Midterm 1: Case Analysis Professor: Juan Camilo Vila Manuela Usuga Mazamorra and Guarapo My Grandma S.A.S. is attending to Expo Agrofuturo in Plaza Mayor Medellín, we got the request from a new customer to quote 40 containers of product to his country. 1. What country would you think would be suitable to sell 40 containers of the company’s products? Mazamorra The countries that consume mazamorra the most are mainly located in Latin America, including Peru, Chile, Argentina, Paraguay, Venezuela, the Dominican Republic, Puerto Rico, and of course Colombia. Although recipes vary slightly, the product is essentially based on corn and milk, with some differences such as the use of purple corn in Peru, which mainly affects its presentation. Outside Latin America, mazamorra is also consumed in Spain, specifically in the region of Andalusia and Córdoba, where it is known as mazamorra cordobesa. However, the ingredients there are completely different, as it is made from bread crumbs, garlic, and olive oil. Guarapo Similarly, guarapo is widely consumed in Cuba, Venezuela, Puerto Rico, the Dominican Republic, Brazil, and Mexico. In all these cases, it is commonly prepared either as panela (unrefined cane sugar) dissolved in water or as freshly pressed sugarcane juice. GIven this information, it is advisable to focus on countries with a strong Latin American demographic presence as potential markets, in order to assess the viability of these products outside Colombia. Traditional consumer countries are not considered here, as their local industries are already well established and highly competitive. Own elaboration with data from1 1 U.S. Census Bureau, 2024. 1 Own elaboration with data from 2 Based on the demographic analysis, it is evident that the territories with the largest populations of Latin American origin outside the region are the United States and Spain. Therefore, these two countries would be the most suitable options to export the 40 containers of My Grandma S.A.S. products, given the strong cultural familiarity and high consumption potential for items such as mazamorra and guarapo. It is also worth highlighting Portugal as an attractive secondary market. The country hosts a significant Brazilian community, and the strong Brazilian cultural influence creates favorable conditions for introducing products like guarapo, which already have a well-established tradition of consumption. 2. Make the possible country indicators and explain If the product could have good sales over there and why (Economy, income and so on) United States GDP The United States has a robust economy with a nominal GDP of approximately $29.18 trillion in 2024. Such a high GDP reflects significant economic capacity and a large consumer market, an essential foundation for introducing new food products (World Bank, 2024). Latino Purchasing In 2023, Latino purchasing power in the U.S. reached $4.1 trillion, growing 2.4 times faster than the national average. This massive and dynamic purchasing Instituto Nacional de Estadística (INE), 2024. Serviço de Estrangeiros e Fronteiras (SEF), 2023. Statistics Canada, 2022. Office for National Statistics (ONS), 2022 2 U.S. Census Bureau, 2024. Instituto Nacional de Estadística (INE), 2024. Serviço de Estrangeiros e Fronteiras (SEF), 2023. Statistics Canada, 2022. Office for National Statistics (ONS), 2022 2 Power potential suggests that campaigns targeting Latino consumers, especially with traditional products like mazamorra and guarapo, could tap into a powerful and growing market (Latino Donor Collaborative, 2025). Latin The U.S. Hispanic grocery market was estimated at over $22 billion in 2021. Products Steady demand for Latin food items demonstrates that ethnic and traditional food Consumption segments are already well-established, offering strong retail pathways for mazamorra and guarapo (P2PI, 2024). Spain GDP Spain's nominal GDP in 2024 is estimated to be approximately US $1.65 trillion. This substantial economic output and average income level indicate a market with solid purchasing capacity, making it receptive to imported consumer goods (Statista, 2024). Latino Purchasing Power As of January 2024, there are approximately 4.25 million Latin American-born residents in Spain, representing over 8% of the population. A sizable Latin American community translates into a built-in consumer base