After managing to overcome a union dispute with a group associated with a left-wing party that even cut off access to the factory, Georgaros launched a range of products integrated into its assets and resumed operations.
actually, Owner of the traditional Mantecol brand landed in a new category under the concept of “Georgaros Activates Ice Cream Mode”, with an initial production of 1.5 million units, and the venture required an investment of nearly $1.5 million.
In this way, the company began to compete in this space with the most iconic brands such as Mantecol, Palitos de la Selva, Flynn Puff, Toddy and Full Mani, which are sold through kiosks, local stores, supermarkets and even digital channels.
The strategy is part of an expansion plan launched by the Guillermo Rimoldi-led company last May, and is supported by capital injections of approximately US$100 million from various alternative sources, with the aim of raising these funds over the next few years.
To achieve this objective, the Georgaros Board of Directors hired Banco Santander to consider financing variations, such as partnerships, joint ventures, or even the incorporation of a new partner, without going through this process with consideration for the resale of Mantecol.
Tough times for Georgaros
However, despite the country’s economy showing a more favorable picture after the elections on October 26 last year, the company put its plans on hold, at least until signs of detente solidify and President Javier Millay’s government is able to reshape Argentina’s macro scenario in a positive and continuous manner.
The path of obtaining funds to fund a domestic growth strategy and regionalize Georgaros was not ruled out, but rather the company believes that deadlines need to be set more carefully when analyzing different variants to achieve these objectives.
Efforts to obtain new funds from new debt with the help of future asset purchases, particularly in countries that are part of the Andean Accord area and the Southern Cone, were also not abandoned, but the objective was “frozen” until a more sound situation was established, both from Argentina’s political and economic perspectives.
In that sense, another option currently on hold is to open Georgaros’ capital to the stock market in order to obtain sufficient funds from the capital market to achieve this regional insertion.
Specifically, the company’s management has decided to wait for the implementation of one of these two plans, such as selling part of the capital to a new strategic partner or preparing for a partial listing on the stock market.
Mantecol owners are trying to dispel uncertainty
The decision was taken independently of the political noise that is shaking Argentina by 2025, but the results of the elections were taken into account by the company’s board of directors.
This is understood within the company. Political uncertainty caused economic turmoil and disrupted several macroeconomic variables It is also undermined by the international scenario of increasing instability, which has caused negative effects on some of the content of this expansion process.
As a result of analyzing the situation, The process began to be carried out “more calmly” until “everything went well”, especially considering the following: Part of your strategy will depend on whether you take on debt or seek new capital.
The market conditions for this path have now changed, and after the successful launch of two Negotiable Obligation (ON) series, the company also plans to reissue these types of securities over time.
Temporary suspension of regional expansion plan, provisional decision
However, the company guarantees that Brakes are temporary He also said that the creation of new shareholders will be resumed soon, as the strategy faces the process of regionalization and introduction of cutting-edge technologies, and considers adding external partners to take the company’s productivity to another level.
This idea could be complemented by the addition of one or more foreign companies, which would allow Georgaros to have a strong presence in other markets in the region, while at the same time modernizing its current local factories and putting it in the forefront against the entry of increasingly growing and high-profile import competition.
Furthermore, Georgaros thinks this way. Pay attention to the financial health of your company The company managed to increase its sales year-on-year despite a decline in profitability, especially the profitability of its business.
This forces executives to “do their homework internally.” Adjust your accounting to match the profitability of your business, That’s because the remaining profits are typical of the inflationary process Argentina is still experiencing.
In this sense, inflation always hides the inefficiencies of enterprises, and considering that although the inflation wheel makes the funds paid at interest cheaper, but the profitability decreases by 2-3 points as a result of not adjusting the value of the product to market realities, it becomes easier to stop looking for these shortcomings.
Georgaros’ three-step plan
However, the macro scenario has changed since Georgaros announced the launch of national and regional growth plans, but the company insists this is a decision, although it admits it will “slow down” the speed at which it executes its strategy.
At least until the political and economic horizon becomes more stable and international capital feels more confident in pumping money into Argentine companies, or in risking its own capital to support new projects.
Furthermore, the strategy was developed with three key objectives: modernizing industrial infrastructure, launching new product lines and strengthening our productive presence in Latin America.
In this sense, in addition to improving the Rio Segundo factory, one of the oldest, the company is looking to add technology to make its processes more efficient, especially in the chocolate sector, with an investment of nearly USD 25 million planned for the factory.
Furthermore, it aimed to expand beyond commercial matters and establish productive operations in countries such as Chile, Uruguay, Paraguay, Peru, Ecuador, and Colombia.
At the same time, there remains an optimistic outlook for commercial operations in 2025, with sales expected to reach nearly USD 230 million, which will represent double-digit growth compared to 2024.
go home
Expansion plans are being resumed in July 2022, with Mr. Georgaros acquiring the Mantecol brand from the international group Mondelēz, and in this way regaining control of the iconic label, which over time has become generic in the sector with the edible patty and savola styles. Gillette for shaving, Bayaspirin for headaches.
This “return” was realized for the first time in 21 years since the Georgaros family sold it to Cadbury Schweppes, a local subsidiary of the British group, on January 18, 2001, citing the country’s economic situation and the bitterness that the effects of tequila had left on the Georgaros family.
At the time, the European group paid US$22.6 million, which helped Georgaros pay off most of the debt it had accumulated and leverage assets to produce new products.
However, this maneuver prevented the company from competing in the peanut dessert market for seven years before it launched Nuclem in 2008. Nuclem currently coexists with Mantecol and is produced at Mondelēz’s factory in Victoria, Buenos Aires.
Other traditional sweets such as giraffe, renguetazo, bazooka and palos de la selva are also produced at the facility. They were also part of Mantecol’s return to the company founded in 1939 by Miguel Georgaros, an immigrant who arrived from the Greek island of Chios in the 1930s and whose first creation was a peanut dessert derived from halva.
origin of myth
The name Mantecol comes from the words of this businessman’s neighbor. He claimed that the dessert looked very similar to butter bread because of the way it was wrapped and served in aluminum foil.
Georgaros then began production in the federal capital, more precisely in the Floresta district, in 1939, moving with his wife to a house on the corner of Avenida Segurola and Avenida Elpidio González.
A few years later, they purchased the old Allboys field on the same corner and located the first factory of the company, which was first called La Greco Argentina, but later became Georgaros Nunos.
At the end of the 1950s, the family began searching for fields in Cordoba to become self-sufficient in peanuts and develop their business, and ended up in the town of Rio Segundo. It became the company’s headquarters and a flagship brand that became increasingly well-known among Argentine consumers.
But beyond that recognition, the Mantecol name was strengthened by the friendship between Miguel Gheorgaros and Manuel García Ferre, the creator of Anteozito and who gave the company the back cover of a children’s magazine for many years. This strategy was one that helped the brand face a strong growth process until it was sold.
However, the company could regain the emblem in 2022, marking its second deal in nine months since October 2021 when it bought 100% of Alimesa SA, where Toddy and Zucor are produced at a PepsiCo-owned factory in La Rioja and added to Georgaros’ portfolio, along with Flynn Puff. Nuclem; Namur; Full Peanut. Tokke and Mantecol are the people who will be attending. Bazooka; Tangetaso and Jungle Stick.
Georgalos also has a line of sugar-free chocolate, separate pastries and nougat, jams and Christmas breads, and, following the acquisition of General Cereals, a line of Flow cereal bars and breakfast cereals.
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