Northern Pharmacy Chain Expands Through Mexico

Q: Farmacias Benavides increased its market participation by 7.22 percent in 2017. How are you positioned in the country?

A: Farmacias Benavides turns 101 years old in 2018. The company began operations in Monterrey and four years ago was acquired by Walgreens Boots Alliance (WBA). As a member of WBA we are part of the leading pharmacy group in the world. In Mexico, we now have 1,218 points of sale spread across 24 states, from the north of the country to Mexico City

Q: When Farmacias Benavides turned 100, it established the goal of launching in 100 locations per year. What is the status of this plan?

A: We are keeping up with this goal by focusing on markets where we are already present but lack the necessary coverage, mainly in the central region of Mexico. After 100 years, our clients recognize our expertise in the sector. Over that time, we have cultivated our connection with our clients by training our employees and hiring more when necessary. The most important part of a pharmacy is for clients to feel safe with the service provided by its employees. Pharmacy customers also value the high availability of products and the industry invests heavily to maintain large inventories so prescriptions can be filled. We have brought the target down a little bit mainly because we want to ensure the highest WBA standards are met when we open stores.

Q: How are you using technology to improve the efficiency of your distribution center, Centro de Eficiencia Logística?

A: Our Centro de Eficiencia Logística in Monterrey functions as a spearhead for our distribution strategy. This single center has sufficient capacity to address our expansion needs for the next few years. We are planning to install a new warehouse management system to improve our distribution capabilities and to plan for future demand. This system will also permit efficient distribution to future pharmacies. Our logistics chain has 12 cross-docking centers distributed throughout the country that allow us to reach places such as Tijuana, Mexicali, Puerto Vallarta and Veracruz.

Farmacias Benavides has also invested in the consolidation of its drug distribution through the implementation of processes to predict demand. This allows us to guarantee the supply of the necessary products, especially during seasons of high demand.

Q: What role will online platforms play in Farmacias Benavides’ future?

A: Farmacias Benavides does not have an online sales platform, but we do have a call center that clients can contact and order products to be sent to their homes. We have a strong presence on social networks, including Facebook, where we have over 443,000 followers. We have over 8,000 followers on Twitter and 7,000 on Instagram, with 22,000 followers in LinkedIn and growing tremendously year by year. Furthermore, we have a platform that allows us to interact with clients of our loyalty program, Beneficio Inteligente (Smart Benefit). This platform allows us to interact with millions of clients and to offer them promotions based on their purchasing profile.

Beyond digital, WBA has a track record of innovation, trust and care with deep roots in our communities. We have been delivering healthcare through our pharmacy and store networks and online for years. For instance, Walgreens fills one prescription from a mobile device every second.

WBA has pioneered healthcare innovations that have been in the news recently, mostly in the US. For example, Boots in the UK has a service called “medisure” which provides patients with complex therapy needs with prepacked medicines delivered to their pharmacy or at home. In Norway with “Farmaka” and in The Netherlands with “SPITS” we have pioneered online pharmacy delivery services, including pre-pack and unit dose dispensing for years. From a customer point of view, Farmacias Benavides uses a mix of digital platforms to interact with patients and customers successfully and our website lets Loyalty Program members check their balance, movements and discounts.

Q: How did the presence of doctors at the point of sale improve Farmacias Benavides market penetration?

A: Our pharmacy doctors are the pillars of our business goal to provide clients and patients integral solutions for their health and well-being. These doctors give patients the opportunity to acquire fast, trustworthy and easy-toaccess care. We have built a network of 624 doctor’s offices with 870 certified doctors who are prepared to treat any primary medical need. We offer general attention, weight and birth-control monitoring, blood pressure and glucose tests, injections and verification of health certificates and we keep an electronic record of all the patients we receive. The clinics provide only primary attention so if a patient needs a more specialized service they are channeled to the proper specialist.

Q: How is the incorporation of retail chains changing the pharmaceutical market? What are Farmacias Benavides’ strategies to compete?

A: We welcome competition, which stimulates our continuous improvement processes. The entrance of these players is a sign that the sector is professionalizing in terms of primary attention and medicine supply.

Q: What other trends will affect pharmacies in the shortterm and how will Farmacias Benavides address these?

A: We will remain vigilant against the diseases that are increasingly prevalent in the country, such as obesity and diabetes, to contribute to the improvement of people’s quality of life and to be prepared for future product requirements. Our priority is to consolidate as a provider of healthcare and wellbeing.

Q: How is Farmacias Benavides strengthening its position among its national and international competitors?

A: We will increase our offering of quality products and we will also differentiate ourselves through our own brands. From October 2018, we will be introducing gradually the generic brand Almus and its series of products to address the country’s most common diseases to have full coverage by this date. This is a leading brand in the European market and will provide significant benefits to our clients, including quality and safety. These products include an innovative design and packaging that will help to minimize errors in dispensation and use. We are also launching the Farmacias Benavides brand for OTCs. While new, this brand also adheres to WBA’s quality standards. We are now allying with local laboratories to investigate the possibility of manufacturing these products in the country.

We are introducing other international brands from our wellness division, most of which will be related to cosmetics and other dermatological products. The products we will introduce will only be sold in Mexico at Farmacias Benavides.

Q: What opportunities does Farmacias Benavides see in the Mexican market?

A: We have identified dermatology as an attractive business opportunity that can complement our existing product offering for well-being. In this division, we are already supplying global brands such as No7, Soap&Glory, Tea Tree Witch, Hazel, Soltan and Botanics.