with cultural familiarity and established demand for Latin American products like mazamorra and guarapo (Wikipedia, 2025). Latin The ethnic food market in Spain generated US $1,386.5 million in revenue in Products 2024, and is expected to grow to US $2,252.3 million by 2030, with a CAGR of Consumption 8.4%. The rapid growth of the ethnic and Latin food segment shows expanding consumer acceptance and demand—reflecting strong potential for mazamorra and guarapo to find shelf space and attract interest. (Grand View Research, 2024). These indicators provide valuable insights into both markets, especially when considered alongside the Latino demographics in each country. Together, they highlight the economic capacity, cultural familiarity, and consumer demand that make the United States and Spain highly attractive destinations for introducing traditional products such as mazamorra and guarapo. 3. What would be a good price to sell Mazamorra and Guarapo in the possible country? Why? United States Mazamorra: Recommended price: $2.50 – $3.50 per unit (200–250g serving). Hispanic refrigerated desserts (like flan or rice pudding) are sold in U.S. supermarkets such as Walmart and Target within this range. A comparable product, Señor Rico Rice Pudding (8 oz), is priced around $1.99 to $2.79 depending on the retailer (El Rancho Supermercado, 2025). 3 Guarapo: Recommended price: $2.00 – $3.00 per bottle (bottled cane juice drink, 350–500ml). Natural sugarcane juices and niche “ethnic beverages” in the U.S. are priced similar to premium aguas frescas or kombucha. This range aligns with typical pricing for natural cane-juice-based beverages and authentic ethnic drinks in U.S. markets. Spain Mazamorra: Recommended price: €2.50 – €3.50 per unit (200–250 g) A single rice pudding “arroz con leche” (450 g) at Carrefour costs approximately €1.60 (Findit, 2025). This range positions mazamorra as a premium traditional dessert, above basic supermarket prices but below the higher-end artisanal offerings. Guarapo: Recommended price: €2.50 – €3 per bottle (350–500 ml). At cafés or restaurants, bottled waters or juices are usually priced between €2 – €3. This provides an average price between everyday beverage pricing (comparable to colas) and cafe-level artisanal refreshment pricing. Additionally, locally made artisan refreshments (like Catalan “aloja”) can start from €0.80 per bottle in retail environments (Verano, C., 2025). 4. What would be the best logistics options to get the product there? Why? Given the perishable nature of mazamorra and guarapo, the best logistics option to transport 40 containers is full-container-load (FCL) ocean freight using refrigerated containers (reefers). Reefers maintain a strict temperature range vital for preserving product quality, supported by extensive use in transporting dairy, beverages, and other perishables (Maersk, 2025). Cold chain monitoring minimizes spoilage risk from temperature breaches. The typical transit times are approximately 7–14 days to the U.S. and 14–20 days to Spain. The growing global reefer market (from $9.7 B in 2022 to a projected $19.7 B by 2032) demonstrates that this mode is both scalable and robust (International Institute of Refrigeration, 2024). The containers could be shipped from Colombian ports (Cartagena or Barranquilla) to: ➢ Miami or Houston for the U.S. market, ➢ Valencia or Barcelona for the Spanish market. This logistic plan balances product preservation and direct access to key Latino population centers. From there, inland trucking and warehousing will be necessary to ensure an effective distribution. 5. Your company only has capacity to produce 3 containers, but the CEO said it is a must to cover this order if the company wants to survive in the next 6 months. The customer wants it in maximum three months since he places the order. What would you do to fill the 40 containers order that will be placed soon? 4 This is a very common challenge among Colombian SMEs that attempt to export: international buyers often request volumes far beyond the production capacity of a single local company. In such situations, the most effective and least risky solution is to subcontract or partner with other certified manufacturers in the same sector. By forming a production alliance, My Grandma S.A.S. could cover the demand for 40 containers while maintaining product