During the last day of CADE Ejecutivos 2024, Claudio Rodríguez, president of the Gloria Group, described how the company is positioned in Latin American markets and its projections for the foreign countries in which it operates. In addition, it revealed that security expenses have increased by 50% in the last five years.

What is the Group's balance for this year?

2024 has not only been affected by the economic crisis we had in 2023, with high inflation rates, but it has also been a year in which we have focused a lot on the issue of lowering costs and competitiveness, and I think we have managed to try to address those factors. We are also preparing to pass on everything we have learned in efficiency next year, with greater investments and resuming the growth momentum.

Have these factors you mention influenced the search for efficiency in all businesses or was there one in particular?

In all businesses. As an industrial group, we are always looking at or focusing on our entire value chain. We are also keeping an eye on industries and their growth; for example, one issue that is transversal to all businesses is energy and we are focusing on a photovoltaic plant. That will greatly reduce our energy costs and will also be good for the environment. We are looking at how to transfer that experience to the agricultural sector in the north to enter with renewable energies.

Grupo Gloria acquired Soprole from Chile, how is the synergy process going?

We bought Soprole last year and it has been a very good experience. We have found a very solid team in Chile and the synergy we have found has been quite good, not only at the point of purchase of materials or inputs, which we are already buying at a regional level, but also in terms of innovation. In Peru, we launched the Zero Lacto brand this year, a brand that was in Chile and allows us to be more efficient with all our lactose-free products.

When we see our division as Gloria Foods, with which we are present in Puerto Rico, Colombia, Ecuador, Peru, Bolivia, Chile, Argentina, Uruguay, this allows us to be more competitive from the supply of inputs to the supply of products, importing products from Chile to Peru or from Peru to Chile. We are looking at sending condensed milk to the Chilean market. All these opportunities allow us to be more competitive within the markets.

We are identifying powerful brands because obviously the Gloria brand in Peru is super powerful, Soprole in Chile is very powerful, Pil in Bolivia is also very powerful. We are starting to identify which could be regional brands or regional platforms to see how to promote them.

What stage is the integration with Soprole at?

We made the decision to make the integration process quite slow. Obviously, the culture of processes is important in a company, and Soprole's performance has been very interesting and has translated into savings and efficiency. And something that we do stand out in as a group is the ability to make quick decisions and it is something that executives have noticed in terms of investments and automation. I think that is helping us.

Another purchase was Ecuajugos, how does this purchase fit into your consolidation plan?

We are still waiting for the regulatory approval [for this purchase], which we hope will be soon, but that already allows us to increase our positions in Ecuador. Nestlé's assets are very good and allow us to have a very important presence in Ecuador, in Peru, in Bolivia, in Chile, and This gives us the Andean synergy we were looking for and will allow us to be more competitive.

You said some time ago that you want the Gloria Group to position itself as one of the main food groups in Latin America. Are you still pursuing that goal?

Our wish is for Gloria Foods, which is the name of the division, to have a regional footprint and always focus on the Andean part, on the Pacific part. Once we consolidate, I would not rule out looking at other markets.

To consolidate Gloria's presence in the region, what markets are missing?

Colombia is a big market. We are present there, but we are very small. Brazil is a mega market, we have always been cautious with Brazil. We do not rule out Central America, I think Panama and markets in South America could be interesting.

Regarding your presence in Puerto Rico, we saw that you suspended your operations. Is this a temporary suspension or are you saying goodbye permanently?

Puerto Rico is a very complex market, it is a market in which legal security has affected us, but it has not been enough for us to continue betting. The regulations and rules of the game have never been clear, to the point that, when there comes a time when the numbers no longer add up, we have no security from the regulators, and we have to make difficult decisions.

Is this a definitive exit then?

We have closed the plants, the company is still there, but at least they must make serious changes... We are just waiting to see what happens.

On the mass consumption side, they are looking to diversify products at a regional level, such as formulas for children, for adults, and other similar products. Will we see this next year?

We are working on the formula (for children), but looking for suppliers that give us the confidence that the product we are launching will be of the best quality. I wouldn't say that we will do it by 2025, because we really want to be very sure of that, but it is within those plans. So also how to migrate from our dependence on milk to products with higher added value such as formulas, adult foods, etc.

At some point you mentioned that there was interest in the US market in the cement business. How is this process going?

The US market is changing a lot, with the new president there will be tariff changes and it depends on that, we will see what happens. We are focused on consolidating our operations in different countries. For example, in Bolivia there is a rather complex situation due to the lack of dollars and fuel, so I would say that at least in the short term we are going to focus on consolidating its operation.

And as for your other businesses, how are the results of the agro-export business going?

The agro-industrial business is where we are betting most heavily. We believe that Peru has immense potential, due to its climate, its people and this market is very inclusive; but it needs investment in water reservoirs to further boost exports and this is something that we are quite focused on. I think that the port of Chancay will help a lot to see opportunity in Asia.

For any particular market?

We export to Europe and the United States. I think China is a market that would interest us a lot in the short term.

When could they arrive?

Next year we are trying to move forward and see the contacts to send blueberries and grapes.

¿Will this open your eyes to other markets for your business?

We have the largest milk plant in the world and it is perhaps one of the most competitive in terms of cost, so we do believe that we can compete, if we can reach the Chinese market. It is an interesting market and it would be a great opportunity for us to be able to reach that market.

On the other hand, Peru has security problems, and you have already warned of greater investments. How much are you allocating for this?

We spend around S/150 million a year on security. This has been increasing over the last few years. For us, when our plant in Majes caught fire, it triggered [the need to invest in security]. Although it affects our competitiveness a lot, because it is an expense that should not be there, we have to do it to guarantee our chain. We buy inputs from suppliers and our role is to transform them for consumers, at the best quality. If we cannot give that guarantee, we will have to invest to ensure it.

And when has this investment increased in recent years?

Over the last five years, almost 50%.

What is the group's investment plan for next year?

The investment plan for the entire group is US$500 million, with US$400 million of that amount being allocated to the Peruvian operation.