GO TO MARKET REPORT:

The U.S. Department of Agriculture’s Foreign Agriculture Service (FAS) provided funding for these reports through the Organic Trade Association’s Organic Export Program

Organic Trade Association (OTA) does not discriminate on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities, who require alternative means for communication of program information, should contact OTA. TABLE OF CONTENTS: 1—OVERVIEW 1—MARKET CONDITION BY SECTOR 7—TYPICAL IMPORTS GO TO MARKET REPORT: 9—MARKET TRENDS 10—ORGANIC SALES CHANNELS 11—HOW TO FIND POTENTIAL Mexico BUSINESS PARTNERS 13—NOTES 16—REFERENCES

Overview Mexico trades more with the United States than any other country, and half of Mexico’s imports come from the United States. In 2013, U.S. exports of agricultural products to Mexico totaled $18.1 billion, the third largest U.S. agricultural export market.1 Since the North American Free Trade Agreement (NAFTA) in 1994, exports of agricultural, fish and forestry products have tripled; U.S. food and agriculture exports to Mexico have been climbing at over 10 percent per year.2 In 2013, the same year the Mexico’s government published a new regulatory framework and an organic labeling program, the organic market in Mexico was valued at $242.2 million, according to Euromonitor.3 By 2018 Mexico’s organic market is expected to grow 73 percent.4 High-demand organic products include specialty processed foods, fresh fruits and vegetables, poultry and eggs, meat and dairy products.5 Meanwhile, Mexico is a world leader in producing organic coffee, organic tropical and sub-tropical fruit and organic vegetables. Organic vegetables commonly grown in Mexico include tomatoes, corn, hot peppers, avocados, cucumbers, onions, squash, and garlic. Organic fruit production includes apples, bananas, mangoes, melons, lemons, and berries. A small portion of Mexico’s organic production is peanuts, vanilla, sugar cane, beans, peas, sesame seeds, mint, ginger and other herbs and medicinal plants. In addition, organic production of honey, poultry and eggs, red meat and dairy is slowly expanding in Mexico. Approximately 85 percent of Mexico’s organic production is exported.6 Mexico’s organic export market was valued at $600 million in 2012.7 In general, businesses in Mexico are very price-conscious, seek financing options, and appreciate flexibility and excellent service.

Market conditions by sector Retail: Approximately half of Mexico’s retail market is via traditional channels, such as public markets, mobile street vendors, mom-and-pop stores, and wholesale markets, which primarily distribute local and domestic products. Nevertheless, the Mexican Association of Nationwide Retailers (ANTAD) reports Mexico has 37 supermarket chains with 4592 stores across the country, and retails sales are growing at approximately 5-7 percent per year.8 Among the fastest growing segments of the retail market are lower-end, smaller supermarkets and convenience stores, not primary locations for U.S. products, which tend to be more expensive. However, several supermarket chains are expanding to smaller cities and are targeting specific localized, high-end segments, which is increasing the number of upscale and gourmet supermarkets. Along with supermarkets, the modern sales channel includes department stores, pharmacies and convenience stores. Growth in these areas is coming at the expense of the more informal, traditional channels. Within the modern channel, 80 percent of stores are specialized stores, 15 percent of stores are supermarkets, and 5 percent are department stores.

GO TO MARKET REPORT: MEXICO 1 RETAIL SALES BY STORE TYPE, 2012

M E O D D A E R R T N L T A 30.2% R MODERN TRADE: N A

O D 30.2%

I 51.9% Supermarkets

E T

I Specialized stores 9.6% D

A Department Stores 8.3%

R 9.6%

T Source: USDA Foreign Agriculture Service 8.3%

Leading retailers: Wal-Mart is the clear leader, followed by Soriana, Comercial Mexicana, and , and most of them carry organic products. Among upscale retail stores with premium brands and niche products, City Market, Chedraui Select, Liverpool, Palacio de Hierro, and Superama lead, although there are also a number of small independent specialty stores. Club stores Costco and Sam’s Club carry a variety of imported processed foods. Oxxo leads in the convenience store channel, with 77 percent of the market.9 Among the regional chains, Casa Ley is the largest privately-owned supermarket chain, and serves 12 states in northern Mexico, with Ley Express, Super Ley, and Ley Super Mayoreo, a wholesale-type store catering to institutions, restaurants, pharmacies and small retailers. The Calimax chain, located in Mexico’s northwest, carries over 30 percent of its products from abroad in over 100 stores, and maintains a joint venture with Smart & Final in Los Angeles.10

