Grupo Bimbo described a series of regulations in Mexico related to its products, the obesity problem in that country and labeling.
In general, bakery products include bread, cakes, cookies, mixes, and fresh and frozen doughs, among others.
Increased regulation of the bakery or food industry, including proposals to improve food safety, impose health-related requirements or regulate certain ingredients, could increase Grupo Bimbo’s costs.
Legislation in some countries where this company operates, including the United States, requires products to have labels with certain warnings and nutritional information.
In Mexico, since 2013, prohibitions were established for the sale, distribution and promotion of high-calorie food to minors in elementary schools.
Although this federal regulation must be complied with by the states, their regulatory frameworks have been aligned over the years to include the same provisions.
On the other hand, in 2020, Oaxaca approved the absolute prohibition of the sale, distribution and promotion of high-calorie food to minors in any type of establishment.
Although it is true, said Grupo Bimbo, that some state and federal initiatives have tried to replicate this local regulation in Oaxaca, sometimes even promoted by the Federal Health Ministry, none of them have been successful to date.
In addition, the Mexican federal government’s Ministry of Health has requested the Mexican Congress to legislate on proper nutrition, in order to regulate the sale and advertising of high-calorie food to minors outside of schools as part of an effort to address the problems caused by the global pandemic and the high rates of obesity and chronic diseases such as diabetes.
Finally, the new labeling rules established in 2020 continue to be implemented in accordance with the tiered system established in the corresponding regulations.
These rules establish that food products may not include within their labels images of characters, drawings, celebrities, gifts, offers, toys or contests intended to promote their consumption.
Furthermore, the Supreme Court of Justice of Mexico has taken several legal proceedings in which the constitutionality of the new labeling rules is being questioned.