenous application, aluminum
container for viscous and carton box.
Bulk
132
Units
Origin
Average
Age
Specification
Sterilize Machine/ Fedegari
1
Italy
12
50%
Ampoule Filling Machine / Bosch*
1
Germany
14
80%
Bottling Lines for liquids / IMA
1
Italy
4
50%
Bottling Line for Solids / Kalish
1
Canada
6
80%
Filling machine / Sarong
1
Italy
18
60%
Mixer / Soneco
1
France
19
70%
Cartoning / IWK
1
Germany
19
75%
Weight Verification Machines / Icore
8
USA
5
80%
Print and Apply Labeling Machines / 2
Italy
6
90%
Libra
Labeling machine / Avery
1
USA
17
80%
Inspecting for Ampoule (filling and 1
Japan
18
90%
particle free) / EASI
Inspection systems / Laetus
1
Germany
3
100%
Inspection systems / Pólux
1
Brazil
3
95%
Blister Machinery / IMA
2
Italy
12
80%
Blister Machinery / Bosch
1
Germany
>4*
70%
Blister Machine / Ulhman
1
Germany
19
70%
Dispensing Machines / Solipack
2
Italy
14
80%
Tablet Machinery / FETE
4
Germany
17
75%
Tablet Machinery / KILIEN
2
Germany
32
75%
Tablet Machinery / Stokes
1
USA
29
75%
Cartoning machine / Marchesini
1
Italy
5
100%
Fluid Dryer /GLAT
3
Germany
18
70%
Fluid Dryer / Aeromatic
1
USA
21
50%
Reactor / Moltomat
1
Germany
17
80%
Reactor / OLSA
1
Germany
12
90%
Leaflet & Coupon (Integrated) / Romaco
4
Italy
8
85%
Vibrators
4
Germany
34
50%
Tape dispensers
9
Various
10
90%
Inspection System/ Laetus
1
Germany
2
90%
Inspection System/ Polux
1
Brazil
2
90%
Inspection System for ampoules/ TBD
1
N/A
2
90%
Print and Apply Labeling Machines
3
N/A
2
90%
*This machine was installed in Mexico during 2001, but came from a Novartis plant in Germany
where it was in operation for 10 years.
The last major packaging machinery purchase had an investment of approximately US$250,000
dollars. These took place in 2005.
Machinery
Thermo forming Machines
Cartoning Machines
Brand
Farmores
Marchesini
Country
Italy
Italy
N/A
N/A
133
For 2006 Novartis has no specific purchasing plans to expand their packaging machinery base.
Their investment plans are directed at purchasing control systems and complement equipment
for their existing infrastructure.
Machinery
Counter machines
Control systems
Units
1
3
Origin
N/A
Laetus
Motive of Purchase
To abide with the
norm and regulations
requirements
Estimate Budget
US$40,000
US$ 60,000
Novartis’ packaging machinery budget is based on the short-term needs of the company. For
2006 the company hasn’t established a budget since they have all the machinery needed for the
moment. Novartis has an internal policy which consists of constantly reviewing the productivity
of their production lines. In order to consider new budgets the company goes through several
equipment analyses and audits to identify where improvements are needed. The production
areas with the lowest relative efficiency become priorities for the purchase of new equipment.
Novartis gives maintenance to their equipment on a regular basis and schedules a yearly visit
from their suppliers’ technicians, who review overall equipment functionality and also train
Novartis’ maintenance crews.
The objective of Novartis is to standardize their machinery in order to facilitate maintenance and
reduce operational complexity and problems, reduce costs and be able to send machinery from
one plant to another. Novartis indicated that they can purchase packaging equipment from
representatives of their suppliers in Mexico. The company indicated to receive better service if
the purchase is made directly from the equipment manufacturer. As for spare parts, Novartis’
buys them directly from the manufacturers, since they consider this to be a faster alternative
than placing an order with the local representative.
The purchasing process decision making of packaging machinery is done in several ways; it all
depends on the following:
•
•
•
A thorough evaluation of new potential suppliers, where post-sales services, spare part
availability, technical support costs, among others are analyzed.
Recommendations done by other pharmaceutical companies or affiliates about
packaging machinery suppliers.
Bid contests between companies in order to see who offers the best economical deals.
Once the purchasing decision is reached, the Mexican offices are responsible for placing the
order and negotiating a contract. Usually the financing scheme varies depending on the
negotiation done with the supplier. In the majority of the cases Novartis pays 50% of the
machinery and when it is delivered and installed the other 50%.
1. Performance and functionality
2. Previous experiences with supplier and recommendations from other Novartis affiliates
worldwide.
3. State of the art technologies
4. On site service and local technical support
5. Price
134
Novartis has implemented strategic agreements with manufacturers to obtain preferential
pricing, technical service and training when required. The company has developed agreements
with Glatt, Fedegari and Bosch among others. This has helped the company to improve their
machinery efficiency and to receive adequate service from these companies.
Novartis considers the Europeans to be the leaders in packaging machinery for the
pharmaceutical industry. Most of Novartis Mexico packing machinery is primarily from Germany
and Italy. This is because the results obtained from these countries machinery have been
excellent. Novartis indicated almost minimal experience with US suppliers of packing
machinery.
Novartis’ evaluation of packing machinery by country of origin:
Origin
Canada
Germany
Italy
Japan
Technology
Very Good
Very Good
Very Good
Very Good
Flexibility
Very Good
Very Good
Very Good
Bad
Service
Bad
Bad
Bad
Bad
Price
Regular
Bad
Bad
Good
Brand: IMA
Strengths:
• Easy use in its operation
• Easy maintenance
• Fast change of format
Weaknesses:
• Low durability
Novartis told us that they’ve only worked with Japanese packaging suppliers. The results have
been satisfactory but not the best. As mentioned before, Europeans have more advanced
technologies on pharmaceutical packaging machinery. They are not interested in exploring
other Asian countries, especially China or Thailand, since they think that their technologies are
old and of bad quality.
When the company wants to know more about the packaging machinery market and the new
releases of machinery, they attend several expos and shows. They visit Expopack regularly and
a pharmaceutical sector trade show called ExpoFarma taking place every year in Mexico. They
are subscribed to specialized magazines like Manufactura, Magazines of the Pharmaceutical
Association, El Asesor weekly newsletter and Latin American Pharmaceutical Technology.
At present Novartis’ interest on packing machinery is concentrated on:
Identity control equipment and auxiliary equipments for their machinery.
Labeling Machines
Codifiers (Laser Jet)
Cartoning machines
135
Company Name:
Contact:
Position:
Address:
Telephone:
e-mail:
Web page:
Novartis Farmaceutica
UFB Jorge García
Packing Manager
Calzada de Tlalpan N° 1779
Col. San Diego Churubusco
04120, México D.F.
(5255) 5420-8689
Fax: (5255) 5544-4344
[email protected]
www.novartis.com
136
9.
9.1.
The Personal Care
Industry:
Industry Overview.