GO TO MARKET REPORT: MEXICO 2 LEADING NATIONAL RETAILERS IN MEXICO, 2012

Retailer Number of stores Wal-Mart 1882 Bodegas Aurrera 412 Mi Bodega 256 Bodega Express 755 *Superama 90 Wal-Mart Supercenter 227 Sam’s Club 142 Comercial Mexicana Comercial Mexicana Store Openings 199 Comercial Mexicana 52 Bodega C.M. 42 Mega C.M. 83 Al Precio 5 Sumesa 12 Fresko 1 *City Market 4 Grupo Soriana 606 Hiper Soriana 249 Mercado Soriana 147 Soriana Super 105 Mercado Express 26 25 72 *Soriana Super Marne 0 City Club 33 Grupo Comercial Chedraui Chedraui 154 Super Chedraui 40 *Selecto Super Chedraui 2 *Selecto Chedraui 8 El Super (USA locations) 45

Source: USDA Foreign Agriculture Service * High-end/premium stores

GO TO MARKET REPORT: MEXICO 3 Growth areas: Within the retail sector, the packaged food market has grown 23.5 percent since 2008, according to Euromonitor, and was estimated at US$55.8 billion in 2012.11 By 2017, retail sales of packaged foods in Mexico are expected to reach US$64.9 billion.12 Meal replacement, sweet and savory snacks, confectionery, chilled processed food, sauces, dressings and condiments, ready meals and dried processed food are all expected to be high-growth categories. U.S. exporters have been successful with consumer-ready products in many categories, including poultry meat, dairy, fresh vegetables, processed fruit and vegetables, breakfast cereals and mixes, processed meat, wine and beer. The markets for wine, beer and food preparation are expected to grow. Organic products in high demand include specialty processed foods, fresh fruits and vegetables, poultry and eggs, meat and dairy products.13

Hotel, Restaurant, Institution (HRI): Mexico has over 425,000 businesses registered as restaurants, caterers, nightclubs, bars or other food preparation services, and over 20,000 businesses registered as hotels, motels or other lodging facilities. Most of the foodservice market is concentrated in principal beach destinations, such as Cancun, Los Cabos, , , and Mazatlan, and major cities.14 Most food and beverages—almost 90 percent—in the HRI category are sourced either through supermarket chains, especially price club stores, or through the traditional wholesale markets known as Centrales de Abasto (CEDA). Serving nearly 30 million people, CEDAs set up in , , and , can serve as an indirect conduit to the foodservice sector and other markets, since most of the food supply for Mexico’s population passes through them. For the HRI sector, 80 percent of fresh produce comes directly from a supplier at the CEDAs.15 Independent distributors serve the HRI sector, but a few hotels and restaurants do import directly. Price competitiveness, coupled with good service, is an important consideration for this market. As one of the world’s top 10 tourist destinations in 2012 by number of foreign arrivals, Mexico has about $12 billion in reported tourism revenues, and is recovering from the economic downturn in 2009 and drug-related violence that left a negative impression, particularly on U.S. tourists. Meanwhile, as the economy has improved, Mexicans are traveling and eating outside of their homes more often. With North Americans as the majority of the international tourists in Mexico, restaurants and tourism are potential markets for food from the United States, giving many of Mexico’s visitors access to familiar products. Furthermore, the hotel sector may be a good prospect for imports thanks to the socio-economic group it targets, even though it is a smaller sector than restaurants and institutions. Over 25 percent of the 651,160 registered rooms in Mexico in 2011 were in one of the 85 foreign or domestic hotel chains, where the three-star and higher hotels are concentrated. Hotels in these categories, as well as specialized high-end resorts, are where imported foods are more in demand. Approximately 15% of all food products consumed in hotels and restaurants are imported.16 Hotel chains and other large institutions usually make buying decisions centrally, with occasional input from the hotel’s chefs. Although organic foods are not widely distributed to the food service sector, major high-end hotel chains have some organic options on the menu. In addition, small organic restaurants are opening throughout the country and building clientele. Organic products are usually sourced locally or purchased directly at organic retailers. A growing segment in the HRI sector are restaurants offering home delivery, due in part to fast-paced lifestyles in urban areas, and a sense of insecurity in some cities. As well there are increasingly professional institutional foodservice operations in hospitals, caterers, airlines, industry cafeterias, prisons and schools. Another trend includes restaurants with international cuisines, such as Thai, Chinese, Mediterranean, Ethiopian, and Vietnamese, starting up across the country. Types of distribution to HRI include: • Independent importers/distributors with their own warehouses that deliver to the entire HRI sector. These businesses offer import and regulatory compliance assistance. • Specialist distributors who handle one product type, such as meat or seafood. • Specialist distributors who handle several products, such as frozen or refrigerated products or dry goods.

