Tortilla Leader Finds Online Auctions a Tasty Choice for Energy Procurement

La Mexicana Tortilla Factory Drives Down Energy Spend with Transparent Energy; Recommends Company, Process to Tortilla Industry Association

Introduction

When Rafael Perez, longtime General Manager of La Mexicana Tortilla Factory Inc. (“La Mexicana”), was first introduced to Transparent Energy by a trusted friend, he took the meeting and liked what he heard – but remained noncommittal. A thoughtful man, he knew La Mexicana, owned by Ricardo and Rebecca Garza, needed a better approach to navigate increasingly volatile – and expensive – natural gas and electricity markets, but needed more convincing that Transparent Energy was different than every other consultant and brokerage who had pitched the company.

Rather than jump right into a new relationship for energy procurement services, he kept the lines of communication open with the firm and continued to manage La Mexicana’s successful business, which produces more than 4 million tortillas a day from its main manufacturing facility in Dallas, TX.

But as La Mexicana’s natural gas and electricity contracts grew closer to expiration, he knew he would need to act. He was intrigued by Transparent Energy’s promise to make energy suppliers compete for his business in a way unique in the industry – through real-time reverse auctions. Making millions of tortillas a day requires a lot of energy, and the prospect of saving money on this key operational expense using a ‘better mousetrap’ appealed to him.

Perez gave the project the green light.

A Thoroughly Professional Energy Procurement Process

Transparent Energy responded with a tight, buttoned-down process that included developing and marketing an RFP for La Mexicana’s energy load, gathering indicative pricing from interested suppliers, and updating Perez on market conditions and setting expectations for the auction.

Perez liked what he saw.

“Going into this procurement process, I didn’t know what to expect, but Transparent Energy immediately put me at ease with their professionalism,” said Rafael Perez, General Manager, La Mexicana Tortilla Factory, Inc. “Their process was tight and professional, but also friendly and informative. They do an excellent job of partnering with you to give you everything you need to understand your opportunity and the ability to go out and get it.”

Confident in his choice, Perez entrusted Transparent Energy to run the auction, and an auction date was set. The results made Perez an even bigger believer.

The online reverse auction for La Mexicana’s natural gas contract attracted six suppliers who, over the course of successive auctions testing 12-60 month term lengths, bid a total of 70 times in just 17 minutes, driving down the resulting price. When the dust settled, Perez had what he was looking for: a new contract with a vetted supplier at a savings of over $40,000/year over his prior contract.

He was delighted. So much so that he went back to market with Transparent Energy for La Mexicana’s electricity contract. And even though rates had increased since signing his last contract, the process kept those increases in check, netting the company additional savings.

“I can’t speak highly enough about Transparent Energy’s process in terms of both the competition it creates among suppliers and the clarity it provides for the buyer,” said Perez. “I like the way the team at Transparent Energy treated me, and the results they drove for my company, so much that I have recommended them to the Tortilla Industry Association, which I led for many years. I want to share the benefit of this approach, and working with this team, with all my fellow members – it’s just that good!”

With his new cost-saving energy contracts signed, Perez can concentrate on making 2025 another banner year for La Mexicana, and for advancing how the tortilla industry as a whole procures energy.

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