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Weekly Roundups

AMLO to Guarantee Fair Prices for Basic Food Basket

By Antonio Gozain | Wed, 04/27/2022 - 17:53

President Andrés Manuel López Obrador announced that he will present a plan to address the rise of inflation in Mexico. Among the initiatives, López Obrador proposed that 24 items within the basic food basket have controlled, fair prices. Meanwhile, barley growers in Puebla have threatened to stop supplying the brewing industry, following disagreements with provided seeds and prices.

 

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Jüsto Aims to Dominate Latin America’s Online Grocery Market

The COVID-19 pandemic detonated online grocery shopping in Latin America, a momentum that carried Jüsto into Brazil and Peru at the end of last year. Steady growth in these newly opened markets has helped the company secure an additional US$152 million Series B funding, which the company will use to grow market penetration over the next several years, says CEO, Ricardo Weder.

Bimbo Sells Ricolino to Mondelēz

Grupo Bimbo, the world’s largest bakery, sold its confectionery business Ricolino to Mondelēz International, Inc. This move will allow Bimbo to focus on becoming a global leader in grain-based foods, while it enables Mondelēz to double the size of its business in Mexico, expanding its presence in the confectionery segment and providing an attractive entry point to the chocolate category. Ricolino was sold to Mondelēz for US$1.33 billion and the company will use these proceeds for the payment of debt, capital investments and other corporate obligations.

No Price-Fixing but Guaranteed Fair Prices: AMLO

López Obrador said that his government “will guarantee fair prices for basic food items. We are reaching an agreement with growers and distributors. The majority agree to set a leveled price for the basic food basket.”

Inflation in Mexico rose to 7.72 percent in the first half of April, according to the National Consumer Price Index. López Obrador announced that next Wednesday he will present a plan to address the rise of inflation in Mexico and its impact on prices.

Puebla’s Barley Growers Threaten to Stop Supplying the Brewing Industry

Barley growers from the eastern region of Puebla threaten to stop supplying the brewing industry, after accusing it from providing them low-quality seeds for 22 years, reported El Economista. Puebla is one of the five top barley producers in Mexico, according to the Ministry of Agriculture and Rural Development.

Growers’ yield per hectare has decreased by up to 40 percent and brewing companies “want to pay tons at lower prices,” denounced Raúl Godos Langle, President, Product System Barley.

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Antonio Gozain Antonio Gozain Journalist and Industry Analyst