Snack industry recovers 7%

The volume of savory products was 184,518 tons from January to May 2012, surpassing more than 171,000 in 2011. After a period of contraction during the economic crisis of 2009-2010, and a moderate recovery in 2011, the snack industry recovered in the first five months this year it achieved a growth of 7 percent, attracting new companies to participate in the sector. According to data from the National Institute of Statistics and Geography (INEGI), the amount of salty snacks sold in the country reached 184,518 tons between January and May 2012, which is positive compared to 171,872 tons in the same period of the year. last year . Likewise, in terms of sales, the industry grew by 10.5 percent in the period under review, driven by volume increases and price increases made by major companies in the sector to curb the rise in prices of some inputs such as wheat, corn and oils. Sales in the snack industry totaled 17.486 million pesos in the first five months of this year, compared to 17.120 million registered in the same period in 2011. The recovery in snack consumption has attracted companies that had not previously participated in the sector, such as the case of La Costeña, which previously bought the company Fritos Totis a few months ago. Likewise, Femsa through the subsidiary Oxxo launched the salty fried food brand Bitz at the beginning of the year, which is largely sold. Bokadosa, which wants to expand to the center and south of the country to try to repeat its success in the north, mainly in Nuevo León. “We’ve been growing at a rate of 20 percent in recent years, so competitors who initially weren’t paying attention now see us as a strong player,” Arca Chief Executive Officer Francisco Garza Egloff said recently. Although Bimbo does not break down the results of its subsidiary Barcel, which is the second-largest brand in the sector, with almost 20 percent, its managers commented that the company presented “higher growth than its competitors (mainly Pepsico)”, which are in high digits (between 5 and 10 percent). Pepsico, which controls more than 70 percent of the snack market through Sabritas, said in its second-quarter 2012 report that its sales in the sector rose 13 percent, driven by the exchange rate effect, although organically, volume rose 2 percent. . The salty snacks market is worth 39 billion pesos, according to INEGI. Source: Millennium

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