The market value for personal care products
is estimated at $8.2 billion for 2005. A large
number of multinational corporations are
active selling and manufacturing these
products in Mexico. In additional there are
over
150
local
companies
also
manufacturing, selling and exporting these
products.
Yearly investments in the sector are
estimated at more than $1 billion and are
used to expand production capacity or to
introduce new manufacturing technologies
and processes.
Parallel to local production growth, imports
of these products have also grown at a very
solid rate since 1995 averaging 12% per
year. During 2005 imports of personal care
products reached $ 1.23 billion.
The most important business organization in
Mexico representing the interests of the
personal care products industry is the
National Chamber for the Perfume,
Cosmetics, Personal Care and Hygiene
9.3.
Products (Cámara Nacional de la Industria
de Perfumería, Cosmética y Artículos de
Tocador e Higiene).
This organization estimates that 60% of
total sales are carried out through traditional
channels, which include supermarkets,
drugstores, and personal care products
stores. An important segment reaching 40%
is comprised by direct or “door to door”
sales, performed by a “spare time” sales
force estimated at 1.8 million people using
their free time to generating additional
income.
9.2.
Company Ranking by
Size.
Multinational companies operating in
Mexico dominate the Mexican market for
personal care products. These companies
manufacture a portion of their lines in
Mexico and complement their offerings
though inter-company imports. Some local
companies have also achieved a leading
position in the market especially those
manufacturing soaps and cosmetics as well
as others importing diverse personal care
products.
Key Players.
The largest companies in this market include:
Mexico's Largest Personal Care Products Manufacturers
Company
Sales 2004 Million US$
Procter & Gamble México
1,538
Avon Cosmetics
690
Bristol Myers de México
425
BDF Mexico
222
Mexican
Grisi Hermanos
65.5
9.4.
137
The sector depends on fashion and
marketing trends and needs to respond as
fast as possible to trends if not be the leader
and trend setter.
The most important trend in the industry is
that the companies are purchasing packing
machinery to make their packing processes
more efficient, especially for materials which
have a complex to handle including
powders, viscous etc.
The sector is also being affected by copycat products. The companies are interested
in beginning to use a hologram in the
products to assure the consumer that the
product is original.
There is also a new rend to pack shampoos
and gels in polyethylene bags in
presentations from 50 to 1000 ml. The
purpose is to eliminate the lost of the
container and be able to offer the product as
inexpensive as possible for the low
segments of the market.
There is also a trend to use more rigid
packing materials to offer more protection to
the products.
9.5.
Company Profiles.
138
BDF México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Creams, liquid lotions, ointments
Mexico City
US$ 220 million
N/A
Labeling, capping and coding
machines.
End-of-line
equipments and control systems.
Company Description:
BDF develops innovative, high-quality products fro skin and beauty care. The company was
established in Germany 120 years ago. Today it has grown worldwide, with a strong
international presence with nearly 150 affiliates. The company’s philosophy is based on heavy
research and development to deliver the best personal care products.
In Mexico the company manufactures a wide range of personal care products. Some of the most
important products produced locally are; face creams in glass jars and tin recipients, liquid
lotions in plastic bottles, ointments is press tubes and lipsticks in rigid plastic tubes. The
Mexican facility has modernize and implementing the best and state-of-the-art equipments in
order to be competitive. The company in Mexico is constantly increasing its market share and
expanding is performance with new and better products.
Main Products Produced and How Are They Packed:
BDF has grown importantly in Mexico. Today the company has been able to penetrate and even
become leader in personal care products. Some of their most important brands are Nivea which
has several face creams and tanning products, Atrix for hand creams and Labello a lip-care
lipstick.
Installed Packaging Machinery:
The company sold their Kugler and Leeder machines since they were considered as obsolete.
BDF told us that they have established a new policy that requires all their production facilities to
have the same equipments and automated production processes. This standardization and
modernization goals are considered for BDF vital for the company’s growth and expansion.
Filling Machines
viscous products.
for
Case Forming and
Machines
Palletizing Machines
semi-
Closing
Brand
Units
Origin
Average Specificati
Age
on
Germany One has 6
85%
months
and the
other 3
years
Sweden
6
70%
Germany
5
70%
Germany
8
75%
Fill Pack
3
Norden
Weckerle
Strunck
1
1
1
Little David
8
USA
4
60%
DMP
1
Germany
3
80%
139
Since BDF is a German company, they have preferred to work with German products. The
corporate offices in Germany required all facilities to work with the equipments suggested by the
headquarters. Even though they consider that German equipments to be the leaders in this field
and very flexible for their packing applications, they are open to learn on new equipments.
Last Purchases of Packaging Machinery.
The company’s last purchase of packaging machinery took place in 2005, when they bought one
filling machine for semi-viscous products from the brand Fill Pack. The reason for this purchase
was to replace the Kugler and Leeder equipments.
Machinery
Brand
Filling Machine for semi-viscous Fill Pack
products
Country
Germany
Future Packaging Machinery Ordering Plans.
BDF has developed an expansion plan from 2007 to 2010. This plan consists on investing on
new equipment and modernizing their facilities worldwide. In Mexico the company has started to
analyze their existing operations to define the equipment that will be required.
BDF Mexico hasn’t established a short-term plan for purchasing packaging machinery; however
they told us that they might buy labeling, capping and coding machines in 2006. For the
expansion plan project 2007-2010 they have initiated a project for the optimization and
automation of end-of-line processes as well as control process systems. They told us that
research for equipment acquisitions is mainly done in Germany.
Machinery
Capping Machines
Labeling Machines
Coding Machines
Units
Origin
1
1
1
N/A
N/A
N/A
Motive of
purchase
Automation
Automation
Automation
Estimate
Budget
N/A
N/A
N/A
Purchasing Policies and Financial Arrangements.
BDF Mexico package machinery purchases are done by an evaluation between 2 or 3 suppliers.
The company analyses the technical efficiency of the equipments in order to determine the
supplier’s capacity and potential. After that they develop a cost-benefit analysis which is
delivered to the technical department. This department is in charge of informing BDF’s
headquarters in Germany, where the final decision is made.
The main issues the company considers when selecting new equipment include; adequate
training and service, flexibility and ease to operate and adapt the equipment to their constantly
changing packing needs.
The company has an internal technical team that provides regular maintenance and repair work
for the equipments. In addition, the company requires that their suppliers visit once a year the
facilities to review the equipment and provide preventive maintenance.
BDF Mexico new payment scheme is done bye a 30% advance payment for the equipment; an
additional 40% upon delivery and 30% after one month of having the equipment operating at
their facility.
Factors That Influence Purchasing Decisions.
1. Quality
2. Service
3. Equipments that are similar from other BDF manufacturing plants.
4. Price
5. Flexibility
6. Easy maintenance
140
Comments on Preferred Brands and Existing Business Arrangements With
BDF thinks that German products are efficient, durable, and easy to maintain and to operate.
