Grupo Bimbo

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Grupo Bimbo, S.A.B. de C.V.
Public
Traded as BMVBIMBO
Industry Food Processing
Founded December 2, 1945 (1945-12-02)
Founder
  • Lorenzo Servitje
  • Lorenzo Sendra
  • Jaime Jorba
  • Jaime Sendra
  • Alfonso Velasco
  • José T. Mata
Headquarters Mexico City, Mexico
Area served
Worldwide
Key people
Daniel Servitje
(Chairman and CEO)
Products
  • Bread
  • Cookies
  • Pastries                                
Brands
  • Bimbo
  • Marinela
  • Ricolino
  • Tia Rosa
  • Barcel
  • Sara Lee
  • Mrs Baird's
  • Oroweat
  • +100 other brands
Revenue Increase US$ 14.1 billion (2014)
Decrease US$ 0.3 billion (2014)
Total assets Increase US$ 12.0 billion (2014)
Number of employees
128,583
Divisions
  • BIMBO Bakeries U.S.A.
  • BIMBO Mexico
  • Barcel
  • BIMBO Canada
  • BIMBO Latin Sur
  • BIMBO Latin Centro
  • BIMBO Brasil
  • BIMBO Europa
Website www.grupobimbo.com

Grupo Bimbo, S.A.B. de C.V., known as Bimbo, is a Mexican multinational bakery product manufacturing company headquartered in Mexico City, Mexico. It operates the largest bakeries in the United States, Mexico and Spain, and has some of the widest distribution networks in Mexico and the United States. It was also the ninth largest company of Mexico by revenues in 2013.[1]

Bimbo reported revenues of US$ 14.1 billion for 2014. It has approximately 128,000 employees and 167 manufacturing plants in 22 countries in the Americas, Europe, and Asia. It operates more than 100 trademarks, among which are: Bimbo, Tia Rosa, Marinela, Barcel, SaraLee, Mrs Baird's, and Oroweat.[2]

In June 2015, Bimbo was considered as a possible buyer of Hostess Brands, the bankrupt twinkies manufacturer valued at US$ 2 billion.[3]

Bimbo is listed on the Mexican Stock Exchange since 1980 and is a constituent of the IPC, the main benchmark index of Mexican stocks.

History[edit]

The company Grupo Bimbo was started in Mexico in 1945 by Lorenzo Servitje, Roberto Servitje, José T. Mata, Jaime Sendra, Jaime Jorba and Alfonso Velasco. Over fifteen years, under the leadership of Daniel Servitje, current Chairman of the Board and CEO of the Group, has established itself as a global bakery company, reporting an increase in sales of USD 4.67 billion in 2004 to USD 10.712 million, in 2011.

The name Bimbo was first coined in 1945. The main hypothesis is that it resulted from the combination of Bingo and Bambi. Later, the founders would know that the children in Italian bimbo are told, while in Hungarian, the word means cocoon and, curiously, the phoneme used in China to name sounds very similar to bread.

The corporate image, a small white teddy bear, resulted from the drawing that came to Mr. Jaime Jorba in a Christmas card, and whom Anita Mata, wife of Jaime Sendra, dressed with a white apron and a chef’s hat, as was given a loaf of bread under his arm.

The Bimbo trademark was recognized as “famous” by the Mexican Institute of Industrial Property on April 23, 2010[4] and is one of the 27 selected brands that have reached this category in the country. In 2014, the Brand Footprint by Kantar World Panel positioned it in seventh place in the food industry in the world.

The first products launched into the market were cellophane-wrapped large and small white loaves of bread, rye bread and toasted bread. By late 1948, there were nine Bimbo products on the market. The line was expanded in 1952 with the production of the Donas del Osito (Bear Cub Doughnuts) started, along with a new line of buns: Bimbollos, Medias Noches and Colchones.

Sector and Competition[edit]

Bimbo is mainly in the area of baking, in the field of pastry and bread for sandwiches, hot dogs and hamburgers. In this sector it controls about 90% of the market.[citation needed] Also it has a stake in the confectioner sector and in the sector of snacks.

Bimbo dominates the area of Mexico, it is estimated that an average Mexican spends around 131.6 dollars a year on branded products.[citation needed]

Structure[edit]

The Management Council Bimbo is as follows:

  • President: Daniel Servitje
  • Secretary: Luis Miguel Briola
    • Substitute Pedro Pablo Barragan
  • 17 Proprietary
  • Steering Committee:
    • CEO: Daniel Servitje
    • Deputy Director General: Paul Elizondo.[5]

Bimbo has several brands, which vary from country to country.

