RESILIENCE THAT OVERCOMES CHALLENGES

 

Since 1914, Grupo Herdez has faced huge challenges that we have been able to convert into opportunities for growth and innovation.

 

The Frozen segment is an example of our resilience. During the year, this division achieved a total of 2,882 million pesos in revenue, a figure that represents 14 percent of Grupo Herdez’ consolidated net sales.

 

#SonríeConNutrisa  #MejoraMiVida 
#FestejaLaVida 
#TúDale #SundaeMountain #TANDEM

This year, the main goals of the division were a) to continue to capitalize on the growth potential of the ice cream category in Mexico, and b) improve profitability. Thus, net sales grew by 11.2 percent and the operating margin went from -2.3 percent in 2016 to 2.8 percent in 2017.

 

We sold 31.8 million Nutrisa yogurt ice creams and 225.8 million Helados Nestlé popsicles.

Nutrisa

 

Nutrisa is a Mexican company that since its origins have contributed to the adoption of a healthy lifestyle. A pioneer when it was created in 1979, today it is the segment leader.

 

This business showed a steady recovery in sales and profits in 2017, recording growth in same store sales during the year of 9 percent, traffic 8 percent, and average ticket, 1 percent.

 

This year we had a record number of successful launches with different versions of Greek yogurt, lactose-free yogurt, popsicles with Nutriesferas (tiny balls filled with fruit juice), choco-mint and Mexican Neapolitan ice cream flavors, which produced excellent sales results.

 

Nutrisa is the first brand to launch Greek yogurt in Mexico, with versions in soft ice cream, hard scoop ice cream, and ice popsicles. As well as strengthening the category, this innovation was the most sold flavor in the history of Nutrisa soft ice cream.

 

In April, we recorded the best sales month since 2012, due mainly to the Children’s Day promotion, which besides allowing us to reach a new segment, gave us an increase in visits and sales.

 

To show of our commitment to the welfare of our consumers, and leverage the proximity afforded by the network of over 470 Nutrisa stores, in October we launched the Festeja la Vida (Celebrate Life) campaign. The aim of the campaign was to raise awareness among the Mexican population about the prevention of chronic diseases. The initiative enabled us to reach more than 25 million Mexicans, while donating 1 million pesos to the National Cancerology Institute towards the implementation of an education program.

 

The commercial products portfolio, meanwhile, consisting of food, beverages, personal care, sports nutrition and food supplements, reached a growth in net sales of 7 percent. This was the result of:

 

  • Cataloging new products, particularly under the Nutrisa brand, whose participation in the portfolio increased 3 percentage points to reach 25 percent.

  • The execution of promotional activities that generated more than 16 million pesos in incremental sales.

  • The restructuring of the product catalog through a rotation and profitability analysis, resulting in the removal of more than 750 slow-moving and stagnant products.

In 2018, we will revamp the brand architecture of Nutrisa with a wellness approach, to strengthen its leadership and position it among new markets without losing its essence, honoring its origins and projecting it always as an innovator in its field.

 

We will offer an innovative Whole Wellness experience based on four pillars:

 

  1. Natural indulgence: guilt-free Wellness.

  2. Mexicanness: united for Wellness.

  3. Innovation: pioneers of Wellness.

  4. Sustainability: Wellness for the planet.

 

Helados Nestlé

 

The evolution of Helados Nestlé sales is en route to double the size of the business by 2020, a goal we set on its acquisition, in 2015.

The brands comprising Helados Nestlé are stronger year after year. The successful relaunch of Danesa 33 in 2017 has brought us even closer to our consumers, and the brand now occupies an important space both in the minds of consumers and in store freezers; today, Helados Nestlé can be found in 56,000 points of sale nationwide.

In Helados Nestlé we have four strategic priorities to achieve profitable growth:

  1. Consolidate our leadership in the children and youth segment.
  2. Offer a differentiated, disruptive and innovative portfolio.
  3. Continue to develop new consumption occasions that guarantee us a relevant position in the sales channels in which we participate.
  4. Develop alternative sales channels that improve profitability.

During 2018, we will focus on these priorities to achieve accelerated, profitable growth.