FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

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In addition to these products, our Retail Division is working to introduce generic based OTC products, prescription drugs, beauty care products and items for babies
that are effective yet reasonably priced for our customers. In addition, we expect that the introduction of well-known, exclusive labels will also help strengthen our value proposition for
our clients by increasing our overall product selection.
To date, we have a network of more than 150 specialized providers with operations worldwide. Our private and exclusive label brands are currently manufactured in
various parts of the world, including Chile, Mexico, Argentina, China, the U.S. and the UK. As a result of this diverse sourcing methodology, we are able to achieve economies of scale
which in turn enables us to offer attractively priced products to our customers.
In 2011, we continued to develop, launch and promote new products. To date, our private label offerings include personal care and hygiene products as well as
shampoos, deodorants, body lotions and baby care items such as accessories, diapers and wipes. During the year, we also launched a new line of baby formulas in various countries.
In addition to our private label brands, the Company is also focused on offering high quality name brands that are available exclusively in our stores. Currently, we
offers brands such as “GNC” (a leader in the vitamin and mineral category); Prudence (condoms); “Sally Hansen/La Cross” (U.S. market leader in products for the treatment and care of
hands and nails); “ROC” (internationally recognized dermo-cosmetics that include anti-aging and anti-cellulite products), “John Frieda” (a leader in innovative hair care products in the
U.S.); “Lumene” (a brand that is the first of its kind to develop an innovative line of cosmetics and skin care items); “Phyto” (a French capillary dermo-cosmetic); Jergens (a U.S. brand
with over a century of experience in the skin care industry); Scunci (the market leader in hair accessories); and Bonawell, Igora and Palette de Schwarzkopf (all of which are a part of
Henkel’s product portfolio).
loyalty.
We expect that the increased variety, name-brand and lower cost products will make us an even more attractive option for our customers and help foster customer
In 2011, FASA also introduced several new value-added services including a new concept known as “Solution Centers,” in which trained staff members offer
customers personalized service geared towards their individual needs. In Mexico, some of our pharmacies are staffed by a certified physician who provides on-site medical
consultations to our clients. We expect that both of these projects will help us to increase the level of service that we provide to our customers and, therefore, will result in higher sales
as well as increased customer loyalty.
We believe that the retail pharmacy markets in the countries where we now operate will continue to grow due to the growing population, the stable demand for
pharmaceutical products, an increase in the amount of senior citizens with access to health care and social security coverage and the growing market of over-the-counter products and
other health and beauty aids and consumer goods that are sold at our retail pharmacies. However, we cannot assure you that the retail pharmacy market will not experience decreases in
growth or that our results of operations will not be adversely affected, should the countries where we have operations fail to recover fully from the global economic crisis.
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