People have to eat, so food firms the world over give reassuringly consistent profits, even in lean times. Mexico is no different. The country’s 126m people buy $55bn-worth of packaged food annually. Sales of such fare have been growing quickly, notes Euromonitor, a research firm. Between 2015 and 2020 they expanded by 6.9% a year, compared with 4% in America.
This trend should have lifted the likes of Bimbo, the world’s largest baker, and Gruma, its biggest maker of tortillas. Instead, like many Mexican businesses in recent years of sluggish economic growth, they have fallen out of favour with investors. Stable profits notwithstanding, their market capitalisations are well below their peaks in the mid-2010s.
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