Eduardo Pérez de Caso
Director General
Comercializadora Instapura
/
Insight

Local Efforts to Maintain International Quality Standards

By Gabriela Mastache | Fri, 04/03/2020 - 15:54

Although water purification systems were a difficult sell due to lacking awareness regarding their benefits in terms of production costs, a change in consciousness among businesses, transformation industries and consumers has created a competitive market, according to Eduardo Pérez de Caso, Director General of Comercializadora Instapura. “The market is far from reaching its peak,” he says.

Founded in 1980, Instapura is a Mexican company that specializes in the creation and commercialization of water purification systems using ultraviolet lighting. “Although our official name says we are marketers, we are the only company in the country that develops technology and manufactures equipment for water purification,” says Pérez de Caso. Competition at the residential level for water purification systems has increased exponentially but at the industrial level, Pérez de Caso says Instapura is positioned well above its competitors. “Our products compete on quality with equipment from Canadian, US or European manufacturers. However, we can offer a more attractive price.”

Instapura’s competitiveness has helped the company become a supplier for companies like Pizza Hut, Starbucks, Walmart, Burger King, and Carl’s Jr. Pérez de Caso says the company’s products play a key role especially among clients with soda machines. “Soda companies take special care of the quality of their product and make significant efforts to ensure that their products taste the same whether the consumer is in Mexico City, Tijuana, Merida or in another country.”

Water is crucial in maintaining the same quality standard. “For products to maintain the same level of quality, water must also comply with a determined standard. However, water is different from place to place and has different properties. Hence, it needs to be treated to make it the same,” says Pérez de Caso. “All businesses that sell soft drinks using premixes and postmixes need water treatment systems.”

While there are several companies that work on water purification systems for businesses in the food segment, Pérez de Caso says Instapura has landed clients that are important for the soda industry. “We work with these commercial chains nationwide, but the commercial agreement is made with franchises rather than with the brand itself.” Still, there is still much ground to cover for the company. Over the past 25 years, Instapura has manufactured and delivered 120,000 water purification systems, which pales in comparison to the 60,000 machines manufactured by other companies globally every month. “Mexico is behind other countries in the use of premixes and postmixes for soft drinks but the industry is gradually embracing these solutions.”

Despites its small manufacturing operation, Instapura’s quality has allowed it to compete at an international level. “One of our international competitors from the US is buying our water purification system and selling it through Latin America and the US,” says Pérez de Caso. “Instapura’s products have been so well-received that the company quadrupled its sales expectations.” As a result, Instapura is already working on a second white-label product for this company.

The company’s toughest competition comes from companies that offer cheaper imported products. Dumping practices generate a price distortion in the market, leading consumers to believe that these products are way more economical than they actually are, says Pérez de Caso. “Consumers then want high-quality products to cost the same as low-quality imports,” he adds.

Instapura remains firm in its expectations for the market, however. “Given the size of the equipment and the technology we offer, the industrial segment remains the most attractive in the Mexican market,” says Pérez de Caso. The company is also eyeing other markets. “We are already exporting to Central America and are working on modifications to comply with market conditions in South America. Moreover, we are betting heavily on the US market,” he says.

Photo by:   MBP
Gabriela Mastache Gabriela Mastache Senior Journalist and Industry Analyst