CHICAGO—Mondelēz International has acquired Grupo Bimbo’s confectionery business, Ricolino, for approximately $1.3 billion, according to a news release.

“Ricolino is a growing business with a leading confectionery position in Mexico,” wrote Mondelēz in the release. “The acquisition will transform Mondelēz International’s business in the high-priority Mexico market to accelerate growth and scale in core snacking categories.”

The acquisition will double the size of Mondelēz Mexico’s business and allow the company to enter the chocolate category, while expanding the company’s presence in snacking. For Grupo Bimbo, the acquisition will allow it to focus on its grain-based baking and snacks businesses.

“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” said Dirk Van de Put, chairman and CEO of Mondelēz International. “We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”

Ricolino’s chocolate and candy brands have more than 2,100 direct store delivery routes and reach 440,000 traditional trade outlets.

“We ventured into the confectionery industry with the establishment of Ricolino in 1970; today, after 52 years of growth and progress, it is the industry leader in Mexico. We truly recognize the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work. I’m confident that Mondelēz International will leverage these amazing brands to a much higher position,” said Daniel Servitje, chairman and CEO of Grupo Bimbo.

With about $500 million in annual revenue, Ricolino employs nearly 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including convenience stores, traditional trade, supermarkets and others. Its brands include Ricolino, Vero, La Corona and Coronado and offer lollipops, marshmallows, chocolates, gummies and other confectionery products.

The acquisition of Ricolino will build on Mondelēz’s continued prioritization of fast-growing snacking segments in key geographies. In January 2022, Mondelēz closed on its acquisition of Chipita, a Central and Eastern European snack-size cakes and pastries category. In 2021, Mondelēz acquired Grenade, a U.K. performance nutrition company; Gourmet Food Holdings, an Australian food company in the biscuit and cracker category; and Hu, a well-being snacking company in the United States.

Meanwhile, Yumy Candy, based in Vancouver, British Columbia, Canada, is expending into the U.S. Yumy Candy products are plant-based and low-sugar, according to a news release. The company is looking for potential distribution partners and food brokers to help facilitate the expansion.

“After landing on the shelves of Canada's largest retailer and Western Canada's largest retailer, the company has become a very desirable brand for many U.S. distributors and has been evaluating all options,” wrote Yumy Candy in the release.

This is the first international expansion for the company.