Latin America and the Caribbean

Nourishing a Better World

An Interview with Daniel Servitje, Chairman and Chief Executive Offi cer, Grupo Bimbo SAB de CV

EDITORS’ NOTE Daniel Servitje the person is the center of everything selecting and nurturing our leaders so we share has served as CEO of Grupo Bimbo we do, and leaders are always close to those principles – valuing the human person in since 1997 and as Chairman since the operation and associates. their care and a passion for always reaching for 2013. He serves on the boards of Another important highlight is excellence in quality and service. Grupo Financiero Banamex, Coca- that Grupo Bimbo makes business Under your leadership, Grupo Bimbo Cola-Femsa, Mexican Institute for decisions with a long-term vision. We has expanded into the U.S., Europe and Competitiveness A.C. (IMCO), The reinvest profi ts, we always listen to Asia markets. How critical has the interna- Consumer Goods Forum, and Latin our customers’ needs and preferences, tional expansion of the business been for America Conservation Council we innovate, and we adapt our busi- the company and will you provide an over- (The Nature Conservancy). Servitje ness to the local cultures and cus- view of Grupo Bimbo’s global footprint? received an undergraduate degree toms of the many geographies where Our strategy has been to enter new markets from Universidad Iberoamericana we operate. through the acquisition of companies already and an MBA from Stanford Daniel Javier Servitje How do you define Grupo established and positioned with a brand port- Graduate School of Business. Bimbo’s culture and has it been folio who typically have a team of experts that important to keep a family feel as the busi- know the business and its local reality. When COMPANY BRIEF Grupo Bimbo SAB de CV ness has grown? we arrive at a new geography, we do it hum- (grupobimbo.com) is the global leader in the Our culture has been evolving for more bly and with the conviction that we must learn. baking industry and an important player in than 75 years, but it is grounded and retains sev- We take enough time to understand the market, snacks. With annual sales of more than $15 bil- eral universal principles. We believe in serving, culture, customs, habits, and at the same time lion, 197 plants, and more than 135,000 associ- we believe in treating each other with respect, we focus on fully understanding the operation. ates and 2.8 million points of sale, the company fairness, trust and caring (our Golden Rule), and We are aware that each business we acquire produces and distributes fresh and frozen sliced we believe in continuous improvement. These always has best practices that we can adopt at bread, buns, cookies, snack cakes, English muf- core principles and a few others are the basis Grupo Bimbo. fi ns, bagels, pre-packaged foods, tortillas, salted of our culture and have been well-received in Grupo Bimbo’s expansion has not only snacks and confectionery products, among oth- every geography we have entered, so much so been by geography, but also by incorporat- ers, across 33 countries throughout the world. that we share the same Purpose, Mission, and ing new business units. For example, in 2016 Beliefs in every country and in every language. we acquired East Balt Bakeries, dedicated 100 Will you highlight the history and heritage We believe that in the end, we are all percent to the QSR (Quick Service Restaurants) of Grupo Bimbo and what have been the much more alike than we are different. We business. Another example is our own electric keys to the consistent strength and leader- also believe that a company is a refl ection of its vehicles plant, located in Mexico, which has ship of the business? people, and that the people are a refl ection of already provided more than 500 electric distri- Grupo Bimbo is a Mexican company their leaders. This is why we place extra care in bution vehicles to our fl eet. founded 75 years ago. We started operations in 1945 with only four products, 37 associates and 10 distribution vehicles. Its founders, a group of fi ve young entrepreneurs, saw the opportu- nity to sell cellophane wrapped sliced bread, a “Grupo Bimbo is what it is today because of the signifi cant improvement over existing alterna- tives, ensuring quality, safety and freshness, and offering excellent customer-focused service. vision of its founders – to always deliver superior The success of the brand drove not only the geographical expansion of the company, but quality and excellent service to the customer, also the development of other baked products and categories. By 1990, Grupo Bimbo began its international expansion by opening its fi rst nurturing the company’s culture where the person bakery outside of Mexico, in Guatemala. Today, Grupo Bimbo has 197 bakeries in 33 countries in North and South America, Asia, is the center of everything we do, and leaders are Europe and Africa, more than 13,000 products and 135,000 associates. Its 2019 sales were $15.1 billion. Grupo Bimbo is what it is today because always close to the operation and associates.” of the vision of its founders – to always deliver superior quality and excellent service to the cus- tomer, nurturing the company’s culture where 174 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2021 LEADERS MAGAZINE, LLC VOLUME 44, NUMBER 2 Latin America and the Caribbean

“At Grupo Bimbo, on the occasion of our 75th anniversary, we renewed our Nourishing a Better World purpose, responding to the challenges of today and preparing ourselves for the challenges of tomorrow. Now our purpose is ‘Nourishing a Better World.’”

