Oriol Bonaclocha, President of Mondelēz Mexico, tells HIGH LEVEL what are the prospects of the snack segment in the country and its plans after the acquisition of Ricolino.
AN: Oriol, what is the outlook for the confectionery and food and beverage industry, in which Mondelēz participates?
In general, the categories in which we participate are growing in value, although they are fairer in volume. By 2023 we estimate that they will continue along the same lines.
We compete in the snack market, which makes up 75% of the business in Mexico and 85% in the rest of the world.. The consumption of snacks maintains an upward trend throughout the planet. The cream cheese market has grown consistently in the last five years and is one of the strongest bets for the corporation. Tang, for example, is a leader in the powdered drink market and we continue to refresh ourselves: now we have Tang Forte, without sugar or sweeteners or colorings.
We are very positive about the future of the company, above all because an investment like the one represented by Ricolino, which was more than 1,300 million dollars, is not carried out with a one-year vision, but in the long term. Ricolino exports to the United States, Central America and some Asian countries. The Puebla plant, which produces chewing gum and candies, exports 50% of its production to 30 countries. The cream cheese factory in Ecatepec sells to the local and export markets, and the plant in Salinas, Monterrey, exports mainly to the United States. In general, more than 50% of the production volume of the Mexican subsidiary is destined for export.
Mexico is a country with many opportunities. Mondelēz is celebrating 95 years of presence in the country and With the purchase of Ricolino we are sending the message that we will be here for the next 95 years. We are sure that there are many growth routes that we can continue to develop, such as chocolate. Between the two companies we are building something new. The sum of talents and capabilities leads us to reinvent the company, whose name is Mondelēz Snacking México and represents the union of enormous strengths. This makes us think big.
For our company, innovation is basic and constant in all categories. In confectionery, for example, every year we present between 40 and 50 initiatives in different segments. A large number of products are renewed every year and the market is very active. Precisely, Ricolino is a very agile company in this aspect and, thanks to this, today we can have a very broad portfolio of products.
AN: What plans does Mondelēz Mexico have for 2023?
Our main objective is to integrate the businesses of the two companies – Ricolino and Mondelēz – which are very large in themselves. As they have very different operating systems and processes, we want to make sure that both businesses continue their good growth trend.. We will make the infrastructure in systems and processes to ensure that the two companies work well and, from there, we will build synergies. By collaborating together we have a better chance of combining our brands and reaching more places quickly. The first objective in 2023 is to integrate to have a very strong advance in 2024.
Before the Ricolino acquisition, Mondelēz’s business in Mexico was doing very well. We were already strong in the market, performing very well overall. Our product portfolio was very diverse, with leading brands in many segments: such as Philadelphia, in cream cheese, and Tang, in powdered drinks such as Tang. Also in chewing gums —Trident, Clorets, Bubaloo and Chiclets— and in refreshing tablets, with Halls.
In the third quarter of this year, the company grew double digits globally and in Latin America sales increased 30%. Mexico is one of the countries that moves the needle in this region: it has leading participation in various segments and the acquisition of Ricolino is complementary to our development.
It is a transformational operation, since It will not only allow us to double our business in Mexico, but it will also consolidate us as a leader in confectionerywith about 25% of the local market.
With the adhesion of the Mexican company, we will also be able to enter the chocolate category, which is of great interest to Mondelēz worldwide. Together we have the most complete portfolio in the snack industry. We are very excited about the project and happy to join the Ricolino team. With the merger of both organizations we will have in Mexico more than 10,000 collaborators, six production plants and six distribution centersmore than 3,000 routes and presence in more than 900,000 points of sale.
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