“We are a company that does not stop, with a team that adapts to succeed under new circumstances and the new reality.”

Héctor Hernández-Pons Torres

Chairman of the Board and CEO.

For more than 100 years, we have been part of the nourishment of Mexican families with our products, that are proudly made in Mexico. Today, this motivates us to continue to take the best of Mexican food to the world, and the best of the world to Mexican homes.

GRI: 102-4

Company profile

We are the Mexican food company with the greatest history in the country. We are leaders in the processed food industry and an important player in the ice cream category in Mexico. In addition to having a solid presence in the United States through MegaMex, and being leaders in production and marketing of guacamole, as well as salsa and frozen Mexican food categories.

What backs our position?

According to MERCO (Corporate Reputation Monitor, in its Spanish acronym), we are one of the 10 food companies with the best reputation in Mexico (6th) place) for the third consecutive year, and we occupy 48th place in the overall ranking of the 100 companies with the best reputation.

Presence in 21 countries

+9 thousand collaborators

+400 suppliers

13 production plants

25 distribution centers

+600 stores

Since our founding, we have created links with our entire value chain through different actions to honor the origins of Mexican gastronomy. This year, those links were a fundamental factor that reinforced the feeling of union and joint responsibility with our shareholders, customers, collaborators, consumers, partners and suppliers.

GRI: 102-2

Group Brands

The work of our family drives the positioning of our broad portfolio of brands and products, with which we currently have a presence in 99% of Mexican homes. With them, we provide solutions to the everyday life of our customers, by offering them variety and convenience for different lifestyles.

BRANDS IN MEXICO

BRANDS IN THE UNITED STATES

DISTRIBUTION AGREEMENTS

As an organization, during the contingency, we fulfilled our commitment to offer food that satisfies the taste for Mexican food"

Ryan Michaelis,

Chairman and CEO of MegaMex.

MegaMex

together we cross borders

Since 2009, we expanded the iconic and most representative flavors of Mexican food to the United States through MegaMex, in alliance with Hormel Foods.

2020 in numbers

This year, net sales of MegaMex in the US market added up to $14.7 billion pesos, which represented an increase of 6.4% with respect to the previous period.

Operating margin was 10.6%, 1.5 percentage points below last year, while our net income was $ 1.5 billion pesos.

In 2020 we carried out several initiatives to get closer to our consumers:

GRI: 102-16, 102-17, 103-1, 205-2

Corporate Governance

misSION

To place quality food, beverages, and products available to customers, with renowned brands with growing value.

VALUES

HONESty

Results-Oriented

Teamwork

Trust

VISION

Grupo Herdez aims to consolidate, grow, and position itself as a leading company in the food, beverages, and wellbeing industry, recognized for the quality of their products and for the effectiveness of its efforts oriented towards ensuring the satisfaction of the needs and expectations of our clients and consumers, within a framework of competitive attention and service, under strict criteria of profitability, strategic potential, and sustainability.

board of directors

For the purpose of continuing to grow and generate value for all of our stakeholders, our highest governance body, the Board of Directors, is composed of 9 directors, and is led by Héctor Hernández-Pons Torres, Chief Executive Officer of the Group, who acts as Chairman. Jointly, they make decisions to guarantee and maximize returns for all investors that rely on us.

RELATED MEMBERS

Héctor Hernández-Pons Torres

Chairman, (M) 1991

Enrique Hernández-Pons Torres

Vice Chairman, (M) 1991

Flora
Hernández-Pons Torres

(M) 2005

INDEPENDENT MEMBERS

Anasofía Sánchez Juárez Cardoze

(M) 2019

Eduardo Ortíz Tirado Serrano

(M) 2003 Responsible for labor practices

Enrique
Castillo Sánchez-Mejorada

(M) 1992

José Roberto Danel Díaz (EF)

(M) 2003 Chairman of the corporate practices and audit committees

Michael
Bernhard Jost

(M) 2019

Luis Rebollar Corona

(M) 2004

(M) Member since (EF) Financial expert

The committees that form part of this governance body are:

Board of Directors

Audit Committee

Corporate Practices Committee

Risk Committee

Sustainability Committee

Ethics Subcommittee

Crisis Sub-Committee

MANAGEMENT TEAm

Héctor
Hernández-Pons Torres

Chairman of the Board of Directors and Chief Executive Officer

Enrique
Hernández-Pons Torres

Vice-Chairman of the Board of Directors and Co-Chief Executive Officer

Gerardo
Canavati Miguel

Chief Financial Officer

Andrea
Francesco del Rizzo

Commercial Director

Pedro
Gracia-Medrano Murrieta

Human Resources Director

Enrique
Hernández-Pons Méndez

Aires de Campo Director

Estuardo
Lárraga Martínez

Supply Chain Director

Juan
Rodríguez Del Collado

Food Service Director

Sergio
Zardoni Galarza

Planning and Associate Companies Director

(M) Miembro desde (EF) Experto financiero

Our Codes and Policies

The history of Grupo Herdez is based on the trust given to us by our shareholders, customers, collaborators, consumers, partners and suppliers for more than 106 years. Under the challenging circumstances that we faced in 2020, our codes and policies system helped us take sound steps, with the trust that our long-term relationships are based on integrity, transparency, and cooperation.

