Food and Beverage Business
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Argentina’s Molinos Río de la Plata Acquires Pizza Divisions from McCain

Argentina's Molinos Río de la Plata Acquires Pizza Divisions from McCain McCain Foods, Molinos Rio de la Plata Food and Beverage Business Molinos Río de la Plata,McCain

Molinos Río de la Plata, the food subsidiary of the Argentine conglomerate Grupo Perez Companc, is making significant strides in the food and beverage industry by acquiring a range of frozen pizza assets from McCain Foods. This strategic move reflects the growing trends within the food and drink business, showcasing how companies are adapting to changing market dynamics.

In a recent stock-exchange filing, Molinos Río de la Plata announced its agreement to purchase the frozen pizza brand Sibarita along with a manufacturing facility located in Pilar, Buenos Aires Province. Financial details surrounding the transaction have not been disclosed, but it is noted that the deal is currently pending due diligence procedures.

Sources close to McCain indicated that the decision to sell its frozen pizza division aligns with the company’s focus on its core competency in the frozen potato sector, where it maintains a leading position in the market for branded products. Notably, McCain does not plan to entirely exit the Argentine market, unlike several multinational corporations that have retreated due to currency-exchange restrictions and soaring inflation rates, which have led brands such as Procter & Gamble to withdraw.

In its filing, Molinos Río de la Plata described Sibarita as “a recognized brand of frozen pizzas both in Argentina and in the region.” The company expressed confidence that the acquired assets are “complementary to its current portfolio of leading brands and easily integrable into it.” Clearly, this acquisition aligns with current food and drink consumer trends, aiming to diversify and expand the brand’s market presence.

Moreover, Molinos Río de la Plata stated, “Without a doubt, the incorporation of Sibarita into Molinos’ portfolio is an opportunity to expand the consumption occasions in which the company participates.”

Sibarita, which McCain acquired back in 2007, has been a significant player in the market, with its products sold in Argentina, Chile, Paraguay, Colombia, and Uruguay. While McCain halted production at the Pilar facility earlier this year, sources affirm that the company has been meeting orders with existing inventory. The new ownership plans to recommence production, further contributing to the growth of the food and beverage industry trends in the region.

With ten manufacturing plants across Argentina and a workforce of over 2,500, Molinos Río de la Plata boasts a diverse portfolio featuring more than 30 brands, including Granja del Sol frozen foods and Matarazzo pasta. This acquisition presents a promising opportunity for Molinos to enhance its operational capabilities, reflecting broader shifts within the food and drink business landscape.

In conclusion, this acquisition not only signifies Molinos Río de la Plata’s commitment to growth but also highlights the evolving dynamics of the food and drink sector, emphasizing the need for brands to adapt and evolve in response to consumer preferences and market demands.

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