Gondi to buy Constantia Flexibles folding carton business

‘Mexico experiencing growth in high value-added packaging market’

By Jenny Eagle

- Last updated on GMT

Constantia Flexibles makes lids for yogurt.
Constantia Flexibles makes lids for yogurt.

Related tags Mexico

Constantia Flexibles Group, which makes flexible packaging and labels for the food, beverage, dairy and confectionery market, is selling its non-core folding carton business in Mexico, Aluprint Plegadizos, to Grupo Gondi for an undisclosed amount.

The transaction requires anti-trust approval from the Mexican authorities and is expected to be completed in the coming months.

Mexican 'new consumption preferences'

wrap around labels

Eduardo Posada, CEO, Gondi, said the acquisition will expand the firm’s portfolio, offering customers a more complete range of premium packaging options.

With Aluprint Plegadizos’ experience and market insight and Gondi’s technological drive and integration, we will offer the best alternative to customers in Mexico in the growing, high value-added packaging market​,” he added.

According to Agriculture and Agri-Food Canada, ‘The Modern Mexican Consumer - Behaviour, Attitudes and Perceptions Toward Food Products’ (March 2013), the country suffered its worst recession in 2009, experiencing a decrease in Gross Domestic Product (GDP) of 6%.

The Mexican economy has since recovered, resulting in GDP growth of 5.4% and 3.9% in 2010 and 2011 respectively, but the lingering effects of the economic recession pose significant difficulties for the Mexican economy and its people.

Growing levels of education have led to higher-paying jobs and consequently higher purchasing power for Mexican consumers. Mexicans are also increasingly time-poor, allocating less time for buying, preparing and cooking food​,” it said.

Access to more affordable food and a wider variety of products, including better access to packaged food, are factors that have contributed to Mexicans' new consumption preferences​.

Despite the importance of fresh food in the Mexican diet, packaged and industrialized food experienced higher growth than fresh food, as people have less time for buying, preparing and cooking food, especially in urban areas​.”

'Replacing whole meals with packaged food'

It claims this is explained by the increasing size of the working population, decreasing number of members per household, increasing purchasing power of children, and the sizeable proportion of the aging population.

Many Mexicans from all income segments are now replacing whole meals with packaged food, which is not only cheap and convenient but widely available at different retail outlets across the nation​,” the report added.

Aluprint Plegadizos based in San Luis Potosi has approximately 600 employees. It manufactures folding cartons and high graphics micro-corrugated boxes for the fast moving consumer goods industry in Mexico, the US, Canada, Central America and the Caribbean.

Constantia Flexibles acquired Aluprint Plegadizos as part of its takeover of Globalpack in 2013. It is the only folding carton business within Constantia Flexibles and was not considered part of the core flexible packaging and labels activities.

Mexico remains a key production hub for the group, with a site in San Luis Potosi for flexible packaging and its site in Monterrey for labels.

Alexander Baumgartner, CEO, Constantia Flexibles, added Gondi can offer Aluprint Plegadizos an excellent platform to enjoy further success in a ‘highly attractive region.’

Grupo Gondi is a privately-owned company founded in 1954 with 13 companies and about 6,800 employees.

It sells integral packing and packaging for recycled paper, corrugated boxes, pre-printed corrugated and micro corrugated boxes, solid fiber containers and folding cartons.

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