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Bimbo Bakeries USA
Encyclopedia
Bimbo Bakeries USA is the American corporate arm of Mexico
's Grupo Bimbo
. It is the largest bakery company in the United States
, owning six of the top twelve fresh bread brands in the United States. The name means baby in Italian and does not mean anything in Spanish. The pronunciation is given on packaging as "Beembo" to distinguish it from the American slang term "bimbo
". Both derive from the same word in Italian but does not have a negative connotation in Spanish.
, Texas
, Colorado
, and Oregon
. The purchase also gave Bimbo Bakeries USA the right to such brands as Oroweat, Entenmann's, Thomas' English Bagels, and Boboli pizza kits in the western United States (the rights in the eastern USA at the time were owned by George Weston Limited
).
and almost US$
4 billion in annual sales. The Weston Foods headquarters in Horsham, Pennsylvania
(just outside Philadelphia) became the new headquarters for Bimbo's USA operations, relocating from Fort Worth, Texas
, once the deal closed.
In an effort to increase their national exposure, on January 11, 2011, Bimbo announced a four year partnership agreement making them the official jersey sponsor of the Philadelphia Union, the MLS
team local to their national headquarters. The Union sponsorship agreement marks the fifth professional soccer team sponsored by Bimbo; the parent company Grupo Bimbo sponsors the following four teams: Club América
, C.D. Guadalajara
and C.F. Monterrey of the Primera División de México
teams, as well as C.D. Saprissa
of Costa Rica
. The deal also makes Bimbo the official bread and baked goods sponsor of both the Union and MLS. Bimbo will also become an official sponsor of MLS, opening MLS League and Club marketing assets, such as stadium signage, to them. The sponsorship deal is valued at roughly US$12 million over the four year period.
announced that it has agreed to acquire the North American Fresh Bakery business of the Sara Lee Corporation. The transaction, which is subject to regulatory review, would combine the largest and third largest baking companies in the United States, as measured by annual sales. The deal is reported as costing US$
959 Million. This acquisition will leave Bimbo Bakeries USA with 75 bakeries in 31 states, serving the entire continental United States through more than 13,000 sales routes.
The acquisition would bring approximately US$
2.1 Billion in sales to Bimbo Bakeries USA, for a rough total of US$
6 Billion. This would make Bimbo Bakeries USA more than twice twice as large the number two bakery company in the United States, Flowers Foods.
Sara Lee Corp. acquired its fresh baked division in 2001 with the acquisition of Earthgrains for a then industry record of US$
2.8 Billion. This sale represents a 66% discount.
In an announcement made to the media by Gary Prince, President of Bimbo Bakeries, he stated, "This transaction demonstrates Grupo Bimbo's commitment and singular focus on baking.Our goal is to build a U.S. bakery business that provides the highest quality products and best value to customers and consumers."
This acquisition will bring together Sara Lee's successful Soft & Smooth line of product with other national brands such as Oroweat/Arnold.
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
's Grupo Bimbo
Grupo Bimbo
Grupo Bimbo is the largest Mexican food company and the largest bakery in the world with brands in Americas, Europe, and China.-History:Grupo Bimbo was established in Mexico in 1945 by Lorenzo Servitje, Jose T. Mata, Jaime Sendra, and Jaime Jorba...
. It is the largest bakery company in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, owning six of the top twelve fresh bread brands in the United States. The name means baby in Italian and does not mean anything in Spanish. The pronunciation is given on packaging as "Beembo" to distinguish it from the American slang term "bimbo
Bimbo
Bimbo, in its popular English language usage, describes a woman who is physically attractive but is perceived to have a low intelligence or poor education. The term can also be used to describe a woman who acts in a sexually promiscuous manner...
". Both derive from the same word in Italian but does not have a negative connotation in Spanish.
History
Grupo Bimbo initially entered the U.S. market with the purchase of Pacific Pride Bakeries in 1996. At the time, Pacific Pride Bakeries was the largest independent baker in the San Diego area. The current company, Bimbo Bakeries USA, was established in 1998 when Grupo Bimbo purchased Mrs. Baird's Bakeries in Texas, which at the time was the largest family owned bakery in the United States, and merged it with the former Pacific Pride Bakeries. In 2002, Grupo Bimbo made another acquisition when it purchased 5 plants in CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, and Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
. The purchase also gave Bimbo Bakeries USA the right to such brands as Oroweat, Entenmann's, Thomas' English Bagels, and Boboli pizza kits in the western United States (the rights in the eastern USA at the time were owned by George Weston Limited
George Weston Limited
George Weston Limited , often referred to as Weston or Weston's, is Canada's largest food processing and distribution company. Founded by George Weston in 1882, the company today consists of Weston Foods, a wholly owned subsidiary, and Loblaw Companies Limited, the country's largest supermarket...
).
