Five years ago, the brothers Miguel, Mario and José Manuel Espinosa decided to open their own business, taking up the tablajero trade that their father Don May taught them and that he has practiced since 1986. José nostalgically remembers the days when they helped his father to cut, prepare and pack meats and sausages in the butcher shop that he had set up in Toluca, in the state of Mexico, to support his family after losing his job.
Over time, the brothers noticed that customers liked the chorizo that their father prepared with his own recipe, and that there was no specialty store focused on selling this sausage. Realizing the business opportunity, the three brothers decided to create their own brand of sausages, taking the business and the family tradition that their father instilled in them to the next level.
This is Loseme (formerly Chorizos DM), a delicatessen with its own establishment and online store specializing in the sale of Toluqueño-type chorizo, prepared by the company itself. Although this sausage is the star product, the delicatessen also sells meats, dairy products, fried foods, sauces and drinks, even from other brands to support consumption and the local economy.
Innovating in a traditional sector
Unlike other businesses, Loseme reinvented traditional sausages with innovation in product preparation. Instead of focusing on selling the typical red and green chorizo, the brothers took a chance on trying new flavors. For example, they have a chorizo made with manzano chile, habanero chile, nuts and a touch of wine, and another that is prepared with blackberry chile, morita chile, nuts and red wine.
In addition, this brand turned around the business model that characterizes small establishments that sell these products in Mexico, such as butcher shops, cream shops and collection shops. To take it to the next level, Loseme digitized the business with an online store, in addition to opening a physical location to diversify distribution channels and reach more customers.
José considers that it is a model that can be replicated and scaled in other parts of the country, although the added value of his product, which is the diversity of flavors, is being replicated by other establishments.
This business began with a showcase in a small establishment in Toluca where 20 kg of chorizo were produced per month, and 60,000 pesos that José collected with his own savings and those of his family. Today, Loseme is a brand positioned in the market with growth potential and a production of four tons of chorizo per month.
set new goals
But achieving success has not been an easy task. The business has had difficulties growing, maturing and remaining in the market, like many Mexican family businesses that represent 90% of the economic units in the country, according to Inegi data.
José says that the growth of the business was stagnant for a while. “We entered a comfort zone, we thought things were going to take care of themselves and we didn’t know clearly where we wanted to take the company,” he recalls.
To overcome this pothole, the entrepreneur and his brothers had to redefine the direction of the company and the purpose of the business. “Once we defined the mission, we set out the objectives to reach the goal, we held weekly meetings to contribute new ideas for the positioning of the brand.”
Professionalize the business
Starting this venture was not easy either. At the beginning, José produced the sausages, served the clients and took charge of the business, although his brothers later joined. “The pressure was so great that there were days when he was desperate, he cried and did not know what to do because we did not reach the numbers and we had to pay the rent,” says the entrepreneur.
Even with the stress that the brothers were experiencing, they decided to live the adventure of opening the second branch, although it closed due to various failures. “We did not do a market study, it was a bad location and we could not register the brand with the name of Chorizos DM. So we closed and focused on growing the first branch.”
The entrepreneur acknowledges that the business was premature and not ready to expand. In the learning curve they saw the importance of being clear about the know-how, standardizing processes and creating manuals, three elements that the brand did not have and that are key for small businesses such as Don May’s butcher shop to become professional and make the leap to next level.
The future of the family business
Although Loseme retains his father’s essence and trade as a tablajero, José never saw himself working as a butcher, but he confesses that the production of chorizos caught him. Since he was studying business administration, his idea was always to evolve his family business into a solid company. He even came to think of creating a chain of butcher shops, but his interest in sausages led him to found Loseme together with his brothers.
Now, José Manuel, Mario and Miguel, members of Loseme by the initial of their names, are preparing to expand the business with more branches in Toluca, in the state of Mexico and the Mexican capital. And not only that. They anticipate that the company will diversify the distribution channels with the placement of its products in external establishments such as department stores. In addition, they will expand their range of products to make them more affordable so that no one is left without trying the flavor of these chorizos that also carry a pinch of success and family tradition.