CNA Forces Gruma to End Exclusive Tortilla Contracts

A legal ruling issued by the National Antitrust Commission (CNA) has determined that Gruma must eliminate all exclusivity obligations imposed on tortilla shop owners across the country and transfer, at no cost, the specialized equipment associated with those contracts.

On Jan. 23, the CNA announced that it had concluded the competition proceeding against Gruma. As a result of the ruling, the company will be required to eliminate all exclusivity or minimum consumption obligations previously imposed on tortilla shop owners, as well as the penalties linked to those clauses. In addition, it must transfer, at no additional cost, all tortilla-making machines and mixers associated with those contracts.

Andrea Marván, Commissioner, CNA, explained that as a result of these measures, tortilla producers will no longer be tied to Gruma, will have greater freedom to choose their preferred corn flour supplier, and will significantly reduce the costs they face.

According to the authority, Gruma holds roughly a 70% market share, and as a result of these actions, between 30% and 40% of its clients will be released from exclusive supply contracts with the company. Gruma has a period of between 90 and 180 days to jointly establish with the CNA the terms of the documentation required to implement these measures.

Additionally, Marván stated that compliance with Gruma’s commitment to stop forcing tortilla shops to purchase its brand of corn flour will be monitored for 10 years. “They will be required to submit periodic reports for 10 years, and a comprehensive evaluation of the implementation of the measures will also be conducted after five years,” the official told El Economista.

The CNA’s resolution brings to an end a process that began in November 2022, when the then Federal Economic Competition Commission (COFECE) launched an investigation into potential barriers to competition and essential inputs in the corn and corn flour markets. After two years of investigation, a Preliminary Opinion was issued in 2024, determining that effective competition conditions were lacking in the markets for the production, commercialization, and distribution of bulk white and blue corn flour intended for the commercial production of corn tortillas, with a regional geographic scope.

As part of its investigation, the Investigative Authority divided the country into eight regions and analyzed total sales and installed capacity between 2016 and 2022. This analysis allowed it to identify that Gruma accounted for between 50% and 90% of sales in each region. This share is between two and nine times larger than that of its closest competitor in each region, while its average prices are nearly 10% higher than those of its competitors nationwide, COFECE determined.

As a result, the Preliminary Opinion proposed, as a corrective measure, the sale of five of the 18 plants Gruma owns in Mexico, due to its dominant position in the corn flour industry. This divestment would have led to a 17% reduction in the company’s market share and a 10% decrease in the price of the input, according to José Manuel Haro, head of COFECE’s Investigative Authority, who said so in October 2024.

Following the opinion, Gruma submitted objections, including defense arguments and evidence aimed at refuting those conclusions, as well as challenging the appropriateness of the proposed corrective measures. The company also proposed a series of alternative measures to conclude the proceeding in a manner satisfactory to both the company and the authority.

Gruma argued that the measures consist of concrete, feasible, effective, and verifiable actions focused on adjusting the support contracts the company provides to its clients. “The adjustments are intended to provide certainty to masa and tortilla producers that there are no minimum purchase commitments for corn flour under financial support contracts and that there are no exclusivity obligations toward Gruma in the purchase of corn flour,” the company said in a statement.

The proposed actions, which were mentioned at the beginning of the article, represent an expenditure equivalent to the construction of three corn flour plants, allowing the company to avoid the sanctions initially contemplated by the authority. “In particular, the sale of five of the 18 nixtamalized corn flour mills that Gruma operates in Mexico will not be required,” the company said.

Gruma described the outcome as favorable, considering the proposed measures to be appropriate and economically viable. “The conclusion of this proceeding and the implementation of the Alternative Measures strengthen certainty so that Gruma can continue to promote the responsible development of its operations in Mexico,” the company stated.

To carry out all the modifications and ensure that tortilla producers are aware of the agreement, the company will be required to make a significant effort to publicize the changes to contracts, as well as to contact all of its clients individually. The CNA concluded that while the price of tortillas depends on multiple factors such as operating costs, energy, and inputs, these measures create competitive conditions that, in the medium and long term, will benefit the Mexican population.

It is estimated that there are 90,000 tortilla shops nationwide. Furthermore, more than 6Mt of tortillas are consumed each year, with an average intake of approximately 66 kg per person, according to official data. This product is present in roughly eight out of every ten households, making it a key component of the basic food basket.

Corn tortillas have been among the products most affected by inflation in recent years. In 2022, they recorded an annual increase of more than 16%, making them one of the food items with the greatest impact on the National Consumer Price Index. In the first half of January 2026, Mexico’s overall inflation stood at 3.7%, with food products remaining one of the main sources of pressure.

Currently, the price of corn tortillas ranges between MX$22/kg (US$1.28) and MX$35/kg, with northern states being the most affected.