POSITIONED FOR PROFITABLE GROWTH
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UNITED STATES GRUMA CORPORATION
STRATEGIC REGIONAL GROWTH Nineteen ninety-nine was a year Finally Gruma Corporation began building a new, state-of-the-art tortilla plant in England, wich should launch operations in the third quarter of 2000. This plant will allow the company to serve some of the fastest-growing tortilla markets in the world - in particular, the United Kingdom, the Scandinavian region, and several other European markets. A COMPREHENSIVE STRATEGY TO INCREASE SHAREHOLDER VALUE In order to maximize value for GRUMA's shareholders, Gruma Corporation continues to concentrate on its core competencies, tortilla marketing and corn flour production. Toward that end, the company enters 2000 with a renewed business strategy: a three-year plan for increasing revenue and shareholder value by building brand awareness, improving customer service and operating efficiency, and educating people at all levels of the organization in the company's key business processes and long-term objectives. Focused marketing and customer-service efforts Gruma Corporation's performance in 1999 is due, in large part, to its focus on brand awareness and customer service. The company has increased the visibility of its Mission¨ and Guerrero¨ brands throughout the United States by stepping up advertising and implementing promotional programs. It is also the only tortilla company that has two distinct marketing efforts - one directed toward Hispanic consumers in the U.S. and one addressing non-Hispanic U.S. consumers. Through the use of technology and innovative delivery processes, the company is also improving its customer service. It utilizes SAPinformation technology applications to streamline delivery systems, driving down lead times for customers' orders. Delivery drivers use handheld computers for better inventory management and ordering. The company has added 100 delivery routes across the U.S., significantly improving coverage and delivery times. In the next two years, Gruma Corporation plans to reduce order turnaround time in its food service sector to 72 hours from its current average of seven days. The People Initiative
A GOOD NEIGHBOR Gruma Corporation is an active member of the communities in which it operates, especially in the Hispanic communities in the United States. In 1999, the company was a key sponsor of Americanos, a project led by award-winning actor Edward James Olmos to highlight the achievements of Hispanics in the United States. Gruma Corporation provided funding for a series of photography exhibitions featuring Hispanic Americans. The exhibit has been shown in principal museums throughout the country.
The European market for tortillas and tortilla chips is worth US$370 million and growing... |
A
COMPREHENSIVE
of
concentrated, strategic growth of Gruma Corporation. Through two
key acquisitions, the company solidified its leadership position
in two important U.S. markets. In the first part of the year, it
acquired Barnes Foods (Barnes), a tortilla company in North Carolina,
and Authentic Speciality Foods (ASF) in Texas. In conjunction with
the Barnes acquisition, the company built a new tortilla plant in
North Carolina, wich began operating in the first quarter of 2000.
It completed the expansion of a plant in Houston, Texas, and expanded
its Plainview, Texas, corn flour mill, wich is expected to begin
operating in mid-2000. It also built a new tortilla plant in Seattle,
Washington, wich opened in September.
Gruma
Corporation is committed to attracting and developing the finest
talent possible and to ensuring that their vision is in line with
that of the company. Top management and employees of all levels
gather every month for "town meetings", during which they discuss
quality assurance initiatives, company objectives and strategy,
monthly results, and any other issues of concern to both employees
and management. Employees are educated in key business processes,
core values, and long-term goals in order to maintain unity and
focus within the organization.