Country/Region Number of brands Examples
Canada 1 Canada Bread[6]
USA 29 Sara Lee, Mrs Baird's, Earth Grains[7]
Mexico 16 Bimbo, Marinela, Barcel[8]
Central America 13 Monarca, La Mejor, Ideal[9]
Latin America 26 Pullman, Plus Vita, Nutrella[10]
Europe 2 Eagle, Bimbo[11]
United Kingdom 1 New York Bakery Co'[12]
Asia 1 Bimbo[13]

Expansion[edit]

In 1949 the first depot outside Mexico City was inaugurated in the city of Puebla. In 1956, the Bimbo Occidente plant in Guadalajara started operations,[14] with Roberto Servitje as its first General Manager. Four years later the Bimbo del Norte plant was inaugurated in the city of Monterrey, Nuevo León.

After an administrative restructure and the launch of successful products such as Gansito and Submarinos Marinela, in 1972[15] the company installed the largest bakery in Latin America and one of the ten largest in the world, in Azcapotzalco, Mexico City.

With an important growth in the products and brands portfolio, such as Barcel, Marinela, Tía Rosa, Ricolino and Suandy, Don Roberto Servitje was appointed as CEO of Grupo Bimbo in 1979. A year later, the company started trading 15% of its shares on the Mexican Stock Exchange (BMV).[16]

In 1984, the company started its expansion by exporting to the United States. Two years later, the company created a new organizational structure, know as Grupo Bimbo till today.

Later, in 1989, Bimbo Central America was created with the opening of a plant in Guatemala.[17] Two years later with the addition of Bimbo Argentina, the Latin America Region Corporate structure was created and in 1995, the company opened two more plants in Chile and in Argentina.

With the appointment of Daniel Servitje as CEO of the company in 1997, the global growth strategy was strengthened. In 1998 the Group acquired the American bakery Mrs. Baird’s, as well as Plus Vita and Pullman in Brazil, in 2001. A year later it acquired the West region baking business of George Weston Limited in the United States.

Grupo Bimbo acquired the Panrico bakery in Beijing in 2007, initiating its presence in the Asian market, expanding its operations in two continents.

On 2008, Grupo Bimbo bought Nutrella bakery in Brazil[18] and in 2009 bought all of the George Weston Foods Ltd. in the United States, with the brands Arnold, Boboli, Brownberry, Entenmann’s, Freihofer's, Stroehmann and Thomas’, plus 22 factories and 4,000 delivery trucks.

During 2011, the Group consolidated two acquisitions, becoming the largest baking company in the world. In September, Grupo Bimbo bought Fargo in Argentina, while in October, it closed on the acquisition of Sara Lee's operations in Spain and Portugal, renaming the unit Bimbo Iberia. Thus the company managed to unify the Bimbo brand that operated independently in both countries.

Shortly after, in February 2014, Grupo Bimbo announced the acquisition of Canada Bread.[19] The transaction, valued at C$1.83 billion, enabled the Group to reaffirm its position as the world’s leading baking company by extending its distribution in North America and entering the market of United Kingdom, this last one through the New York Bakery Co. brand, a leading manufacturer of bagels in Europe. In the same year, the company acquired Supan, a baking company in Ecuador, an operation that led the company to reinforce its presence in America and the world.

Relevant acquisitions[edit]

  • 1964: Sunbeam brand in Mexico from Quality Bakers of America
  • 1995: Grupo Bimbo acquires Coronado
  • 1998: American bakery “Mrs Baird’s”
  • 2001: Plus Vita and Pullman in Brazil
  • 2002: George Weston Limited – owner of the Oroweat brand – in United States
  • 2004: JoyCo in Mexico.
  • 2005: La Corona and El Globo, in Mexico.
  • 2006: Panrico in Beijing
  • 2008: Galletas Gabi in Mexico and Nutrella in Brasil
  • 2009: Weston Foods Inc. in United States
  • 2010: Dulces Vero in Mexico
  • 2011: Sara Lee North American Fresh Bakery in United States, Fargo in Argentina and Bimbo in Spain and Portugal
  • 2014: Canada Bread in Canada and United Kingdom, División Saputo Inc.’s Bakery in Canada[20] and Supan in Ecuador.

Sustainability[edit]

Grupo Bimbo is a company that incorporates corporate social responsibility into its production and distribution operations in the countries where it is present.[citation needed]

The company started its social responsibilities activities by earmarking a percentage of profits to open and maintain a school. Throughout the years the company has strengthened them, until it created a vigorous program in this matter, known as “Sembrando Juntos” (Sowing Together), based on the pillars of Wellbeing, Planet, Community and Associates; each one focused in the construction of a positive and long relationship between the society and the planet. It has multiple social work projects in the environmental, educational and nutritional preservation, as well as community welfare.[citation needed]

The Planet pillar is the environmental arm of this program, through which Grupo Bimbo aims to become a worldwide model to be followed in terms of Environmental Sustainability, with the primary objective of reducing the environmental footprint of the operations of the company and of its value chain. The Group is seeking to achieve this goal through 4 lines of action addressed to particular challenges of the industry in matters of efficient use of energy and water, waste and sustainable procurement. These lines are: carbon footprint, water footprint, waste management and natural capital, respectively.[citation needed]