GO TO MARKET REPORT: MEXICO 4 • Wholesalers who work primarily with local products and cash transactions. • Price clubs/club stores, primarily for basic dry goods and some fresh products. These stores have been targeting the hotel and restaurant market, particularly in resort areas, and are often used as a source for small volumes of products. • Direct sales are rare, but some institutions may use this option for specific products. Best prospects for the HRI market include: • Pork, beef, and cold cuts, plus duck and lamb in some specific regions • Processed fruits and vegetables, including juices and mixes • Seafood products that Mexico does not produce; salmon and crab • Single-serve packaged food, such as nut mixes, small chips bags, single-serve fruit in syrup • Healthier foods, such as low sodium, low fat, or reduced sugar products • Specialized food products for specific cuisines, such as Thai, Korean, Mediterranean, etc., including dressings and salsas • Desserts, like high-end bakery, cookies and pastries; ice cream • Cheese and powdered milk • Meat, processed foods, and colds meats are the product categories with the biggest volumes.

Food ingredients: With over 170,000 food and beverage manufacturing/processing companies, Mexico’s food processing industry is growing at about 2 percent each year in a market valued at about US$70 billion.17 Ingredients from the United States are in high demand, and the United States was the main exporter of processed foods to Mexico in 2012, when the market for imported processed foods fell to US$9.3 billion.18 Mexico’s leading brands have well-developed national distribution networks and enjoy high brand awareness with consumers, who are very loyal.19 Despite being dominated by multinational corporations, the food processing sector in Mexico offers opportunity for small and medium companies. Furthermore, some companies in Mexico seek business relationships with foreign food processors in order to gain technological innovations in exchange for market intelligence, as consumer demand for healthy, convenient, innovative products grows.20 Ready-to-eat and frozen foods are becoming more popular as women enter the workforce, per capita income levels increase, and lifestyles change. Increasing rates of obesity and concern about childhood obesity has led to interest in healthier food products and created additional opportunities for healthier products in the processed food market. In 2014, Mexico’s Senate even passed a tax increase for processed foods that have 275 or more kcal for every 100 grams, including sweets, chocolates, ice cream, cookies, snack foods, beer and bottle soda. The resulting higher prices will affect processed food sales. Other key factors in the growth of the sector include: • Increasing demand for organic foods and more natural ingredients • Additional demand for gourmet or exotic flavors and ethnic foods. Consumers are open to new food experiences. • Growth in private label brands. • Increased demand for smaller sized packages and single portions as household size decreases. Processed food products with good prospects for growing sales include: • Better-for-you foods, including low sodium, low-fat, and reduced sugar processed foods • Premium products that offer better quality and product innovation • Gourmet foods, especially sauces, condiments, artisanal cheeses • Ethnic foods such as Asian, Lebanese, or European food • Dairy products, including yogurt and milk products; sweet whey, cheese and fluid milk also have good potential. • Foods that are convenient to prepare and eat, such as ready meals, meal helpers, and frozen foods • Premium and specialty beers, including porters, stouts and IPAs.

GO TO MARKET REPORT: MEXICO 5 MEXICO’S PROCESSED FOOD SALES, BY VOLUME, 2011–12

Quantity, thousands of metric tons PROCESSED FOOD CATEGORY 2011 2012 Bakery 16,173.90 16,276.60 Dairy 6,729.40 6,851.80 Impulse and Indulgence 3,511.40 3,576.70 Meal Solutions 1,938.10 1,981.20 Dried Processed Food 1,036.70 1,056.40 Oils and Fats 956.8 979.4 Sauces, Dressings and Condiments 854.1 875 Canned and Preserved Food 541.1 552.3 Sweet and Savory Snacks 394.2 409.2 Confectionary 370.1 379 Pasta 305.5 312.1 Chilled Processed Food 252.9 258.6 Spreads 124.6 126.5 Frozen Processed Food 122.1 124.6 Ice Cream 75.3 76.7 Baby Food 70.4 71.6 Noodles 55.7 56.6 Ready Meals 50.8 51.7 Snack Bars 35.8 36.9 Soup 30.8 31.3 Meal Replacement 12.1 12.4

