GRUMA Corporation-U.S. Operations

It started its operations in the U.S. in 1977.

Initially, GRUMA made its entry into the U.S. with a two-part strategy. First, it sought to set up its own tortilla factories, in order to prove that a high-quality flour tortilla could be made. It opened a plant in Canoga Park, California, and five other tortillamaking facilities that used processed corn flour. It also opened a center for research and development of products and processes in Connecticut.

Shortly thereafter, the company put forward another growth strategy. This included opening its own tortilla factories, as well as buying entities that already existed within the U.S. Positive results came rapidly. GRUMA began an expansion in the U.S., which continues to this day.

GRUMA Corporation also vertically integrated its operations by:

	Designing and building proprietary tortilla manufacturing machinery for use in its U.S. operations.
	Constructing corn flour manufacturing facilities in the United States
	Establishing corn purchasing operations;
	Developing brand equity
	Forming an extensive distribution network

GRUMA Corporation's strategy has been to participate in all major tortilla consumption areas in the United States, with the purpose of becoming a nationwide branded tortilla manufacturer. Currently we distribute our products to more than 30,000 stores.

The U.S. Hispanic population is expected to increase approximately 3.5% per year. We believe that this increase in the Hispanic population in the United States, and the increasing consumption of Mexican style food by non Hispanics in the United States, have yielded an increasing demand for our tortillas and related products. We also participate in this market growth by selling corn flour, primarily to other manufacturers of tortillas and tortilla chips.

Markets

GRUMA Corporation manufactures and distributes two principal brands of tortillas and related products in the United States, MISSION® and GUERRERO®, in a number of varieties of corn and wheat tortillas and tortilla chips. GRUMA Corporation also produces over 20 varieties of corn flour that are used to produce different types of tortillas and tortilla chip products under the MASECA® brand. Additionally it provides to institutional clients, including major fast food chains and casual dining, as well as wholesalers. It also develops products for sale to supermarkets under its own brands and distributes other types of products, many of them complementary base products such as sauces and dips.

Responding to consumer´s trends, it made an important addition to its product portfolio, with Life Balance, healthy food line, low in sodium and higher in calcium and vitamins than conventional tortillas, so they attract a growing number of people who care about their health, this new line of tortillas achieved significant sales in 2009 and shows an encouraging growth potential.

Operations. GRUMA Corporation produces corn flour in its plants located in Edinburg, Plainview and Amarillo, Texas Evansville, Indiana Henderson, Kentucky, and Madera, California.


The production of tortillas and other products is carried out in several strategically located plants, mainly in the West and Southwest United States. These locations give GRUMA Corporation coverage of broad distribution within these regions. Additionally GRUMA Corporation in 1999 built its plant in Coventry, England. With the construction of the plant in Coventry, GRUMA Corporation took a major step to penetrate the European market.