A bread that sells for 160 billion yuan has embarked on a trillion-yuan snack business | An exclusive interview with senior executives of Bimbo China.

Author｜Li Xiaoxia

How large a scale can a bread with an 80-year history create?

In 2023, the answer is 160 billion. The protagonist behind this number is Bimbo, which was born in Mexico in 1945.

In the long development trajectory of this global bread giant, just like many international food giants, mergers and acquisitions have become an important footnote for its global expansion. According to statistics, in the 20 years since 1998, Bimbo has acquired more than 40 baking companies worldwide at a rate of nearly 2 per year.

This bold "shopping spree" strategy has also been brought to the Chinese market.

In 2006, it officially entered China by acquiring Beijing Panrico Food Processing Center. Later, it successively acquired the well-known ready-to-eat hamburger brand "Million Manor" in Beijing and "Mankattan", the second-largest bread manufacturer in China at that time. Nowadays, the three together form the brand triangle of the group in China.

After 18 years in China, Bimbo has set foot in 113 cities, with a sales network of more than 25,000. Products such as Dofino Corners, Ultra-Pure Sliced Bread, and Hand-Torn Bread have become the daily choices of many people. Even if you are not the audience of the star products, it is inevitable that you will eat hamburger buns supplied by Bimbo in several Western fast food restaurants.

But for Bimbo, occupying users' three meals a day is far from enough. The group also wants to explore business increments in more non-meal scenarios.

Recently, Mankattan, a brand under the Bimbo Group, launched the "Bread Crunchy Cubes" product, further expanding its product matrix in the Chinese market. As Zhang Li, the general manager of Bimbo China, said, the launch of Mankattan's "Bread Crunchy Cubes" marks Bimbo's official entry into the casual snack track in China.

This is a golden land with a trillion-dollar imagination, giving birth to brands such as Bestore, Three Squirrels, and Yanjinpuzi; it has also made affordable snack chain stores like Snack很忙 and Hao Xianglai rise rapidly; even tea drink brands have joined the game. For example, the snack item of bread cubes has become popular among young people with the boost of Chayan Yuese.

Although it is a newcomer to the casual snack track, in Zhang Li's view, as a bread brand, Bimbo has a unique advantage in the bread cube product. First, compared with the products on the market, Bimbo uses toast made through the Tangzhong fermentation process instead of the mainstream alkaline water bread, and undergoes low-temperature fermentation and secondary baking. The total process lasts for 28 hours, ensuring a crispy texture, which also makes it possible to mix the product with yogurt, salad, and ice cream.

Bread cubes are an incision for Bimbo to open the casual snack track. According to Zhang Li, as planned, more new products will be continuously launched in 2025 to further enrich the casual food matrix of Bimbo China.

In addition, Bimbo will also make efforts in brand promotion. "By matching rich content and product scenarios, we can reach consumers and let more consumers gradually know Bimbo."

The following is a conversation (edited) between 36Kr and Zhang Li Kelly, the general manager of Bimbo China:

Zhang Li Kelly, the general manager of Bimbo China

The Incision of the Casual Snack Track

36Kr: What considerations led to the launch of the bread cube product?

Kelly: The casual snack market has a market scale of trillions and is still growing every year. We have been looking for growth points and saw this opportunity, thinking it is a great time to enter. We are one of the earlier bread brands to make bread cubes.

In addition, as a bread brand, we deeply understand consumers' thoughts and taste requirements for bread-related products, and we are qualified to make such a product. Previously, Bimbo's products, such as sliced bread and hamburgers, were more focused on meals. Now, bread cubes have jumped out of the three-meal category and can be eaten when feeling a little tired or hungry. The application scenarios are very broad.

For the expansion of our own product categories, it is of great significance. Bimbo's past categories in China were mainly in baked bread foods, so the application scenarios were somewhat limited. And bread cubes have opened up a new track for Bimbo, the casual snack track, which is a product independently developed by our China market. At the same time, using Bimbo's global product layout, we found that if there are good casual snack products in other markets, we will apply to the headquarters to introduce them to the Chinese market, thereby further enriching the casual food matrix of Bimbo China.

36Kr: Why is it at this point?

Kelly: I joined the company in March (2024), and since then, I have been inventorying and sorting out the new product structure, talents, and brand awareness enhancement. After the sorting, I found that it is very crucial to quickly launch good new products, so later, several relatively successful new products were launched one after another.

For example, the Brioche Potato Burger was launched in May, and later the Bear Toast was launched, which received a good response in Sam's Club and Costco; including the bread cubes launched in late November 2024, which also received a good response. Of course, the product is still in the promotion period. Not long ago, we also introduced a talk show activity to establish a connection with the product in a way that young people like. I believe it can grow into one of Bimbo's main products in China.

36Kr: Is the bread cube a localized product in China or is it globally available?

Kelly: Bimbo has a great mechanism. Every year, the headquarters will hold an internal event where representatives from various countries will come and present their flagship products. If other countries are interested, they can place an order. So if our bread cubes sell well in China, we can take them to the event in the next year or two, and there is hope that they will be promoted to other countries.

