Grupo Herdez Plans Spin-off to Expand Beyond Canned Goods
Source: dairynews.today
Grupo Herdez, a prominent player in the Mexican food industry, is planning a strategic spin-off to enhance its presence in growth areas beyond its traditional canned goods segment.
Grupo Herdez is preparing to approve the spin-off of its businesses outside the canned goods segment by the end of April. This move aims to strengthen its position in higher value-added categories with a direct connection to consumers. The company will consolidate its ice cream, coffee, and snacks brands under a new entity: Grupo Nutrisa, which will operate independently.
This restructuring is expected to capitalize on growth opportunities by focusing on retail formats with high expansion potential. As of 2024, Herdez reported sales of 37,425 million pesos, with the impulse segment, including brands like Nutrisa and Nestlé Ice Cream, contributing 5,102 million pesos, marking a 9.1% annual growth. Grupo Nutrisa will have administrative, commercial, and financial independence and will comprise 677 stores across Mexico, primarily in major cities.
The move seeks to offer a more agile platform for competing in spaces where brand experience is crucial. Upon approval, the restructuring will allow distributing Grupo Nutrisa shares as a dividend in kind to Grupo Herdez shareholders, potentially enhancing its market valuation.
This restructuring is expected to capitalize on growth opportunities by focusing on retail formats with high expansion potential. As of 2024, Herdez reported sales of 37,425 million pesos, with the impulse segment, including brands like Nutrisa and Nestlé Ice Cream, contributing 5,102 million pesos, marking a 9.1% annual growth. Grupo Nutrisa will have administrative, commercial, and financial independence and will comprise 677 stores across Mexico, primarily in major cities.
The move seeks to offer a more agile platform for competing in spaces where brand experience is crucial. Upon approval, the restructuring will allow distributing Grupo Nutrisa shares as a dividend in kind to Grupo Herdez shareholders, potentially enhancing its market valuation.
