U.S. frozen potato products have been consolidating their presence in Mexico’s retail chains over the past few years, thanks to efforts by the United States Potato Board (USPB) to develop this market sector. Most major retail chains now utilize U.S. frozen potatoes as their primary source, and the vast majority of smaller chains do as well. More recently, the USPB has been focusing on expanding the products offered in the frozen section, and penetrating the Ready-to-Eat (RTE) sections of retail stores. During the July 2013-June 2014 marketing year, two of Mexico’s most important supermarket chains, Soriana and Comercial Mexicana, introduced new U.S. frozen potato products in the RTE section of 245 outlets across the country.
In May/June 2014, Comercial Mexicana replaced its non-U.S.-sourced fries with high quality U.S. 3/8-inch straight-cut and potato wedges in the deli area of 135 outlets. At the same time, Soriana introduced a U.S. hash brown product, called tater drums, and potato wedges in the delis of 110 outlets in different cities of Mexico. Besides the additional sales generated, the usage of U.S. product in delis helps set a standard for frozen potato products Mexican consumers will expect when they purchase and prepare these products on their own.
The retail sector in Mexico continues to grow in number of units and geographic reach, and represents one of the newer channels for frozen potato sales. Utilizing funding from the USDA’s Market Access Program as well as industry funds, USPB’s marketing program conducted visits and regular communications with major chains. USPB also carried out trade education like the USPB’s Integrated Potato Training, a multi-featured training program. Frozen foods, in general, are not yet part of the regular purchases of most consumers visiting Mexico’s supermarkets. Conducting in-store promotions to inform consumers about the convenience, versatility and nutrition provided by U.S. frozen potato products is important in creating pull-through in the retail sector.
Greater usage in the retail sector contributes to Mexico’s increasing appetite for U.S. frozen potato exports. During the July 2013-June 2014 marketing year, the U.S. exported 125,655 metric tons (MT) to Mexico, a value of $127.4 million. This is up 22 percent by volume and 23 percent by value compared with MY 12/13, and approximately 200 percent of the country’s level five years ago.