Don Luis Alvarado has been producing and selling mole for 48 years. He taught his mother, Doña Chonita, that in 1950 (73 years ago) she used a metate (smooth stone) on which she ground the ingredients with a metlapil, which is also a stone rolling pin.
For 10 years Don Luis sold mole in a CDMX market. He then began to distribute in supply centers, grocery stores and industrial canteens. Some time later he bought his machines and built his factory, small, but it has everything to produce a good mole in a semi-artisanal way. Nowadays Moles Don Luis it has turbine mills with more advanced technology.
Don Luis is no longer passionate about selling tons or large quantities, now what he prefers is to produce 200 to 300 kilos of gourmet mole per day, which is more valued and better paid. He sells it in gourmet stores, department stores and top restaurants in CDMX. He also supplies hotels and airport Duty Free. He has distributors in Guadalajara, Guanajuato, Sonora and Querétaro. He participates in the National Mole Fair in Milpa Alta.
Trading on Shark Tank
Don Luis recently showed his negotiation skills against the sharks of Shark Tank Mexico eighth season and managed to get three of them: brian requart, Marisa Lazo and Alejandra Riosthey give you 1 million pesos for 21% of your company with the option that investors return 6% if they reach their sales goals in five years.
When we received the invitation from shark tank, I did not believe. I thought it was a joke. Until my daughter Magali confirmed it and told me: ‘Yes, it’s serious’. We are grateful because in life one is looking for opportunities to get ahead faster.
Luis Alvarado, founder of Moles Don Luis.
A town dedicated to the production of mole
The Moles Don Luis company is located in San Pedro Atocpan, Milpa Alta, a region where 95% of families (around 4,000) are dedicated to making mole. Together they produce approximately 20,000 tons of mole per year.
“I am the third generation in the family business. My grandmother started, then my father and now I am focused on the export part, ”explains Magali Alvarado, who created the gastronomic tour with her husband, chef Jorge Córcega, 10 years ago. The Milpa Route where Don Luis Alvarado gives a mole workshop in his factory.
Here are the best business lessons from Moles Don Luis:
It is simply to overcome fear and undertake
Many may have an excellent idea, but few dare to take the next step and say: ‘I quit my office job and open the curtain on my business because I know how to make cookies or soap’. The first thing is to throw yourself away and express: ‘I know how to do it’.
Be prepared for everything that comes
Mainly, you must be aware that you do not have a fixed schedule and you must be available all the time. If you have people in your charge who help you, they may not arrive for certain reasons, but you as an entrepreneur can never miss your business.
At first you have to do everything
From the purchase of inputs, to production and marketing. You must do the tastings yourself. Go to strategic points and stand with your product and tell people over and over again: ‘try the moleas in this case.
believe in your product
If you trust what you do and always put the quality of what you produce first, the road is long, but things are happening.
In figures
- In 1950 Doña Chonita began to produce mole.
- In 1975 Don Luis, son of Doña Chonita, started selling mole in a CDMX market.
- In 1985 Don Luis began to buy his grinding machines.
- In 1994 He began to formalize his business.
- The family business is made up of 8 people.
- The mole Don Luis has 22 high quality natural ingredients. The two main ones are the wide chile and the mulato chile.
- The 3 Star moles are pine nut with almond, hazelnut and walnut, apple with cranberry.
- In 2011 They started out as pioneers of gourmet mole in Mexico.
- The Don Luis mole costs $85 produce it and sell it in 240 pesos.
- A plate of good mole is worth $10
- They requested Shark Tank $800,000 in exchange for 12% of the company In the end, they negotiated 1 million pesos for twenty-one% of the business.
- In 2022 achieved sales by $1,765,000 with a profit margin of 30 to the 35%.