Leveraging Past Experience for Future Strength

Q: What would you say is Grisi’s biggest strength in the Mexican market and what is its commercial structure?

A: Grisi supplies almost every supermarket and pharmacy in Mexico. In addition, the government is responsible for a small part of our generic product sales. We do not sell directly to them but through distributers that orbit the segment. On the other hand, the company’s US commercialization activities are mostly supported by Midway Importing, of which we own 52 percent of shares. Midway Importing is responsible for 80 percent of Grisi’s sales in the US market.

Q: Grisi has a tradition of developing products from natural sources. Has it been difficult to remain loyal to your basis in an industry highly dependent on chemically synthesized substances?

A: Grisi’s R&D department continuously modifies and advances the company’s formulas for its pharma, hygiene and beauty segments. The industry standards for natural-based products are tighter than before, forcing us to systemically modify and improve our formulas. Considering less impactful ingredients are needed Grisi partnered with international companies focused on raw material production and jointly developing the best possible formulas for its products. In terms of natural extracts we purchase them from multiple regions in the world, such as the chamomile that is later processed incountry. Soaps, on the other hand, are now made from vegetable oil instead of animal fat. The trends behind natural product manufacturing have become stricter, especially as companies misrepresent and falsely promote their goods. Evidently, it is near impossible to have 100 percent natural products as some types of chemicals are used for their preservation. We do our best to keep in line with the company’s vision. Grisi’s active, natural origin ingredients must be of the utmost quality.

Q: What generic products is Grisi developing?

A: Grisi produces tablets and capsules. Our portfolio also includes salt compounds like epinastine, tamsulosin, alprazolam and imiquimod. We research nearly expired patents further filing product registrations once the respective bioequivalence and dissolution test have been performed. This process can take up to nine months excluding the component evaluation period where we identify the market’s demands. We cover a wide range of applications like anxiolytics, vasodilators and calcium related products.

Q: What are the most relevant trends in the personal and skin care market and what is your fastest growing product line?

A: The personal care market segment is extremely broad, and is mostly comprised by transnational companies. Local market tendencies initially come from Europe and the US, followed by Mexico. Dermocosmetics has become the latest trend as it follows hygiene and beauty formulas while implementing pharmaceutical practices. Grisi, alongside its European brand Maja, is positioned in El Corte Inglés. Both have higher degrees of active ingredients adding product functionality. Maja was acquired four years ago and it specializes in perfumery. Although it is not a premium brand its greater quality positions it in the masstige category. Our Mexican blockbuster is Ricitos de Oro, the country’s baby shampoo market leader with more than 40 percent of the market. With 26 years in the market Ricitos de Oro resulted from Grisi’s original chamomile shampoo. The company also has a strong presence in the neutral soap segment, which is the highest selling soap in Mexico. We are also leaders in the minimarket veterinarian segment with our Perro Consentido and Perro Agradecido product lines.

Q: Grisi invested MX$100 million (US$5.3 million) on a new distribution center. What are the highlights of this investment?

A: We will move our operations by mid-2016 to gain connectivity with our client’s distribution centers. Grisi’s distribution center services its warehouses in Guadalajara, Monterrey and Tijuana. But more space is greatly needed. We are also refurbishing and strengthening the infrastructure of our manufacturing facilities. Large investments have been channeled to this endeavor, which has positively impacted the quality of our pharma products.