(articles courtesy of LLoyd, www.lloyd.com.mx)
HIGH SPEED INTERNET VIA POWER LINESThe CFE (Federal Electricity Commission) has commenced providing high-speed internet access through existing power lines. A plug-in Power Line Communication (PLC) adabtor will turn any power outlet into an internet connection. These connections will work for data transmission, video, and also voice transmission. Spain is operating a similar system which is 30% less expensive than conventional internet connections. The city of Morelia was chosen for an in depth two year study prior to mass commercialization. With 96% of the homes in Mexico currently connected to the national power system, internet service could be provided to virtually every household without the associated costs of telephone, cable or wireless infrastructure expense.
AUTOMATED TIRE PLANT
The Japanese tire manufacturer, Bridgestone,has begun investing 220 million dollars for the construction of a fully-automated plant in Monterrey. Due to open in 2007, this Bridgestone plant will be the first of it's kind outside japan and will automate every phrase from initial processing to final inspection. Although employment indicates only 200 employees, the plant will produce 8,000 heavy duty tires a day for buses and trucks throughout North America. Currently, Bridgestone has two other plants located in in Mexican cities - Mexico City and Cuernavaca.
PROTECTING TEQUILA
Mexico exported 109 million liters of tequila in 2004, surpassing all previous records of tequila production. Since that time, South African distillers have been trying to take advantage of a worldwide over-demand for genuine tequila through the promotion of "agave spirit", distilled from Agave americana wich is a larger species that the Agave tequilana Weber azul used for tequila. South Africa remains one of the few countries that has refused to recognize tequila's "denomination of origin" status, which reserves the name for production froma limited geographical area of western Mexico, together will a small part of Tamaulipas. The Mexican Industrial Property Institute recently reported that it has taken steps to restrict the sale of 86 different fraudulent brands around the world in the past four years.
CONVENIENCE STORES EXPAND
In Mexico, 7-Eleven is playing "catch-up" with Oxxo, a domestic chain of conenience stores owned by Coca-Cola Femsa. Oxxo is growing very rapidly; it added more than 500 units last year and now boasts 3,260 locations nationweide. Even more impressice, its sales increases 10.2% in the third quarter of 2004 on a "same store" basis. In its efforts to catch up, 7-Eleven is investing 30 million dollars this year to add 100 more sales points to its existing network of 500.
WAL-MART OFFICE MOVES TO MEXICO
Wal-Mart's global provisioning office, formerly based in Costa Rica, is moving to Mexico. The office links suppliers, regardless of their geographic location, directly with the giant retail chain, avoiding intermediaries and lowering purchasing costs. The move brings the office closer to its Mexican suppliers of items such as perishable foodstuffs (Mexican growers meet 60% of Wal-Mart's U.S. demand), blue jeans, (most jeans sold in U.S. Wal-Mart's come from Mexico) and television sets (most of which are manufactured by maquiladora companies on the Mexico-U.S. border). Wal-Mart's new office will work closely with the company's major distribution center, located in Monterrey.
OSTRICH MEAT
There are 800 registered ostrich farmers in Mexico, located in 14 states, ranging from Baja California, Neuvo León, Tamaulipas, Sonora, Chihauhua and San Luis Potosí in the north of the country, to Chiapas and Oaxaca in the south. An adult ostrich weighs 120 to 130 kilograms, and yields about 30 kilos of meat. The Mexican Council for Ostrich meat, reports that its members produce 2 metric tons of ostrich meat a month, and that the meat is gaining wider acceptance in homes and restaurants. Supermarket sales account for around 65% of total sales. Ostrich meat is protein-rich red meat, similar to beef, but very low in fat and cholesterol. Commercial by-products of ostrich farming include ostrich oil (used in soaps, creams and lotions) and ostrich leather.
BIMBO MORE THAN JUST BREAD
Seeking to diversify away from its existing marketing of low-cost mass-marketed breads and cookies, Grupo Bimbo, Latin America's largest bread maker, has pursued an agenda of aggressive purchases over the past 18 months - during which time it has bought several major confectioners, such as Joyco de México, Alimentos Duval and Lolimen, as well as making an offer for Chocolates La Corona. Now, Bimbo is buying El Globo, a chain of pastry shops currently belonging to Grupo Sanborns, for 127 million dollars. [1.35 billion pesos] El Globo, founded in Mexico Ciy in 1884, is one of the country's oldest businesses. Since Grupo Sanborns acquired it in 1998, the chain has expanded from 72 to 170 outlets, with annual sales of 94 million dollars [1 billion pesos.]
