Annual Report 1999
POSITIONED FOR PROFITABLE GROWTH
 
     
INTRODUCTION
FINANCIAL HIGHLIGHTS
LETTER FROM THE CHAIRMAN
MANAGEMENT FOCUS
STRATEGY
TECHNOLOGY
PRODUCTS
REVIEW OF OPERATIONS
MANAGEMENT DISCUSSION AND ANALYSIS
OFFICE OF THE PRESIDENT
OFFICERS
BOARD OF DIRECTORS

PRODUCTS

CHANGING THE WAY THE WORLD EATS

One of GRUMA's strongest competitive advantages is the superior quality of its brands. Each year, the company further strengthens its brand equity by improving its products and introducing innovations that are changing the way people eat.

When GRUMA first entered the U.S. market, for example, tortillas were generally considered a commodity product. The company's dual approach - offering premium-quality products while focusing on customer service - has strengthened its brand and brought the tortilla into the mainstream in the United States.

GRUMA's continual focus on meeting customers' needs broadens the usage of its products and increases their quality and nutritional value. GIMSA produces corn flour enriched with micronutrients and soy protein to add nutritional value to its customers' meals. Gruma Corporation's GMO-free corn flour, developed in 1999, has enabled the company to compete in the European market and has increased sales volume by 250% over that of 1998.

The introduction of the "wrap" in the United States in recent years has altered the way people think about the traditional sandwich. The company makes and sells extra-large tortillas in different flavors - tomato-basil, garlic, and spinach, for example - to wrap around everything from steak to sprouts. The wrap is becoming increasingly popular in restaurants and delis.

One of the company's ultimate goals is to see people on every continent eating tortillas and buying its products. The challenge going forward is to introduce consumers to the many different uses of corn flour and tortillas. GRUMA's subsidiaries are testing new marketing methods that not only promote the company's products, but also educate consumers in their use.