The potential market for CBD producers in Mexico

Grace Elizalde is a girl who was diagnosed with a form of severe epilepsy. Her parents struggled to obtain permission from the Supreme Court of Justice to import cannabidiol or CBD oil, a cannabis chemical compound, to Mexico.

Three years have passed since this discussion that has led to more people struggling to import this product for medicinal purposes. Among those facing this challenge is Medical Marijuana, led by Stuart Titus. It operates in Mexico with its subsidiary HempMeds, which currently only distributes some products, but none have cannabis.

Titus revealed in conference that there is enormous potential for the Aztec market. They conducted studies on their RSHO-X product, which was approved after the case of the Elizalde.

“With our internal research and development team, we are proud to announce the results of a successful stability study in RSHO-X. Our only CBD product was the first cannabis-derived supplement approved for importation by the Mexican government. This study showed nine months of product stability in several climatic regions under stressful conditions of heat and humidity,” he said.

They are just waiting for a regulation to be issued for the sale of CBD in Mexico, and for import permits to be released. The company expects that with that, in addition to an approval in Brazil, its sales could be boosted by 80%.

Deiman innovates at Expo Pan

In Mexico, bread is one of the largest industries in the country, which generates more than one million direct jobs. There are seasons in which sales rise up to 30%—Day of the Dead, Christmas, New Year and Three Kings Day. On a normal season, sales average 3.3 pieces per week per capita divided into white bread and bread sweet.

Given this, events such as Expo Pan are born, which in its 35th edition offers solutions for the sector. Companies such as Deiman, directed by José Medina Flores, focuses on the development of such innovations. These reach 37% of Mexicans, who consume at least one bread a week.

In Mexico, 97% of this segment is made up of family businesses, SMEs and MSMEs. They represent an income of 120 billion pesos—more than 1% of the GDP.

La-Z-Boy ‘covers’ business in Mexico

US furniture manufacturer La-Z-Boy, headed by Kurt Darrow, will move some the manufacturing capacity of its Newton, Mississippi plant to its factory in Mexico.

In Mexico, 97 percent of this segment is kneaded by family businesses, SMEs and MSMEs. (Source)

In a meeting with investors, the manager revealed that it is the leather cutting and sewing operation they will move. This because they have a large center in Aztec soil for this type of low-cost manufactures. It will also allow them to have manufacture furniture covers.

He explained that this plant, which opened 10 years ago and employs 1,500 people, can make approximately 25,000 sewing kits weekly.

Darrow also explained why this is very important for his company. It will lessen their imports from China. The Chinese imports now only represent a third of the covers they require for their US operations, since the rest comes from Mexico.

This also removes the burden coming from the increased tariffs to all products that come from the Asian country, which is the result of the trade war between the United States and China.

This article was translated and adapted from the original, which was previously published in El Financiero. In case of a discrepancy, the original will prevail.

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