Mondelez Global has persevered its strikes to amplify out of doors the USA thru M&A with the purchase of Grupo Bimbo’s Mexican confectionery trade Ricolino.
The Oreo biscuits maker stated as of late (25 April) it had agreed to pay US$1.3bn for Ricolino, which sells snacks underneath its namesake emblem, in addition to underneath the marks Vero, Los angeles Corona and Coronado.
Mondelez expects to near the deal “in overdue Q3 or early This autumn” this yr.
“This acquisition will supply a step-change for our trade in Mexico, the most important expansion marketplace for us, greater than tripling our routes to marketplace and rising our place in core snacking classes,” Mondelez chairman and CEO Dirk Van de Put stated.
Consistent with research revealed via GlobalData, Simply Meals’s father or mother, Mondelez accounted for 22% of Mexico’s confectionery marketplace in 2020. Mars used to be the second-largest confectioner – with a marketplace proportion of 12.3% – with Bimbo 3rd at 11.2%.
London-based information and analytics crew GlobalData valued Mexico’s confectionery marketplace at MXN75.8bn (US$3.73bn) in 2020. Sugar confectionery gross sales stood at MXN32.4bn. The rustic offered an estimated MXN22.8bn price of chocolate. Gum gross sales stood at MXN20.6bn.
GlobalData forecast Mexico’s sugar confectionery class would amplify at a compound annual expansion fee (CAGR) of three.9% between 2020 and 2025. It forecast the chocolate class would develop sooner, at 4.7%, with gum gross sales estimated to be set to upward push at a CAGR of three.1%.
The Ricolino emblem used to be introduced in 1970, a transfer that marked Grupo Bimbo’s transfer into the confectionery marketplace.
Daniel Servitje, the chairman and CEO of the arena’s biggest bread maker, stated: “These days, after 52 years of expansion and development, it’s the business chief in Mexico. I’m assured that Mondelēz Global will leverage those superb manufacturers to a far upper place.”
Consistent with GlobalData, Ricolino used to be the most important emblem in Mexico’s confectionery marketplace in 2020 when measuring gross sales in quantity phrases. According to that metric, Ricolino accounted for 10.1% of the marketplace. The following largest unmarried emblem used to be Hershey’s at 4%. In worth phrases, Ricolino had a marketplace proportion of 8% in 2020, at the back of best Mondelez gum emblem Trident at 9.2%.
Mondelez does now not publicly escape its gross sales via person nations, even supposing it has disclosed its trade in Mexico “grew top unmarried digits” ultimate yr.
In 2021, the online revenues from its trade throughout Latin The us grew 12.9% to US$2.8bn. The corporate stated upper “web pricing” and “beneficial quantity/combine” offset “destructive” actions in trade charges. It added: “Upper web pricing used to be mirrored throughout all classes, pushed basically via Argentina, Brazil and Mexico.”
In 2021, the USA snacks massive snapped up Greece-based snacks maker Chipita, UK-based sports activities diet trade Grenade and Australian biscuits and crackers company Connoisseur Meals Holdings.
On the other hand, the care for Bimbo for Ricolino comes 4 months after some other imaginable transaction fell thru. In December, Mondelez’s talks to shop for the snacks trade of South African FMCG crew AVI ended with out an settlement being reached.
Grupo Bimbo’s more moderen publicly-disclosed M&A job has highlighted acquisitions. In October, the corporate introduced two purchases – purchasing Indian bakery trade Kitty Bread and US popcorn maker Popcornopolis.
The transfer for Kitty Bread got here 8 months after the crowd snapped up some other Indian baker, Fashionable Meals.
In September, Grupo Bimbo purchased bakery belongings in Brazil from Swiss peer Aryzta.
Two months previous, the corporate obtained US cookies maker Emmy’s Organics.
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