BRF starts operation of processed foods with lower price

SAO PAULO (Reuters)-the BRF will start this month the work of your third sale brand of processed foods, betting on a segment with lower price to help elevate the Group's margins through efficiency gains in your operation.
The new brand, called Kidelli, will be sold to atacarejo networks and independent distributors, and should reach the shelves between the end of this month and early February.
The line will be independent of the main brands of the BRF, Sadia and Perdigão, and won't have money for media campaigns, said the Vice President of the company's Brazil operations, Alexandre Almeida, the journalists.
"The new brand allows us to use very best our industrial park. This allows increasing our production without having impact on Sadia and Perdigão projects ", said the Executive.
Kidelli's products are produced in five of the 29 factories of the BRF in Brazil.
The company had announced intention to have a third brand of processed, whose products will be based on poultry and swine, last August.
Abdullah said that most of the production of Kidelli will use "leftovers of production" of the other brands of the company that today are sold to third parties in the country or exported. With the added value generated by the additional production of processed foods, the BRF wait raise your margins in the coming months, said the Executive without giving details.
The new brand will act in the market segment that works with 15% below average prices of more traditional brands as the current of the BRF and rivals such as Harvest, the JBS group.
The goal of the group is that the Kidelli have "competitive segment", which comprises some 30% of the Brazilian market of processed foods, said Abdullah.
Asked whether the BRF intends to raise prices of its other brands following the launch of the Kidelli, Abdullah said that the new brand will not change the current position of the sound and Perdigão prices.
INVESTMENT
The Kidelli will start to operate with a line consisting of 14 products, including "presuntaria", breaded, Bologna, sausages and hamburgers, threads that are worked by regional brands by country and by main national rival, the harvest.
Abdullah did not reveal the investment of the BRF in Kidelli. In the last three years, the BRF invested 560 million reais in innovation and part of this amount was for the development of the new brand.
The launch of the brand by BRF occurs in time the brazilian economy in growth trajectory, with retail sales inching up than expected and registering the best November in six years.
The initiative also begins to be implemented with the start of the work of the new Chief Executive of BRF, José Aurelio Drummond Jr., who assumed the post in place of Peter would on December 22.
Abdullah countered that the BRF is entering "late" in the input segment, commenting that the Group was operating in the Brazilian market until the middle of last year by the agreement with the Administrative Council for economic Defense (Cade), which allowed the creation of in the early group.
"The release of Kidelli's opportunity to broaden participation and return to acting in thread that the two companies (Sadia and Perdigão) origin have worked and I stopped acting because of the constraints of the Cade," said Abdullah.
According to the Executive, the Brazilian market this year has prospect of "healthy growth".
"The projections of market growth are stronger than in 2017, with better performance than we had in 2015 and 2016," said the Executive without making projections.
He, however, said without giving details that in November the BRF has reached "the highest volume sold in the Brazilian market.
Shares of BRF 0,55% to high 14:01 exhibit, quoted at 39,92%. Paper accumulates fall about 10% since the end of October.