Nationwide expansion
On December 10, 2008, it was announced that Grupo Bimbo was in negotiations to purchase WFI (Weston Foods Inc.) a subsidiary of George Weston Ltd. for $2.38 billion, a purchase that would make Bimbo Bakeries USA the largest bakery company in the USA. The purchase was finalized on January 21, 2009. The acquisition added brands such as Arnold, Brownberry, Freihofer's, Stroehmann, and gave Bimbo the rights to the Weston brands in the eastern United States (it had controlled the Weston brands in the western United States since 2002). The purchase also added 22 more factories and 4,000 delivery trucks, giving Bimbo Bakeries USA 35 factories and over 7,000 sales routes in the United States, along with a footprint in all of the lower 48 statesContiguous United States
The contiguous United States are the 48 U.S. states on the continent of North America that are south of Canada and north of Mexico, plus the District of Columbia....
and almost US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
4 billion in annual sales. The Weston Foods headquarters in Horsham, Pennsylvania
Horsham, Pennsylvania
Horsham is a census-designated place in Montgomery County, Pennsylvania, United States. The population was 14,842 at the 2010 census. Horsham is located entirely within Horsham Township, and it is home to Naval Air Station Joint Reserve Base Willow Grove.In 2007, Horsham was named the 15th best...
(just outside Philadelphia) became the new headquarters for Bimbo's USA operations, relocating from Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
, once the deal closed.
In an effort to increase their national exposure, on January 11, 2011, Bimbo announced a four year partnership agreement making them the official jersey sponsor of the Philadelphia Union, the MLS
Major League Soccer
Major League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...
team local to their national headquarters. The Union sponsorship agreement marks the fifth professional soccer team sponsored by Bimbo; the parent company Grupo Bimbo sponsors the following four teams: Club América
Club América
Club América is a Mexican Professional football club based in Mexico City. It competes in the Primera División, the top professional league in the country. The team's nickname is Las Águilas ....
, C.D. Guadalajara
C.D. Guadalajara
Club Deportivo Guadalajara , is a Mexican professional football club based in Guadalajara, Jalisco. Guadalajara plays in the Primera División de México and is the most successful club in Mexican football, having won 11 First Division titles, 7 Campeón de Campeones and 2 Copa México...
and C.F. Monterrey of the Primera División de México
Primera División de México
The Primera División Profesional , known simply as the Primera División, is the top level of the Mexican football league system and is administered by the Mexican Football Federation. It was established in 1943 and as of 2011 has 18 clubs. Up to June 2011, it was divided into three groups competing...
teams, as well as C.D. Saprissa
C.D. Saprissa
Deportivo Saprissa S.A.D. is a Costa Rican sports club, mostly known for its football team. The club is located in San Juan de Tibás, San José, and plays their home games at the Estadio Ricardo Saprissa Aymá....
of Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
. The deal also makes Bimbo the official bread and baked goods sponsor of both the Union and MLS. Bimbo will also become an official sponsor of MLS, opening MLS League and Club marketing assets, such as stadium signage, to them. The sponsorship deal is valued at roughly US$12 million over the four year period.
Sara Lee Acquisition
On November 9, 2010, Grupo BimboGrupo Bimbo
Grupo Bimbo is the largest Mexican food company and the largest bakery in the world with brands in Americas, Europe, and China.-History:Grupo Bimbo was established in Mexico in 1945 by Lorenzo Servitje, Jose T. Mata, Jaime Sendra, and Jaime Jorba...
announced that it has agreed to acquire the North American Fresh Bakery business of the Sara Lee Corporation. The transaction, which is subject to regulatory review, would combine the largest and third largest baking companies in the United States, as measured by annual sales. The deal is reported as costing US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
959 Million. This acquisition will leave Bimbo Bakeries USA with 75 bakeries in 31 states, serving the entire continental United States through more than 13,000 sales routes.
The acquisition would bring approximately US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
2.1 Billion in sales to Bimbo Bakeries USA, for a rough total of US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
6 Billion. This would make Bimbo Bakeries USA more than twice twice as large the number two bakery company in the United States, Flowers Foods.
Sara Lee Corp. acquired its fresh baked division in 2001 with the acquisition of Earthgrains for a then industry record of US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
2.8 Billion. This sale represents a 66% discount.
In an announcement made to the media by Gary Prince, President of Bimbo Bakeries, he stated, "This transaction demonstrates Grupo Bimbo's commitment and singular focus on baking.Our goal is to build a U.S. bakery business that provides the highest quality products and best value to customers and consumers."
This acquisition will bring together Sara Lee's successful Soft & Smooth line of product with other national brands such as Oroweat/Arnold.
Main brands
- Arnold/Oroweat – Producer of loaf bread primarily sold throughout the United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
. - Bimbo – Producing cakes and bread. Bimbo breads and cakes are found in major United States cities with large MexicanMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and Mexican-American populations. - Boboli – Producer of ready-made pizza crusts.
- Entenmann'sEntenmann'sEntenmann's is a company that manufactures and delivers sweet baked goods. The company offers dessert cakes, donuts, ultimates, cookies, loaf breads, pies, club packs, singles, cereal bars, little bites, Enten-mini’s products, as well as Danish, crumb cakes, and buns...
– Pastry baker in the United States. - Marinela – Producer of Mexican cookies.
- Mrs. Baird's – A leading bakery primarily present in TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
and surrounding states. - Stroehmann's – With Oroweat above, a producer of loaf bread in the United States.
- Thomas'Thomas'Thomas is a brand of English muffins and bagels in North America. It is owned by Bimbo Bakeries USA, which also owns Entenmann's, Boboli, Stroehmann, and Arnold bread companies. It advertises as having "nooks and crannies" in the muffins, making it less dense than competitive brands...
– Producer of English muffins and bagels. - Tía Rosa – Producer of home-style bread, pastry, and tortillas.