October 2

CAPTAINS (REFORMA 3) (NOR 17)Let’s Eat...and Drink. Mexican alcoholic beverages and food are famous around the world, and Paulo Carreño, the CEO of ProMéxico, knows it. This is why he has increased the internationalization of the companies who were present at trade shows and exhibitions in September, in search of foreign partners. For example, Fine Food Australia 2017, the largest food fair in the Pacific, was attended by companies such as La Costeña, led by Rafael Celorio, andGruma, led byJuan González Moreno...

MANUEL J. JÁUREGUI/WASTEFUL (REFORMA 11) NOR 0 President Peña’s one day visit to Monterrey last Friday was an insulting waste of resources. Especially since the purpose of the mission was to ask the IP for financial resources to support reconstruction...Of course the business owners—or at least their leaders—showed a willingness to help. In fact, even before the President’s request,GRUMA, had mobilized its “tortimóviles” (tortilla food trucks) to the disaster zone 24 hours after the phenomena in Chiapas and Oaxaca, and later in Mexico City. In addition, a half-dozen foundations supported by local businesses (including FRISA, from the decorated Eduardo Garza T. Fernández), DONATED significant resources for the victims...

TRENDS  (EL ECONOMISTA p.7)GRUMA. The issuer reached its highest closing price since March. Last week, the price ofGruma shares rose 1.53% to MXN $266.23; it rose 14.08% this quarter.

THE FIVE WINNING AND FIVE LOSING COMPANIES FOR 3T17 ON THE BMV  (Bolsa Mexicana de Valores [Mexican Stock Exchange]),   (EL FINANCIERO pp-18) The increased risk aversion generated by issues such as uncertainty with NAFTA renegotiation, nervousness from nuclear testing in North Korea, the expected hike in FED rates at the end of the year, and the peso’s recovery against the dollar, caused the BMV Index of Prices and Quotations to end the third quarter of 2017 with a peso gain of only 1%... The five biggest winners on the Mexican Stock Exchange’s IPC Index were as follows:Gruma, up 13.0%, followed by América Móvil up 10.8%; Peñoles up 10.7%; Grupo México up 9.2%, and GFnorte up 8.6%. “Gruma was over-penalized and is often a defensive issuer. In addition, its recent results have been positive,” Marisol Huerta, an analyst from Bursamétrica, explained...

IP DONATES MXN $457 MILLION (EL HERALDO DE MÉXICO 29) Fourteen days after the 7.1 magnitude earthquake shook the country, at least 73 domestic and international companies have come through for Mexico, either through direct financial support, in-kind donations, or with free services.Gruma is one of the companies who has helped with services and a collection center.

October 4

JUAN A. GONZÁLEZ MORENO/GRUMA/THE 100 MOST IMPORTANT BUSINESS OWNERS IN MEXICO (RANKED 22, UP 1)(REVISTA EXPANSIÓN) What plans do you have for your company?We are seeking out new businesses that will contribute to the growth ofMaseca(aGrumabrand) in a profitable way, through product development or acquisitions. We also want to penetrate new markets, such as our recent entrance with Mission into the French retail channel.We have also launched healthier, higher value products , such as theMission Organicsline, which offers organic, whole wheat, multigrain, and fat-free tortillas, and chia and quinoa wraps, all of which makeGrumamore profitable...What main challenges are you facing this year?Gruma’s main challenge and focus is the high volatility in prices of grain and other supplies. To offset them, we arranged coverage for the prices of our main supplies, especially corn, wheat, and natural gas...What short term opportunities do you see?Continue increasing the distribution and acceptance of our main products, especially the healthier ones. We also want to increase our production efficiency in the United States, Europe, and at the new plants in Dallas and Russia.

A NEW GENERATION WITH THE SAME LAST NAMES / THE 100 MOST IMPORTANT BUSINESS OWNERS IN MEXICO(REVISTA EXPANSIÓN) The significance of the 100 most important business owners in Mexico is undeniable: their companies’ combined sales surpassed USD $3.12 billion in 2016, equivalent to 30% of the GDP. Their combined fortunes, nearly USD $2.7 billion, is close to the GDP of countries such as Singapore, Israel, Chile, and Hong Kong...This year’s ranking reflects the consolidation of a trend that began a few years ago: a new generation has begun to take the reins of large business groups. The faces are new, but their last names are the same as ever, since most are the children of the founders or CEOs of these companies: Alejandro Bailléres at Grupo Bal; Antonio del Valle Perochena at Grupo Kaluz; Carlos Hank González at Banorte;Juan Antonio González at Gruma;Juan Manuel Ley at Grupo Ley; Max David Michel at Liverpool; Olegario Vázquez Aldir at Grupo Ángeles…

MULTILATINA RESILIENCE. (AMÉRICAECONOMÍA 7-56-62) The 2017 Multilatina public ranking by América Economía magazine, in whichGruma appears in 7th place (2017).

