Dairy sector suffers effects of the crisis and saw foreign target companies

São Paulo-On the slow recovery of the domestic economy, a mergers and acquisitions can shake the dairy market. Foreign groups are slices of Brazilian companies, which this year will still suffer the effects of the crisis, say executives.
"Multinational corporations see in Brazil a strong market, with almost 200 million consumers. Despite the bad economic time, expectations for the future are good, "says the President of the Brazilian Association of the Industry of cheese (Abiq), Fabio Samuels. According to him, however, some particularities are followed in the Brazilian market, different from what occurs in the world. "Companies prefer to buy slices, until companies minority, to keep the old controllers. So they can learn to work in the local market, "he added.
Wrapped in controller problems-the J&F investment holding company, owned by brothers Batista-the Belle of the ball is the Force. Among the key stakeholders are the Mexican Lala, which for years tries to enter the Brazilian market, in an operation that can move up to R $6 billion. Within the business, will be included a participation of 50% of the Itambé. The other half will remain with the previous owners, the Central Cooperative of Farmers of Minas Gerais (CCPR). Another case of a company that received foreign contribution, but followed in the hands of Brazilians was the CBL foods, from Fortaleza (MG), parent company of the brand Bethany, which sold 20% of your capital to the private equity fund Arlon, which plans to invest R $100 million over the next few years. Other deals involving foreigners have been the sale of 49% of the PICNIC Cheeses and dairy products, Tapejara (PR), for Leprino Foods (USA); and the purchase by italiana Granarolo of Yema.
"Instead of leverage, companies are teaming up in order to grow," says Samuels, adding that companies are descapitalizadas as a result of the retraction of internal consumption.
Just the cheese and its derivatives, the projection of the Abiq is that, in terms of volume, there is an increase of only 1% this year on 2016-reverting, however, a fall of 3% observed a year earlier. As comparison between 2010 and 2014, the volume marketed had advance, middle, above 10%.
Projections
In a consolidated manner, the dairy market will grow in revenue, but in a slow pace. According to data from Eurominitor, the industry should move R $85.642 billion this year, representing a nominal expansion of 2.6%. By category, the retail industry sales of milk can reach this year R $33.412 billion (2.5% of high 2016); cheeses, R $22.252 billion (+ 3.9%); of yogurts, R $16.195 billion (+ 1.6%); other derivatives, primarily sweetened condensed milk and heavy cream, R $7.382 billion (+ 2.6%); and R $6.400 billion margarine and butter (+ 1.4%).
For Nielsen, which considers the volume sold by the retail industry, the picture is more disturbing. Last year, more weight in the industry turnover recorded fall, pulled by aseptic milk (-0.5%) and yogurt (-6.8%). "Promotional campaigns play an important role in maintaining the sales", commented in a note, Euromonitor Research Manager, Alexis Frick.
According to him, many categories of products, such as yogurt, were the most prosperous economic times grew, but ended up being the first to be replaced by cheaper milk.
According to the Director of new business and institutional relations of the Itambé, Ricardo Cotta, the collapse of the dairy market demand is something like 9% to 10% this year. Only in the segment of yogurts accumulated retraction until mid-2017 is 15%, with 23% retracement from the Greek, while the tray products, most popular, the fall reaches 10%.
"Knowing that scenario of retraction, bet on lines without lactose and in the restructuring of our sales channels, with an area of its own," he says. About the selling process of Itambé, Cotta avoided talk.