Money Articles


Schumpeter: The best since sliced bread

January 17, 2013

GRUPO BIMBO is on the prowl in el Norte again. In 2009 the Mexican baking giant bought part of Weston Foods for $2.3 billion, becoming the biggest baker in the United States. Two years later it bought Sarah Lee?s American baking operations for $960m. In the past month it has been in a battle over the tastiest bits of Hostess Brands? bread business, as that once-iconic and now-bankrupt company winds up its affairs.Bimbo brings more than a shopper?s eye to its expansion. It is a master at bread-related breakthroughs. It helped introduce Spaniards to sliced loaves and pioneered the packaging of bread in clear cellophane. It is also a master of efficiency and logistics: Bimbo lorries with their teddy-bear logo are familiar sights in Mexico and Central America. The combination of savvy dealmaking and relentless cost-squeezing has made Bimbo a behemoth of baked goods, with $10.8 billion of sales in 2011.Together the emerging-market countries now have more than 1,000 firms with annual sales above $1 billion. Many are content to stay at home?after all, their markets are growing at least twice as fast as the rich world?s. But some, like Bimbo...

Read entire article on Economist
« Previous Article Next Article »

More From Money Articles

  • 5 simple tips to help your credit score
  • Hey Girl, How's About You Slip Into Something More Comfortable?Like the Voting Booth?
  • Soft Bigotry, Meet Low Expectations
  • Best of Luxury

    Finding the best in luxury can be a daunting task, which is why we've taken it on for you.
    View All Best of Luxury