About Grupo Herdez, S.A.B. de C.V.

Grupo Herdez, S. A. B. de C. V. engages in the manufacture, purchase, distribution and marketing of canned and packed food products in Mexico and ice cream, as well as food products targeted at the Mexican food segment within the United States of America. The company is a 51% subsidiary of Hechos con Amor, S. A. de C. V. The company manufactures and commercializes products under the following trademarks: Aires de Campo, Barilla, Búfalo, Carlota, ChiChi’s, Del Fuerte, Don Miguel, Doña María, Embasa, Herdez, La Victoria, McCormick, Wholly, Yemina, Nutrisa, Helados Nestle, Cielito Querido Cafe and Moyo, among others. The company owns Cielito Querido Cafe and the Moyo brand. Together with Nutrisa, S. A. de C. V. and Lavazza, it has more than 600 points of sale throughout the country. Segments Frozen products The main products in this segment are ice cream and commercial products. For the sale of the frozen product segment, the company recognizes revenues to the extent that performance obligations are met. Preserves The products that the company sells in the preserves segment include the following jarred, canned and packaged foods: pasta, tomato puree, ketchup, tuna, mayonnaise, jelly, mustard, tea, dressings, spices, honey, homemade sauces and sauces, chilies, mole, and canned vegetables, mainly. For the sale of canned and jarred foods, the company recognizes revenues to the extent that performance obligations are met. Export The products the company sells in this segment include the following canned and jarred foods: fresh fish, mayonnaise, chili peppers, mole and homemade sauces, mainly. For the sale of jarred, packaged and canned foods, the company recognizes revenues to the extent that performance obligations are met. Major Customer As of December 31, 2019, the company commercialized its products with a large number of customers, and only one (Wal-Mart de Mexico, S. A. B. de C. V.) represented approximately 24% of the total revenues. Seasonality Most of the products manufactured and traded by the company are seasonal, increasing their sales in the last fourth months of the year (year ended December 31, 2019) in the preserves case. Additionally, consumption of certain products (mayonnaise, mole and tuna fish) increases during lent, and others increase, such as tea and marmalades in the winter. Also, the sale of frozen products increases during the summer. Seasonality is also a factor in the harvest cycle of certain raw materials used by the company. History Grupo Herdez, S. A. B. de C. V. was founded in 1914.