Mexican companies Alsea, Bimbo, Chedraui and Bachoco ‘conquer’ the world

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Mexico is no longer their main market

Mexican companies have become more and more global firms.

They were born in Mexico, but for Alsea, Bimbo, Chedraui, and Bachoco the country stopped being their main source of income in the last decade.

In an exercise carried out by El Financiero, in the first semester of 2021 Alsea, Bimbo, Chedraui, Bachoco, Herdez, Genomma Lab, and Gruma sold just over 168 thousand 253 million pesos, of which 55 percent on average are income nationals.

Alsea uses the ‘old continent’

The restaurant operator, Alsea, a decade ago concentrated 76.7 percent of its income in Mexico, but in the first half of 2021 that participation is already only 49.6 percent.

The territory that contributes the most to the company’s income is Europe since 2014 when it acquired Grupo Zena, which was joined in 2018 by the Vips Group of Spain, and in 2019 the agreement to be the developer of Starbucks in the Netherlands, Belgium, and Luxembourg.

“Before the pandemic, it was already growing strongly in Europe and the expectation is positive for the development of brands such as Starbucks, and the issue of the pandemic has not allowed us to see the benefits of its acquisition,” said Marisol Huerta, analyst at Ve Por Plus.

It currently has a presence in 11 countries where it operates 4,204 branches, 51.6 percent are in Mexico, 33 percent in Europe and 15.4 percent in Latin America.

By 2022, the firm chaired by Alberto Torrado will concentrate investments to open more branches in Europe with Starbucks and Domino’s Pizza in Latin America, said Rafael Contreras, director, in a conference with analysts.

Bimbo already bakes up gluten free

For the bakery of Osito Bimbo, Mexico fell in the participation of its income from 50.4 to 33.2 percent of its total income in the last decade and behind this is the purchase of companies abroad.

In the last five years, the firm reached China with Manhattan, Africa with Adghal, and India with Ready Roti, and only in the last semester it acquired the gluten-free cookie player Emmy’s Organics in the United States and completed the purchase of the plant of Cerealto Siro Foods in Medina del Campo, Spain.

“Bimbo has an enviable problem, thanks to the scale it has achieved for more than a decade: what to do with the extraordinary cash flow it generates; Until now, he has taken advantage of it in a masterful way, ”said Carlos Hermosillo, an analyst specializing in consumption.

Currently, Grupo Bimbo, chaired by Daniel Servitje, has 202 bakeries and other plants and around 1,600 sales centers strategically located in 33 countries in America, Europe, Asia and Africa.

Chedraui, from jarocha to norteña

From Veracruz to conquer the United States. Chedraui had 80 percent of its market in Mexico 10 years ago, currently, it only contributes 60 percent of its income and by 2022 it is expected that it will only hold 36 percent with the purchase of Smart & Final.

“With the acquisition, Chedraui’s dollarized income would be more than doubling as it represents (the United States) around 64 percent of consolidated sales,” said Grupo Financiero Monex in a report.

In May, Chedraui announced its interest in buying the more than 250 Smart & Final stores for 620 million dollars, the operation is still under analysis by the competition authorities of the United States.

Chedraui arrived in the United States in 1997, in 2010, with the subsidiary Bodega Latina, they acquired Fiesta Mexicana Market LP and Fiesta Warehouse LLC, and in 2018 Fiesta Mart.

It currently has 452 stores, 72.8 percent of them in Mexico and the remaining 27.2 percent in various United States.

Bachoco ‘flies’ to Asia

Bachoco expanded its business to the United States and Asia. According to analysts, a decade ago 90 percent of its income came from Mexico, but in the first half of this year, 76 percent of its sales came from the country.

“The United States is one of the main consumers in terms of food products, chicken and pork is part of it, even the company was certified to be able to export to other countries in Asia,” said Julián Fernández, analyst at Bursamétrica.

Bachoco has more than a thousand farms, nine processing plants.

Graphic (Esmeralda Ordaz)

Source: elfinanciero.com.mx

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