How does Guaymallén manage to sell one of the cheapest alfajores in Argentina and still build a gigantic business?

While other brands opted for premium alfajores, sophisticated chocolates, elegant packaging, and ever-increasing prices, Guaymallén chose a completely different path: earning little on each alfajor… but selling millions.

And that's no exaggeration.

The company boasts a production of millions of alfajores per day and around 1.2 billion distributed annually.

But behind that low price lies much more than cheap ingredients.

Automation, economies of scale, supplier negotiations, mass distribution, reduced margins, and a philosophy that Hugo Basilotta has been repeating for years: high volume, low profit.

In this video, we analyze the history and business model of Guaymallén: how it went from producing alfajores in a rented bakery in 1945 to becoming one of the most popular brands in Argentina.

We'll also understand why Guaymallén never tried to become Havanna, how they manage to reduce their costs, why they practically didn't need traditional advertising, and what happened when they had the opportunity to sell the company.

Because behind a cheap alfajor, there's a business strategy much more interesting than it seems.

Which do you choose: Guaymallén or Havanna?

Tell me in the comments which is your favorite alfajor and subscribe for more stories about companies, businesses, brands, and strategies.

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