Mexico | Regional Retailer Soriana Expected To Acquire Gigante | From reliabl...
Mexico
Regional Retailer Soriana Expected To Acquire Gigante
From reliable sources, USMEF has been informed that one of Mexico’s leading supermarket chains, Monterrey-based Soriana, will purchase Gigante, a longstanding family owned supermarket company, with the announcement coming perhaps as early as today. Reportedly, Soriana will purchase 248 Gigante supermarkets in Mexico and seven in Los Angeles, Calif. With this acquisition, Soriana will gain much greater access to the huge Mexico City metropolitan market, where available real estate for supermarket development is extremely limited. The number of Soriana supermarkets will increase to 510 compared to the industry leader Wal-Mart with 564 stores nationwide.
The U.S. share of red meats (beef and pork) sold throughout Soriana supermarkets is approximately 70-80 percent compared to 40-60 percent for Gigante. Thus, this acquisition should be good news for the U.S. red meat industry. Soriana has one meat buyer for the entire company, whereas Gigante has five regional buyers who purchase red meats from many sources. It is unclear how this purchasing structure might change as a result of this acquisition. To the extent the larger economies of scale will result in cost savings for consumers, demand for U.S. red meats may increase.
For many years USMEF has worked effectively with both companies, and looks forward to working collaboratively with Soriana to increase the presence of U.S. red meat in the meat cases of the acquired Mexico-based Gigante supermarkets.
Mexico
Regional Retailer Soriana Expected To Acquire Gigante
From reliable sources, USMEF has been informed that one of Mexico’s leading supermarket chains, Monterrey-based Soriana, will purchase Gigante, a longstanding family owned supermarket company, with the announcement coming perhaps as early as today. Reportedly, Soriana will purchase 248 Gigante supermarkets in Mexico and seven in Los Angeles, Calif. With this acquisition, Soriana will gain much greater access to the huge Mexico City metropolitan market, where available real estate for supermarket development is extremely limited. The number of Soriana supermarkets will increase to 510 compared to the industry leader Wal-Mart with 564 stores nationwide.
The U.S. share of red meats (beef and pork) sold throughout Soriana supermarkets is approximately 70-80 percent compared to 40-60 percent for Gigante. Thus, this acquisition should be good news for the U.S. red meat industry. Soriana has one meat buyer for the entire company, whereas Gigante has five regional buyers who purchase red meats from many sources. It is unclear how this purchasing structure might change as a result of this acquisition. To the extent the larger economies of scale will result in cost savings for consumers, demand for U.S. red meats may increase.
For many years USMEF has worked effectively with both companies, and looks forward to working collaboratively with Soriana to increase the presence of U.S. red meat in the meat cases of the acquired Mexico-based Gigante supermarkets.