Source: USDA Foreign Agriculture Service, based on data from Euromonitor 21

Personal care: Consumers are seeking ‘clean’ products, boosting demand for personal care products made with natural and organic ingredients. This category is expected to become fiercely competitive. Meanwhile, U.S. manufacturers with organic and natural personal care products that perform effectively have an advantage over local manufacturers that do not yet make effective naturaland organic products. Some brands that have been introduced to the Mexican market include natural products from Estee Lauder, Aveda, Kiehl’s, L’Occitine, and the Body Shop. Meanwhile, Burt’s Bees, Nuxe, Amway, Natura and local brand Organic Beauty are being distributed through local drugstore chains, with favorable response from consumers.22

GO TO MARKET REPORT: MEXICO 6 Typical imports Non-organic: Leading U.S. agricultural exports to Mexico in 2013 include: corn ($1.8 billion), soybeans ($1.5 billion), dairy products ($1.4 billion), pork and pork products ($1.2 billion), and poultry meat (excluding eggs) ($1.2 billion).23 U.S. exports of several product categories strengthened in 2013 including coarse grains, red meats, soybeans and by-products (e.g. soybean meal and oil), dairy products, wheat, poultry meat, cotton, sugar and sweeteners, feeds and fodder, processed fruits and vegetables, animal fats, fresh fruit, snack foods, and wood products.24 Consumer- ready U.S. exports to Mexico reached record sales in many product categories, such as poultry meat, dairy, fresh vegetables, processed fruit and vegetables, breakfast cereals and mixes, processed meat, wine, and beer. In 2012, top processed food exports from the U.S. to Mexico included red meats and poultry, sweeteners, concentrated milk, fats and oils, red meat offal, oilseed flour, cheese, beans and lentils, flavorings, soup and chocolate candy.25 In addition, the United States leads in supplying apples, pears and grapes to the Mexican market, and is expected to continue to do so.26 The markets for wine, beef and food preparations are expected to grow, and Mexico is expected to continue to import dairy products since Mexico does not produce enough milk to meet demand, despite steady growth in the domestic dairy industry.27

LEADING U.S. AGRICULTURAL EXPORTS TO MEXICO, 2013 PRODUCT Value, millions of US$ Corn 1,764.80 Soybeans 1,543.60 Dairy products 1,429.00 Poultry meat & products 1,164.80 Wheat 907.2 Sugar/sweeteners 764.8 Soybean meal 672.5 Fresh Fruit 625.9 Rice 404.6 Processed fruit & vegetables 367.1 Snack foods 265.3 Coarse grains 265.1 Tree nuts 206.5 Eggs & products 199.1 Wine & beer 147.5

Source: U.S. Foreign Agricultural Service’s Global Agricultural Trade System28

Organic: From January to August 2013, exports of U.S. organic products to Mexico were up 75 percent since 2011 and valued at $103 million, on track to exceed the $113 million in U.S. Organic exports to Mexico in 2012.29 Cheeses, wines, salad dressings, breakfast cereals, and baby foods are among the large quantity of U.S. organic products sold in Mexico.

