Jorge Izquierdo Lobato's questions to Bbb Foods Inc (TBBB) leadership • Q4 2024
Question
Jorge Izquierdo Lobato of BTG Pactual followed up on the topic of private labels and new categories, asking how investors should think about fresh products within the sales mix. Specifically, he questioned whether the fresh category, if launched, should be considered part of private label sales.
Answer
Executive Kamal Hatoum answered theoretically, stating that since branding plays a minimal role in fresh produce, it should be thought of in the same way as a private label product. The focus would be on maximizing value and ensuring operational efficiency, just as they do when developing a private label item like canned beans. Therefore, he advised that if one had to classify it, it should be put in the 'bucket of private label'.