Grupo Bimbo has completed its acquisition of Mexican confectionery firm Dulces Vero, a deal that will strengthen its position in the US hispanic confectionery market. Financial terms of the transaction, which was first announced in mid-June, have not been disclosed. Dulces Vero, which produces a range of confections including lollipops, gummies, caramels and marshmallows, had 2009 sales of approximately Mex$1.1bn.

Grupo Bimbo said that Vero’s products complement its subsidiary company Barcel in the US Hispanic market, and also furthers the company’s strategy of reaching across all socio-demographic segments. “Along with sales and cost synergies, Vero’s strength in the wholesale channel, combined with Barcel’s extensive retail distribution network, will provide a strong platform for continued growth,” said the company. One of the benefits Dulces Vero brings to Grupo Bimbo is that it already exports its sweets outside Mexico, both to the US and further afield to Europe and Asia. In addition, the merged company was likely to benefit from Bimbo’s resources in distribution and marketing which may lead to an increase of market share in US sugar confectionery market.

source: confectionerynews.com