Daily Newsletter

18 September 2023

Daily Newsletter

18 September 2023

Grupo Bimbo invests in Argentina production

Bimbo has four facilities in Argentina, three in Buenos Aires and one in Cordoba province.

Paula Krizanovic September 15 2023

Mexican baked goods giant Grupo Bimbo has made its largest investment in Argentina since entering the country almost three decades ago.

The company has inaugurated a new $100m production line for bread at its facility in Pilar in Buenos Aires Province.

Bimbo, which set up in Argentina in 1995, said the line has the capacity to manufacture 15,000 units of household bread an hour. When bringing the line into Argentina, Bimbo benefited from a tax exemption for machinery imports from the Department of Industry and Production Development.

José Zavalía Lagos, the general manager of Bimbo’s business in Argentina, said the new line will make distribution more effective and allow the company to cover new areas throughout the country.

He also stressed that “due to innovation in recipes and an improvement in the nutritional profile of its products”, none of Bimbo’s products in Argentina have to carry the octagonal labels that highlight to the consumer products contain “excess” sugar, sodium and saturated fats. The labels were introduced in February under new labelling laws.

Bimbo has four facilities in Argentina, three in Buenos Aires and one in Cordoba province. Company executives said the investment at the Pilar site comes amid rising demand for bread in Argentina.

On Wednesday, Argentina’s National Institute for Statistics and Census (INDEC) revealed the country’s monthly inflation reached 12.4% in August after a currency devaluation. Year on year, prices rose 124.4%

In the food and non-alcoholic beverages category, prices rose 15.6% in August versus July, contributing to a 90.2% hike since January 2023, ten points above general inflation.

To ease the pressure on consumers and try to boost demand, yesterday Economy Minister and presidential candidate for the October elections, Sergio Massa, announced the government will return to consumers the VAT on purchases of basic goods, including baked goods.

Food industry in Eastern Europe is highly fragmented

Per GlobalData estimates, the Eastern European food industry was valued at $180.5 billion in 2022 and is projected to grow at a CAGR of >4% by 2027. The top five companies together account for a value share of just 5.3% in 2022, with Mondelēz leading the pack. The Czech Republic, Poland, Romania, and Hungary were identified as high-potential countries, primarily due to the large size of their food industries, their high projected value growth rates, and their rising per capita expenditure.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close