Bachoco, a Mexican producer and processor of poultry and other food products, announced July 12, 2017 that it reached an agreement to acquire La Perla, a pet food company located in the Mexican state of Queretaro.
This acquisition comprises all assets, which are located in the State of Queretaro in Central Mexico, including La Perla's brands, like CanPro, Choice Nutrition and Cat-trina, among others.
These assets have the capacity to produce over 65,000 tons of dry pet food per year and also comprise a facility for producing pet food treats.
Bachoco is a vertically integrated Company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are chicken, eggs, balanced feed, swine, and other products. Bachoco owns and manages more than a thousand facilities, organized in nine productive complexes and 64 distribution centers in Mexico, and a productive complex in the US.
"With this acquisition we are increasing significantly our pet food capacity, a product line in which we have had satisfactory results so far, and in which we see an interesting future,” stated Rodolfo Ramos, Bachoco's chief executive officer, in a press release. “Furthermore, this acquisition will allow us to enter into the pet food treats market, a growing sector in this business line. We will look to integrate this operation, as soon as possible, into our normal operations and capture the opportunities we have identified."
The company expects to close the deal through its subsidiary Campi Alimentos S.A. de C.V.
Growth within the Mexican pet food market
The acquisition may be indicative of a recent growth trend in the Mexican and greater Latin American pet food industry. Between 2011 and 2016, Latin America’s pet care industry outperformed the larger Western European market in key economic metrics, including compound annual growth rate (CAGR), noted a pet food industry analyst in a guest article for Interzoo 2018.
As incomes have risen in Mexico, pet owners have started to buy more superpremium pet foods, according to Ivan Franco of Triplethree International, a market research and analysis firm. Just as in the United States, Europe and China, Mexicans increasingly view dogs and cats as members of the family. This humanization trend leads people to want to spoil their pets, and value-added superpremium pet food is a prime way that they do so. In 2016, demand for superpremium pet foods marketed as holistic boomed in Mexico.