Grupo Herdez announces the acquisition of cielito querido café

Mexico City, Mexico, December 5, 2019 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (BMV: HERDEZ) the Mexican food company with more history in the country, announces the acquisition of Cielito Querido Café (www.cielitoquerido.com.mx), one of the most recognized brands in Mexico’s coffee shops segment, for MXN 280 million.

This acquisition is part of Grupo Herdez’s strategy to grow and strengthen its brand portfolio. Together with Nutrisa and Lavazza, in the impulse category, the Company now has more than 500 points of sale throughout the country.

“For more than 100 years, we at Grupo Herdez have set ourselves apart by preserving the culture of Mexican gastronomy and its connected traditions. Since inception ten years ago, Cielito Querido Café has focused on reviving Mexican traditions through innovative concepts, which, without question has become a benchmark in Mexico,” said Héctor Hernández-Pons Torres, Chairman and CEO of Grupo Herdez.

Cielito Querido Café currently has 78 stores throughout the country and is one of the most beloved brands in Mexico. Net sales for the last twelve months were MXN 420 million.

2020

  • 2020: We launched the first edition of Semillero Nutrisa. Together with Nutrisa and the Victoria147 business academy for women, we invited women entrepreneurs to participate in a training program to improve the management of their businesses and have the potential to become part of our supply chain.

We established our first technological alliance with Google, which will allow us to accelerate the digital transformation of Grupo Herdez through the use of Google Cloud Platform tools such as BigQuery ML, Looker, among others.

Through the Herdez® brand and Aires de Campo® we joined the “Sowing a New Normality” initiative, promoted by the civil society organizations Ríos Tarango and Ectágono, which aims to increase the vegetation cover of the environmentally valuable area Barranca de Tarango.

  • 2021: We developed the Group’s second proprietary e-commerce platform, with the Nutrisa® online store.

We updated the apps through which we manage the loyalty programs of our retail brands, Cielito Querido Café® and Nutrisa®, improving our customers’ in-store experience.

During the year, 15 formulas had their nutritional profile strengthened by reducing some critical added nutrients (sugars, sodium and saturated fats).

  • 2022: We expanded our capabilities into new categories through the acquisition of Interdeli and Deli, Dips & Snacks. Integrating brands such as Libanius, Flaveur, Liguria and Señor Cactus into our portfolio.

We Issued the first sustainability bond through which we
committed to a 25% reduction in our water consumption.

Together with our partner McCormick & Company, Inc. we
brought the most iconic Mexican cuisine to the tables of the United Kingdom
through meal kits, sauces and condiments under the Herdez® brand.
  In less than a year, we obtained a 5.5% shelf
share in the Tesco supermarket chain.

We consolidated the integration of Chilim Balam® into retail brands, a leading brand in the snack segment