Gruma’s Global Presence and Diversification Protect Against Economic Uncertainty
Gruma, one of the world’s largest producers of corn flour, has dismissed concerns that EU tariffs on Mexican imports will significantly impact its operations. According to Raúl Cabazos Morales, Gruma’s Chief Financial Officer, only 1% of their consolidated sales could be affected in the worst-case scenario.
Gruma’s operations are divided, with 80% focused on the US retail market and 20% on the foodservice channel, including restaurants. The company reported that its sales volume in the US market decreased by 2% to 383,000 metric tonnes in the first quarter of 2025 compared to the same period in 2024, due to consumer confidence reflecting inflationary pressures and a potentially weaker economic outlook.
Consumer Behavior and Market Dynamics
During a conference call with analysts, Gruma’s executives explained that US consumers have become more selective than a year ago. Despite this, the “Better for You” product line has been the primary driver of sales in the retail channel.
“The erosion of consumer confidence and economic uncertainty has further increased consumer selectivity,” they emphasized.
Stable Corn Prices and Future Strategies
Gruma’s management has observed some stability in corn prices but remains uncertain about whether this price cycle has hit bottom. They are monitoring potential dry harvests with lower yields, which could impact grain prices.
Regarding financial hedging strategies for 2026, Gruma has not yet started covering prices. They plan to wait and observe the November harvest before developing strategies or managing risks.
Key Questions and Answers
- How will EU tariffs affect Gruma’s operations? Gruma estimates that only 1% of their consolidated sales could be affected by the tariffs, with 80% of their operations in the US retail market and 20% in foodservices.
- What is Gruma’s strategy regarding corn price stability? Gruma is monitoring corn prices and potential dry harvests with lower yields. They have not yet started financial hedging strategies for 2026, preferring to observe the November harvest before developing any plans.
- How have consumer behaviors changed in the US market? US consumers have become more selective, but Gruma’s “Better for You” product line has remained a strong sales driver in the retail channel.
