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

TECHNOLOGY

REVOLUTIONIZING THE TORTILLA INDUSTRY

With continuing innovations in technology and state-of-the-art tortilla production and distribution processes, GRUMA is revolutionizing the tortilla business. The company's industry-leading manufacturing technology and automated distribution systems bring strong competitive advantages: greater productivity, lower costs, and superior product quality and customer service.

By implementing the most advanced technology, the company has developed tortilla-manufacturing equipment that produces substantially greater volume and cost savings, and uses considerably less space, than traditional machines. The company's corn tortilla machines can produce up to 1,200 tortillas per minute, while traditional machines in Mexico produce only 50 or 60 tortillas per minute. GRUMA has also developed a machine that produces up to 400 wheat tortillas per minute.

With this advanced production technology, the company has reduced variable corn tortilla and wheat tortilla production costs by 36% and 25%, respectively, in the last 10 years. These machines have been used successfully at GRUMA's operating facilities throughout the United States, Mexico, and Central America.

The company's automated distribution systems have also demonstrated their effectiveness in increased operating efficiencies and improved customer service. Delivery drivers can track orders through handheld computers to ensure that they have the right products - and the right amount of those products - when they leave for their routes each morning. The system also tracks customer invoices and payment schedules, allowing for better management of accounts receivable; it also updates production, scheduling, and materials ordering.