SUPPLIERS

GRI: 102-9, 103-1, 204-1

We are committed to the development of Mexico’s farmland and support to our local suppliers with long-term agreements. Their experience, combined with our best practices, guarantee the availability of unique products of the highest quality for our consumers.

In order to ensure our presence in all Mexican homes, with the guarantee that all our products will arrive at their tables on time and with the quality for which we are known, it is imperative that we establish a relationship of mutual value with our commercial partners, and share with them the same awareness of responsibility.

AGRICULTURAL SUPPLY

The quality and traceability of all our products that come from the field are ensured through our Agricultural Supplies Department.

We achieve this through 3 pillars: sourcing, supplier development and agricultural auditing, the latter two being the most important to achieve an efficient and responsible value chain.

We carry out a process composed of six phases:

At the present time we have 125 providers of raw agricultural materials, distributed in several states of the country.

In 2019, the purchase of agricultural items represented an investment of MXN $1,284,769,979.68.

All our agricultural suppliers have operations distributed throughout Mexico in the states of Aguascalientes, Baja California, Baja California Sur, Campeche, Chihuahua, Mexico City, Durango, Guanajuato, Hidalgo, , Morelos, Nayarit, Nuevo León, Puebla, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, Veracruz, Yucatán and Zacatecas.

(1) Regional or domestic suppliers are defined as those with their manufacturing and processing facilities in Mexico.

(2) Soy beans are purchased in Mexico, because, although their main origin is from the United States, the refining process is carried out in Mexico.

STRATEGIC SUPPLY

Currently, we work with 296 strategic providers who supply us with raw material, packaging material, assembly services and indirect services with a value of more than MXN 7.9 billion.

We have a diversified supply chain that is divided into two principal branches: raw material and packaging material.

Raw material

In 2019, always striving to support the local economy, 90.07% (MXN $4,275,182,833.33) of non-perishable raw material was purchased in Mexico ⁽⁴⁾, while the remaining 9.93% (MXN $471,376,657.22) was purchased abroad.

Packaging material

In regard to the packaging material, 76.98% (MXN $2,467,455,074.05) was purchased in Mexico ⁽³⁾, while 3.38% was supplied by foreign providers (MXN $108,595,445.83). The remaining 19.6% corresponds to a mixed supply (MXN $629,211,403.38).

In order to ensure that we have all the resources needed for an efficient operation, both now and in the future, we have a supply strategy based on four maxims: utility, innovation, productivity and risk management.

Toward this effect, our Supply Chain Department continuously monitors the environmental impact of our consumption of materials.

(3) Regional or domestic suppliers are defined as those with their manufacturing and processing facilities in Mexico.

(4) Soy beans are purchased in Mexico, because, although their main origin is from the United States, the refining process is carried out in Mexico.

AGRICULTURAL SUSTAINABILITY PROGRAM

IP-6

Our Agricultural Sustainability Program seeks to generate products of the highest quality, using natural resources in an adequate manner while maintaining their integrity for future generations.

The principal benefits of this program include:

A decrease in the providers’ costs.
Reduction of the environmental impact.
Generation of raw materials with a lesser amount of chemical residues.

As a part of this initiative we have a Good Practices Manual for the purpose of training the agricultural providers who supply us with fresh raw material and guide them in the adoption of the best labor and environmental practices.

We also have a team of six internal auditors that evaluates and monitors the condition of our providers’ farm lands, to thereby ensure the continuity and validity of the program.

In 2019 we evaluated 45 of our providers of fresh perishable agricultural materials (100% under the category), 15% of them were new providers.

The main current controls for monitoring the progress in the implementation of the Program are:

Delivery of the control documentation upon the initiation of the contract (annually).
Periodic review of each provider (biweekly).
BPA inspections (quarterly).
Analysis of water, soil and product (a single time for water and soil; monthly for product).
Walk-by inspections (monthly).

We also promote reduction in the use of chemical fertilizers, favoring the integrated farming system, which consists in the use of biological products, mainly:

Fungicides: organic fertilizers and beneficial microorganisms.
Insecticides: beneficial fungi, bacteria and beneficial insects.
Fertilizers: organic fertilizers (compost, lixiviates, manual weeding)

Among all our agricultural suppliers ⁽⁶⁾, 90% of them comply with the Proper Use and Management of Chemical Fertilizers (BUMA, Buen Uso y Manejo de Agroquímicos), the same percentage as in 2018.

(6) The program, in its first phase, only encompasses the providers of fresh perishable raw materials, such as onions, tomatoes, tomatillo, chili peppers, and other vegetables.

Rescue of Mexican vegetables and seeds

This innovation snack arises from the desire to place greens and vegetables that come exclusively from the fields of our own country within the reach of our citizens. Their cultivation promotes the care of the environment, protection of our biodiversity and the consolidation of sustainable agriculture.

INGREDIENTS:

An research task alliance between Fundación Herdez, Chapingo Autonomous University and National Autonomous University of Mexico’s Botanical Garden.
Awareness on the work of professor Edelmira Mazari and Dr. Robert Bye, two scholars with more than 40 years of research on quelite and other native plants.
The production of 100% biodegradable packaging material, made from plant fibers that degrade within 60 days under composting conditions.
Glue made from rice starch for the labels, dissolvable in water and also biodegradable.

Reviews by happy diners:

Aires de Campo brings us closer to our Mexican roots through the offering of a new Fresh Food category, made with sprouts, leaves and salad mixtures and traditional native quelites, Mexican tomatoes and native corn. A dreamy blend!

The new image of Blasón

This high-altitude coffee from the best growing regions in the country and processed manually was in need of an image that would highlight its Mexican character. This product has been created with master brush strokes of smoke and soil.

Ingredients:

A new printing press, a new palette of colors, and special treatment in its packaging.
Its launching in capsules that may be used by special machines.
An exclusive and integral strategy with some of our clients to create new consumption experiences.
Teaming up with clients like these is indeed a pleasure!