Snacks in Latin America

Delivery

This report comes in PPT.

Key Findings

Mondelez acquires Grupo Bimbo’s confectionery business

In April 2022, Mondelez announced the acquisition of Ricolino, the confectionery division of Grupo Bimbo, with a workforce of almost 6,000 people and four manufacturing facilities in Mexico, from where it exports to 17 countries. As well as the Ricolino brand, the deal included other popular lines such as Dulces Vero, La Corona or Coronado.

Government tightens restrictions on imports in Argentina

Restrictions have been strengthened on the import of final products as well as ingredients and flavours into Argentina due to the lack of reserves in the Central Bank and the government's response to the drop in grain and oilseed exports caused by dry weather conditions and poor harvest. As well as affecting local production, the restrictions have also meant imported brands have faced challenges in maintaining their supply in the market.

Greater use of local tastes and ingredients expected in Brazil

The so-called “Brazil core” trend, which highlights the appreciation of domestic flavours and products, is expected to continue emerging as a pivotal factor driving growth in the snacks industry over the forecast period. This will likely see players increasingly incorporating local ingredients and tastes into their products to establish a stronger connection with consumers.

Players reformulating products in Argentina due to black octagons

Although there are signs that consumers are not shunning products carrying black octagons due to high sugar, fat or salt levels, introduced in March 2022, as they prioritise taste and indulgence over health and nutrition when purchasing snacks, companies are still improving their product formulations, ingredients and packaging sizes to avoid the black octagon labels.