BDF facilities are now working with 95% of packaging machinery from Germany.
BDF Mexico indicated several differences between US packaging manufacturers and European
manufacturers. These are as follows: They think that American companies have developed
easy to use equipments with better services. They think that they have also improved their
prices; today they have become cheaper than the Europeans. On the other hand, they think that
European companies have developed more packaging technologies and have grown in quality.
The only problem for BDF Mexico is that they do not receive a proper service and spare parts
because of the long distances.
I)
Origin
Technology
Flexibility
Service
Price
United States
Very Good
Good
Good
Good
Germany
Very Good
Good
Good
Regular
Italy
Regular
Good
Good
Regular
New Origin of Suppliers from Asia.
BDF has not been contacted by any Asian packaging manufacturer, they told us that they have
only been invited to an expo in China. Since they have a standardization policy, the company is
not interested in Asian manufacturers.
BDF Mexico visits pharmaceutical and packing trade shows regularly like ExpoFarma and Expopack in Mexico, Interpack and Achema in Germany. The company also receives information
from their suppliers covering new technologies and equipment changes. They prefer to attend to
trade shows since they consider that it is the best place to learn on new suppliers and
technologies.
BDF Mexico is currently interested in labeling, capping and coding machines, since they might
purchase this kind of machinery in the short-term. The company is also interested in improving
product presentations, which will create the need to purchase or adapt its packing machinery.
Company Name:
Contact:
Position:
Address:
Telephone:
E-mail:
Web:
BDF Mexico, S.A. de C.V.
Ing. Omar Navarro
Production Manager
Poniente 116 # 509
Col. Industrial Vallejo
02300, México D.F.
(52) 5729-0372, 5729-0300
Fax: (52) 5587-7278
[email protected]
www.beiersdorf.com
141
Grupo PIMABE S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (employees)
Specific Business
Opportunities:
Personal Care
Dippers
Mexico City
1300
N/A
Jet-Printers. Corrugated
Machines, conveyors.
Bag
Sealing
PIMABE is a Mexican company dedicated to the manufacturing of disposable hygienic products,
principally diapers. The company has experienced significant demand growth and in addition to
sales into the local market, the company is exporting to 35 countries.
Currently they have 2 manufacturing plants in Mexico one in Puebla and the other one in
Tijuana. The company is manufacturing around 2.4 billion diapers per year. Their top brands
which have increased their market share in the last two years are: Chicolastic and Kiddes.
Their main products are diapers, disposable tissues, and disposable diapers and women towels.
Product
Brand
Package
Disposable dippers
Chicolastic
Disposable dippers
Kiddes
Plastic bags of 14, 16, 28, 36
and 40 dippers
Plastic bags of 14, 16, 28, 36
and 40 dippers
These plastic bags once they are filled, they are packed in corrugated cardboards.
C) Installed Packing Machinery:
Current Machinery
Used
Wrapping Machine
Brand
Units
Origin
Average
Age
Specification
Wolftek
6
USA
One of them 1
year.
Three
others 3 years
and the last
two 15 years.
90%
25
1
USA
Italy
2 years
4 years
85%
80%
1
Germany
17 years
85%
4
USA
8 years
85%
4
Taiwan
10 years
85%
20
Taiwan
10 years
85%
Tape dispenser machine
3m
Semi-automatic
bagging Amotek
machine.
Bagging machine
Used to
be
TCBM
(Today
is
Vikoma)
Automatic
Bagging AST
machine.
Corrugated machine
Best
Pack
Sealing and tape dispenser Best
142
machine
Bagging
and
Sealing
machina.
Pouching sealing machina.
Jet Printers
Pack
Enplex
4
Mexico
2 years
90%
In-house
VideoJet
10
21
Mexico
USA
90%
85%
Jet Printers
Jet Printers
Jet Printers
Zansi
Marken
Marsh
4
8
2
Italy
Spain
USA
1 year
3 years and 4
wher bought
in 2005
5 years
10 years
8 to 10 years
80%
80%
85%
In the last three years PIMABE invested US$ 250,000 in packaging machinery equipment.
PIMABE had several packing machinery purchases during 2005. Their investments were
around US$ 100,000 dollars. The following table shows these recent purchases:
Machinery
Brand
4 Jet Printers.
VideoJet
10 Pouching sealing machine. Inhouse
3 Sealing machines
Enplex
Country
Cost
(Approximately)
USA
Mexico
Mexico
N/A
N/A
N/A
The company is developing a program for future equipment and packing machinery investment.
They told us that they might purchase some Jet-printers in 2006.
Machinery
Jet Printers
Units
Origin
N/A
Mexico
Motive of
purchase
Expansion
Estimate
Budget
N/A
PIMABE generally buys small equipment from Mexican manufacturers since they are able to
receive faster and better services. They also think that Mexico has advanced both on production
and on technology for small packaging machineries.
They also mentioned that they would like to receive information from PMMI members in order to
learn about new manufacturers. They would specially like to know of corrugated bag sealing
machines and conveyors.
F) Purchasing Policies and Financial Arrangements:
The company prefers to buy the machinery from an established distributor in Mexico, however
sometimes they prefer to go directly to the manufacturing plants, it all depends on the brand, the
distance of the manufacturing plant and the costs involved. The purchasing decisions are made
by a standardized process, established by the company. First, they implement a bid contest,
were they invite several packaging machinery manufacturers, and then several tests are done to
see the functionality and quality of the product. After these tests are done, the company makes
different investment and maintenance costs analysis, and then chooses a manufacturer that
qualifies their needs. PIMABE prefers to work with a company that gives post-sale services to
their machinery. PIMABE receives personal training from their suppliers, in this way their
employees have some knowledge on the machinery that is bought.
The company has a special contract agreement with 3M, Zanazi and Videojet where they buy
the original parts from these companies and in doing so, they receive a 25% discount on these
products.
143
Their financial policies are quite flexible; however, the company prefers to make the payment
after 30 days that it was delivered. On the majority of their previous purchases they have
negotiated with the suppliers in order to have financial agreements on a win-win basis.
The company has no preferred brand but thinks that the American machinery products are better
than those from Europe for several reasons:
•
•
•
•
•
The American product are easier to use and more robust.
Spare part availability is faster and easier to acquire if the company is established in the
United States because of the proximity with Mexico.
The machinery are usually more expensive in Europe
The life expectancy of an American machinery is longer than the European.
The only advantage of the European is that their technology is finer.
Origin
Technology Flexibility
Service
Price
United States
Italian
Spanish
Asian
Mexican
Good
Very Good
Very Good
Poor
Good
Very Good
Very Good
Very Good
Poor
Good
Good
Regular
Regular
Good
Good.
Very Good
Good
Good
Poor
Good
H) Factors that Influence Purchasing Decisions
In order of importance, the key purchasing decision factors considered by PIMABE at the time of
purchasing new machinery include:
1.
2.
3.
4.
5.
Functionality and quality.