GO TO MARKET REPORT: MEXICO 7 SELECT U.S. ORGANIC EXPORTS TO MEXICO, 2011–2013 Values in thousands of dollars, quantities in metric tons Period/Period 2011 2012 2013 % Change ORGANIC PRODUCT Value Qty Value Qty Value Qty Value Qty Apples, fresh 25,834 22,861.90 74,790 61,561.50 108,480 89,991.50 45 46 Grapes, fresh 8,312 5,991.70 19,915 10,526.00 27,542 17,716.00 38 68 Pears, fresh 5,987 6,402.30 16,447 15,186.10 15,323 12,401.50 -7 -18 Coffee, roasted, not decaffeinated 2,721 294.1 7,978 680.3 9,155 818.4 15 20 Onion sets, fresh or chilled 2,002 6,043.00 3,168 7,478.30 8,378 17,019.70 164 128 Strawberries, fresh 408 202 520 288.7 3,993 1,530.40 668 430 Lettuce, except head lettuce 99 54.8 132 168.3 3,470 2,399.10 2,521 1,326 Cherry tomatoes, fresh or chilled 305 272.6 443 452.4 1,843 542.4 316 20 Spinach, fresh or chilled 20 9.6 0 0 1,479 493.5 Tomato sauces, 796 715 1,063 1,049.30 948 943.2 -11 -10 excluding tomato ketchup Lettuce, head, fresh or chilled 385 895.8 1,047 2,588.80 835 1,744.20 -20 -33 Cherries, fresh 413 84.1 1,382 601.8 571 106.9 -59 -82 Tomatoes, roma/plum, 603 581 395 392.6 544 414.9 38 6 fresh or chilled Oranges, fresh or dried, 214 816.1 133 284.3 541 1,890.00 307 565 excluding temple oranges Cauliflower, fresh or chilled 360 889.1 589 1,677.00 538 1,271.00 -9 -24 Cabbage, fresh or chilled 0 0 248 365.7 402 620.4 62 70 Carrots, fresh or chilled 60 105.4 316 464 374 624.3 19 35 Celery, fresh or chilled 67 68.2 190 378.4 279 549.5 47 45 Lemons, fresh or dried 180 203.7 163 189.7 272 277.2 67 46 Peppers, fresh or chilled 13 9.6 79 65 261 224.3 229 245 Tomatoes, except plum or cherry, 510 279.9 334 325 216 176.3 -35 -46 fresh or chilled Potatoes, fresh or chilled 0 0 300 861.6 103 316.6 -66 -63 Grapefruit, including pomelos, 0 0 11 36.4 80 200.6 636 451 fresh or dried Broccoli, fresh or chilled 97 58.8 124 139.1 72 113.1 -42 -19 Blueberries, cultivated, fresh 0 0 0 0 45 17.6 Cucumber and gherkins, 0 0 5 3 9 7.9 82 161 fresh or chilled

Data Source: U.S. Census Bureau Trade Data; Data on organic exports for organic products without a separate export code is not available.

GO TO MARKET REPORT: MEXICO 8 Market trends Demographics: With over 120 million people, Mexico is the world’s most populous Spanish-speaking country. Per capita income is $15,000, with 10 percent of the population considered wealthy, 45 percent in the middle class, and 45 percent in poverty earning less then $10 per day.30 Despite the 2009 world economic crisis, Mexican consumers have begun to increase consumption of foods and beverages as their disposable income levels have improved. In addition, several currents in the culture might be of interest to food exporters: Youthful populace: One-third of Mexico’s population is between the ages of 20 and 40;31 and 64 percent is under the age of 35.32 The median age is 27. More young professionals and college students are driving up sales of products like beer, snacks, fast-food and dining out.33 Smaller households: the number of single-person households keeps rising, and higher divorce rates and lower marriage rates have also served to reduce household size over the past decade or so. Primarily urban: 78 percent of Mexico’s population lives in urban areas.34 Urbanization has been a factor in pushing up sales of packaged food and ready-to-eat meals, and expanded markets for catering and fast-food services. Obesity: According to the Encuesta Nacional de Salud y Nutrición 2006, approximately 26 percent of children, 31 percent of adolescents, and 70 percent of adults were either overweight or obese.35 Mexican consumers are seeking healthier eating habits: 60 percent of the Mexican population is trying to lose weight, and of those, 70 percent are changing their diets to do so.36 Reversing the trend toward obesity, especially among children, is a priority for Mexico’s government which has initiated education campaigns and nutrition laws prohibiting the sale of unhealthy food in public schools. More women at work: As more women work outside the home, demand for consumer-ready products has gone up. Additional disposable income from women in the workforce has enabled the purchase of some products previously seen as too expensive.