Thanks to the continuity of our Culture and Legality program, our team of collaborators, allies and suppliers joined together to strengthen our corporate citizenship, promoting ethical behavior and integrity inside and outside of the facilities of our Group.

We share the values of our culture, including our different guidelines on economic, social and environmental matters, which we update and reinforce through training, announcements and meetings.

The Culture of Ethics and Legality program was implemented with the purpose of generating greater awareness among our employees and thus generating positive changes in our personal, family and work environment."

Claudia González Corona,
Training Manager

In 2020:

0

Collaborators trained in the Ethics and Legality Culture program.

0

Shared computer graphics to incentivize promoting the culture of legality in the workplace.

0

work booklets of the Ethics and Legality Culture program.

The Ethics and Legality Culture Program is one of the programs that changes the way we see the world, and help us become a better person, collaborator, and citizen”

Angélica Álvarez Soriano,
Training Coordinator.

(M) Miembro desde (EF) Experto financiero

It is our commitment to prevent any type of behavior that goes against our values, codes, and policies. To provide better attention and support, we have internal whistleblower mechanisms fully anonymous available 365 days a year, 24/7. The reports are monitored by an external supplier and assessed by the Internal Audit team and the Human Resources Department.

(M) Miembro desde (EF) Experto financiero

In 2020, we received a total of 130 requests.

Request format (%)

Type of request (%)

Requests processed (%)

There was a 26% reduction in reports compared to the previous year.

Sustainability Strategy

Together for a greater positive impact

The year 2020 highlitghted that it is impossible not to think about sustainability as part of the strategy of any company. Our alignment and commitment with the UN SDG is the right path to achieve a more sustainable growth.

Andrea Amozurutia Casillas,
Deputy Finance Director

GRI: 102-12, 102-21, 102-40, 102-47

Even though the pandemic made us reassess priorities and reorient efforts, we maintained our sustainability strategy aligned to six of the Sustainable Development Goals of the UN Agenda for 2030. Sustainability has always been present in Grupo Herdez, it is an essential subject in our culture, since it is the base to ensure our permanence, contributing to the wellbeing of persons, communities, and the planet.

As a responsible corporate citizen, we are driven by a firm commitment for the wellbeing and development of Mexico, creating quality jobs, establishing relationships of trust with our suppliers, improving life quality of the communities that suffer from food safety and taking care of our natural resources in an efficent and resposible way.

In 2019, we committed to six of the 17 Sustainable Development Goals of the UN Agenda 2030, setting specific goals in three lines of action:

What steps have we taken?

This path has taken us a long time and we have learned many things along the way. We started in 2008 with a first GRI report, which we prepare and improve on an annual basis. In 2012 we adhered to the UN Global Compact, and we have progressively incorporated new non-financial reporting standards that have allowed us to lead with transparency and innovation, becoming a benchmark in sustainable management and development in Mexico.

Fundación Herdez, A.C.

Fundación Herdez, A.C., is created with the goal of preserving and researching mexican gastronomy.

1987

ESR Certification

First year obtaining the ESR Certification.

2008

Saber Nutrir

Evolution of the program Herdez Nutre to Saber Nutrir.

2011

First Integrated Annual Report

- First Integrated Annual Report (Sustainability + Finance).
- Adhesion to the UN Global Compact: Corporate initiative on sustainable development.

2012

Sustainable IPC

Entry into the Sustainable IPC of the Mexican Stock Exchange.

2013

First year to verify the Integrated Annual Report with EY

First year to answer the CDP questionnaire (global report regarding water, climate change, raw materials, and forests).

2014

CSA to enter into the DJSI MILA

First year participating in the CSA to enter into the DJSI MILA.

2017

Sustainable Development Goals

Strategic alignment to the Sustainable Development Goals form the United Nations.

2019

These results have allowed us to obtain:

  • Continuous improvement in our management and reporting of information.
  • Greater transparency in the information that we share with our stakeholders.
  • Compliance with the increasingly relevant demand for non-financial reporting (ESG).
  • Strengthening of our brand positioning, trust, and reputation.

What do we do now looking towards the future?

During this time, as a country and as a company, we have noticed that sustainability is a cornerstone to face an uncertain future. At Grupo Herdez we work towards sustainability to achieve 100 more years of history with concrete goals, practices based on resiliency, climate risk analysis, synergies with our stakeholders and clarity regarding our goal as a member of the private sector.

We are aware of the importance of a firm position on essential issues, the relevance of continuing to act with honesty and transparency, and the correct balance between social, environmental, and economic issues.

