Partners:
Great efforts and traits to become a in the dairy industryProduced by Jassen Pintado
Translation by María Murgui
Written by Mateo Rafael Tablado
Creative Direction Omar Rodríguez
Interviewee
Ana María Orozco, CEO for Grupo Lala Central America and the Caribbean
A Management with goals such as operational excellence through inclusion and process optimization by investing in sustainable initiatives make Grupo Lala a leader in the dairy products industry in Central America and the Caribbean
During its 70 years of existence, Grupo Lala, originally a Mexican company, has been bringing different dairy products and derivatives to millions of households. Lala installed the first pasteurizer in Torreon, Coahuila, in 1950, and in 1967 it began the commercialization of milk in carton packaging. In 1985 the Lala Foundation was created, this is the group’s branch providing nutritional support to disadvantaged communities focusing mainly on children.
Besides Mexico, Lala has expanded all over America by being present in Brazil, Guatemala, Nicaragua and in the USA. Globally, Lala products are manufactured in 31 production plants and are distributed from 173 facilities by more than 40,000 direct employees and with an estimation of providing Guatemala with 3,500 jobs ̶ both direct and indirect.
Entering in Central America
Lala began operations in Central America in 2008 acquiring the Foremost production plant in Guatemala and installing distribution centers in every department of the country, thus managing to cover the entire country, and becoming a leading company in milk and yogurt production during the last thirteen years. Brands such as Lala, NutriLety, and Foremost ice-creams are synonymous with nutrition and quality in the Guatemalan market. The latter are produced at the Palin Plant, in Escuintla. Lala also offers brands to specialized markets such as the children segment through Oh Lala, Lala Kids, and Lala 100, a lactose-free product.
Regarding Nicaragua, Lala made its way into this market in 2014 by integrating the Eskimo brand with Grupo Lala, and afterwards by investing in the construction of the
- Ana María Orozco, CEO for Grupo Lala - Central America and the CaribbeanCaribbean
Making high-quality and highly nutritious food available is something we are passionate about
San Benito Plant in 2015. A year later the La Perfecta brand was included in the strong Lala portfolio, thus becoming the leading company in dairy products such as milk, ice cream, and yogurt in the Nicaraguan market, supplied by San Benito and Altagracia Plants.
“Making high-quality and highly nutritious food available is something
we are passionate about”, commented Ana María Orozco, CEO at Grupo Lala for Central America and the Caribbean.
An outstanding career in mass consumption
Ana María Orozco graduated in Business Administration, specializing in Strategic Marketing from the
CESA University (College of Higher Management Studies). Her broad experience in more than 25 years in mass consumption global companies makes her the perfect leader for Lala operations in Central America. Her career highlights include her time in Unilever ̶for 11 years̶ and AB InBev, leading different business areas, Non-Alcoholic Beverages
among them, achieving results by fulfilling high standards, strategic plans, the creation of brands’ values, and cultural transformation.
Orozco has been part of Grupo Lala since 2019, overseeing Central America and the Caribbean regions, running three plants and 1,900 employees.
Permanent operational excellence
Ana María Orozco’s arrival at Lala Central America and the Caribbean has resulted in the optimization of the group’s operations in the territory, which can be seen in a double-digit growth in sales during the last three years.
To achieve these results, the division underwent a restructuring
of the model of the route to market, a change in the mixture of products in the portfolio ̶ thus focusing on high-contribution value categories̶-, a portfolio reduction, increasing available items and through geographical expansion, among other factors which led this division to operational excellence.
Currently, the company keeps working on the development of
Tetra Pak is a world leader in food processing and packaging solutions.
We offer safe and innovative products, we believe in responsible industry leadership and a sustainable business approach. Our vision is to make food safe and available everywhere.
us
innovations for the consumer and operating with flexibility, which enables the company to face macroeconomic situations allowing Lala to become its clientele’s preferred company.
Supportive investments since the get-go
Lala Central America has invested in its production line and innovating int its regional product portfolio.
The company invested in a production line for the 31.75 oz smoothie yogurt in Nicaragua. And recently, in Guatemala, it raised the stakes by deploying a UHT line for the Lala milk manufacturing process. Besides, for this market, the distribution fleet was renewed, getting the product closer to clients and consumers. The company’s most outstanding investment is undoubtedly the $30 million allocated
to the construction and beginning of operations of the Palin Plant.
Innovative products making a difference in the market
Lala has increased its portfolio after researching the different options the market presents according to restrictions or specific diets and even its consumers’ age:
• Within the Lala 100 line, the Lala 100 Lactose-Free variety stands out, it’s the first and only milk in Guatemala produced through an ultrafiltration process, patented by Lala, keeping the milk’s original flavor. This line also offers Lala 100 Protein, a variety providing 70% more natural milk protein and 30% more calcium.
