By Sarah Morland
MEXICO CITY (Reuters) -Grupo Bimbo, one of the world's largest breadmakers, said on Thursday it would cut artificial colorings from all of its products by the end of next year, as consumers turn more health-conscious when shopping for staple foods.
Shorter term, executives at the Mexico City-based company said Bimbo's entire bread bun and breakfast range would by the end of this year have a positive nutrition - or a so-called health star rating - of at least 3.5 stars, as it looks
to simplify recipes and boost nutrition by 2030.
WHY IT'S IMPORTANT
Scientists have linked synthetic dyes such as Red 40 and Yellow 5 to behavioral challenges, allergies and respiratory issues in children and other vulnerable consumers, and some major regulators have ordered usage caps and label warnings.
In parts of the U.S., some activists have pushed for bans on synthetic dyes particularly in food destined for school meals.
BY THE NUMBERS
Bimbo estimates it is the largest single supplier of baked goods worldwide, with a close to 4% global market share of a $641 billion industry. It sells thousands of well-known staple products worldwide such as sliced bread and packaged snacks.
Last year, these brought in $22 billion in sales. Executives said they did not expect a major cost impact from cutting artificial colorings.
KEY QUOTES
"By the end of 2026, we will have removed artificial colors from all our portfolio and by 2030 we're going to ensure that 100% of our baked goods and snacks will be made with simple, natural recipes," Bimbo Chief Financial Officer Diego Gaxiola told analysts in a call.
"We're seeing that for younger consumers functional benefits are clearly important. It's not a fad, it's a trend."
(Reporting by Sarah Morland; Editing by Jamie Freed)
