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Grupo Bimbo’s organic growth

Grupo Bimbo‘s organic growth was a cornerstone on which it based much of its global success.

Since it began operations in 1945, this growth has allowed it to consolidate its position as the largest bakery company in the world.

Organic growth has been driven by continuous market penetration supported by the following actions:

  • An extensive distribution network.
  • Product innovation.
  • Marketing.
  • Operational efficiency.
  • Development of long-lasting, iconic brands with the opportunity to be replicated in new markets and/or categories.
  • Quality.
  • Sustainability.

Organic growth

However, after posting 17.7% year-over-year growth in net sales in 2022, net sales were almost flat in 2023.

Grupo Bimbo’s net sales increased only 0.3% last year, to 399,879 million pesos.

The company’s growth was also driven by strategic acquisitions.

Over the past 15 years, Grupo Bimbo has successfully integrated more than 50 companies into its portfolio.

After the acquisitions of Weston Foods Inc. in 2009 and Earthgrains, the fresh bakery business of Sara Lee Corporation North America in 2011, Grupo Bimbo became the market leader in bakery products in the United States, according to IRI data. 

Then, in 2011, it began its participation in the European market by acquiring Sara Lee’s bakery business in Europe. 

New acquisitions

In 2014, it entered the Canadian and United Kingdom markets as a result of the acquisition of Canada Bread, producer of Dempster’s, the leading fresh bread brand in Canada

Three years later, in 2017, it made inroads into new countries through the acquisitions of Adghal Group in Morocco, Ready Roti in India and East Balt Bakeries in 11 countries in Europe and Asia

In 2018, it completed the acquisition of Mankattan, a relevant player in the bakery industry in China

Finally, in 2023 it expanded its operations to Romania, extending its global leadership to 34 countries. 

These and other acquisitions, together with its organic growth, have consolidated Grupo Bimbo as the world’s leading and largest bakery company. 

According to Euromonitor (2022), the Group has the leading global market share in baked goods and in its two most relevant categories: bread and cakes.

 

Redacción Opportimes