In 1980, the ALFA Group, a Mexican conglomerate, initiated a diversification process that led to the acquisition of a cold cuts company, thus creating Sigma Alimentos. Fourteen years later, seeking to make greater use of its refrigerated supply chain, Sigma Alimentos chose to make its way into the then very competitive dairy industry. Having found that large milk producers were already committed to large dairy processing companies, Sigma Alimentos decided to launch a development program for small dairy farmers in order to ensure sufficient supply of quality milk. This case study explores how Sigma Alimentos' Fomento Lechero Program helped small suppliers to grow alongside the company. A little over 15 years since the program's inception, the case recounts how small farmers managed to overcome various challenges to grow exponentially. In addition, at the time this case was written, imported powdered milk prices had dropped considerably below fluid milk prices, thus generating the case's core dilemma: letting go or retaining small farmers that have been working alongside Sigma Alimentos for a very long time.
In 2003, the FEMSA Corporation -a Mexican company- acquired 100% of the shares of the largest franchise of the Coca-Cola system in Latin America (PANAMCO), and placed itself at the lead of the sales of carbonated beverages and other soft drinks in different countries of South America, including Colombia, which had been struggling with armed groups since the 1970s. This case explores how Coca-Cola FEMSA included different initiatives in its sustainability strategy, aimed at supporting the process of peaceful demobilization that would be carried out by the Alta Consejeria para la Reintegracion (ACR, High-Council for Reintegration) of the Colombian Government. As part of this disarmament process, the ACR offered the demobilized combatants (former combatants that had decided to lay down their arms peacefully and turn themselves in to the proper authorities) different options for social reintegration, such as financing for starting new businesses and connections with companies that could provide jobs, among other things, which were also shared with the business sector to see how it could help support the process. By August 2011, Coca-Cola FEMSA had already been collaborating with the Colombian Government for a little over three years, and had diversified its initiatives to support not only the former combatants, but also the soldiers, victims and general public affected by the conflict. Despite these multiple efforts, however, the actual impact of the company's actions on the solution of the problem of reintegrating more than 50,000 demobilized combatants was still negligible. Therefore, the ACR requested greater commitment from the company in the form of a massive campaign to broadcast the initiatives, in an attempt to motivate and increase the number of participating companies.