Q: What is Cytecsa’s role in the Mexican Agribusiness industry?

AZ: We like to be considered by our customers as an extension to their R&D department. Given our technical expertise, we can help our customers design and launch new products, reduce production costs through the reformulation of their products and solve any technical problem they might have. Our main business focuses on tailor-made stabilizers for the dairy industry, raw materials distribution and machinery, given that we are a Finnish packaging company Elecster’s representative in Mexico. More recently, we introduced a meat division after Grupo Indukern acquired Cytecsa. We also have specific developments that we are bringing to the Mexican vegan market.

Q: Why are stabilizers important in food processes?

MM: Stabilizers provide and maintain the texture desired by our customers. Besides, our texturizers prevent product phase separation, increasing their shelf life, and mimic the sensorial characteristics of homemade products. The process to develop stabilizers starts by identifying customers’ needs, which are also based on the market’s needs. We adapt to the specifics our customer outlines in terms of functionality and manufacturing process. The next step is to run pilot tests at our plant that are evaluated afterward at our customer’s plants for final validation. Then we deliver the final product. We also offer our own portfolio. However, most customers prefer a custom-made product adapted to their process, their market and price ranges. We can also adapt some of our products to the customers’ needs or develop a new product. It is difficult to run small-scale tests, but we do this as well. Developing a stabilizer takes between one and two months before it can be replicated at the customer’s facilities.

Q: In which products are your stabilizers mostly used?

MM: Our core business is focused on stabilizers for creams, ice creams and cheeses and our new developments focus on recombined milk, plant-based beverages and chocolate milks. In terms of raw materials, we offer the basics, from preservatives to emulsifiers, salts, enzymes and other elements for the industry. Seventy percent of our sales are focused on stabilizers, 28 percent on raw material distribution and 2 percent on machinery. Another added value we offer is our team’s expertise in processes and production that can go hand-in-hand with what the customer is experiencing in real time in other parts of the process.

AZ: We also see great potential to grow in the meat industry. Our technical areas in Spain, Brazil and Mexico maintain strong communication to replicate successful experiences across borders. We are planning to bring our proven developments from Spain to the Mexican market. In machinery, given the COVID-19 situation, the machines Cytecsa is supplying to the Mexican market focus on aseptic bags and UHT milk and other beverage packaging. We expect this area to also grow in the coming years in Mexico and in other countries where we also have distribution, like Guatemala or Panama.

Q: What market trends are you monitoring in the meat segment?

AZ: We belong to an international group that has already developed all kinds of meat alternatives to present vegan products such as sausages, mortadella, nuggets, hamburgers and breaded escallops based on vegetal proteins. These vegan products already represent between 10 percent and 20 percent of the US and European meat markets. The second trend is the elimination of additives to make fresh products, such as sausages or hamburgers, without preservatives or antioxidants but with a shelf life long enough to be attractive to food distribution chains and consumers. Apart from these trends in meat products, the group has also developed vegan or clean label solutions as an alternative for all types of dairy products.

Q: What is your relationship with Grupo Indukern?

AZ: Grupo Indukern is a Spanish holding that has three main companies: Kern Pharma, in the pharmaceutical sector; Calier for animal vaccines and Indukern. The latter is a world leader in the supply of products for the divisions of food ingredients, pharmaceutical and animal health, animal nutrition and flavors and fragrances, all very important in the current health crisis. Our subsidiaries have been present in countries like Brazil and Mexico for more than 20 years. Given its nature as a raw materials distributor, Cytecsa falls into the food division as a bet to add more value to the group with in-house development. Cytecsa has a strong tradition in product development and that is the role Grupo Indukern wants to play in the future.

Indukern is going to make a continuous investment to improve Cytecsa, including new state-of-the-art facilities. Our Mexico operations are located in Guadalajara, Queretaro and Mexico City, where we manufacture our products. MM: Cytecsa’s portfolio is broad. We have three offices in north, western and central Mexico, as well as two distributors in Central America supported by two highly skilled technical sales people who provide the permanent technical support necessary to help our clients in the region.

We can respond quickly to our customers’ needs. The food business is really dynamic and it has demand peaks that need to be addressed. Our ability to deliver even sooner than expected has given us a strong business advantage.

Q: How has consumer awareness influenced your product development?

MM: Consumers are focusing more and more on ingredients. The trend is toward ecological ingredients but it depends on each market niche. We are adapting constantly to new requirements. Consumers are looking for products that are lower in sodium and sugar but without the same complexity of chemical compounds. That is where the industry is heading. Our job is to look for new raw materials that provide those conditions.