An Interview with Daniel Servitje, Chairman and Chief Executive Offi cer, Grupo Bimbo SAB de CV

EDITORS’ NOTE Daniel Servitje the person is the center of everything selecting and nurturing our leaders so we share Grupo Bimbo has been referred to as responsibility and commitment to society. At I would say that most of my style was has served as CEO of Grupo Bimbo we do, and leaders are always close to those principles – valuing the human person in “the biggest company you have never heard Grupo Bimbo, now more than ever, we reaf- acquired by following the example of two great since 1997 and as Chairman since the operation and associates. their care and a passion for always reaching for of.” Is there an effective understanding and fi rm that we are part of a great family where leaders who were the founders of the com- 2013. He serves on the boards of Another important highlight is excellence in quality and service. awareness of Grupo Bimbo’s business? we take care of each other and together we pany: my father Lorenzo Servitje and my uncle Grupo Financiero Banamex, Coca- that Grupo Bimbo makes business Under your leadership, Grupo Bimbo Grupo Bimbo is the largest baking com- move forward, as we have done on previous Roberto Servitje. I think people would describe Cola-Femsa, Mexican Institute for decisions with a long-term vision. We has expanded into the U.S., Europe and pany in the world. However, while we cur- occasions. me as curious, active and challenging of the Competitiveness A.C. (IMCO), The reinvest profi ts, we always listen to Asia markets. How critical has the interna- rently have presence in 33 countries, we only Grupo Bimbo is a purpose-driven com- status quo. I really like being close to where the Consumer Goods Forum, and Latin our customers’ needs and preferences, tional expansion of the business been for have 4.2 percent of market share. In many pany and deeply engaged in the communi- business happens, in the marketplace and at our America Conservation Council we innovate, and we adapt our busi- the company and will you provide an over- countries where we operate, we are known ties it serves. Will you discuss your views plants and sales centers. (The Nature Conservancy). Servitje ness to the local cultures and cus- view of Grupo Bimbo’s global footprint? for our iconic brands such as Bimbo, Takis, on the role of business as a force for good Are you able to take moments to re ect received an undergraduate degree toms of the many geographies where Our strategy has been to enter new markets Entenmann’s, Sara Lee, Thomas, Oroweat, in society and the need for leading compa- and appreciate what you have accomplished from Universidad Iberoamericana we operate. through the acquisition of companies already Dempster’s, Villagio, Bon Matin, New York nies to address global challenges? or are you always looking at what is next? and an MBA from Stanford Daniel Javier Servitje How do you define Grupo established and positioned with a brand port- Bakery Co, for example. In many others, as The purpose of a company is its reason I do take the time to take a break and Graduate School of Business. Bimbo’s culture and has it been folio who typically have a team of experts that we have entered through acquisitions, we for existing and it goes far beyond generating reflect on and appreciate the past, but I am important to keep a family feel as the busi- know the business and its local reality. When are recognized through those existing brands. money. It must guide everything we do, inspire always looking forward with a long-term vision. COMPANY BRIEF Grupo Bimbo SAB de CV ness has grown? we arrive at a new geography, we do it hum- In countries like Morocco and China, for us – all of us who work in it – to get up every I think it is important to celebrate achieve- (grupobimbo.com) is the global leader in the Our culture has been evolving for more bly and with the conviction that we must learn. example, we’ve decided to offer a portfolio day. It is our contribution to the world and what ments, but also to accept new challenges, both baking industry and an important player in than 75 years, but it is grounded and retains sev- We take enough time to understand the market, under the Bimbo brand as well. we do for society. The role of companies must personal and professional. This motivates us to snacks. With annual sales of more than $15 bil- eral universal principles. We believe in serving, culture, customs, habits, and at the same time We believe that the way to increase the be precisely that - their purpose. do more, set more ambitious goals as people lion, 197 plants, and more than 135,000 associ- we believe in treating each other with respect, we focus on fully understanding the operation. knowledge of the company and its positioning Companies must assume the com- and as a company. Within Grupo Bimbo, every ates and 2.8 million points of sale, the company fairness, trust and caring (our Golden Rule), and We are aware that each business we acquire is through our extensive portfolio, fulfi lling our mitment and responsibility to move firmly associate at every level of the organization has produces and distributes fresh and frozen sliced we believe in continuous improvement. These always has best practices that we can adopt at commitments with consumers, the community, towards a sustainable operation, we must bet a business plan that we regularly review. It bread, buns, cookies, snack cakes, English muf- core principles and a few others are the basis Grupo Bimbo. the planet and other stakeholders, as well as on quality and the most advanced technolo- aligns and connects everyone’s work to the fi ns, bagels, pre-packaged foods, tortillas, salted of our culture and have been well-received in Grupo Bimbo’s expansion has not only through a robust local and global communica- gies, as well as having leaders who inspire broader goals of the business and is adapted snacks and confectionery products, among oth- every geography we have