The sugar division of Organización Cultiba entered into contracts for the sale of sugar with various clients for a total volume of approximately 321,400 tons in 2021, with an approximate value of 4,393 million pesos.
Among the main clients of the sugar division are Gamesa, which represented 31% of the total sugar sold during that year.
Grupo Gamesa is an industrial and commercial biscuit group of Mexican origin, based in the city of Monterrey.
In turn, Organización Cultiba is an integrated non-alcoholic beverage company with a significant stake in Mexico. Through Grupo GEPP, it produces, sells and distributes carbonated and non-carbonated beverages, water jugs throughout the Mexican territory, and recently also began distributing dairy products.
Also through Grupo Azucarero México (GAM), the company produces and sells sugar and related products.
Grupo GEPP, its beverage subsidiary, is the exclusive bottler of PepsiCo brands in Mexico, and also develops and markets its own beverage brands and distributes third-party brands.
Based on information presented by the National Chamber of Sugar and Alcohol Industries (CNIAA), GAM, our sugar Subsidiary, is one of the leading sugar producers in the country, based on its combined sales volume during the 2020 harvest/ 2021, and sells its products mainly in Mexico and the United States.
In July 2020, the Treaty between Mexico, the United States and Canada (USMCA) entered into force, which replaced NAFTA, under which US imports of sugar from Mexico are free of duties and quotas from the January 1, 2008.
The USMCA does not foresee modifications to the provisions of the suspension agreements regarding Mexican sugar exports to the United States, through which external sales of Mexican sugar are limited through export quotas.
The Ministry of Economy announces from time to time the amount of the maximum quota for sugar exports to the United States. On April 12, 2022, the most recent notice to date was published through which the amount of the maximum quota for the month of March 2022 to export sugar to the United States during the period between October 1 2021 and September 30, 2022, at 941,113,501 metric tons at crude value.