(Bloomberg) -- A unit of Mexico's Alfa SAB that sells prepared foods in supermarkets and convenience stores may swap pork for turkey and powdered milk for fresh in an effort to keep prices low.
Sigma Alimentos has “reformulation capabilities” to help combat inflation while still offering products that consumers want, Chief Financial Officer Roberto Olivares said Tuesday during a conference call about first-quarter earnings. The company is one of Mexico's leaders in the production and distribution of refrigerated and frozen food.
His comments were in response to an analyst's question about a proposed pact between President Andres Manuel Lopez Obrador's government and food companies. Mexico is seeking a pact with private companies to limit price increases of basic items in a bid to tame the fastest inflation in two decades. The government is said to have met with representatives of leading companies to discuss the plan, although it's not yet decided which goods will be included in the agreement.
Sigma's capabilities “give us advantage in a sense that we can reformulate products to maintain the preference of our consumers and reduce costs if necessary,” Olivares said on Tuesday's call. “For some particular products that we market as being pork and poultry we can move from turkey to pork.”
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