entered, so much so been by geography, but also by incorporat- tion strategy. with the most prepared minds and open to to each associate’s working environment. It is ers, across 33 countries throughout the world. that we share the same Purpose, Mission, and ing new business units. For example, in 2016 How has Grupo Bimbo adapted its innovation. Above all, we must act as a good a tangible way to guide, track and appreciate Beliefs in every country and in every language. we acquired East Balt Bakeries, dedicated 100 business to address the challenges brought corporate citizen who contributes to the our successes. Will you highlight the history and heritage We believe that in the end, we are all percent to the QSR (Quick Service Restaurants) on by the pandemic and how proud are you development of the communities where we Did you always know that you wanted of Grupo Bimbo and what have been the much more alike than we are different. We business. Another example is our own electric to see the way Grupo Bimbo’s workforce live and serve, and at the same time, pro- to join the family business and what has keys to the consistent strength and leader- also believe that a company is a refl ection of its vehicles plant, located in Mexico, which has has displayed strength and resilience dur- mote equity and talent. made the family dynamic for Grupo Bimbo ship of the business? people, and that the people are a refl ection of already provided more than 500 electric distri- ing this challenging and uncertain time? At Grupo Bimbo, on the occasion of our work so well? Grupo Bimbo is a Mexican company their leaders. This is why we place extra care in bution vehicles to our fl eet. The health crisis due to COVID-19 started 75th anniversary, we renewed our purpose, Grupo Bimbo has always been part of my founded 75 years ago. We started operations in in Wuhan, where we have a manufacturing responding to the challenges of today and pre- life; since my childhood, in our family conver- 1945 with only four products, 37 associates and facility. Before the pandemic spread to the paring ourselves for the challenges of tomor- sations, and in my relationship with my father 10 distribution vehicles. Its founders, a group entire world, we had already experienced some row. Now our purpose is “Nourishing a Better and other relatives. You could say that I have of fi ve young entrepreneurs, saw the opportu- of the diffi culties and shared best practices with World.” been associated with Bimbo even before being nity to sell cellophane wrapped sliced bread, a “Grupo Bimbo is what it is today because of the our operations. As part of an essential indus- What do you see as the keys to effec- born. In Grupo Bimbo’s history, there have only signifi cant improvement over existing alterna- try, our responsibility was to ensure the avail- tive leadership and how do you describe been three CEOs, and two of them were original tives, ensuring quality, safety and freshness, and ability of our products, and at the same time, your management style? founders. I am the third and, in my case, my offering excellent customer-focused service. vision of its founders – to always deliver superior offer our associates a safe workplace. Among At Grupo Bimbo, we want leaders to boss, who trained me and who continues to be The success of the brand drove not only the our most immediate and relevant actions were be capable of communicating the compa- my mentor, has always been my uncle Roberto. geographical expansion of the company, but quality and excellent service to the customer, implementing all preventive measures in work ny’s purpose with clarity and passion and My father had his role as father, advisor and also the development of other baked products centers and vehicles, offering safe work envi- always treating their associates with our mentor, but he never was my direct supervisor and categories. By 1990, Grupo Bimbo began ronments for associates, and ensuring the sup- Golden Rule, which is to treat each other which I think was benefi cial in my growth and its international expansion by opening its fi rst nurturing the company’s culture where the person ply chain was secure so all essential ingredients with respect, justice, trust and affection. We professional development. bakery outside of Mexico, in Guatemala. remained available. We were privileged that believe that the best leader is the one who Grupo Bimbo was not conceived as a Today, Grupo Bimbo has 197 bakeries in the manufacturing of our products was most in presents the vision of a desirable future and family business. It has always had much clar- 33 countries in North and South America, Asia, is the center of everything we do, and leaders are demand during this period and that our direct who helps his team to achieve it. He or she ity in its structure, in its business objectives, Europe and Africa, more than 13,000 products store delivery model helped us meet our cus- is someone who sets ambitious goals, and as well as in its philosophy. Grupo Bimbo and 135,000 associates. Its 2019 sales were $15.1 tomer needs. supports and guides his/her team, removes became a public company in 1980. Since then, billion. Grupo Bimbo is what it is today because always close to the operation and associates.” These have been very diffi cult times for obstacles and empowers his or her associates the founder families have been represented on of the vision of its founders – to always deliver all of us and without the work and dedica- to achieve those goals. Likewise, these lead- the Board of Directors. Grupo Bimbo applies superior quality and excellent service to the cus- tion of each of Grupo Bimbo’s associates, ers value diversity and foster a true sense of the best corporate governance practices across tomer, nurturing the company’s culture where we would not have been able to fulfill our belonging among their associates. its entire business.• VOLUME 44, NUMBER 2 POSTED WITH PERMISSION. COPYRIGHT © 2021 LEADERS MAGAZINE, LLC LEADERS 175