Machinery that meets specific requirements for PIMABE needs.
Acquirement costs: such as maintenance costs
Technical support and post-sale services
Brand Price.
Brand: Wolftek
Strengths:
• Robust
• Price
• Technical Assistance
• Spare parts
Weaknesses:
• Difficult Maintenance
• Poor electrical technology
Brand: Video-jet
Strengths:
• Service
• Spare parts availability
Weaknesses:
• Operation cost is high
• They are very delicate machines, usually they break very easily.
The company currently works with Best Pack, which is an American company that manufactures
their products in Taiwan. PIMABE’s personal experience with this machinery has been very
bad. The machines are considered as very low quality; they have had several problems and
144
have had constant machinery failures. They haven’t had any kind of offer by their current
suppliers with machinery from Asia and PIMABE is not interested to evaluate other Asian
products.
The company attends regularly to the following International shows: Expo Pack, Feria Textil and
Expo Control. The company also uses different kinds of magazines to learn more about the new
trends and technology in packaging machinery.
The company is interested in learning about packaging machinery suppliers manufacturing
corrugated bag sealing machines and conveyors.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
e-mail:
PIMABE, S.A. de C.V.
José Antonio Cañete
Engineer Plant Manager
Av. San Pablo Xochimehuacan 7213
Col. Las Lomas
72230 Puebla, Puebla, Mexico.
(52) (222) 223-6100
(222) 223-6162
N/A
145
Revlon de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal care
Cosmetics, fragrances, personal
care products
Mexico City
US$ 45 million (Mexico)
US$ 350,000
Labeling machine, Filling and
capping machine for peroxide
products, Labeling machine for
corrugated carton, Capping
machine, Bottle filler machine
(carton).
Revlon is one of the leading cosmetic and personal care brands in the world. The company has
presence in 175 countries. The company sells its products under several brands including;
Revlon, ColorStay, Age Defying, Almay, Ultima II, and Flex.
Revlon has been present in the Mexican market for over 50 years, first as an important and later
as a product manufacturer. The company’s current operation in Mexico consists of a facility
where that pack imported products and others produced on a private label basis by local
suppliers.
The company went through a rough period during 2003-2005 with a very sharp decline in sales.
The company is currently going through a reorganization of the Mexican operations, which will
likely include the development of a purchasing program for packing machinery.
The company is in the process of initiating the export of a few products into the US and
Venezuelan markets.
Revlon packs Shampoo in plastic bottles wrapped in polyethylene, body lotions and creams
packed in PET and PVC, hair color in plastic HDPE cased in 12 and 24 piece boxes among
others.
Cosmetics are mostly packed in crystal and plastic containers, and some are packed in three
piece chips. All cosmetics are also packed in cardboard boxes. In 2002 Revlon also began
packaging cosmetics in blister-pack.
Units
Origin
Bar Coding Machines / Sato
Coders / Videojet, Domino, Willet and
Markem
Coding, Dating, Marking, Stamping
Capping Machines, Kalish and Resina
5
9
USA
USA
3
4
Single Piston Filling Machines
Tape Dispensing Machines / Devek
Conveyance System
3
6
8
USA
Canada
USA
Mexico
USA
Mexico
Average
Age
3
3
7
4
15
7
8
146
Filling machine / Devek
Filling machine (rotation) / MRM
Filling machine (volumetric) / MRM
Filling machine (lineal) / Equitek
Filling machine (volumetric)
Labeler / Logotech
Labeler / Taxa
Labeler (lineal) / Equitek
Capping machine / Equitek
Label Dispenser
Pumps/ Hirsman, Wakesha
Blister packaging line
6
2
1
1
2
1
1
2
1
1
2
2
USA
USA
USA
Mexico
Mexico
Israel
Spain
Mexico
Mexico
USA
USA
Canada
5
15
7
1.5
1
5
3
1.5
1.5
6
6
3
All packaging machinery in Revlon’s plant in Mexico is originally from the U.S., Canada and
Mexico with only some components such as labeling machines manufactured in Spain. As the
company has faced a significant decline in product demand, the facility is operating at 35 to 40%
of capacity.
D) Last Purchases of Packaging Machinery.
The last major purchase of packaging machinery took place in 2005, when they acquired a
Filling machine (volumetric) line from Equitek. Total investment for this equipment was about
US$ 300,000.
Machinery
Filling machine (volumetric)
Brand
Equitek
Country
Mexico
E) Future Packaging Machinery Ordering Plans. 2000-2002.
Revlon in Mexico has a purchasing program for parking machinery consisting on budgets of US$
300,000 for 4Q 2006 US$ 700,000 for 2007. The company is considering the purchase of the
following equipment:
Machinery
Units
Origin
Motive of Purchase
Labeling machine
1
TBD
Filling and capping machine for
peroxide products.
Labeling machine for corrugated
carton
Capping machine
1
TBD
1
TBD
1
TBD
Bottle filler machine (carton)
1
TBD
Expansion and
replacement
Expansion and
replacement
Expansion and
replacement
Expansion and
replacement
Expansion and
replacement
Estimate
Budget
TBD
TBD
TBD
TBD
TBD
Revlon defines packaging machinery requirements by taking into account demand trends and
changes in product marketing affecting packing for the product. Once a requirement is defined,
they look for potential suppliers in specialized trade publications and consult about additional
potential suppliers with PMMI and the Mexican Association of Packing (AMEE).
In addition to requesting product information from potential suppliers, Revlon requests a
demonstration of the proposed equipment. The supplier can organize this by arranging for a visit
to other facility operating the machinery in Mexico or other country. Once that Revlon has seen
the proposed equipment in operation, they request quotes from at least three suppliers. The final
147
decision process takes into account the proposed technology and the commitment to service the
machinery. The price is important, but secondary to these last factors.
All equipment purchases in Mexico in excess of US$ 100,000 require corporate approval from
Revlon US, Even while Revlon operated 10 manufacturing facilities around the world, the plants
have very limited communication with each other and do not share recommendations on
potential suppliers or equipment.
1. Technology.
2. Quality
3. Local servicing capabilities
4. Price
5. Delivery schedule and available financing.
Revlon indicated not to have any pre-existing commitment to any equipment supplier. But
mentioned to only purchase equipment from well regarded suppliers who have earned their
reputation through many years in the market.
Revlon considers that European packaging machinery’s technology has surpassed that of US
equipment, especially in regard to labelers, blister packaging machinery and other equipment.
They indicated that this last factor is displacing US suppliers at least from these applications.
Revlon provides – in house - regular maintenance to their equipment and for major repairs they
utilize the suppliers’ technicians. This company buys spare parts form the local representatives
of their suppliers.
Revlon has begun to purchasing parking machinery from Mexican suppliers and is very satisfied
with the results they are obtaining from filling, camping, labeling and orienting machines. The
company indicated to have had very good results with European packing machinery, especially
a labeling machine they purchased from a Spanish supplier. They mentioned to be aware about
some US packing machinery suppliers that are producing the machines in Europe under
contract with European machinery suppliers.
