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BRIEF PORTRAIT OF
ANDRES LAGOMARSINO E HIJOS S.A.

June, 2000

The company was founded by Mr. Andrés Lagomarsino, who arrived at Argentina from Genoa, Italy, and in 1918 he began to take part in the milling industry. In 1941, after being associated to different milling companies, he rented the Avellaneda mill (at the gates of Buenos Aires City), which, at the time, had a total capacity of 90 metric tons per day. He bought it in 1953. By that time, Mr. Andrés José Luis Lagomarsino, his first born child, entered the company, and later, his second child, Dr. Marcos Lagomarsino, did the same in 1969.

The company was renowned since the beginning for its slow but constant growth, its permanent investing, responsibility and prestige on its operations.

Avellaneda‘s plant went through several renewals, reaching on April, 1996 its actual production level of 550 metric tons per day. In 1986 the firm acquired another plant at Navarro (62 miles from Buenos Aires), whose capacity of 220 daily tons grew to its actual 360 tons. In 1990 the Carlos Casares Mill was acquired (186 miles from Buenos Aires) and in six months, its original capacity of 100 tons per day reached to 140 tons.

On May, 1993 the company bought another plant in Mar del Plata, with a daily production of 350 tons of flour and other products. On July, 1996 another mill is owned, the Santa María on Isidro Casanova, at the gates Buenos Aires city, fundamentally destined to exporting. With a daily capacity of 330 Tons, it completes the flours production chain of more than 40,000 Tons monthly of milling, making the firm the second milling company in the country.

At the same time, with the intention of providing those industrial plants with an appropriate quality of cereal grains, and aiming at an excellence market, an important chain of storage plants was bought and rented, with adequate refrigeration for different types of wheat, which were strategically located on major production centres, totalling a stockpile capacity of 170,000 tons.

In 1982, the company began developing and selling on the mass consumer market, launching the CASERITA and HOGAREÑA brands, flours for home consumers, both reaching an excellent penetration level on the different supermarkets and selling places.

In 1987 the ARTESANA’s line of pre-mixtures was launched, with owned technology, aimed at the panification industry, where Lagomarsino was Buenos Aires’ undisputed leader. It gives bakers the power to develop a wide variety of products, satisfying the needs of all kinds of consumers.

Also, POTENTINO’s line of improvers was developed, as well as special products like instant creams aimed at bakeries, which is actually expanding, as an answer to a large demand on its distribution.

On April, 1991, expanding its activities with the mass consumer market in sight, LAGOMARSINO acquired Fideera del Sur, a noodle company located at Longchamps, (a Buenos Aires suburb), with an initial monthly capacity of 500 metric tons of egg laminated noodles and other variations, which are commercialized within the same line of distribution.

On September, 1992 the cookies and cakes’s line of pre-mixtures is launched for the whole supermarket area, using the same Caserita brand that was used with the fractionated flours.

On June, 1993, LAGOMARSINO began distributing a complete line of foodstuff, for RICH PRODUCTS CORP. of United States, a frozen products company, leader on the United States, focusing on the first stage on the non-lacteal creams for pastry use.

On December, 1994 the panification plant EL ORDEN was acquired, located at San Justo (very close to Buenos Aires city), with a 10,000 acres facility, where immediately began the production of breadcrumbs for mass consuming commercialized with the Rayito de Sol brand, using owned distributing channels that the company continues to expand. Also there, the refrigerated warehouses for lacteal creams were installed.

On April, 1998 a test factory for frozen dough was opened on the same property where San Justo’s plant was located. Using the CREMACHEL brand and machinery brought from Italy, this factory is aimed at producing a line of panification and frozen products to be commercialized through the same chains.

The company sales per year are U$S 120.000.000, with a constantly growing market share.

On the institutional area, LAGOMARSINO’s history has been renowned from the beginning, with its founder and its actual owners taking charge of national level important positions. Dr. Marcos Lagomarsino has been for over 12 years the president of Argentina’s Milling Industry Federation and today he is the Secretary.

Being a family business, LGOMARSINO preserves, beyond it dimension, the direct and personal contact with its customers, always orienting its products towards the highest quality standards. This feature is renowned around the country.

Nowadays, new products’ development is being studied, always related somehow with the mother industry, with the goal of increasing the benefits both on the know-how as well as on the efficient use of commercial and distribution systems.

 

COMMERCIAL SYSTEM

The company has developed its own marketing system around the country. Two Managers –Industrial Division and Mass Consumers- share, according to the commercial areas, sales responsibility to different customers.

On Buenos Aires’ Federal District and Gran Buenos Aires, (40% of Argentina’s total population), LAGOMARSINO is the undisputed leader on its product lines, through 60 salesmen employed by the company, with two days of direct contact with management, supervised and managed by company’s personnel.

It also has a great amount of exclusive Distributors –with their own sales staff- on different places around Argentina, in charge of commercializing 226 products made by LAGOMARSINO today.

Besides, it has non-exclusive Distributors on areas inaccessible directly, who answer to our company, and who were carefully selected to commercialize a group of products.

Nowadays, the customers directly services are:

  • 8,000 bakeries and pastry shops
  • 11 supermarket chains with bakeries of their own, for a total of 118 supermarkets. (included the exclusive service for the most important companies both local and international)
  • 400 supermarkets selling mass consumer products.
  • 25 Panification Industries with distribution around the country.
  • 30 pastry shops and industrial cookies makers’ companies
  • 6 Patty Shells factories.

Today, LAGOMARSINO produces on its eight industrial plants, 1,870 metric tons of cereal per day (46,000 tons on a 25-day month), which means a production of 34,500 Tons of different flours and 11,500 Tons of sub-products created for the industry and exporting on a monthly basis.

Exports are fluidly made to close countries, Africa and Asia, as well the Caribbean, and recently, and on a constantly growing rate, to Brazil, where the company has established with the firm FARISUR, of which is the full owner. Exports with this destination have developed on an exponential rate, and today the company have 21 representatives on different states, transforming LAGOMARSINO into one of the main flours exporters to that country, with a very important potential for Mercosur’s growth.

With a constant and solid growth, LAGOMARSINO is actively participating on pushing and developing Argentina’s food industry, generating markets and efficiently creating products for the new generations, faithful to its warmth and personal relation values that have been part of the company since its origin.

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Andrés Lagomarsino e Hijos S.A.® 2000

 

Institucional