Food attitudes/preferences: Food preferences are changing: Urban women are shifting to healthier lifestyles for themselves and their children. Supplies of health and wellness packaged foods, such as cereals, processed fruits and vegetables and yoghurt, are expected to increase. U.S. brands viewed favorably: Mexican consumers generally associate U.S. brands and labels with consistent high quality and value. Price sensitivity: Although price remains a major factor in purchasing decisions for Mexico’s consumers, who tend to be price sensitive, Mexican consumers are brand loyal, and will buy the preferred brand even if the price is higher. In addition, Mexicans will treat themselves to affordable products for special occasions. The market for healthy foods, especially better-for-you packaged foods, is often limited to higher-income consumers. Chicken is the most-consumed meat, primarily due to price. Convenience: Mexicans are seeking out more convenient food and food service options. Options might include products children can handle on their own, smaller packages, easy-to-prepare foods and prepared or ready-to-eat meal substitutes, especially those for younger consumers and the less affluent. Wine is becoming more popular: Wine consumption is projected to grow at 12 percent annually in the coming years, due in part to a thriving middle class and increased interest in wine from women and young adults.37 Retail market trends: Rapid change for traditional retail and marketing chains: More and more, supermarkets are bypassing traditional distributors and buying directly from suppliers. Rural expansion: By expanding in both rural and small communities, retailers are creating new markets for consumer products; restaurants and entertainment services are following. Organic market trends: Citing perceived health benefits and support for farmers and the environment, more consumers are buying organic products. According to the Asociación Impulso Orgánico, consumer demand for organic products is rising 10 percent annually.38

GO TO MARKET REPORT: MEXICO 9 Because prices of organic fruits, vegetables, meat and milk are higher than non-organic products, Mexico’s organic product users tend to be in medium and upper socioeconomic classes. Retailers target those with more purchasing power and higher levels of education. Meanwhile, the number of consumers who make purchasing decisions based on whether or not the food is grown in environmentally-friendly and sustainable ways is growing. In the personal care category, females aged 19-35 are the best prospects for natural and organic personal care products. Younger consumers—those aged 19-25—are most open to new personal care products due to higher disposable income, reduced price sensitivity, higher level of brand loyalty, interest in new trends and use of social networks and information technology to learn about organic products. Personal care products for men have also grown in popularity with products like lotions, cleansing products, soaps and cosmetics.

RETAIL SALES OF HEALTH AND WELLNESS FOODS IN MEXICO–U.S. $ MILLIONS 2005 2006 2007 2008 2009 2010 Organic 0.81 62.1 73.7 103.1 130.24 163.98 Food Intolerance 60.97 105.56 200.96 272.82 416.73 611.39 Better for You 2,406.41 3,016.69 3,533.60 3,805.12 4,167.07 4,662.77 Naturally Healthy 2,912.36 3,255.81 3,271.17 4,164.35 4,800.35 5,311.10 Fortified/Functional 7,591.77 8,490.87 9,573.97 10,607.63 11,010.02 11,741.22 Health and Wellness 12,887.25 14,850.58 17,037.50 18,884.20 20,433.47 22,410.54

Source: USDA Foreign Agriculture Service, based on information from Euromonitor International39

Challenges for continued growth in the organic sector include: • Price: Organic products are priced 20-40 percent higher than comparable non-organic products.40 • Low understanding of the organic category • Low availability of organic products • Inadequate differentiation of organic products compared to non-organic products • Concern about the integrity of organic products • Little investment in promoting the organic sector

Organic sales channels Specialty stores, internet sales and small sections in supermarkets are the primary outlets for organic products. Packaged organic products can primarily be found in major supermarket chains, such as Wal-Mart, Superama, Soriana, Comercial Mexicana and City Market. Small independent specialty stores, such as the Green Corner and Aires de Campo, are also an important channel for organic products. In addition, farmers markets, such as the Mexican Tianguis and Organic Markets Network (REDAC), have tapped into demand for organic products. Some examples: Aires de Campo, a leader in commercializing and distributing organic foods in Mexico, operates approximately 20 BioCentros distribution warehouses across the country. Capable of serving between 500 to 750 regular clients, the warehouses link buyers and producers of organic foods.41 They distribute to retail outlets, specialty stores and via home delivery. In addition, Aries de Campo makes the Via Verde brand private label products for Wal-Mart’s Mexican stores.

GO TO MARKET REPORT: MEXICO 10 El Buen Campo, new in 2014, provides organic food staples and pantry items via home delivery in the Mexico City area. They expect to grow from between 100 and 500 regular clients to 1000 to 2000. They are anticipating a 15-20 percent annual growth in the organic market there.42 Other home delivery services with organic products include: Mercado Orgánico de Tepoztlán Ameyalli, Pro-ductos de la Chinampa, and Tierra Sana y Granja San Francisco.

Organicos enlinea, an online retailer, specializes in organic and natural imported products, and sells to individuals and wholesale to small businesses.

