Sales increased 18% compared to the previous year, reflecting the segment’s leveraging of a more dynamic Mexican adhesives industry, the introduction of specialized products and increased exports.
One of the challenges that the business faced during the year was a significant rise in the cost of its main feedstock as a result of the depreciation of the Mexican pesos vis-à-vis the U.S. dollar, as well as new price formulas in the cement industry, with increases unseen since the times of high inflation in Mexico. However, the Adhesives Business was largely able to parcially offset the increases and grow its operating results.
In 2015, the Adhesives Business moved forward with its growth strategy by enhancing its product portfolio and entering the specialized mortars market, gaining experience in the area of the new product line that will drive future growth.
Aware of the importance of the business’s brand value, during the year advertising campaigns were launched to further strengthen its image among consumers. Such initiatives included the “Cada uno a su función” (Each one according to its use) campaign for Crest, implemented in Mexico’s main cities and at all points of sale. The main objective of the initiative was to promote Crest’s different reinforced adhesives and to underscore the need for them to be used properly according to the specific application.
During the year, the Adhesives Business took part in fairs and exhibitions in Mexico and abroad, such as “Expo CIHAC” and “Expo Ferretera” in Mexico City and Guadalajara respectively, and “Expo Coverings” in Orlando, Florida.
Products rolled out during the year included: “Crest Pega Mármol,” a specialized adhesive for installing natural stone; and “Membrana Impermeabilizante Perdura” which is specially formulated to protect structures such as swimming pools, fountains and terraces. “Junta Crest Madera,” designed for installing ceramic wood, was also launched in a wide range of colors to match diverse wood-like tiles.
The Adhesives Business held a series of events across Mexico in 2015 in order to continue promoting consumer preference for its different product lines, offering workshops and seminars for installers and celebrating “Installer Day” in Mexico City, an event which hosted more than 2,100 participants.
Going forward, although the Adhesives Business will surely face important challenges, it will maintain its growth strategy.
