It may be national margarita day but one Mexican food and drink importer does not need an excuse to reach for the tequila, as he continues to navigate post-Brexit trade headaches.
Eduardo Gomez set up Mexgrocer in 2009 with his business partner Katya Torres de la Rocha to bring the authentic taste of his home country to the UK and Europe. They built up a thriving business, supplying more than 500 restaurants and bars including the likes of El Pastor, Wahaca, and Cavita in London.
Having survived the pandemic lockdowns by increasing direct sales to consumers, the impact of Brexit on January 1, 2021 almost floored them. “We used to import everything from Mexico to the UK and then ship to Europe and the Middle East. That was no longer possible because of Brexit,” Gomez, 42, said.
“In the first two months after Brexit everything got stopped, delayed or destroyed [at the border] and it cost us thousands and thousands. At the time Europe represented 30 per cent of our business so we couldn’t lose that revenue. So we had to invest almost £2 million in Holland, opening an office and warehouse in Rotterdam. We now import everything for Europe to Europe because cross-border imports remain super difficult.
“It is sad and bad for the British economy. Instead of me investing £2 million in the UK I put it outside and employ ten people in Holland to run that operation.”
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While they were setting up the new operation in Rotterdam, the Ever Given container ship blocked the Suez Canal, causing even more havoc to Mexgrocer’s supply lines. Gomez said that at the time Mexican ports ran out of containers, causing delays, and since then shipping has not returned to pre-pandemic practices. A consignment that would take four to six weeks now takes up to twelve weeks.
“[Before Covid] the boat would depart whether it was full or not,” Gomez said. “Since then the freight companies will wait for the boat to fill up before departing, so we don’t have any departure date. It can take up to two weeks before it departs Mexico.”
The challenges do not end when the products are unloaded, particularly in Britain, he added. “Now there are delays from the port to my warehouse [in Luton] because sometimes they don’t have drivers to drive the truck across the UK.”
Despite all these headaches, Mexgrocer continues to grow. Last year it imported 300 tonnes of corn tortillas, 100 tonnes of dried chillies, and one million bottles of Tajín, a brand of seasoning used on meat, vegetables and fruit, as well as in the rim of cocktails such a margarita or picante. “In the last two years the brand popularity [of Tajín] has grown thanks to TikTok and our partners in the US doing an amazing job,” Gomez said. “Right now, it is the most popular chilli lime seasoning in the US and Mexico. It is going to be No 1 soon in the UK too, hopefully.”
He added that with the Mexican economy growing by between 3 and 4 per cent a year since the pandemic, helped by renewed demand from the US, its popular brands had turned their attention to the European market. “For many years Mexican companies only looked at the US, for obvious reasons. But in the last five years they are looking at Europe for the visibility and brand awareness.” He added that they could command a premium price here when compared with what they charged in Mexico.
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Did Gomez anticipate more challenges as an importer operating in the UK? “The bridge between Mexico and the UK is properly established. We have the right connections. As long as there are no external factors that affect the supply chain and shipping we are ok,” he said.
And will he be using tequila or mezcal in his cocktail to mark national margarita day? “Mezcal Ojo De Dios, which translates as the eye of God,” he said. And some Tajín to season the rim of his glass, of course.