How to find potential business partners

IN MEXICO United States Department of Agriculture (USDA): Foreign Agriculture Service: http://www.mexico-usda.com.mx/home/ U.S. Agricultural Trade Office in Mexico City Liverpool #31, Col. Juarez Mexico, DF 06600 Tel: +52 (55) 5140-2671 Fax: +52 (55) 5535- 8357 E-Mail: [email protected]

U.S. Agricultural Trade Office in Monterrey Blvd. Gustavo Diaz Ordaz #140 Torre 2 - Piso 7, Col. Santa Maria Monterrey, NL 64650 Tel: +52 (81) 8333-5289 Fax: +52 (81) 8333-1248 E-Mail: [email protected]

TRADE SHOWS Alimentaria México (http://www.alimentaria-mexico.com/en) is an international food and drinks exhibition that addresses both the distribution and the food service sector in Mexico. Usually held in late May/early June.

The Gourmet Show (http://www.tradex.mx/gourmet/index.php/english-info) showcases products geared to the gourmet and specialty sectors. In addition to gourmet foods, the show focuses on food items with strong Mexican roots such as coffee, chocolate, and tequila. Visitors include buyers from the trade as well as consumers: International Natural Products Expo (www.anipron.org.mx), known as Anipron, held every February in Mexico City, is a leading trade event in Mexico for natural supplements and personal care products.

GO TO MARKET REPORT: MEXICO 11 LOCAL IMPORTERS/DISTRIBUTORS Working with local importers/distributors in Mexico is an important early step for success in the Mexican market. Import procedures and documentation requirements can change, so close contact with the importer/distributor is essential. Furthermore, a good distributor will promote sales and ensure products are available at the point of sale. Key importers/distributors specializing in organic foods:

Aires de Campo Contact: Roberto Latapi Address: Av. San Antonio 16 Int. 2 San Pedro De Los Pinos Tel: 011-52-55-2614-0122 E-Mail: [email protected] Website: www.airesdecampo.com

Campo Vivo Contact : Mateo Dornier Address: Cuauthemoc 11 Urbana Ixhuatepec C.P. 55349 Ecatepec Tel: 011-52-55-2733-0088 Ext. 103 E-Mail: [email protected] Website: http://www.campovivo.com.mx/

Food Solutions S.A. De C.V. Contact: Raymundo Cid del Prado Address: Carr. a Huinalá KM 1.5-A. Col. El Milagro Apodaca, N.L. 66634 Tel: 011-52-81-8321-3636 ext. 211 E-mail: [email protected] Website: http://www.nutribits.com/

Distribuidora Promesa – Dipro Contact: Eliette Orozco Address: Av. Madero 1590 Col. Nueva, 21100, Tel: 011-52-686-555-7105 Fax: 011-52-686-555-7116 E-mail: [email protected] Website: http://www.deltausmex.com/

For a list of supermarkets and specialty stores that offer organic products, see: http://www.impulsoorganicomexicano.com/#!dnde-comprar/c3wr

IN THE UNITED STATES USDA Foreign Agriculture Service Mexico http://www.fas.usda.gov/regions/western-hemisphere/mexico Regional trade groups can provide assistance for entering the Mexican market. Midwest: http://www.foodexport.org/ West: http://www.wusata.org/ Northeast: http://www.foodexportusa.org/ South: http://www.susta.org/

Visit United States Organic Export Directory (http://www.usorganicproducts.com) and The Organic Pages Online (http://www.theorganicpages.com/topo/index.html) to search for organic businesses that may be able to assist US exporters.

Of note: The United States Department of Agriculture (USDA) has several export programs that can help support promotion and training.

GO TO MARKET REPORT: MEXICO 12 Notes 1. Mexico. Office of the United States Trade Representative, May 1, 2014. http://www.ustr.gov/countries-regions/americas/mexico 2. Mexico Exporter Guide 2013. United States Foreign Agricultural Service. Global Agricultural Information Network. December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 3. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014. http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html 4. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014. http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html 5. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf 6. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf 7. Organic in Mexico. Impulso Orgánico Mexicano, A.C. http://www.impulsoorganicomexicano.com 8. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 9. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_M exico_12-31-2013.pdf 10. Mexico Retail Foods Mexico Retail Sector Report CY2012, United States Foreign Agricultural Service, Global Agricultural Information Network, October 18, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Mexico%20City%20ATO_Mexico_10-18- 2013.pdf 11. Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011. https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018 12. Ibid. 13. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf 14. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global Agricultural Information Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_ Mexico%20City%20ATO_Mexico_3-8-2013.pdf

