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Grupo Bimbo, S.A.B. de C.V.

Type	Sociedad Anónima Bursátil de Capital Variable
Traded as	BMV: BIMBO BMV: BIMBOA Perú
Industry	Food Processing
Founded	2 December 1945; 73 years ago (1945-12-02)
Founders	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 Ideal Barcel Sara Lee Mrs Baird's Oroweat Wonder Bread +100 other brands
Revenue	US$ 14.1 billion (2014)
Net income	US$ 1.3 billion (2014)
Total assets	US$ 12.0 billion (2014)
Number of employees	100,000
Divisions	BIMBO Bakeries U.S.A. BIMBO Mexico Barcel BIMBO Canada BIMBO China BIMBO Latin Sur (Included Ideal Chile y Perú) BIMBO Latin Centro BIMBO Brasil BIMBO Europa Canada Bread Company
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 is the world's largest baking company^[1] and operates the largest bakeries in the United States, Mexico, Canada, Chile 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.^[2]

Bimbo reported revenues of US$14.1 billion for 2014. It has more than 129,000 employees, 165 manufacturing plants^[3] and 2.5 million sales centers ^[4] located in 32 countries in America, Europe and Asia. It operates more than 100 trademarks, among which are Bimbo, Tia Rosa, Marinela, Wonder (in Mexico only), Barcel, Sara Lee, Mrs Baird's and Oroweat. Bimbo has one of the widest distribution networks in the world, surpassing 52,000 routes^[5] Bimbo operates under a scheme of recurrent sales channels views, making three daily visits to the same establishment.

In June 2015, Bimbo was being considered as a possible buyer of Hostess Brands, the manufacturer of Twinkies valued at US$2 billion.^[6] However, a month later Hostess Brands' owners cancelled its plans to sell the company after failing to receive any offers.^[7]

Bimbo has been listed on the Mexican Stock Exchange since 1980 and is a constituent of the IPC, the main benchmark index of Mexican stocks. In 2016, Forbes magazine ranked Grupo Bimbo at #986 on the Forbes Global 2000, an annual ranking of the top 2,000 public companies in the world.^[8]

History

The company Grupo Bimbo was started in Mexico in 1945 by Lorenzo 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, it has established itself as a global bakery company, reporting an increase in sales of USD 4.67 billion in 2004 to USD 10.712 billion, in 2011.

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

The corporate mascot, a small polar 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, 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^[9] 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

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

Bimbo's Management Council is organized as follows:

• President: Daniel Servitje


• Secretary: Luis Miguel Briola
  
  • Substitute Pedro Pablo Barragan
  
  


• 17 Proprietary


• Steering Committee:
  
  
  
  • CEO: Daniel Servitje
  
  
  • Deputy Director General: Pablo Elizondo.^[10]
    
  
  
  
  

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

Expansion

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,^[19] 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^[20] 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).^[21]

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

Later, in 1989, Bimbo Central America was created with the opening of a plant in Guatemala.^[22] 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^[23] 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.^[24] 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

• 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 Brazil


• 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^[25] and Supan in Ecuador.


• 2015: Panrico in Spain and Italian Home Bakery in Toronto, Canada.^[26]
  


• 2017: Harvest Gold in India ^[27]
  

Net sales

• 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

• 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

• List of bakeries


• List of companies traded on the Bolsa Mexicana de Valores


• List of Mexican companies


• Economy of Mexico

References

External links

• Official website


• Company website in United States