Czech muesli to reach Mexican Walmart shelves after contract deal

Czech muesli and granola bar manufacturer Emco has secured a major contract with Walmart Mexico, marking a significant step in the company's international growth. The deal will see Emco’s products—specifically its sugar-free baked muesli—distributed under the company's own brand in Mexico.

This agreement is expected to significantly boost Emco's presence in global markets, positioning Mexico as one of the top destinations for Czech exports. It also comes on the heels of negotiations for potential exports to the U.S.

The company’s success in landing this deal follows a recent audit of Emco’s production facilities by Mexican authorities, who were impressed with the company’s track record in international exports, particularly in countries like the U.S., Japan, and Malaysia.

Emco operates one of the largest muesli production plants in the Czech Republic, and the focuses on brand-building rather than private-label production, which is common in deals with large multinational chains.

According to Emco CEO Martin Jahoda, selling products under the company’s own name in foreign markets ensures gives the company greater exposure. This approach, while more expensive and time-consuming, is central to the company’s strategy of maintaining control over its image and reputation globally.

"Supplying under our own brand to foreign markets has another advantage - it ensures long-term stability for us," Jahoda recently told Seznam Zprávy.

This focus on brand-building has paid off for Emco, which has seen its sales grow substantially in markets like Slovakia, Japan, and Malaysia. Emco’s exports have now become the driving force behind the company’s revenue, with international sales surpassing domestic demand.

The Mexican market, in particular, is seen as a promising addition to Emco’s portfolio of export destinations, which also includes the U.S., where negotiations for an earlier deal had stalled.

In response to increasing demand, Emco is also making major investments to expand its production capacity. The company is planning a significant expansion of its factory in Hrdly, near Litoměřice, where it produces its muesli and granola bars.

Jahoda has outlined plans for an investment in the hundreds of millions of Czech crowns, which will involve expanding production lines and introducing new technologies. This expansion aims to double the company’s capacity to produce its popular products and meet the growing demand from both domestic and international markets.

As part of the expansion, Emco is also working to mitigate rising raw material costs, particularly for cocoa and chocolate, which have seen prices increase sharply in recent months. The company is preparing to pass some of these increased costs onto consumers, a decision that could affect pricing in both Czech and international markets.