New JBS Foods must earn $ 12 billion

JBS, which has just completed the acquisition of Seara marfrig‟s Brazil, are creating a new company, JBS Foods, to house the operations belonging to Harvest (including all of their brands) and the domestic business of poultry and swine JBS's own. With that, the harvest will cease to exist as a company and a brand.
In an exclusive interview to the value PRO, real-time information service of Value, the CEO of JBS Foods, Gilberto, our review said the expectation is that the new business unit, which includes the operations of chicken, Turkey, pork and margarine, has annual revenues of $ 12 billion, of which 50% must come from exports and 50% of the domestic market. This recipe should take the total billing of JBS r $ 100 billion.
In addition to our review, who presided over the ancient sound and has great experience in the poultry and swine meat and processed foods, JBS structure Foods will still Marcos Samaha (former President of Walmart in Brazil) as Chairman of the internal market and James Cleary, who was at JBS birds, as Chairman of the foreign market.
The arrival of a retail specialist as Samaha to JBS Foods gives you an idea of the importance that the company intends to give the domestic market at a time when competitor BRF has at his command Abílio Diniz, founder of Pão de Açúcar and now ex-President of the Board of Directors of retailer.
JBS Foods will have 37 units: 31 from Brazil Harvest. The other six are plants that were already operated by JBS (three own and leased three of Doux Frangosul), inside the JBS Birds.
According to our review, "the principle", JBS sees no overlap in the operations of poultry and swine and industrialized. He said the company makes, right now, an analysis of operations to identify opportunities for efficiencies and profitability. The goal is to evaluate the performance of units and identify bottlenecks and synergies. The idea, said the Executive, is to seek synergies with the JBS processes. However, it is too early to estimate what would be gains as a result.
One of the examples of possible measures, stated, our review is focusing on a production line determined drive for efficiency gains. But there are no definitions, for now. He pointed out that there is no overlap in chicken production and assured that the company "is not considering, at first, closing units".
According to the Executive, JBS Birds-established by JBS after renting the units Doux in the first half of last year-will operate independently until the synergies between their units and of the harvest are mapped. Our review arrived at JBS in March this year, just to run the business of poultry and swine.
With the acquisition of Seara, Brazil JBS will be over 45 thousand employees, bringing the total to 185 thousand people worldwide. Asked about any reduction of the frame, Gilberto told our review "at this point there is no focus on it".
Under the umbrella of the JBS Foods will be 20 brands, among the most important Harvest, Rezende, Fiesta, white feather, Frangosul, LeBon and Doriana.
The Seara brand, the main within the business unit JBS Foods, follows as third in the market of the main lines of processed foods, meat after Sadia and Perdigão. And the CEO of JBS Foods gave indications that such a framework should be kept for now.
According to him, the company's focus will be to obtain profitability and market share. "Let's focus on profitability, let's not focus on market share". For the Executive, get the two goals at the same time is conflicting. "Those seeking to sell more volumes, low price," he noted. "If it is to win [market], it will be by consumer preference," he said.
Our review said the company will work on improving the quality of products of the ancient Harvest, "process has already started in Marfrig". There will also be marketing investments, but estimates of values to be applied are not yet available.
To have a profitable operation, the JBS's experience in other acquisitions will be essential, according to the Executive. "We will use our experience in turnaround to transform the operation into a profitable business and competitive". He gives as examples of successful operations to purchase by JBS Swift American Foods and Pilgrim's Pride.