October 11

 MEXICO AND THE NETHERLANDS TO BEGIN TRADE (EL SOL DE MÉXICO 6) ProMéxico signed an agreement with RVO (Rijksdienst voor Ondernemend Nederland), the Netherland Business Agency within the Dutch Ministry of Finance, to provide mutual support for trade and investment activities between the Netherlands and Mexico, and to exchange information and best practices. They will also organize and develop reciprocal trade missions. In 2016, trade between Mexico and the Netherlands reached USD $3.587 billion, driven by the European Union Free Trade Agreement. Currently, Dutch companies such as Heineken, Royal Dutch Shell, and Unilever are already operating in Mexico, while domestic companies such asGruma, Mexichem, and Softek are established within the Netherlands.

October 12

 RESOURCES/COMPANIES THAT TAKE TO THE STREETS(REVISTA CEO DE EXPANSIÓN)Helping is the first reflex. The earthquake that took place on September 19 highlighted the collaboration between companies, a response of solidarity to troubling times. Rebuilding is the next step. Hundreds of companies and executives joined thousands of volunteers in the rescue efforts after the earthquake... Alsea, Bimbo, Femsa,Gruma,Grupo Modelo, Heineken, and Kellogg’s, began various initiatives within 24 hours...…Grumainstalled its “tortimóviles” in emergency zones and supplied 22 tons of corn flour...The mention includes a photo with members of the SEDENA carrying a cooler filled with tortillas...

October 17

 SMEs GIVEN A BOOST IN ITALY (EL SOL DE MÉXICO 5) ProMéxico, the federal government’s trade promotion program, reported that it is supporting a mission for 10 small and medium-sized enterprises (SMEs) from Mexico in the metal-mechanic sector to visit the Italian cities of Rome, Bologna, Varese, and Milan, in order to obtain co-investments. Since 1999, Italy has invested more than USD $2 billion in the country and today, there are 1,800 companies with Italian capital in Mexico. Meanwhile, Mexican companies such as Grupo Kaltex,Gruma,and Mexichem have investments in Italy.

October 19

 GRUMA: LONG TERM GOALS (EXCÉLSIOR 9)Gruma reported that its third quarter performance continued as projected for 2017, both in terms of results and in the programs and investments that will allow it to gain opportunities for long term growth and profitability. According to its quarterly report, its sales volume remained steady while sales and EBITDA were practically stable, despite the effect of the peso’s appreciation in theGruma USA profits. In that market, the tortilla business rose by 1% because it was affected by the recent hurricanes in Texas and Florida.

 GRUMA POSTS STABLE EBITDA (EL NORTE PRIMERA NEGOCIOS 10) (REFORMA 5) (LA JORNADA 22) (EL HERALDO DE MÉXICO 28) (EL FINANCIERO 20) (EL UNIVERSAL 2) (EL SOL DE MÉXICO 2)  (LA RAZÓN 16) (MILENIO DIARIO 33) During this period (3Q17), the world’s largest producer of tortillas and corn flour rose 8% in its majority net income, reaching MXN $1.659 billion. “This improvement was mainly due to increased ownership ofGrupo Industrial Maseca (Gimsa)related to the recent repurchase of its public shares and of the minority interest in the Group’s plants in Mexico.” Gruma reporteddebtof US $1 billion, with a debt/EBITDA ratio of 1.4.

 GRUMA REPORTS NET INCOME GROWTH OF 2 PERCENT DURING THE THIRD QUARTER (NOTICIAS MVS (NOCTURNO)Ezra Shabot: During the third quarter of 2017,Gruma posted net income growth of 2% in comparison with the same period the previous year, at MXN $1.659 billion. The majority net profit is MXN $1.659 billion, 8% higher than in the same period of the previous year. The multinational company’s operating income dropped 5% due to the peso’s appreciation in its foreign subsidiaries, which rose to MXN $2.312 billion.

WINNERS / LOSERS (FORBES MÉXICO 18) Winners. Juan Antonio González Moreno.Gruma MXN $113.290 billion +3.7%. The issuer remained a safe investment shelter in response to the aggressive tension between the USA and North Korea, added to the uncertainty surrounding the NAFTA negotiations.

