Bimbo agrees sale of Ricolino to Mondelēz International

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Mondelēz Internacional will boost Ricolino’s brands and accelerate their growth, said the president of Grupo Bimbo.

Grupo Bimbo will sell Ricolino to Mondelez Internacional for 27 billion pesos.

Grupo Bimbo announces that it has signed an agreement for the sale of its confectionery business, Ricolino1, to Mondelēz International, Inc. for an amount of the value of the company of 27 billion pesos (1,329 million dollars). indicated in a statement.

The company explained that the decision will allow the bear bakery to concentrate on the grain-based food business and on its bakery and snack industries.

While for Mondelēz this operation will allow it to double the size of its business in Mexico, expand its presence in the confectionery segment and will also provide an attractive entry point to the chocolate category in the country.

They detailed that in 2021 Ricolino accumulated sales of 10 thousand 147 million pesos, equivalent to 500 million dollars.

“This transaction will provide a strong boost for our business in Mexico, an important growth market for us, by tripling our routes to market and increasing our position in the main snack categories, ” commented Dirk Van De Put, President and CEO of Mondelēz. International.

Mondelēz International owns Halls, Oreo, Philadelphia, Tank and other brands.

Oriol Bonaclocha, President of Mondelēz Mexico, added that in 2022 the company celebrates 95 years in Mexico, and the operation will allow them to complete the business to offer consumers a broad portfolio.

 

Ricolino employs approximately 6,000 employees , has four plants and distributes its products through its sales centers to various channels, including wholesale, traditional, supermarkets, convenience stores, among others.

Its portfolio includes popsicles, marshmallows, chocolates, and gummies , among others, under the Ricolino, Vero, La Corona, and Coronado brands.

The confectioner also exports and markets its products to 17 countries, including the United States and Central America.

“We entered the confectionery industry with the founding of Ricolino in 1970; Today, 52 years later, it is the leader in the industry in Mexico. I am fully confident that Mondelēz will promote these excellent brands and accelerate their growth ”, said Daniel Servitje, President and CEO of Grupo Bimbo, in the document.

The operation is still subject to the corresponding approvals, including the regulatory approvals that are applicable in Mexico such as that of the Federal Economic Competition Commission (COFECE), among others.

Among the advisers to the operation were Bank of America, Deloitte and Galicia Abogados.

Since July 2019, Bimbo separated the operations of Ricolino from Barcel, its snack business, with the vision of taking advantage of market opportunities and facing the slowdown in consumption that occurred in Mexico.

In the last five years, the bear firm opted for innovations in its portfolio of gummies with enchiladas, stuffed and sour Panditas.

Ricolino has among its brands Bubulubu, Kranky, Panditas, Moritas, Chocoretas, Duvalín, Paleta Payaso, among others.

According to Statista, in Mexico the confectionery market amounts to 6 thousand 149 million dollars, with projections of reaching 6 thousand 414 million dollars by 2023.