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LuLu’s Back in OC, Battling With Costs

Maria de Lourdes Sobrino, one of the county’s most prominent Hispanic businesswomen, has brought her dessert company back to Orange County.

LuLu’s Dessert Factory Inc., a maker of Mexican-style gelatin desserts, moved to Anaheim from Vernon late last year.

“Orange County, for me, is best,” Sobrino said.

After moving from Huntington Beach in 2001, Sobrino said she spent a lot of time going back and forth between Vernon and OC, where most of her business contacts are.

“I’m getting back to my roots,” she said.

A few years back, Sobrino looked to build a factory in Huntington Beach but shifted production to Vernon when a plant opened up. LuLu’s still makes desserts in Vernon but is considering outsourcing production, according to Sobrino.

LuLu’s has about $8 million in sales and employs 15 people in OC and about 80 workers in Vernon.

Now Sobrino said she’s focused less on manufacturing and more on marketing LuLu’s with the aim of making it a prominent brand.

LuLu’s makes 40 products including gelatin, rice pudding and flan, most in single-serving cups. The products are a staple of Hispanic grocers and also are sold at Vons and other supermarkets.

In the past few years, LuLu’s has stayed profitable, Sobrino said. But doing business in California is tough, she said.

LuLu’s cut costs by sharing its Vernon plant with another company, according to Sobrino.

That’s helped, she said. But other costs aren’t as easy to tame.

Despite reform of workers’ compensation insurance, Sobrino said her rates haven’t budged, a sentiment echoed by other manufacturers.

Shipping and energy costs also continue to rise, Sobrino said.

The company is looking for ways to grow, including with new products such as yogurt and exporting to Mexico, Japan and Britain, Sobrino said.

She said she’s working with Wal-Mart Stores Inc., one of the biggest sellers of her products, on exporting to Mexico. Wal-Mart’s Mexican arm is the country’s biggest retailer.

“Wal-Mart is a very important company to do business with,” Sobrino said.

Exporting to Mexico also is a matter of pride for Sobrino, who’s originally from Mexico City. She said she wouldn’t mind impressing a few family members there.

“It will be very exciting to have LuLu’s in Mexico,” Sobrino said.

Another prospect for LuLu’s is the food service industry, which includes schools and prisons, Sobrino said. LuLu’s doesn’t have any food service customers, she said.

Sobrino, who’s been profiled in national newspapers and other publications, plans to keep hitting the speaking circuit. She’s been sought out to talk about her experience as a Latina executive as more companies market to Hispanics.

Late last month, Sobrino was part of Office Depot Inc.’s women’s entrepreneur conference in Florida, along with Barbara Walters, Kathy Ireland, Maya Angelou and Xerox Corp. Chief Executive Anne Mulcahy.

Sobrino said she plans to publish a book about women entrepreneurs and has started a company, Hispanic Press, to do so. The company is based in Washington, D.C.

Her business partner is Sharon Freeman, who has written 10 books about business and African American women in business.

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