October 20

 INVESTMENT. (MILENIO DIARIO 34) Strong Corn. In response to the NAFTA renegotiation and its possible impact on marketing corn,Gruma feels safe, because Mexico produces between 22 and 25 million tons of corn each year to supply the industry, and an additional six million tons are devoted to tortillas; much of that is for local consumption, while prices are aligned with the international market.Raúl Cavazos, Chief Financial OfficerofGruma, told analysts that in addition to its solid market position, the tortilla industry is well protected by the government in the event that conditions become adverse.

 ROBERTO AGUILAR / A CORPORATE MOMENT. (EL SOL DE MÉXICO 3) Long term. Barclays, the international brokerage firm, raised the target price for shares inGruma, led byJuan González Moreno, to MXN $290, a potential yield of nearly 10%. It also reiterated its Overweight recommendation after its valuation model incorporated the third quarter results. The latter, although below projected due to exchange rate appreciation and the absence of extraordinary items, in the medium and long term, the increase in income and higher profitability in its global operations will improveGruma’s scenario.

October 23

GRUMA OPENS PLANT IN RUSSIA. (EL NORTE PP BUSINESS WITH PHOTO OF  JUAN GONZÁLEZ MORENO) (EXCÉLSIOR 1) (EL HERALDO DE MÉXICO 27) (EL UNIVERSAL 2) (LA JORNADA 25) (MILENIO DIARIO 26) (EL FINANCIERO 19) (LA CRÓNICA DE HOY 24) (EL SOL DE MÉXICO 1-6) (EL ECONOMISTA 28)Grupo Maseca (Gruma) opened a plant in Russia yesterday, the result of a USD $50 million investment and where it expects to expand in the future. The company stated that the unit will produce 50,000 tons of wheat tortillas and corn snacks each year, to supply the markets within Russia and the Commonwealth of Independent States. Gruma President and CEO Juan González Moreno indicated that with this opening,Gruma now has 75 production plants around the world. “This is the beginning of an investment that will bring new job opportunities to Stupino and to this region of Moscow,” he commented.

 PORTAFOLIO / GRUMA INAUGURATES PLANT IN RUSSIA (REFORMA 1) With an investment of USD $50 million,Gruma inaugurated its plant in Russia, its 75th around the world. It will produce 50,000 tons each year of wheat tortillas and corn snacks.Juan González Moreno, President of the company, said that the factory represents a long term commitment to the country.

 JULIO PILOTZI / FINANCIAL SPLIT. (24 HORAS 16) Voice off…Gruma, led byJuanGonzález Moreno, invested USD $50 million in Russia for a modern plant that will produce more than 50,000 tons of products each year...

ACTIONS AND REACTIONS (EL ECONOMISTA p. 2)  Gruma likes vodka.  During the inauguration of its 75th plant around the world, located in Stupino, Russia, the President and CEO ofGruma, Juan González Moreno, reiterated that the factory represents “a clear testiment to our long term commitment to this country.” Speaking in front of Alexey Vorobiev, the Governor of the Region of Moscow, and Norma Pensado, Mexico’s ambassador to the Russian Federation, Moreno stated that it is the start of an investment that will bring new job opportunities to Stupino and to that region of Moscow...

October 24

 PEOPLE BEHIND THE MONEY / THE BAXTER AFFAIR IN GUATEMALA. (LA RAZÓN 18)Gruma in Russia. The company led byJuan González resumed its plans for the internationalization of theMission brand, with a focus on profitability and growing niches. The USD $50 million investment in a new and modern plant for wheat and corn flour products close to Moscow is the result of six years of fine-tuning the presence of Mexican food under the Delicados grand, with annual growth rates above 15%. This is their 9th plant in Europe, where eating tacos and nachos has become popular.

 THIS MOUTH IS MINE / THE ETERNAL LEADERSHIP OF PT. (24 HORAS 7)Gruma in Russia.GRUMA, led byJuan González Moreno, is delighted, because the company opened a new plant in Russia, reaching a total of 75 around the world. The new factory is the result of a USD $50 million investment and is expected to produce more than 50,000 tons each year of wheat tortillas and corn snacks.

GRUMA OPENS PLANT IN RUSSIA. (MILENIO NOTICIAS (08:00 AM to 10:00 SAMUEL CUERVO AND SERGIO GÓMEZ)Samuel Cuervo:Grumainvested USD $50 million in a plant in Russia that will produce 50,000 tons each year of wheat tortillas and corn snacks, while generating 265 direct jobs and more than 900 indirect jobs. The plant is equipped with state-of-the-art environmental technology and will use ingredients and grains grown in Russia.The products will be distributed throughout Russia and exported to countries within the Commonwealth of Independent States. This will beGruma’s 75th plant around the world.

