J. Macedo mira bakeries and wholesalers

The cearense j. Macedo and American Bunge, who for eight years have been partners in the sale of bakery products, will be competitors from March 1. The market for flour for domestic consumption shrinks a few years ago, and j. Macedo-industry-leading brands Dona Benta and Sun-lose participation. Now, the j. Macedo will refocus and passes to bet on food outside the household ("food service"). The bakery is the first step of this new moment of company, as anticipated yesterday the value PRO, real-time information service of value.
The j. Macedo invests $ 10 million in the bakery project. The money came out of the box, a part was counted in the 2012 budget and another this year. The goal is that the sale of flour to the "food service" corresponds to 10% of the sales volume already in 2013. To this end, j. M train a new team of 40 people, including salespeople and technicians, who teach bakers to handle their products. The actions began with 30 products (flours and mixes for breads and cakes) to the markets of Northern and northeastern regions. The goal is to be in 3 thousand points of sale in the first year, mainly bakeries and wholesalers.
The j. Macedo won't get into an unknown area. The bakery has been his main business, where he served from 1952 until 2004 and according to the Bunge. In 2004, the j. Macedo had six products for bakery, which represented 60% of the volume sold.
The share of contract production lines ("Wheat Brazil Consortium"), signed in 2004, prevented competition between companies, since j. M supplied flour to the Bunge use in bakery and sell to the "food service", and Bunge produced flour for domestic consumption, the j. M sold to consumers, in addition to pasta and biscuits.
Now, the j. Macedo will compete with the Bunge market bakery, which grossed $ 63 billion in 2011 and grew 11.9% in the year, according to the Brazilian Association of bakery and confectionery products (Abip).
The move is part of the strategy of j. M to increase profitability in a competitive industry in which margins are tight. In the third quarter of 2012 swing, the latest to be released, the j. Macedo said it lost market share in domestic flour (26.6% to 25.4%)-its flagship product, which corresponds to 40% of the gross revenue, and the volume of the market as a whole shrank by 6.9%, compared to 2011.
The j. Macedo also lost interest in two other categories: pasta-the second largest in the portfolio, with 32% of gross revenue-and mixes for breads and cakes. Net revenues in the period totaled r $ 305 million, practically stagnant for 2011 (0.7%). The billing of j. Macedo in 2011 was r $ 1.4 billion.
"The partnership was restricting, rather than expand the possibilities," says the President of j. Macedo, Enrique Ussher. According to him, some consumer trends looming in the country-as the growing out of home consumption and the demand for greater convenience products and added value, and this new scenario has led companies to different paths.
Provide the line of bakery products is the first phase of the strategy of j. M. "In the future we will be able to create new products, made for four hands, with owners of bakeries", says Ussher. "The bakery is becoming a far more important and broad business", says the new business Director of bakery and wheat, Irenaeus Pedrollo, Executive of j. M 20 years ago.
Sought, Bunge didn't answer the interview request made by the report for comment the entry of j. Macedo in the bakery. But in July 2012, weeks after the two companies disclose that the partnership would end, the Vice President of Bunge foods Brazil, Gilberto said to Our value that multinational's goal was to increase the participation of derivatives of wheat in total sales, focus on higher value-added products and analyze potential acquisitions.