• The Lala Kids yogurt line was developed for children ̶ this line includes the special edition Lala
Kids Minions packaging, related to the movie saga and easy to open̶ , as well as dairy products NutriLety, Bolsileche, Foremost ice-creams, and Oh Lala flavored milk (available in chocolate, strawberry, and vanilla), thus also reaching the ‘tweenie’ segment in Central America by offering a product which is enriched with 100% cow’s milk and nutrients such as vitamins A, D, B1, B2, B5, folic acid and zinc.
“Our priority is to offer high-quality products with leading-edge technology and trends from the beverage sector that help fulfill the needs of the contemporary consumer”, the executive pointed out.
Important developments along with suppliers
The dedication and standards
level of the main Lala Central America suppliers has been a key factor to generate improvements in different aspects of its production chain.
Tetra Pak is one of the most renowned partners when supplying the ‘brik’ aseptic carton package (and by innovating over the years, thus making Lala the first company to introduce the ‘Edge’ format in Central America.
Technofilms, on its behalf, supplies materials with a sustainable innovation strategy, by reducing the plastic quantity to save an average of 9% in this material, which means a lesser impact ong the environment caused by plastic.
Most of the Grupo Lala Central America products contain dairy solids supplied by Agropur, a company of American origin that provides highquality dairy solids.
- Ana María Orozco, CEO for Grupo Lala - Central America and the CaribbeanCaribbean
Grupo Lala seeks to promote and establish good practices that improve productivity and quality, as well as achieving a cleaner production
For the ice cream lines in Guatemala and Nicaragua, Lala has worked with Plásticos Modernos for more than 25 years, which is currently developing sustainable packaging materials for the Lala products, thus allowing the use of packages that use up to 30% of resin.
On the other hand, the Research & Development Department at Grupo Lala Central America works hand in hand with suppliers to generate efficiency and organize the “Innovation Day” annual event, where an exchange of the company’s most important needs and possible solutions are are presented.
Contributions to the region’s livestock development
Grupo Lala tries to establish and maintain close relationships with those who are part of its value stream. Currently, its primary producers
network in Guatemala and Nicaragua consists of more than 3,000 cattle breeders.
In 2018, Lala started the suppliers’ ResCa Project Nicaragua (Resilient Central America) development program to generate endurance in the livestock sector before consequences from climate change may arise, by implementing silvopasture systems and good practices for livestock.
Also in Nicaragua, The Nicaraguan Dairy Products Industry Development project was created in 2019 with the purpose of optimizing the quality in milk production quality and the producers’, collectors’, and cooperatives’ profitability, as well as for the Grupo Lala’s supply chain. The two projects include 1,700 livestock farmers, 70 farms, 10 dairy products cooperatives, and nine direct suppliers.
“Grupo Lala seeks to promote and establish good practices that improve productivity and quality, as well as achieving the lowest loss or product’s refusal levels, but especially achieving a cleaner production”, Orozco declared.
Inclusion as another hallmark
Undoubtedly, opening the inclusive factor in Lala Central America has generated a positive impact beyond
fulfilling good working practices.
Currently, Lala Central America’s women employees mean 16%, and 34% of the management positions are held by women, besides 37% of the Executive Committee.
It is a woman who runs the Altagracia Plant, a role that has been traditionally performed by men. Her performance has been outstanding, thus achieving extraordinary results.
“Since I was appointed as CEO,
I resolved to increase women’s participation in the professional framework. I am proud of these numbers, and I expect to continue promoting women’s growth within the company”.
Committed to nutrition
Grupo Lala works along with the private sector and the local government to eradicate child undernourishment in Guatemala.
- Ana María Orozco, CEO de Grupo Lala Central America and the Caribbean
I resolved to increase women’s participation in the professional framework. I am proud of these numbers, and I expect to continue promoting women’s growth within the company
Campaigns for this purpose are constantly being carried out, having donated bags with provisions to ice cream vendors, thus benefiting over 1,000 families. The “Collective Impact for Food” program was implemented for two consecutive years in collaboration with Walmart. And along with Kellogg’s, the company took part in a strategic partnership named Better Days to Grow Together, which includes an educational and integral program designed to support families by favoring their food security through a close accompaniment with the communities. In 2022, Grupo Lala has supported 1,000 children from over 20 communities in Chimaltenango, Guatemala.
been recognized after having saved more than 39 billion gallons of water in 2021.
“Grupo Lala has always been a responsible company, with high standards, passionate to produce high-quality products, to improve nourishment, and all this has been possible with a talented human team, committed to the company’s goals”, concluded Ana María Orozco, CEO for Grupo Lala - Central America and the Caribbean.
FOUNDED: 1950 (en Mexico)
Towards a sustainable future The goals to be fulfilled in 2022 include the growth and implementation of technology that will allow to keep working sustainably, thus generating scale economies. In Guatemala, Grupo Lala’s duty regarding sustainability has
INDUSTRY: Food & Beverage
CONTACT:
www.lala.com.gt/somos-lala lala800@grupolala.com
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