Revlon evaluation of packaging machinery according by country of origin is the following:
Origin
United States
Canada
Mexico
Spain
Technology
Very Good
Very Good
Good
Very Good
Flexibility
Regular
Good
Good
Very Good
Service
Regular
Good
Very Good
Very Good
Price
Average
Good
Very Good
Average
The company indicated to have received proposals from Asian parking machinery suppliers.
They indicated that these companies are establishing local distribution in Mexico. Revlon
indicated that these suppliers are making progress but that for the time being they World still not
be considered as potential suppliers. The company also mentioned that Mexican suppliers have
resulted in an excellent option for them as their technology and pricing are equivalent to Asian
suppliers with the benefit that they can receive better service.
Revlons’ engineers attend trade-shows regularly, visiting Expopack in Mexico and also
subscribe to specialized trade magazines like Reportero Industrial, and Computación Planta
Industrial. Revlon also requests information on potential suppliers from PMMI.
148
Revlon is interested in receiving information on blister packaging machinery for cosmetics and
fillers.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Revlon de México, S.A. de C.V.
Ing. Daniel Romero
Chief of Engineering
Av. División del Norte #3395
Col. Xotepingo
04610, México D.F.
(52) 5618-9125
(52) 5618-1985
[email protected]
149
10. Other Consumer
Products:
10.1.
Industry Overview.
This division includes almost any product
that can be purchased by a consumer and
that requires packaging. In the sample of
companies for this sector we have included
very large companies like Comex, which is
the leader in the paint industry in Latin
America.
10.3.
Some important packing trends in the
segment include the following:
•
•
Because of the almost boundary less
composition of this category it is not
possible to provide a description of the
segment as “consumer products”.
•
•
10.2.
Very dynamic sector with constant
product presentation changes. The
interest is for very flexible machines
and for cost reduction in packing
processes.
In the paint industry a significant
trend is the introduction of very
small paint presentations.
In the house cleaning sector there
is a trend to reduce the cost of the
packing with the use of LDP bags.
Some companies are interested in
security caps for child protection.
Company Profiles.
.
150
Grupo Comex S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific
Business
Opportunities:
Industrial
Paints, coatings, roofing, etc.
Mexico City.
N/A
Not yet established
Tinting implant machinery, can
dispensing and closing machine,
coding machine and other
accessories. Shrink wrap machines
Grupo Comex is a privately held, highly efficient and successful company controlling at least 50% of
the paints and coatings market in Mexico. The company is vertically integrated from manufacturing
to product distribution. The company has direct control over 3000 points of sale in Mexico.
The company is divided in various areas, which include the following:
•
•
•
•
Production
Distribution
Services
Research, product development and training
Comex operates four manufacturing plants in Mexico and two in the US and Canada. The company
is also exporting into 45 international markets with significant market chare in central and south
America.
Comex manufactures the following products:
•
•
•
•
•
•
•
•
•
•
Vinylic and enamel paints
Adhesives
Products for wood
Aerosols
Solvents
Car Paint - Color Car
Acrylic paint Top 2000.
Texturized paints - Texturi,
Solvents.
Sealers.
Most of Comex paints and chemical products are packaged in cans and buckets ranging from 1/8 lt
to 200 lt. drums.
151
The following is a list of the most representative products:
Product
Painting Kits
Pinturas Aiva/solvente
Brand
Comex
Meridien
Pinturas solventes
Paints for wood
Top 2000
Special paints
Comex
Poliform
Pimex
Amercot
Package
Shrink pack ½ carton box
Liter and gallon container. Plastic and aluminum
cans.
Container
Container
Aluminum container
Plastic container
The following list shows some of the packaging machinery of Comex. Since the packaging
machinery installed base is wide and located in six different manufacturing plants, the company
wasn’t able to give us all their installed machinery.
Water based painting filling
machines
Solvent filling machine
1,500 meter conveyor
system
Tapping machines
Labeling machines
Coding machines
Paletizers
Tray machines
Rin packs
Cartoning machines
Paletizers
Aerosol filling machines
Brand
Serac
Units
6
Origin
USA
Average Age
17-20
Specification
85%
Epsi
In-house
5
15
Germany
Mexico
15
20
85%
80%
In-house
In-house
In-house
Heisler
Heisler
TEMI
Colombia
Colombia
In-house
11
8
8
7
6
2
8
6
1
Mexico
Mexico
Mexico
Germany
Germany
Italy
Brazil
Brazil
Mexico
1
2
6 months
8
8
2
4
4
3
95%
85%
90%
85%
85%
85%
85%
75%
85%
Comex has been successful in building some of their production and packing machinery in-house.
The company indicated that if they had to purchase machinery their preference would be for
European suppliers.
Comex is continuously investing in upgrading and expanding its production lines.
Comex last packaging purchase was in November 2005, where they bought two more shrink packs
from the brand Tecmi due to the successful performance they had with this brand. The purchase
was done with the purpose of expanding production capacity and improving quality in the process.
Since Comex builds several of its machinery, they also purchased spare parts for servicing their
machinery.
Machinery
2 Srhink pack
Spare parts
Brand
Tecmi
N/A
Country
Italy
N/A
N/A
N/A
Comex has a large maintenance team that is responsible for all maintenance and repairs. When the
company purchases packaging equipment they require the supplier to provide Comex’s employees
with adequate training for the operation and maintenance of the equipment.
152
When machinery purchases are done, Comex prefers to contact a certified distributor of the
manufacturing company. Comex is currently working with an American broker that imports all the
machinery from Europe. This has been very helpful for the company because they receive faster
services rather than contacting directly the European supplier which would take longer.
E) Future Packing Machinery Ordering Plans and Purchasing Policies
Selecting suppliers is determined by the quality, flexibility, and price of the machines. The
procurement process is based solely on the specific needs that arise in the company.
Machinery
Shrink Packs, Tecmi
Spare parts
Units
2
Origin
Italy
Undefined
N/A
Motive of Purchase
Satisfy clients needs
by expanding
installed machinery.
They are going to
use them to have
automated
machinery.
Estimate Budget
N/A
N/A
Comex future packaging machinery purchases are defined by strict planning which takes into
account a careful analysis of current manufacturing operations and product demand. The company
can immediately respond to proceed with the purchase of any machine it might need to replace,
expand or make more efficient any of its processes,
When they require new equipments the department of engineering is in charge of researching and
studying the technical and economical advantages that will bring that particular equipment to the
company.
Comex has certain purchasing policies which suppliers must meet. First, a previous evaluation of
the suppliers is done in order to have the least machinery failures in their plants. Then, the
company detects the volume of product needed for production and what kind of machinery will be
needed in order to fulfill the company’s objectives. Secondly, the company evaluates the
equipment’s durability and functionality (Comex expects the machine to work for at least 10 years).
