Can you update us on Kigo Chemical’s activities in 2023?

In 2023, the chemical industry faced notable challenges, prompting a shift in dynamics. Previous years benefited distributors due to supply bottlenecks and high prices, but the landscape has evolved. Recognizing the need for innovation, Kigo Chemical has adapted by introducing new products to maintain competitiveness amid the current oversupply and low prices. Our investment in digital capabilities has proven pivotal. KigoConnect, our customer access platform, has seen substantial growth, and a new supplier platform has streamlined administrative tasks, showcasing our commitment to technological advancements. Furthermore, we have introduced a real-time sample ordering feature to enhance customer experience.

How important is innovation at Kigo Chemical? 

Beyond being distributors, we proudly boast over five registered brands with products carefully formulated in our cutting-edge laboratories. Our manufacturing facilities are strategically divided, with one serving the food market and the other serving the industrial segment. The achievement of FSC2200 certification underscores our commitment to quality, which is particularly evident in our focus on supplying additives for the food industry. On the industrial side, our collaboration with strategic partners has led to the formulation of added value products, reflecting our commitment to offering solutions to our customers.

How does a young company like Kigo Chemical differentiate itself from the competition? 

Our differentiation strategy lies, among other things, in our commitment to certifications as a cornerstone of our business approach. As we strive for industry prominence, our current FSC2200 certification and ongoing pursuit of ISO9001 certification by March 2024 showcase our dedication to operational excellence. We have achieved recognition with awards such as Best Place to Work, alongside a bronze ECOVADIS medal, emphasizing our unique commitment to sustainability. Unlike conventional approaches, where certifications are obtained after achieving growth, we have proactively embedded ISO 9001 compliance in our operations and culture from the beginning. This approach ensures that good practices are set, enabling us to seamlessly adapt and scale while avoiding the need for extensive employee re-training associated with later certifications.

What are some important challenges facing the chemical industry?

The chemical industry faces a variety of challenges, ranging from disruptions caused by natural disasters to trade conflicts, political instability, and unexpected events such as the COVID-19 pandemic. These disruptions can lead to shortages, price volatility, and logistical challenges, significantly impacting the operations of chemical distribution companies and their ability to meet customer demands.

Certainly, digital transformation and the emerge of e-commerce are reshaping industries worldwide, and the chemical sector, including distribution, is no exception. Moreover, chemical distribution companies are expected to align their operations with sustainable practices. This includes adopting responsible sourcing, implementing waste reduction measures, initiating recycling programs, offering eco-friendly and sustainable products, providing comprehensive product information, and ensuring product quality and reliability.

Attending the complex challenges facing the chemical industry requires a proactive approach, strategic planning, and collaboration across the industry. Chemical distribution companies should consider diversifying their supply chains, embracing sustainable practices, integrating digital technologies, and fostering a culture of innovation to efficiently navigate the growing landscape and preserve a competitive position in the market.

Where do you think the best opportunities in the market are?

The consolidation of the industry continues with multinational players absorbing local distributors. Amidst this landscape, Kigo Chemical, as a dynamic and ambitious company, stands out. We perceive numerous opportunities in the market and are strategically directing our efforts towards the specialty chemicals segment, emphasizing our branded product portfolio and our agile approach. Our main interest lies in the food and personal care sectors, which offer more stable, less volatile, and constant growing markets. 

What is Kigo Chemical strategy for 2024?

In 2024, Kigo Chemical is ready for growth, with a primary focus on expanding our presence in Mexico. Despite industry consolidation, we remain committed in our interest of opportunities within niche markets, where larger companies may redirect their focus. Our growth strategy includes organic growth without ruling outgrowth through some niche acquisition. An integral part of our expansion plan involves seeking strategic partnerships in search of reliable distribution channels in Mexico. Leveraging the expertise of our newly established digital marketing team, we are actively creating targeted campaigns to enhance our visibility in specific niche segments of the market.