Wednesday, December 18, 2013

BRF prepares aggressive pricing policy

With the presence of the new President of the Board of Directors, Abilio Diniz, and former Minister Luiz Fernando Furlan, development partner, the BRF inaugurated yesterday in Pernambuco its third factory of margarine in the country. The project, which cost $ 150 million, was raised in Vitória de Santo Antão, which lies 50 km from Recife, in the same complex where he works since 2009 a built-in unit.
Under the command of an enthusiastic Diniz, the company intends to expand its marketshare nordestino de margarines, which until then was fueled by the factories of the BRF in Paranaguá (SC) and Uberlândia (MG). With production in Pernambuco, the company hopes to take advantage of the lower logistical costs to adopt a more aggressive pricing policy and make room for rivals like Bunge and the cearense M white.
Information provided by BRF pointed out that the Northeast represents 30% of the national market of margarine, slightly higher than the percentage participation of the region in the Brazilian population, which is 28%. In the margarine since 1991, Sadia (controlled by BRF) currently holds 56.2% of the domestic market (in value), according to data from Nielsen.
In addition to the expansion in the North and Northeast, the company also evaluates start export of margarine, but did not provide details of the operation. The unit of Vitória de Santo Antão began operating with a monthly production of 8 thousand tons of brands Deline (70%), Qualy (20%) and Claybom (10%). The manufacturing capacity, however, is of 16 thousand tons/month. The production will move forward in accordance with the pace of sales.
Telling yourself excited with the new function, Abilio Diniz-in Office since April-wants to consolidate the BRF as the company of "conscious capitalism", in which the profit comes first, but followed closely by commitments to employees and society.
Beside the Governor of Pernambuco, Eduardo Campos (PSB), a candidate for the Presidency of the Republic, Abilio announced investment and then said "every manager likes to cuddle", in what could be a message to the Government. Asked about the phrase, however, contemporizou: "Just said that businessman likes to cuddle, nothing besides".
Abilio signaled a possible expansion of the built-in unit of Pernambuco, which produces today 9 thousand tons/month of prosciutto, mortadella and sausage. And hinted that aims to speed up the internationalization of the BRF, which he said is not yet a global company. "Anyone who knows me knows that I'm in no hurry, but I'm always at high speed."
Valor Econômico - 17/12/2013
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