Localization and Brand Awareness

36Kr: What attempts has Bimbo China made in localization?

Kelly: Since we entered the Chinese market, we have made many localized improvements. The first is the taste. The tastes of Chinese consumers are not completely the same as those of foreigners. For example, in some foreign places, people like products with a high sugar content. After introducing them to the Chinese market, we need to make some modifications to meet the taste needs of Chinese people.

Nowadays, Chinese consumers are particularly concerned about health, low-fat, and low-sugar, etc. Based on these needs, we have also launched zero-sugar toast, high-fiber whole wheat sliced toast, etc. Because we are in this market, we can directly understand the needs of consumers without waiting for the headquarters to tell us what to do. We have local R & D and local factories in China. So once a relatively large market demand is found, the local team can quickly develop and produce many corresponding products.

36Kr: From what you said, we have only recently started to focus on brand promotion. It seems that Bimbo's brand voice was not high in the past?

Kelly: Our brand has a higher awareness in the eastern and northern regions of China, but it is definitely not enough to be only in these two regions. Therefore, we hope that in Central China, South China, and other places, more consumers can gradually know Bimbo. In addition, the expansion of channels is also a process of improving brand awareness. Both offline and online are platforms for brand promotion.

At the same time, we will also reach consumers through rich content matching and product scenario matching, as well as some distinctive corporate social responsibility projects, such as the Bimbo Global Run to enhance Chinese consumers' recognition of us. Next, we will also have some brand co-branding actions. In short, for different target consumer groups, we will use the methods they like and through appropriate media channels to increase brand awareness.

The Brand is the Foundation

36Kr: On the one hand, the market is highly competitive now, and consumer behavior is also changing. How does Bimbo face these challenges?

Kelly: Currently, we are facing price competition almost every day, but we do not want to participate in it. In the end, there are no winners in a price war. As a brand that has been established for nearly 80 years and adheres to long-termism, we hope to achieve a certain profit, so that we can further innovate, develop, and attract more excellent talents, in order to become better and better. So now we are trying to develop in the direction of innovation, and bread cubes are our innovative product. In the entire global product matrix of the Bimbo Group, there is not yet a casual snack made with bread. The Mankattan Bread Crunchy Cubes launched in the Chinese market is the first, so we are looking forward to this new product winning the favor of Chinese consumers, and in this way, we can also reverse the output of our innovation in the Chinese market to other countries.

In addition, the brand is the foundation of our foothold. Bimbo has a history of 80 years, and it has entered China for nearly 20 years, and the Mankattan brand has also been established for 30 years. The brand brings a sense of trust, and how to further make good use of these brand assets is also something in our plan.

36Kr: So Bimbo is also affected by the price war?

Kelly: In the current environment, it is indeed impossible to completely get rid of the price war. Therefore, in terms of products, we need to be competitive, and bring sales through the attractiveness of the product itself rather than relying on low prices.

36Kr: Does Bimbo have some products to meet the trend of cost performance?

Kelly: Consumption is stratified like a pyramid. The mass consumption corresponds to the larger base at the bottom of the pyramid. Bimbo has launched relatively affordable products such as Old-Fashioned Bread and Fruit Bread to meet the needs of the mass consumers. At the same time, there are also consumer needs at the top of the pyramid, and we will attract these people through innovation.

36Kr: As you said, Bimbo is almost 80 years old. How to keep the brand young?

Kelly: Although Bimbo has a history of 80 years, it gives a certain degree of freedom to the teams in various countries. For example, Mankattan Bread Crunchy Cubes is a young product independently developed by our Chinese team. I myself come from Procter & Gamble. After coming to Bimbo, I have recruited many professional managers from various companies, and these talents have also provided many new ideas. Bimbo has a very ambitious goal in the Chinese market. Everyone works together to innovate around this goal, so that the brand can quickly catch the attention of young people. Therefore, we are not worried that an 80-year-old brand cannot rejuvenate in China.

36Kr: Besides first- and second-tier cities, does Bimbo have a layout in the lower-tier markets?

Kelly: Wherever there are business opportunities, we will cover them.

36Kr: In 2024, Bimbo increased its investment in the China region by 17 million US dollars. What will it mainly be used for?

Kelly: First, it is mainly used for quality and food safety. Second, it is for the purchase of equipment required for new product development. Then, it is to increase production capacity and improve the production environment.

36Kr: What will be the focus of your work in 2025?

Kelly: Building a united and strong team is very important, which will bring many differences. Then, it is the improvement of efficiency. For example, there are requirements for new product development. Our team needs to do a lot of preliminary research work, hoping that the launch of each new product can bring considerable sales growth. In the future, we can improve the efficiency of our investment in market research and development. At the same time, sustainable development is also crucial. In terms of social responsibility, green production, etc., we need to gradually align with the headquarters.

At the same time, we will implement the culture of the Bimbo Group in China, develop the business, including developing new products, expanding channels, and enhancing brand awareness. I believe 2025 should be a good year.