Worldwide, the Group has implemented a series of best practices such as integrated waste management; collection devices and reuse of rainwater, as well as centers for the treatment of wastewater in plants and sales centers; it also has managed a significant reduction of emissions into the atmosphere through a strategy based on energy efficiency through vehicle technology and the incorporation of renewable energies.[citation needed]

Grupo Bimbo was the first company in the food industry to launch a wind farm in October 2012. Located in the state of Oaxaca, the farm Piedra Larga supplies electric energy to almost all the company’s facilities in Mexico. The company also inaugurated the first Ecologic Sales Center in July 2013, located in Mexico City, with an investment close to US$2 million. This center has over 70 electric vehicles, entirely designed by the Group’s technicians.[citation needed]

The company seeks to contribute innovative and purposeful way with all those actions that are undertaken in order to reduce the environmental footprint, therefore it works with different organizations and projects to achieve it. An example of this, is the collaboration with Reforestamos México, a civil association that works to ensure the forests that Mexico needs for its future development. Emerged as an initiative from Grupo Bimbo, and established in 2002, the success of its operations throughout more than a decade, has allowed it to consolidate as one of the most important organizations regarding forest nurturing.

Its working model involves training ejidos and communities to generate and develop the required abilities to get a major benefit from their goods and services derived from their forests. It also seeks to make the private sector more aware about their responsibility regarding forests.

Reforestamos México works with companies to invest in the reforestation of high conservation areas. During 2013, in partnership with 46 companies, among them Grupo Bimbo, it summoned more than 91 thousand volunteers who supported in the reforestations of 90 hectares of forests in priority areas such as Nevado de Toluca, State of Mexico, and Bosque de la Primavera in Guadalajara.[citation needed]

Net sales[edit]

  • 2009: US$8.9 billion. 55% Foreign Sales.
  • 2010: US$9.2 billion. 53% Foreign Sales.
  • 2011: US$10.7 billion. 54% Foreign Sales.
  • 2012: US$13.1 billion. 59% Foreign Sales.
  • 2013: US$13.8 billion. 61% Foreign Sales.[citation needed]

Brands[edit]

  • Fifth place among the Top 25 Mexican brands by Interbrand to Bimbo in 2014.
  • Seventh Strongest Food Brand in the World and 1st in Latin America, from the Brand Footprint study by Kantar World Panel to Bimbo in 2014
  • Ranking of the 50 Most Valuable Brands in Latin America from a study conducted by Millward Brown to Grupo Bimbo in 2013
  • Top Brand Award from the Universidad Tecnológica de El Salvador to Grupo Bimbo in 2013[citation needed]

See also[edit]

References[edit]

  1. ^ Las 500 empresas más importantes de México. CNN Expansión.
  2. ^ [file:///C:/Users/mvelez/Downloads/Reporte%20Anual%202014.pdf BIMBO 2014 Annual Report]]
  3. ^ Hostess Brands sale. Bakery and Snaks.
  4. ^ Martínez Castillo Elisa. "Las Marcas Notoriamente Conocidas". p. 19. 
  5. ^ "Estructura" (in Spanish). Retrieved 8 May 2015. 
  6. ^ "Nuestras Marcas en Canadá" (in Spanish). Retrieved 8 May 2015. 
  7. ^ "Nuestras Marcas en Estados Unidos" (in Spanish). Retrieved 8 May 2015. 
  8. ^ "Nuestras Marcas en México" (in Spanish). Retrieved 8 May 2015. 
  9. ^ "Nuestras Marcas en Centro América" (in Spanish). Retrieved 8 May 2015. 
  10. ^ "Nuestras Marcas en Latinoamérica" (in Spanish). Retrieved 8 May 2015. 
  11. ^ "Nuestras Marcas en Europa" (in Spanish). Retrieved 8 May 2015. 
  12. ^ "Nuestras Marcas en Reino Unido" (in Spanish). Retrieved 8 May 2015. 
  13. ^ "Nuestras Marcas en Asia" (in Spanish). Retrieved 8 May 2015. 
  14. ^ Excelsior. "Roberto Servitje: Bimbo no le debe nada al Tratado de Libre Comercio". 
  15. ^ Servitje Sendra Roberto, PEARSON EDUCACIÓN, México 2003. "Bimbo: Estrategia de éxito empresarial". p. 260. ISBN 970-26-0077-4. 
  16. ^ Bolsa Mexicana de Valores [1]
  17. ^ ALTO NIVEL. "Bimbo, rico en mercadotecnia". 
  18. ^ CNN EXPANSIÓN. "Bimbo da una gran mordida a Nutrella". 
  19. ^ CNN EXPANSIÓN. "Bimbo acuerda la compra de Canada Bread". 
  20. ^ http://www.winnipegfreepress.com/business/saputo-to-sell-canadas-largest-producer-of-snack-cakes-to-canada-bread-286221491.html

External links[edit]