quality and complying with food safety standards. This strategy is common in the Colombian agro-industrial and processed food sectors, where several small or medium-sized producers join forces under one export contract to guarantee large orders (ProColombia, 2023). The subcontracted companies would charge a margin or production fee, but this cost is outweighed by the strategic benefit: the company gains access to the international market and secures survival over the next six months. Additionally, this approach reduces financial risk compared to investing immediately in new facilities or machinery that may not be sustainable in the long term if orders do not remain at this scale. 6. Most Colombian companies face the same situation with the capacity, what would you recommend them to handle this situation? My Grandma S.A.S. should respond to high-volume export opportunities through collaboration, rather than rejecting contracts or overextending resources. Subcontracting will ensure immediate delivery capacity. This strategy is especially important because it avoids major expenses in expanding the production plant, this is a risky move for three main reasons: first, the timeline does not allow scaling from 2 containers to 40 in just a few months; second, such an investment would involve extremely high costs without certainty of return; and third, by choosing collaboration or partnerships instead, the company breaks down competitive barriers and fosters a more cooperative environment among producers of this product. 5 References El Rancho Supermercado. (2025). Senior Rico Rice Pudding, 8 oz. https://shop.elranchoinc.com/store/el-rancho-supermercado/products/43205-senior-rico -rice-pudding-8-oz Find It. Arroz con leche Carrefour, 450 g. (2025). Find https://finditapp.es/product/7499232/arroz-con-leche-carrefour-450-g It App. Grand View Research. (2024). Spain Ethnic Food Market Outlook (2024–2030). Retrieved from Grand View Research. https://www.grandviewresearch.com/horizon/outlook/ethnic-food-market/spain? Instituto Nacional de Estadística (INE). (2024). Estadística de migraciones y población nacida en el extranjero, avance a 1 de enero de 2024. INE. https://www.ine.es International Institute of Refrigeration. (2024, febrero 26). Refrigerated containers: state of play and perspectives. https://iifiir.org/en/news/refrigerated-containers-state-of-play-and-perspectives Latino Donor Collaborative. (2025). U.S. Latino Purchasing Power hits $4.1 trillion: growing 2.4× faster than the rest of the economy. Retrieved from https://latinodonorcollaborative.org/us-latino-gdp/ Maersk. (2025, marzo 6). Refrigerated cargo. https://www.maersk.com/logistics-explained/transportation-and-freight/2025/03/06/refr igerated-cargo Office for National Statistics (ONS). (2022). Census 2021: Country of birth by usual residence. UK Government. https://www.ons.gov.uk P2PI. (2024, December 10). Shining a Light on Hispanic Grocery. https://p2pi.com/shining-light-hispanic-grocery ProColombia. (2023). Guía práctica para exportar alimentos procesados desde Colombia. ProColombia. https://procolombia.co Serviço de Estrangeiros e Fronteiras (SEF). (2023). Relatório de Imigração, Fronteiras e Asilo (RIFA) 2023. Ministério da Administração Interna. https://sefstat.sef.pt Statista. (2024). Macroeconomic Indicators – Spain: GDP and GDP per Capita Forecast for 2024. https://www.statista.com/study/174001/macroeconomic-indicators-spain-report/? Statistics Canada. (2022). Census Profile, 2021 Census of Population: Latin American population. Government of Canada. https://www12.statcan.gc.ca U.S. Census Bureau. (2024). Hispanic or Latino population in the United States: 2024 estimates. U.S. Department of Commerce. https://www.census.gov 6 Verano, C. (2025, julio 15). Aloja, 'Clipper' y otras bebidas refrescantes y alternativas hechas en España a partir de 0,80 euros. El País. https://elpais.com/gastronomia/2025-07-15/aloja-clipper-y-otras-bebidas-refrescantes-y -alternativas-hechas-en-espana-a-partir-de-080-euros.html Wikipedia. (2025). Latin American migration to Spain. https://en.wikipedia.org/wiki/Latin_American_migration_to_Spain? Wikipedia. World Bank. (2024). GDP (current US$) – United States. World Development Indicators. Retrieved from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US 7
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