Mexican baked goods giant Grupo Bimbo has announced its largest investment in Argentina since entering the country almost three decades ago.
The company has recently inaugurated a state-of-the-art $100 million production line for bread at its facility in Pilar, located in Buenos Aires Province. This significant investment demonstrates Grupo Bimbo’s commitment to the food and beverage industry trends in Argentina.
Bimbo, known for its presence in Argentina since 1995, revealed that the new production line has an impressive capacity to manufacture 15,000 units of household bread per hour. This expansion was made possible due to a tax exemption for machinery imports from the Department of Industry and Production Development.
José Zavalía Lagos, the general manager of Bimbo’s operations in Argentina, expressed enthusiasm for the new line, stating that it will greatly enhance distribution capabilities, enabling the company to reach new territories across the country.
Moreover, thanks to their commitment to innovation and improving the nutritional profile of their products, Bimbo proudly highlights that none of their products in Argentina are required to carry the octagonal labels denoting excessive sugar, sodium, and saturated fats. This exemption follows the introduction of new labelling laws in February.
Bimbo currently operates four facilities in Argentina, with three located in Buenos Aires and one in Cordoba province. The investment in the Pilar site comes at a time of increased demand for bread in Argentina, amidst rising inflation rates and a currency devaluation.
According to Argentina’s National Institute for Statistics and Census (INDEC), the country experienced a monthly inflation rate of 12.4% in August, with prices rising by 124.4% year on year. In the food and non-alcoholic beverages category, prices jumped by 15.6% in August compared to July, contributing to a staggering 90.2% increase since January 2023, surpassing general inflation levels.
To address the challenges faced by consumers and stimulate demand, Sergio Massa, Economy Minister and presidential candidate for the upcoming October elections, recently announced that the government will return the value-added tax (VAT) on purchases of essential goods, including baked goods. This move aims to provide relief for consumers and fuel economic recovery.
In conclusion, Grupo Bimbo’s significant investment in Argentina’s food and drink industry reflects their commitment to meet consumer trends and deliver high-quality products. The inauguration of the cutting-edge production line in Pilar is set to revolutionize distribution and allow the company to further penetrate the market nationwide.
