GRUMA TO PRODUCE FEED FOR LIVESTOCK (REFORMA 2) (EL NORTE (ONLINE) 0) (EL NORTE (ONLINE) 0) (EL ECONOMISTA 26) (EL UNIVERSAL 4) (LA JORNADA 21) (EL FINANCIERO 18) (LA RAZÓN 20) (EL SOL DE MÉXICO 5) (EXCÉLSIOR 2) (MILENIO DIARIO DE MONTERREY 0) (EL ECONOMISTA 2) (EL HORIZONTE ONLINE)

Gruma plans to move into the livestock feed industry, for the first in the company’s history. As a first step, the company inaugurated a new plant yesterday, representing a USD 5.7 million investment. Agromas, located in Apizaco, Tlaxcala, has a production capacity of 10,000 tons per month. It was inaugurated by the company’s Chairman and CEO, Juan González-Moreno. Details released by the corporation indicate that GRUMA will use this plant to offer balanced animal feed enriched with vitamins and minerals for a variety of animal species, including cattle, pigs, poultry, sheep, and rabbits, among others. “This new unit represents an investment of over USD 5.7 million, job creation in the area (Tlaxcala), and an installed production capacity of more than 10,000 tons per month,” said González-Moreno to attendees, including State Governor Mariano González-Zarur.

SISTINE CHAPEL ART IN MEXICO CITY (EL UNIVERSAL 1-13) (MILENIO DIARIO 30)

The ‘Sistine Chapel in Mexico’ project, on display at Plaza de la República between June 7-30, is the product of a group of more than 120 Mexican participants, including architects, engineers, photographers, sculptors, carpenters, and set designers. Following its display in Mexico City, the exhibit is scheduled to travel to the major cities of each state over the course of three years, with an estimated 52 million total visitors. The culmination of two years of work, this project is supported by Grupo Financiero Banorte and Maseca, as well as the government of Mexico City. 

MEXICO AND THE NETHERLANDS INCREASE COMMERCIAL TIES(MILENIO DIARIO 24)

The Dutch extend an olive branch to Mexico: “You were right. It was not a penalty.” But the history between the two countries is not just anecdotal. The Dutch have shown interest in different sectors, including oil, gas, and other forms of energy, as well as agriculture, poultry farming, horticulture, and water management. Several prominent Dutch companies have been operating in Mexico for many years, including the airline KLM, insurance companies Atradius and Argos Aegon, the brewery Heineken, financial firms ING Investment and Rabobank, electronics company Philips, oil and gas company Shell, and personal hygiene company Unilever, among many others. Mexican companies of note operating in the Netherlands include América Móvil, Mexichem, and Monterrey-based Gruma that manufactures and distributes its products within the country.

THEIR FOOD FEEDS THE WORLD(REFORMA 6) (EL NORTE ONLINE) (EL NORTE ONLINE) (EL NORTE ONLINE)

Grupo Maseca (Gruma), Coca-Cola Femsa (KOF), and Grupo Bimbo are the number one companies worldwide in sales of tortillas, soft drinks, and bread, a position they have consolidated through the purchase of other businesses. Over the past five years, two of these frims have secured international sales that continue to grow and outperform local sales in Mexico.

CEMEX, OMA, AND AC, THE MOST ATTRACTIVE MONTERREY-BASED COMPANIES(EL ECONOMISTA 1-13)

So far this year, Cementos Mexicanos (CEMEX), Grupo Aeroportuario Centro Norte (OMA), and Arca Continental (AC) have positioned themselves as the three most attractive Monterrey-based companies on the Mexican Stock Exchange in terms of performance, according to results from the Grupo Financiero Monex Monterrey-based index... In May, the Index closed up only 0.72%, while the Mexican Stock Exchange (BMV) Index dropped 0.60%. During that same month, the best performing companies were FEMSA, OMA, and Gruma, with growth reported at 6.6%, 3.7%, and 2.4%, respectively. 

MONEY FLOWS NORTH OF THE U.S.-MEXICO BORDER (EL ECONOMISTA 39)

In 2006, Hazleton, Pennsylvania became the center of the national debate on illegal immigration. Facing an influx of immigrants, many of them from Mexico, Hazleton became the first city to approve local ordinances prohibiting hiring these immigrants. Although the courts eventually overturned the laws, Hazleton’s local government reflected the fears held by many Americans regarding the wave of illegal immigrants crossing the southern border. In 2009, the U.S. division of Mexico City-based Grupo Bimbo, started operations at the first of two large plants located in the city of Hazleton. Recently, Mission Foods, a Gruma subsidiary, built and subsequently expanded a plant that makes tortillas and natural food wraps in the nearby town of Mountain View... 

ABOUT THE BOSSES (EL FINANCIERO 15)

An airplane dodging devaluations? This is for everyone that would like to know which Mexican companies were the best performers despite recent peso devaluations. A study released by Citigroup analyzed the seven most recent depreciations of the Mexican peso that reached more than 10% each. The period analyzed started in 2008. The list of the five best-performing issuers is led by Volaris, with a 14% average during each period of devaluation.  Gruma, Asur, Femsa, and IEnova follow, with 8%, 6%, 5%, and 4%, respectively.

MIGUEL ÁNGEL-MANCERA INAUGURATES THE SISTINE CHAPEL REPLICA(EL SOL DE MÉXICO 1-2) (MILENIO DIARIO 34)

Mexico City Mayor Miguel Ángel Mancera inaugurated the Sistine Chapel replica last night, a day after the event was originally scheduled. This is the first time that the Sistine Chapel can be admired outside of the Vatican... Mancera announced that the Sistine Chapel will be open until July 25. Every 15 minutes, around 500 people will be allowed to enter the exhibit free of charge, thanks to the support of church leaders, the Vatican, and the exhibition’s sponsors, including Maseca. 