Thirdly, they initiate a bid process between four of the potential suppliers. The maintenance and
the purchasing departments make a final recommendation which required the approval of top
management.
The company selects suppliers by the particular contribution their technology or equipment has
achieved at other operations. Comex prefers smaller packaging machinery suppliers because they
are easier to work with and are more flexible. Since small packaging manufacturers help Comex to
build their machines, they look for suppliers that will provide quality products, functionality and
confidentiality.
153
F) Financial Policies and Arrangements
Comex doesn’t have any particular financial policy or arrangement with their suppliers.
Negotiations are done between Comex and the suppliers in order to have a fair deal for both
parties.
In their last purchases they have worked with the suppliers in three ways:
•
•
•
The total payment of the machinery when it is delivered.
Monthly credit payments or,
30% advanced payment and 70% when delivered.
Acquisitions depend on the requests of the engineering department, who needs budget approval
from the finance department at the corporate level, once the budget is approved the purchasing
department is responsible for the negotiation with the supplier.
1. Knowledge of Comex products
2. Flexibility
3. Safety procedures for the operation of the machines.
4. Price
5. Brand
The company has no preference for any particular brand. However, they prefer to work with small
companies rather than with large global manufacturers.
Comex commented that European equipments have several advantages from the American
equipments. The European machines are considered to have more technical quality, are easier to
use and the prices are more attractive. The American equipment on the other hand, are considered
to have better deliveries and functions.
Origin
United States
Germany
Italy
Spain
Brazil
Technology
Regular
Good
Very Good
Bad
Very Good
Flexibility
Very Good
Regular
Good
Bad
Very Good
Service
Regular
Very Good
Very Good
Very Bad
Very Good
Price
Regular
Good
Regular
Bad
Good
I) Weaknesses and Strengths of Installed Machinery.
Brand: Tecmi
Strengths:
• Fast
• Robust
• Technology
• Compact
• Easy to use
Weaknesses:
• Bad security
•
154
The company has not looked into potential Asian equipment or packing machinery suppliers.
Comex does not visit any trade show or expo. They prefer to make their own research, which is
mainly done through the Internet.
Comex would like to receive information on tinting implant machinery, can dispensing and closing
machine, coding machine and other accessories. A very important factor that the company seeks is
highly flexible and easy to use machines. The company will also be introducing very small content
product applications to be sold for restoration and retouching. The company is interested in a shrink
wrap machine for carton trays where they will place the small paint cans of 50,100 and 250 ml.
Company Name:
Contact:
Position:
Address:
Comex S.A. de C.V.
Sigfredo Rico Aragón
Maintenance, Security and Project Director
Roberto Fulton #4
Col. Fraccionamiento Industrial San Nicolás
Mexico City
Telephone:
e-mail:
web page
(52-55) 1669-1400
[email protected]
www.comex.com.mx
155
Grupo Helvex, S.A. de C.V.
Industry:
Sub Industry:
Construction.
Kitchen and
manufacturer
Mexico City
2,000
$45,000 USD
Bathroom
fixture
Location:
Size: (employees)
Purchasing
Potential:
Specific
Business Blister machines
Opportunities:
Thermoforming machines
Labeling machines
Bagging machines
Polyethylene foam machines
Helvex is a leading manufacturer of bathroom and kitchen fixtures. The company started
operations in 1950 and has grown significantly over the last ten years. The company operates four
manufacturing facilities in Mexico .
The company is committed to total quality programs which include manufacturing, product quality
and packing presentation.
The company produces a wide variety of fixtures and accessories. Sales have increased on their
new state-of-the-art products like the brand Miura and Kubica, both focusing on the minimalist
trends. Other products are designs of square and round knobs, strainers, sprinklers, water cans,
and other bathroom and kitchen accessories.
Product
Fixtures and accessories
Package
Plastic
bags
polyethylene foam
and
With their new technological and modernization program the company has bought several packing
machinery in order to replace the old machines The following list shows the current packaging
machinery at Helvex. The following information concerns only the Vallejo plant (Mexico City) but
they told us that the other plants have the same machinery and brand because of standardization
goals and policies.
Polyethylene Foam Packing
Machine
Thermoforming Machines
Labeling machines
Brand
Speed
Packer
Afisamatik
Zebra
Units
5
Origin
USA
Average Age
2
Specification
85%
2
2
Mexico
N/A
20
5
85%
85%
The last packaging machinery purchase was in 2005 where they acquired 5 polyethylene foam
machines from Speed Packers.
156
Machinery
Polyethylene
Foam
Machines
Brand
Speed Packers
Country
USA
N/A
The company will purchase a thermoforming machine to replace existing equipment which has
become obsolete. The company is also interested in proceeding with several investments to
increase the degree of production automation throughout the facility. The company has not selected
a supplier but has received proposals from suppliers from Denmark, Mexico and Canada. The
company has a budget of US$ 45, 000 and might consider a European supplier which they consider
to have the best technology in this area.
Machinery
Thermoforming Machines
Units
1-2
Origin
TBD
Motive of Purchase
Replacement and to
increase production
through automation
Estimate Budget
US $45,000
Helvex prefers to purchase machinery directly from the manufacturers. They consider that going
directly and negotiating with the company’s headquarters will yield in better service. Helvex has an
in-house technical staff that is responsible for providing maintenance to all equipment and
machinery.
The company compares between the options offered by three suppliers before deciding on a
purchase. The technical staff presents a recommendation to top management which is responsible
for the approval of the purchase.
1.
2.
3.
4.
5.
Price
Post-sale Services
Availability and Cost of spare parts
Equipment’s Country Origin
Brand
The company has almost no experience on European packing machinery suppliers. They indicate
to have recently analyzed potential suppliers of specific packing machinery and consider that
European technology is more advanced that the US in the specific thermoforming application for
which they have interest.
Origin
United States
Germany
Denmark
Technology
Good
Very Good
Very Good
Flexibility
Good
Good
Good
Service
Regular
Good
Good
Price
Regular
Regular
Very Good
The company indicated they purchase a packing machinery from China and that the results were
very negative as while the price was very convenient the machine needed constant repairs. Their
157
comments is that the savings you make when purchasing a machine from China are much less that
the money you will spend on repairs and maintenance.
The company attends to ExpoPack in Mexico. They do not go to other packing machinery expos
since they think they are able to find all their needs in Expopack. In order to be informed of new
technologies and trends, the company receives information from their suppliers and manufacturing
magazines.
Helvex is interested in receiving information on PMMI’s members, especially from those that
manufacture high speed bagging machines and labeling machines. They are also interested on
thermoforming machines as well as blister machines and polyethylene foam machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
e-mail:
Web page:
Grupo Helvex, S.A. de C.V.
Ing. Luis Enrique Altamirano
Engineering Manufacturing Manager
Calzada Coltongo 293
Col. Industrial Vallejo
02300 Mexico D.F., Mexico
(52-55) 5333-9400
(52-55) 5333-9400
[email protected]
www.helvex.com.mx
158
Industrias Alen, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific
Business
Opportunities:
Industrial
House hold and Cleaning products
Monterrey, Nuevo León,
US $ 350 Million
US $1.3 Million
Injection molding machines, blow molding
machines, filling machines, and automated
packing machines.
