Argentina consumption crisis hits bakeries and major brands

Argentina is facing a significant consumption crisis, impacting both small businesses and established brands. In Córdoba, the bakery sector is experiencing an unprecedented downturn, with sales of specialty products dropping by up to 50%. Rising production costs—including a 700% increase in fats and margarine and a 1,700% surge in gas prices—have forced the closure of 30 bakeries in the region. Marcelo Caula, president of CIPAC, noted that the current economic pressure is more severe than that seen during the 2001 crisis.

Major companies are also feeling the impact. Havanna reported a net loss of $747 million for the second quarter of 2026, with total sales declining by 9.7% compared to the same period in 2025. While the company's core products like alfajores saw a 3.1% drop in volume, it is looking toward exports to stabilize its performance in the latter half of the year.

The broader economic landscape remains challenging for small and medium-sized enterprises (SMEs), with estimates suggesting up to 40,000 SMEs could close by the end of the year in Argentina. High interest rates, exceeding 70% to 100% annually, further complicate access to credit. In response, ENAC is promoting a SME Emergency Law to seek relief through suspended embargoes and reduced energy tariffs.