500 LEADING COMPANIES IN MEXICO (EXPANSIÓN 249-255) (EXPANSIÓN 256-261)

Expansión magazine published the ranking of the “500 Leading Companies in Mexico.”Gruma came in at #51,and Grupo Industrial Maseca came in at # 164. 

MEXICAN COMPANIES AROUND THE WORLD (EXPANSIÓN 296)

Mexico’s top 25 most global companies are active in 81 countries, and Gruma is ranked # 7 with activities in 18 countriesamong theTop 10 companies with a presence in the largest number of countries.  

HONOR ROLL (EXPANSIÓN 276-288)

Expansión published a ranking of the companies with noteworthy key financial indicators, and Gruma was ranked # 8 on Returns on the Mexican Stock Exchange (BMV) and # 18 on the list of Largest Companies by Market Capitalization. 

FOCUS ON THE RELATIONSHIP BETWEEN MEXICO AND SINGAPORE(EL ECONOMISTA 26)

Minister of Economy Ildefonso Guajardo, and his Singaporean counterpart Lim Hng Kiang, noted the complementary relationship exiting between both nations, especially due to their geographic positions, and because the Mexican economy is associated with manufacturing, while the economy of Singapore is linked to services. Both officials agreed that Singaporean companies have significant investment opportunities in three industries in Mexico. Both officials participated in the Mexico-Singapore Business Forum, where Minister Guajardo highlighted the growth of Mexican agri-food exports that broke all records by passing the USD 27 billion mark in 2015. Minister Lim mentioned Gruma as one of the Mexican companies currently investing in Singapore. 

MEXICAN CORPORATIONS LEFT INCREDULOUS BY REPUBLICAN NOMINEE(EL UNIVERSAL 10)

Mexican companies with a presence in the United States, including Cemex, Mexichem, Bimbo, Genomma Lab, and Gruma, seem incredulous about the possibility that Donald Trump will be elected President of the United States of America, and are maintaining their expansion plans for the U.S. market, explained the experts to El Universal.

HIGH DOLLAR PRICE RAISES COMPANIES’ FOREIGN CURRENCY DEBT BY 21% (EL FINANCIERO 25)

The recent weakness of the Mexican peso against the U.S. dollar has renewed worries within companies that currently hold liabilities in dollars and do not have a natural hedge in place to mitigate the risk...Companies like Peñoles, Grupo México, Mexichem, Alfa, Bimbo, and Gruma are practically immune to the peso devaluation, as their debt ratio in dollars is equal to their revenue. This is in contrast to companies such as Elektra, Cemex, ICA, Coca-Cola Femsa, Televisa, and América Móvil whose sales in dollars do not equal their debt. 

TRENDS (EL ECONOMISTA 7)

GRUMA This week, company shares reached a trading high point of MXN 261.54.

BREXIT IMPACT EXPECTED TO BE MINOR FOR MONEX, GRUMA, AND BIMBO (MILENIO DIARIO 23)

Today citizens of the United Kingdom will decide if their country will leave the European Union. The direct impact on Mexican companies doing business in the U.K. and in the EU commercial block is expected to be minor, according to both experts and the companies themselves.  Gruma, the tortilla, and flour company, operating in the United Kingdom with brands including Mission, indicated that the country’s exit from the EU (Brexit) would not affect its operations, sales, or revenue volumes. The company responded to a question from MILENIO by saying “We operate production plants in the United Kingdom, and the output of these plants is primarily sold to the U.K. and Ireland, and Ireland relies heavily on the U.K. for food supplies.” The company also operates facilities throughout continental Europe that distribute products to the EU, Middle East, and North Africa, and will not need to import products from the United Kingdom. 

DESPITE VOLATILITY, VALUABLE INVESTMENTS STILL EXIST:VECTOR (EL ECONOMISTA 11)

During this highly volatile time for the financial markets, the food, beverages, commercial, and airport operator sectors listed on the Mexican Stock Exchange represent the most attractive investment opportunities. José Ignacio-Torres, COO of investment bank Vector Casa de Bolsa, explained that despite the current complex environment, these sectors continue to offer high-value opportunities. Issuers with potential and attractive yields, include Grupo del Pacífico and Grupo del Centro Norte as airport operators, Gruma and Lala in the food sector, bottlers Arca Continental and FEMSA in the beverage industry, and retailers Walmex and La Cómer. These issuers are particularly attractive if purchasers wait for adjustments before buying shares. 

JULIO PILOTZI/FINANCIAL SPLIT (EL SOL DE MÉXICO 2)

Gruma not affected. Despite “expert’” claims that Monex, Mexichem, Cemex,Gruma, Bimbo, and Aeromexico will be at risk following the exit of Great Britain from the European Union, at least one of these companies will not be impacted by the Brexit, as its U.K. operations are independent of their activities in continental Europe. Gruma ,led by Juan González-Moreno, operates two production plants in the United Kingdom, and the output of the plants is primarily designated for the U.K. and Ireland. Ireland relies heavily on the U.K. for food supplies. The company also operates several facilities in countries across continental Europe that distribute products to the region, as well as to the Middle East and North Africa. In other words, the company’s ability to serve these markets is not associated with its production plants located in the United Kingdom...

“THE UK’S EXIT WILL NOT AFFECT US” – GRUMA.(EL NORTE ONLINE) (EL NORTE ONLINE) (REFORMA 2) (EL HORIZONTE) (LA JORNADA 23)

Grupo Maseca announced that the organization will not be affected by the impending exit of the United Kingdom (U.K.) from the European Union. The company has two production plants in the U.K., primarily focused on local consumption. The United Kingdom’s exit from the European Union will not affect Gruma’s operations in the U.K., as they are independent of the company’s operations in continental Europe.