Establecimiento Las Marías is a company specializing in infusions, It develops them all the way from plant to package. It is a source of tea, and its lands are the producers of yerba mate. Taragüí, Unión and La Merced are some of the products that has been relying on over 85 years in the market.
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The Navajas family, which owns Las Marias, started the mate operation in 1924 on their cattle estancia with 38 hectares of planted mate. The raw material was and, largely still is, produced by small holders and subsequently bought by processors and packers. Most small producers cannot be relied on to deliver a consistent raw material. Production at Las Marias expanded over the years to the present 4,000 hectares of mate, which complements the 2,000 hectares of tea. Tea harvesting is completely mechanized and a high percentage of mate. Both mate and tea are processed and packed on site in Gdor. Virasoro, a town in Corrientes Province. Currently, there are more than 60 Maisa machines running, primarily for tea, but not exclusively, and 14 machines packing loose mate and two Fontana machines packing compressed mate, primarily for the Middle East market. Distribution and exports are handled in Buenos Aires. Production at Establecimiento Las Marias is completely vertically integrated, starting with either seedbeds or cuttings from the most productive trees. Raw material is also sourced from vetted growers who are constantly monitored by company technicians both at the farm and at the buying stations. Some highlights of innovation are the development of instant mate in 1964, packing mate in tea bags in 1966, development of high density planting in 1973 and mechanical harvesting in 1981. Product development has continued with the market segmentation created by ‘Union’ the first light flavored mate in 1982, with Taragüí Mate Listo in 1992, which is mate-to-go in a disposable container, needing only water, with a low caffeine product called "Relax", which has a percentage of Ilex Dumosa, a variety with no caffeine which was made commercially viable by Las Marias agricultural engineers, and “Bio” the first yerba mate with natural prebiotics.[1]
Argentina is possibly the most European feeling country anywhere in the Americas. Paradoxically, it has adopted the quintessential local Native American beverage, and means of drinking it, and made it the national beverage of choice. After tap water, Yerba Mate (mate) is the most widely consumed beverage in Argentina.[2] Mate was discovered by the Guarani Indians and industrialized by the Jesuits in the 16th and 17th centuries. It has been said that the Guaranis considered drinking mate was like drinking the forest itself. Over the course of centuries, mate, and the custom of sharing a common drinking vessel (often a hollowed gourd and metal straw), grew in popularity with all segments of society in what is now Argentina, Paraguay, Uruguay and Southern Brazil. That popularity and the social interaction inherit in the mode of consumption, reached a point that the Spanish Governor of what is now Argentina issued a law forbidding Spanish ladies to drink mate because the customary drinking method had resulted in unseemly fraternization. The effort was futile and mate is now the dominant beverage not only in Argentina but in Paraguay, Uruguay and Southern Brazil. This part of South America is also the only place where the raw material, Ilex Paraguayensis, can be grown commercially. Current production figures are: Argentina – 310,000 tons, Brazil – 170,000 tons, Paraguay – 20,000 tons.
In Argentina, there are more than 200 brands in the market, many very local. There are approximately 10 companies with some national presence, accounting for 80% of the market. The market leader is Las Marias, with slightly more than 30% of the Argentine mate market. Taragüí is the leading brand of Las Marias.[3] In Argentina, mate is present in 95% of households and 79% of the population drinks the beverage, The vast majority drink it in the traditional way, which is from a vessel into which hot water is poured into loose mate. The beverage is drunk via a straw and the vessel is often shared. The act of consuming mate is also a social occasion. The beverage is also available in tea bags, representing roughly 5% of the market. Unlike other brands which relay on whatever the local harvest brings, the brands of Las Marias are consistent because they are blends. Mate harvested at different times and from different areas have different characteristics. For instance, north Missiones Province has a heavier taste than Corrientes Province, and mate harvested in summer is higher in caffeine then that of spring and fall.
Since mate dominates the beverage market in Argentina, it dominates the grocery shelves. In a leading supermarket in Buenos Aires, shelf space dedicated to mate is eight times the size of that of coffee and tea combined. Mate is also sold in most neighborhood markets and many street kiosks. It is as ubiquitous as soft drinks are in many other markets.
Of the 310,000 tons produced, 40,000 tons are exported, both in bulk and packed. With a 45% market share, Las Marias is the leader of the packed (branded) segment, which is 7,000 tons. Las Marias has taken the strategic decision to only sell branded products, either domestically or for export. Other companies exporting packed mate are Don Basilio and La Chacchuera. Many companies export bulk mate primarily, to Chile, Paraguay and Uruguay but also to Syria and Lebanon. North America, Europe and parts of Asia are growing markets for both forms of exports. Bulk mate is used both as the raw material for brands and as an ingredient in other products, such as energy drinks. The Middle East, accounting for roughly 60% of exports, is such a major market because there was a reverse migration in the 1950s. Those who returned had been in Argentina for several generations and had therefore picked up the local habits, such as drinking mate in the traditional way. New markets are being developed in Europe and in North America. Most of the new markets are teabag ones, but Poland is an exception. There, traditional mate is a seen as quick and easy adventurous experience, perhaps similar to smoking a hookah, which also has an inherent social component.[4]
When the mate operation started, labor needs increased dramatically and continued to grow. The Navajas family founded a clinic and a school for the workers, as well as providing housing. The clinic has evolved from a simple first aid center into a full service medical center. The school, which started with a single teacher, has morphed into the ‘Victoria Jean Navajas Foundation’. This has three components, which are a primary school with 500 students, the ‘Victor Navajas Centeno Agricultural and Technical Institute’, and a Labor Education and Training Center (LETC). This is vocational training center which is free and available to anyone, not just people associated with Las Marias. The skills learned can be applied to the business, but graduates are not obligated to work for the company.