US distributor targets Mexico

24 November, 2006
The ambitious US distribution company Nascent Wine has bought a Mexican distributor of bakery supplies as part of a plan to become the largest food distributor by scooping up many of the country's 25,000 small distributors.
Nascent paid MEX$290,000 (£14,000) for JM Distribucion, which supplies bakers in Tijuana, Mexicali and Ensenada and represents three large Mexican brands (Produpan, Marglas and La Florida) and the US bakery supplier Bakemark-Westco.Nascent's chief executive Sandro Piancone said Nascent already has three other Mexican distributors in its sights. There are over 25,000 foodservice distribution companies in Mexico with estimated annual revenues of approximately $1.5 million, said Nascent.Mexico's poor roads mean distribution is handled by small vehicles making frequent deliveries.

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