Industrias Alen was established in 1951; today it has reached significantly market share in the
household hygiene, cleaning and home care industry. The company is considered as one of the
largest manufacturers of these products in Mexico. They have 5 production plants in Mexico and 2
in the United States. The company also owns their own distribution centers. In February 2005 the
company inaugurated their 5th plant in Mexicali, Baja California. Thanks to this new production plant
the company was able to have a 5% growth last year. Industrias Alen has established an important
presence also in Central America, the Caribbean and the United States.
The main products distributed by the company are the following: Cloralex, Blancatel, Cloraluz,
Pinol, Flash, Eco Pine, Eco Fresh, Eco Soft, Mr. Orange, Ensueño, Eficaz, Sultana, Vape.
Product
Brand
Package
Liquid Cleaners
Flash, Fulgor, Pinol, Pinol Plastic bottle
Limón, Eco Pine
Toilet odor control liquid Flash
Plastic bottle
Acids
Sultana
Plastic bottle
Liquid detergent
X pres
Plastic bottle
Kitchen cleaner
Eficaz
Plastic bottle
Multipurpose fabrics
Flash, Mr. Orange
Plastic bags
Bleach
and
disinfectant
Cloth Softener
Cloth hangers
Cloth Blancatel, Cloraluz,
Cloralex
Ensueño
Colorines Pack
Insectizide
Vape Espirales
Toilet pills
Clorin for bathroom
Pinol, Flash
Cloralex Bathroom
Plastic bottle
Plastic bottle
Plastic jar and bags
Cardboard box and
plastic bag
Cardboard box and
plastic bag
polyethylene
In 2005 they introduced a new product for bathroom cleaning. This new product has enjoyed
growing demand since its introduction to the market.
159
Bottle blow molding / Bekum
Bottle blow molding / AOKI
Bottle blow molding / Katex
Bottle blow molding / Uniloy
Filling Machines / Equiteck
Filling machines / MRM Elgin
Filling machine / Mengibar
Tapping machines / Surekap
Labeling machines / Krones
Labeling machines / Logotech
Printing machines/ MP
Coding machines / Marsch
Coding machines / Markem
Box forming machines/ COMBI
Box forming machines/ FWF
Box sealing machines/ 3M
Palletizing machines/ Lantech
Bottle orienting machines
Labeling Machines / BIH
Units
Origin
50
31
11
20
4
10
1
30
14
29
25
65
17
18
4
50
15
5
4
USA
Japan
Germany
USA
USA
USA
Spain
USA
Germany
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
Average
Age
13
8
6
8
8
4
.2
9
12
12
13
8
8
6
3
7
5
4
2
Specification
100%
100%
100%
100%
60%
100%
100%
70%
100%
80%
70%
60%
100%
80%
100%
100%
100%
100%
100%
The company will replace all their coding machinery..
The company begun in 2005 a program to increase production capacity at all their facilities. Since
this expansion program, Industrias purchasing packing machinery and will continue doing so over
the following months,
In 2005 they purchased a filling machine from MRM Elign and a blow molding machine from Uniloy.
Machinery
Filling Machine
Blow molding Machine
Brand
MRM
Elgin
Uniloy
Country
USA
USA
The company was very satisfied with these brands, so they decided to continue to purchase form
these suppliers.
The company has between US$ 1 and 1.3 million that will be used for the purchase of packing
machinery over the following months.
Industrias Alen has a 10 year manufacturing plan that consists on analyzing the sales trends of their
products and calculating the amount of capacity needed in their manufacturing plants to carry out
with the expected product demand growth and introduction of new products. The product
presentation is one of the most important factors for the company so they are constantly
160
reconfiguring the existent packaging machinery as they create new bottles with different packaging
and product presentations.
Industrias Alen is interested in purchasing new lines for packaging. Their specific needs are the
following: injection molding machines, blow molding machines, filling machines and automated
packing machines.
Industrias Alen didn’t specify how many lines were to be purchased. Their current supplier might be
selected for this purchase.
Their purchasing policies include comparing proposals from three potential suppliers. Industrias
Alen indicated that sound technologies and solid service commitment are key factors for supplier
selection.
They told us that they have noticed an increase in the post-sale services of all their suppliers. The
company will consider switching suppliers if they have a better offer with better pricing of post-sale
services.
The company might consider vender financing when available.
1. Price
2. Cost of the post-sale service
3. Technology
4. Time delivery
5. Brand recommendations
Industrias Alen doesn’t have a preferred brand or any business arrangement with their packaging
equipment suppliers. The company is open to learning about additional supplier options of packing
machinery. The company indicated to be satisfied with the use of machinery from the following
brands: Katex, Bekum, Uniloy, Nisei and Aoki. The company considers that service costs have
increased significantly over the past two years.
Industrias Alen considers that European suppliers have more advanced technologies than US
suppliers.
Origin
United States
Spain
Germany
Japan
Technology
Good
Good
Good
Good
Flexibility
Good
Good
Good
Regular
Service
Good
Regular
Good
Good
Price
Good
Regular
Good
Good
The company currently works with packaging manufacturers from Japan. They told us that they are
not accepting proposals from Korean or Chinese manufacturers since they consider them as low
quality manufacturers. Industrias Alen has heard in the market that companies from these countries
have supplied useless machines.
161
Commonly Industrias Alen attends all the packaging machinery trade shows and events. They
consider that the best way to learn of new trends and technologies is by attending these shows.
Industrias Alen would like to receive information on injection molding machines, blow molding
machines, filling machines, and automated packing machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Mail:
Web:
IndustriasAlen, S.A. de C.V.
Ing. Roberto Sifuentes
Engineering and Project Manager
Boulevard Díaz Ordáz # 1000,
Col. Los Treviño,
66350, Santa Catarina, Nuevo León, México.
(52-81) 8122-1000 ext. 1308
Fax:
[email protected]
www.alen.com.mx
(52-81) 8122-1594
162
APPENDIX 1.Packaging Machinery Import Statistics 2003-2005:
Partner Country
UDG: 8422.20 to 8422.40, Just Machinery
Year To Date: January – December
Thousands United States Dollars
% Share
2003
2004
2005*
2003
2004 2005*
% Change
2005/2004
World
362,751
376,867
378,549
100.00
100.00 100.00
.45
Italy
106,175
101,617
105,771
29.27
27.01
27.97
4.09
United States
Germany
France
Spain
Sweden
Brazil
Switzerland
European Econ.
Comm.
