Food brands surviving in Mexico

MEXICO-CITY - There are many reasons to explore new markets outside the EU on export potential. Of course, the first attention is drawn by countries like China, India or other (ex)BRICS countries. But there are many more interesting markets. What about Mexico, with a population of 130 million people, an average income of $ 19.500 and 45% of the population below 25 years definitely worth to have a closer look at. 

The first thing that attracts your attention when visiting the market is that there is a wide range of different kinds of stores: from premium department stores like El Palacio del Hierro and Liverpool with an exlclusive gourmet assortment, via more mainstream hypermarkets like Walmart Supercenter and Soriana to the 1820 discount stores of Bodega Aurrera. Besides the more than 16,000 locations of convenience store Oxxo also the so called ‘clubs’, the wholesale stores of Costco and Sam’s club, are worth a visit. Mexico is in terms of import brands and products very much USA oriented which is not so strange when you share over 3300 km of border. You see well developed cereals, snacks and carbonated soft drink categories. But also vegan, organic and natural food is widely available – in the more developed area. 

Walmart is market leader with 2,300 stores divided over 5 shopping formats and an impressive $ 24 billion sales. The Superama banner (94 stores) is a premium supermarket type and often a first start for import products from Europe. However, many foreign brands fail in Mexico. Often the brand owner is to blame, as he has not taken into account the necessary investment budget or forgot to continuously pay attention to the brand. Generating direct sales is difficult from overseas, you need merchandisers at store level to support your product. That’s why local distributing partners come in and can be a solution. A reliable, local partner is the key to success as he makes sure that the budget will be spent the right way and that your brand will be focused on continuously.  

TEN recently analyzed the Mexican market and selected a reliable partner for one of their principals. TEN the export network advises and supports food & beverage companies that are aiming to broaden their horizons. They co-ordinate food export activities, encourage business development projects, and create new international links. TEN also helps improving the standard of existing export activities, and operates as SIB advisor (Starters International Business, an initiative of the Dutch government) for SMEs. For more information have a look at http://www.theexportnetwork.nl or contact TEN for a first meeting: http://www.theexportnetwork.nl/contact/