Seeking Food Supplies

As part of its 2024 operational plan, Valle Redondo will focus on the development and integration of new suppliers.

Increased Production and Strategic Planning

César Rubén Laguna Sánchez, Purchasing and Foreign Trade Manager at Valle Redondo, highlighted that the second half of the year sees an uptick in product sales due to various festivities. This surge necessitates strategic production efforts to ensure sufficient stock levels.

“We work on beverage production year-round, building safety stock and forecasting sales. For example, with cider, a beverage particularly in demand during the December holiday season, we begin stockpiling our brands early to avoid production bottlenecks towards the end of the year,” he explained.

Challenges in Sourcing Orange Juice

Laguna Sánchez mentioned that while Valle Redondo has successfully developed several packaging suppliers, the company has faced challenges in sourcing raw materials like orange juice domestically. Due to various factors affecting national production, the company has been forced to acquire this input from international suppliers.

“I have been unable to purchase domestic orange juice for the past two years due to a lack of availability and insufficient quality. This has led me to seek alternatives abroad, with the last orange juice purchased coming from Brazil. I have also explored sourcing options in Egypt,” he stated, noting that pricing and competition have further impacted procurement.

Currently, 40% of Valle Redondo’s production and sales are sourced domestically, while the remaining 60% come from international suppliers.

Post-Pandemic Market Consolidation

Laguna Sánchez also remarked that 2024 will be a year of market consolidation following the COVID-19 pandemic. During the pandemic, sales of alcoholic beverages surged, with Cuatro Soles wine becoming one of the company’s most popular products.

“We experienced double-digit growth. However, as we look at the current market niche, we must focus on competing effectively, ensuring profitability for our brands, maintaining margins, and upholding quality,” he emphasized.

Transition to Digital Labeling

Regarding the wine industry, Laguna Sánchez noted that the Mexican Tax Authority (SAT) is transitioning from physical to digital labels for alcoholic beverages. Initially, the SAT had a limited number of authorized suppliers for this service, but it has since opened to additional companies, and Valle Redondo is actively seeking suppliers for digital labeling services.

“This shift is now opening up, and we are beginning to seek service providers and establish new connections,” he added.

It is important to note that original alcoholic beverages in Mexico are labeled to certify their legality, origin, and quality. Domestic beverages bear a green label, while imported beverages feature a burgundy label. Two types of labels are used: the electronic label, which forms part of the product's packaging or back label, and the physical label, which carries the same image.

Supplier Selection Process

Companies interested in supplying Valle Redondo must meet certain criteria, including food safety certifications such as FSSC 22000, and CTPAT certification for exports.

Laguna Sánchez explained that the supplier selection process begins with initial contact, followed by the submission of specific requirements and documents for the provision of a commercial offer or quotation. Audits are also part of the process: “We request sample materials, conduct in-line tests, and then review and evaluate the results,” he explained.

About Valle Redondo

Founded in 1964 by Don Luis Ferruccio Cetto, Valle Redondo is a leading Mexican company specializing in the production and commercialization of beverages. With over 50 years of experience, Valle Redondo offers a robust portfolio that includes wines, spirits, ciders, juices, functional beverages, and fruit concentrates.

The company operates three production plants in Mexico: Valle Redondo in Aguascalientes, Confrutta in Chihuahua, and the Purés Plant in Aguascalientes.