October 25

 ALBERTO BARRANCO/ENTERPRISE(EL UNIVERSAL 3)Grumais Growing. During the third quarter,Grupo Masecamade a MXN $95 million investment to build a new plant in Dallas, Texas, USA. Even so, the company’s debt fell by USD $1.100 billion dollars. During that period, the net profit grew 2% to USD $1.659 billion dollars.

October 27

THE SPONSORS. (LÍDERES MEXICANOS 188-198) Since 2006, the year of the first annual luncheon for the 300 most influential leaders in Mexico, Líderes Mexicanos has received the support of companies who believe in acknowledging leadership through this event, which has become an iconic meeting. It is made possible, of course, with the support of brands that participate as sponsors of the event. They return each year to provide attendees with a new message and to contribute positive ideas and experiences. This year, the sponsors contributed to every detail, so that each person in attendance would have an unforgettable afternoon. Mission Planitas products byGRUMA, the proudly Mexican food company, were present at the tables, a welcome addition to the menu.

October 30

 GRUMA SELLS TORTILLAS ON ALIBABA (REFORMA 4) (EL NORTE PP NEGOCIOS 16) (MILENIO DIARIO PP-32-33) (24 HORAS 16) (EL HERALDO DE MÉXICO 26) (LA JORNADA 20) (EL FINANCIERO 34) (EL SOL DE MÉXICO 1-6s) (LA RAZÓN 16) (EL ECONOMISTA 49) (EXCÉLSIOR 2) The tortillas and corn chips thatGruma produces in China under its globalMission brand, are already being marketed on websites belonging to the Alibaba Group, the most important e-commerce company in the world. Currently,Gruma products, under its globalMission brand, are present throughout China, Asia-Pacific region countries, and the Middle East. They are produced at its modern plant in Shanghai with a capacity to produce 38,000 tons of corn tortillas, wheat tortillas, flatbreads such as wraps, and snacks...Gruma supports the agreement that President Enrique Peña Nieto signed with China to strengthen commercial ties between the two countries and will continue bringing Mexico’s flavor to the world. “Gruma will take advantage of every business opportunity around the world to keep marketing fresh, high-quality products,” saysJuan González Moreno, Gruma’s President and CEO.

ACTIONS AND REACTIONS (EL ECONOMISTA 2) Tortillas sold online- The tortillas and corn chips thatGruma,led byJuan González Moreno, produces in China under the global Mission brand, are now sold on websites belonging to the Alibaba Group. This is following an agreement between the government of Mexico and the Chinese company, which has more than 423 million buyers around the world. In 2016, it recorded transactions worth USD $485 million, connecting Chinese exporters to companies around the world. The company noted thatGruma-Mission Foods Asiais expected to close the year with increased sales through this channel, since its product presence and marketing has grown on the Alibaba sites. He noted that the Chinese company signed an agreement with ProMéxico, in order to drive sales of Mexican products and to connect buyers within the region to Mexican companies.

October 31

GRUMA EXPECTS TO INCREASE SALES IN ASIA (MILENIO NOTICIAS (13:00 to 14:00)Tania Díaz:Gruma, the Mexican company, reported that it expects to increase sales in Asia this year, because of its growing presence and marketing on the Alibaba sites. ProMéxico recently signed an agreement with Alibaba to drive the sales of Mexican products in Asia and to link domestic companies with Chinese consumers. With regard to this partnership,Juan González Moreno,the President and CEO of the Mexican company, said thatGruma supports the agreement that President Enrique Peña Nieto signed with China to strengthen commercial ties between the countries and to continue bringing Mexican flavors to the world.

MEXICAN TORTILLAS REACH CHINA THROUGH ALIBABA. (NOTICIEROS TELEVISA ONLINE 0) Through an agreement betweenGruma-Mission Foods Asia, the Chinese marketer, Alibaba Group, will sell corn tortillas made in Mexico to China. Alibaba is a website devoted to linking Asian wholesalers with buyers in other countries, but in recent years it has become the preferred meeting place for merchants around the globe. The company revealed in a statement thatGruma-Mission Foods Asiaexpects to close 2017 with an increase in electronic sales.Juan González Moreno,President and CEO of Gruma, stated that the “Mexican company will take advantage of all of the business opportunities that present themselves around the world”…