GO TO MARKET REPORT: MEXICO 13 15. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global Agricultural Information Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_ Mexico%20City%20ATO_Mexico_3-8-2013.pdf 16. Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011. https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018 17. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 18. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_M exico_12-31-2013.pdf 19. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 20. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 21. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_M exico_12-31-2013.pdf 22. Organic Personal Care Products Market in Mexico, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/Organic%20Personal%20Care%20Products%20Market%20in%20Mexico_Latest_eg_mx_0 56253.pdf 23. Mexico, Office of the United States Trade Representative, May 1, 2014. http://www.ustr.gov/countries-regions/americas/mexico

24. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf 25. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 26. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

GO TO MARKET REPORT: MEXICO 14 27. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf 28. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf 29. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf 30. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf 31. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global Agricultural Information Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_ Mexico%20City%20ATO_Mexico_3-8-2013.pdf 32. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 33. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 34. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf 35. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, August 23, 2012. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food %20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf 36. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, August 23, 2012. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food %20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf 37. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’s International Trade Administration, U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf 38. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

GO TO MARKET REPORT: MEXICO 15 39. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, August 23, 2012. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food %20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf 40. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeli ng%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf 41. Organic Foods Find Growing Niche in Mexico, United States Foreign Agricultural Service, Global Agricultural Information Network, February 11, 2011. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20Find%20Growing%20Niche%20in%20Me xico_Mexico%20ATO_Mexico_2-11-2011.pdf 42. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014. http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html

References Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014. http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies. U.S. Department of Commerce’s International Trade Administration. U.S. Commercial Service. http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf Health and Wellness in Mexico. Euromonitor International, May 2014. http://www.euromonitor.com/health-and-wellness-in-mexico/report. Heinze, Karin. Mexico’s green niche expanding. www.organic-market.info, May 3, 2012. http://www.organic-market.info/web/Continents/Latin_America/Mexico/201/206/0/12316.html (Accessed October 13, 2014) Mexico. Office of the United States Trade Representative, May 1, 2014. http://www.ustr.gov/countries-regions/americas/mexico Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011 https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018 Mexico Exporter Guide 2013. United States Foreign Agricultural Service. Global Agricultural Information Network, December 31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8- 2014.pdf Mexico’s Food Processing and Ingredients Report. United States Foreign Agricultural Service. Global Agricultural Information Network, December 31, 2013 http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO _Mexico_12-31-2013.pdf Mexico Food Service – Hotel, Restaurant, Institutional. United States Foreign Agricultural Service. Global Agricultural Information Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20- %20Hotel%20Restaurant%20Institutional_Mexico%20City%20ATO_Mexico_3-8-2013.pdf

GO TO MARKET REPORT: MEXICO 16 Mexico Retail Foods Mexico Retail Sector Report CY2012. United States Foreign Agricultural Service. Global Agricultural Information Network, October 18, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Mexico%20City%20ATO_Mexico_10-18- 2013.pdf New Organic Certification and Product Labeling Program in Mexico. United States Foreign Agricultural Service. Global Agricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20La beling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf Niche Products in the Perceived-Healthy Food Market in Mexico. United States Foreign Agricultural Service. Global Agricultural Information Network, August 23, 2012. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20Perceived- Healthy%20Food%20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf Organic Foods Find Growing Niche in Mexico. United States Foreign Agricultural Service. Global Agricultural Information Network. February 11, 2011. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20Find%20Growing%20Niche%20in%20 Mexico_Mexico%20ATO_Mexico_2-11-2011.pdf Organic in Mexico. Impulso Orgánico Mexicano, A.C.. http://www.impulsoorganicomexicano.com Organic Personal Care Products Market in Mexico. U.S. Department of Commerce’s International Trade Administration. U.S. Commercial Service. http://export.gov/mexico/static/Organic%20Personal%20Care%20Products%20Market%20in%20Mexico_Latest_eg_mx _056253.pdf Villagran, Lauren. Growers, grocers satisfy ripening taste for organic in Mexico. SmartPlanet, Issue 21, January 13, 2012. http://www.smartplanet.com/blog/global-observer/growers-grocers-satisfy-ripening-taste-for-organic-in-mexico/

Acknowledgement Go To Market Report: Mexico 2014 prepared by Wolf, DiMatteo + Associates (www.organicspecialists.com) for Organic Trade Association

GO TO MARKET REPORT: MEXICO 17