Japan
Canada
United Kingdom
Argentina
Netherlands
Taiwan
Australia
Denmark
Korea South
Slovakia
South Africa
Chile
China
Colombia
Israel
Ecuador
Czech Republic
Austria
Guatemala
Venezuela
New Zealand
Thailand
India
Bahamas
San Marino
Singapore
Poland
100,555
54,272
21,134
11,827
11,051
9,058
7,147
91,560
70,065
15,711
15,407
13,342
4,606
4,267
74,588
82,810
24,305
21,507
9,629
9,958
3,360
27.72
14.96
5.83
3.26
3.05
2.50
1.97
24.34
18.62
4.18
4.09
3.55
1.22
1.13
19.72
21.90
6.43
5.69
2.55
2.63
.89
-18.54
18.19
54.70
39.59
-27.83
116.20
-21.26
6,739
5,364
4,569
4,462
4,228
3,752
2,966
2,254
1,794
1,587
739
674
542
416
322
220
214
113
100
77
68
49
47
39
38
26
21
21
2,500
14,924
4,087
5,648
2,818
8,920
2,540
3,498
800
2,048
1,607
2,381
1,074
227
346
1,004
26
2
24
61
52
140
1,833
6,525
7,569
4,683
3,027
6,612
3,142
3,338
3,496
1,308
48
1,814
550
11
653
245
204
2
33
137
14
11
45
1.86
1.48
1.26
1.23
1.17
1.03
0.82
0.62
0.49
0.44
0.20
0.19
0.15
0.11
0.09
0.06
0.06
0.03
0.03
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01
.66
3.97
1.09
1.50
.75
2.37
.68
.93
.21
.54
.43
.63
.29
.06
.09
.27
.01
.001
.01
.02
.01
.04
.48
1.73
2
1.24
.80
1.75
.83
.88
.92
.35
.01
.48
.15
.001
.17
.06
.05
.0001
.01
.04
.001
.001
.01
-26.68
-56.28
85.20
-17.09
7.42
-25.87
23.70
-4.57
337
-36.13
-97.01
-23.81
-48.79
-95.15
-29.19
-79.68
0
37.50
124.59
-73.08
-67.86
163
Puerto Rico (U.S.)
Finland
Swaziland
Slovenia
Nepal
Malaysia
Costa Rica
Ireland
Hong Kong
Uruguay
Unidentified Country
Belgium
Portugal
Hungary
Iran
Russia
Korea North
Norway
El Salvador
Saudi Arabia
Senegal
Peru
Ucrane
Luxemburgo
Chipre
*Estimated by HDC
19
15
11
8
8
6
6
6
4
3
2
2
1
1
1
-
1
15
1,035
1,315
94
31
233
2
1,125
11
9
32
439
104
10
2
18
8
461
-
681
9
12
66
6
33
4
123
366
9
15
0.01
-
.28
.35
.02
.01
.06
.30
.01
.12
.03
.12
-
.18
.001
.001
.02
.0001
.01
.0001
.03
.10
.001
.001
4440
-99.13
-94.98
6.45
-98.28
-89.07
-71.88
-
164
Mexico Import Statistics From World
Commodity: 8422.20 to 8422.40, Just Machinery
Year To Date: January - December
Commodity
Description
%
Change
2003 2004 2005* 2005/2004
% Share
2003
2004
2005
Just Machinery
362,751
376,867
378,549
100
.45
842240
Packing Or Wrapping Machinery, Nesoi
188,581
132,672
159,840 51.99 35.20 42.22
20.48
842230
Machinery For Filling, Closing Bottles, Etc
Mach For Clean Or Dry Bottles Or Other
Containers
145,162
221,375
197,936 40.02 58.74 52.29
-10.59
29,008
22,820
8422.20 to
8422.40
842220
20,744
100
8
100
6.06
5.48
-9.10
*Estimated
Mexico Import Statistics From Italy
Commodity
8422.20 to
8422.40
842240
842230
842220
Description
Just Machinery
Containers
2003
2004
2005*
106,175
101,617
105,771
34,376
51,160
20,640
%
Change
2003 2004 2005* 2005/2004
% Share
100
100
100
4.09
28,441
56,522
45,483 32.38 27.99
43
45,281 48.18 55.62 42.81
59.92
-19.89
16,654
15,008 19.44 16.39 14.19
-9.88
*Estimated
165
Mexico Import Statistics From United States
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
100,555
55,720
40,676
91,560
51,478
37,388
4,159
2,694
2005
%
Change
2003 2004 2005 2005/2004
% Share
74,588
100
100
100
37,756 55.41 56.22 50.62
35,682 40.45 40.83 47.84
1,150
4.14
2.94
1.54
-18.54
-56.66
-4.56
-57.31
Mexico Import Statistics From Germany
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
2004
2005*
%
Change
2003 2004 2005* 2005/2004
% Share
Just Machinery
54,272
17,679
70,065
19,117
82,810
100
100
100
30,366 32.57 27.28 36.67
18.19
58.84
Containers
35,827
49,052
52,161 66.01 70.01 62.99
6.34
766
1,896
284
1.41
2.71
.34
-85.02
*Estimated
166
Mexico Import Statistics From France
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
2005*
21,134
5,989
15,115
15,711
4,937
10,539
30
235
%
Change
2003 2004 2005* 2005/2004
% Share
24,305
100
100
100
5,006 28.34 31.42 20.60
16,038 71.5 67.08 65.99
3,261
0.14
1.50 13.42
54.70
1.40
52.18
1287.66
*Estimated
Mexico Import Statistics From Spain
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
11,827
4,137
7,533
15,407
3,983
11,285
157
139
2005*
%
Change
2003 2004 2005* 2005/2004
% Share
21,507 100
100
100
8,614
35 25.85 40.05
12,469 63.7 73.25 57.98
424 1.33
.90
1.97
39.59
116.27
10.49
205.04
*Estimated
167
Mexico Import Statistics From Sweden
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
2005*
11,051
2,359
8,677
13,342
1,939
11,397
15
6
%
Change
2003 2004 2005 2005/2004
% Share
9,629 100
100
100
2,230 21.4 14.53 23.16
7,398 78.5 85.42 76.83
0 0.14
.04
0
-27.83
15.01
-35.09
-100
*Estimated
Mexico Import Statistics From Brazil
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
9,058
3,491
2,796
4,606
1,828
2,428
2,770
350
2005*
%
Change
2003 2004 2005 2005/2004
% Share
9,958
100
100
100
6,193 38.54 39.69 62.19
3,417 30.87 52.71 34.31
347 30.58
7.60
3.48
116.20
238.8
40.73
-.86
*Estimated
168
Mexico Import Statistics From China
Commodity
Description
2003
8422.20 to
8422.40
842240
842230
842220
Just Machinery
Containers
2004
2005*
416
185
231
2,381
944
1,148
0
19
%
Change
2003 2004 2005 2005/2004
% Share
1,814
100
100
100
896 44.47 39.65 49.39
905 55.53 48.22 49.89
14
0
.8
.77
-23.81
-5.08
-21.17
-26.32
*Estimated
169

Opportunities in the Mexican Market for Packaging Machinery 2006

Transcription

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