Grupo Bimbo China expansion

Since establishing operations in China in 2006, Grupo Bimbo now employs 1,500 associates, operates two plants near Beijing, and maintains a presence in 17 cities in northern China. The company sells Grupo Bimbo-branded baking products, including bread and even tortillas, a new product the company wants to try to sell in the Chinese bakery market.

In 2006, Mexico City-based Bimbo entered the Chinese market by purchasing the Beijing-based operations of Spanish baker Panrico SAU for about $11 million. The investment, though small in scale, was a major milestone for the company that Servitje's father, Lorenzo, co-founded in 1945.

Grupo Bimbo’s operations in China contribute just 2 percent of Bimbo's total annual revenue, in contrast to the United States and Europe, where the company operates on a larger scale. But the Chinese bakery market is expected to grow by a compounded annual growth rate of 7 percent between 2011 and 2016 and gain $7.9 billion in absolute retail value.

 Mr. Daniel Servitje - Bimbo Ceo says about China experience:

"What we hope to achieve in China by 2015 is to have a larger coverage (of consumers) in the coastal area".
"As for the opportunities for our industry and all the players in the industry, it is important to be connected to the customers and consumers in China".
"The China market is very positive. It is very dynamic and it is a market that demands a lot of flexibility. It also changes rapidly. We need to adapt our views more to the reality of the Chinese market".
 "From my perspective, if you want to be in any business today, you have to be close to what's happening in China. If we have global aspirations, we have to be in China",

Attached you can find a TV Spot, China Bimbo campaign: