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, expand its presence in the confectionery segment and provide an attractive entry point to the chocolate category.
“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. We deeply acknowledge the Ricolino family for this great achievement and are very grateful for their commitment and hard work. I fully trust that Mondelēz will promote these excellent brands and accelerate their growth,” said Daniel Servitje, President and CEO, of Grupo Bimbo. Ricolino was sold to Mondelēz for US$1.33 billion and, according to Bimbo’s official announcement, the company will use these proceeds for the payment of debt, capital investments and other corporate purposes.
“This acquisition will provide a step-change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories. We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family,” stated Dirk Van de Put, Chairman and CEO, Mondelēz International, in Mondelēz’s official press release.
The acquisition is expected to expand route-to-market capabilities with more than 2,100 direct-store delivery (DSD) routes, reaching 440,000 traditional trade outlets. The president of Mondelēz Mexico, Oriol Bonaclocha, said that the acquisition will lead to growth. “We are very excited about the opportunity to welcome these beloved brands in the future, the great team of professionals behind them, and to continue growing under our vision of #snackingmaderight. The Ricolino organization is a great company with a portfolio of iconic brands and a very prominent presence throughout Mexico, which perfectly complements our current confectionery business.”
Ricolino is a leading player in the confectionery category in Mexico, employing about 6,000 employees in its four plants. Its products are sold through various channels including wholesale, traditional, supermarkets and convenience stores. Its main products are popsicles, marshmallows, chocolates and gummies, among others, under the Ricolino, Vero, La Corona and Coronado brands. Ricolino also exports and markets its products to 17 countries, including the US and Central America. The company generated MX$10.15 billion (US$503 million) in net sales in 2021.