For this reason, we defined our sustainability purpose: We want to be passion, culture, and a global benchmark of innovation on sustainable development.

Our Mission is to satisfy the needs of the present without compromising the capacity of future generations to satisfy their own needs; through strategies that seek to increase the purpose of our brands, reduce costs and risks; generate even more value for our stakeholders; work for the rights of all persons; bet on a more sustainable world and continue to transmit the trust that characterizes us.

For the purpose of permeating the entire Company with a unique culture of sustainability, we created the Sustainability Committee and composed the task force in charge of following up on the goals that we have set.

The members are:

Andrea Amozurrutia

Deputy Finance Director

Lucia Bahena

Deputy Human Resources Director

Charlotte Oudin

CEO of Barilla Mexico

Arturo Guzmán

Environmental Sustainability Manager

José Luis Ortega

Deputy Marketing Services Director

Javier Carnevalli

Deputy Supplying Director

Thanks to the commitment of the task force, composed of more than 50 volunteer collaborators, we generated 231 ideas that will change the world and thus, we landed the goals of each of our three pillars in 10 strategic lines and 19 concrete actions with goals to achieve by 2025.

strategic matrix

Materiality Analysis

The basis to select the content of our Integrated Annual Report is the Materiality Analysis, the most recent one being from 2019. We approached our five major stakeholders (customers, collaborators, consumers, investors, and suppliers) to understand their main concerns and expectations, to thus align our action plans.

We prioritize critical and strategic issues to ensure their incorporation in our sustainability strategy:

Critical issues

  • Brand trust and reputation
  • Consumer health, safety, and wellbeing
  • Innovation (products and processes)
  • Sustainable containers and packages, reusing and recycling

Strategic issues

  • Compliance
  • Energy consumption and efficiency
  • Ethics and anticorruption
  • Labor conditions and relations
  • Occupational health, safety, and wellbeing
  • Profitable growth in markets and financial sustainability
  • Supply chain quality and safety
  • Training and career development
  • Transparency in product information and labeling
  • Water management

The Sustainability Committee, jointly with the persons responsible for each strategic line and their task forces, allies and ambassadors, will ensure the follow-up and performance of our short, mid, and long-term sustainability goals.

Wholly® Guacamole National Guacamole Day

When?

In September 2020, in Texas, we installed a pit stop with different activities to celebrate National Guacamole Day in a fun and original way.

What did we do?

  • We gave away samples and gifts with the phrase “The Texas Original”.
  • We offered different versions of our classic and homestyle guacamole.
  • We exchanged avocados in poor conditions for prizes through a QR registration.

How did we stand out?

All avocados that we received were sustainably composted in the Dallas, TX Recycling Revolution.

How did we stay connected with our customers?

We broadcast this initiative through influencers and digital media.

Our impact was reflected in:

  • 44 publications
  • 271 million people reached

WHOLLY® AVOCADO ready to serve

How did we do it?

We offered our customers an alternative to serving fresh Haas avocado without cutting or taking it out, since we now prepare it vacuum packed. 

How did we stand out?

We wish to offer quality products that are convenient for every lifestyle.

How did we stay connected to our customers?

Clearly and directly: “It’s wholly® avocado. Not mostly avocado”.

Wholly® avocado
listo para servir

¿Cómo lo hicimos?
Ofrecimos a nuestros consumidores una alternativa para servir aguacate Haas fresco sin cortar o sacar, pues ahora lo preparamos pre-empacado al vacío.

¿En qué destacamos?
Queremos ofrecer productos de calidad convenientes a cada estilo de vida.

¿Cómo nos mantuvimos conectados con nuestros consumidores?
De forma clara y directa: “It’s wholly® avocado. Not mostly avocado”.

Show your flavor with La Victoria

How did we do it?

We invited our customers to show us how they use our products Salsa Brava, Salsa Verde, Salsa Chunky and Taco Sauces.

How did we stand out?

We increase the interaction with lovers of Mexican salsas.

How did we stay connected to our customers?

Through social media campaigns, we shared the different ways to taste La Victoria salsas in their favorite dishes.

We made new launches

How did we do it?

Through a creative campaign, we described the delicious flavor of our new salsas: Chipotle Cremosa, Cilantro Lime Cremosa, Guacamole Salsa and Salsa Casera that were launched in June.

How did we stand out?

Through attractive and disruptive messages, we were able to show our customers in the United States know the variety of Mexican flavors.

  • Fomentar la igualdad entre los géneros y apostar por la inclusión y diversidad.
  • Promover la creación de oportunidades y empleos de calidad.
  • Impulsar la salud alimentaria, reduciendo los niveles de desnutrición y buscando favorecer hábitos saludables.
  • Gestionar de manera eficiente, responsable y sostenible el recurso hídrico.
  • Incorporar tecnologías de ecodiseño de productos, favoreciendo el enfoque de economía circular.
  • Priorizar la reducción de nuestra huella de carbono, buscando neutralizar los efectos del cambio climático.