April 27, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Mondelēz International announced its agreement to acquire Ricolino, the leading confectionery business in Mexico, from Grupo Bimbo for $1.3 billion. 

With four manufacturing facilities, 6,000 employees, and annual revenue of approximately $500 million, Ricolino produces and distributes a range of lollipops, marshmallows, chocolates, gunnies, and other confectionery products under iconic brands including Vero®, La Corona® and Coronado® and Ricolino®.

This acquisition will effectively double the size of Mondelez’ business in Mexico, giving it an attractive entry point into the country’s chocolate category while also greatly expanding its presence in the country’s snacking market.

The entire snacking category in Mexico is expected to grow due to lifestyle shifts with the chocolate confectionery category being the second largest segment in 2021, according to Statista, which stated that chocolate products generated revenue of $8.4 billion in U.S. dollars in the country last year – an increase of $1.5 billion compared to 2020. 

Mondelēz also stated that this deal is expected to create significant opportunities for synergies and accelerated growth.

“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,” said Dirk Van de Put, chairman and CEO, Mondelēz International. “We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”

Many of Ricolino’s chocolate brands have a legacy standing in Mexico with more than 50 years of history in the country. Today, the company controls more than 2,100 direct store delivery routes, reaching 440,000 traditional trade outlets, reflective of its broad brand availability and vast scale and reach.

“We ventured into the confectionery industry with the establishment of Ricolino in 1970; today, after 52 years of growth and progress, it is the industry leader in Mexico,” said Daniel Servitje, chairman and CEO, Grupo Bimbo.

“We truly recognize the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work,” he continued. “I’m confident that Mondelēz International will leverage these amazing brands to a much higher position.”

This deal announcement is just the latest in a busy period of truly global acquisitions for Mondelēz.

Last year was one of growth for Mondelēz, as it acquired Grenade, a leading performance nutrition company in the UK; Gourmet Food Holdings, a top Australian food company in the premium biscuit and cracker category; and Hu, a wellbeing snack company in the U.S.

Then, in January of this year, Mondelēz International closed on its acquisition of Chipita S.A. the top company in the snack-sized cake and pastries category in Central and Eastern Europe.

All in all, with a snacking presence in more than 150 countries and a portfolio including such global and iconic brands as Oreo, belVita, LU biscuits, Dairy Milk, Milka, Toblerone, Sour Patch Kids, and Trident gum, Mondelēz International saw net revenue of approximately $29 billion last year.

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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