BRF wants to consolidate position of leader in Latin America

Announced last Thursday, buying seven brands of processed foods in Argentina is the "first step" of the BRF to consolidate its leadership in the retail of Latin America as a whole, said the value of the Chief Executive of the BRF in Argentina, Alexandre Borges. According to him, the BRF also plans to "expand" the presence in Chile and Uruguay retail.
In parallel, the company follows investing in acquisitions in the area of distribution of food in the Middle East. Yesterday, announced that it has entered into an agreement binding with the Qatar National Import and Export (QNIE) to acquire part of the frozen distribution business of the company for $ 140 million.
Regarding Latin America, Borges said, despite the economic moment "challenging" in the region, the BRF has a positive view on the "long term" and new acquisitions-of companies or brands-may be on the horizon.
"We're always looking at opportunities, is to acquire companies or growth [organic]. We have the clear objective to grow not only in Argentina, but in the Latin America market, "he stressed. In the first half, net sales of the BRF in Latin America (disregarding the Brazil) was r $ 851 million. Worldwide, revenue was r $ 14.9 billion.
Borges said the acquisition announced on Thursday "consolidated" BRF's leadership in the market of sausage from Argentina. Burger brands and margarine were also purchased by BRF.
According to the Executive, the Brazilian company was already among the top five in the segment, but with the acquisition of Vienissima brand will become leader. "To join with this brand, is consolidated as a leader", has strengthened. According to him, the Vienissima is "almost synonymous with" of category in Argentina, where the sausages are called "vienas".
The BRF announced the purchase of seven marks-Vienissima, GoodMark, Manty, Delight, Hamond, Tres Cruces and Wilson-Argentine company Molinos Río de la Plata. By the terms of the transaction, which must still be approved by antitrust authorities, the BRF will pay $ 43,5 million for the assets.
In the markets of hamburger and margarine, acquisitions of brands will "complement" evaluated the Executive. According to him, the BRF was already the market leader in retail Argentinean Burger with Paty and, in margarine, with the brand name Dánica.
In addition to the acquisitions, Borges claimed that the BRF intends to develop the ready meals category (lasagna, for example). Unlike Brazil and Chile, that category is still too "early" in Argentina in ready meals, he noted.
To this end, the Executive said that a more likely path is to invest in innovations and product launches. "I see more chance of bringing our dynamism than make acquisitions [of brands of ready meals]," he added. Even in the embedded market of Argentina, where there are opportunities to purchase the BRF is betting on new releases, said. Recently launched brand of baloney.
From the strategic point of view, Borges reaffirmed that the domestic Argentine investments are important to make Argentina a platform of export of chicken meat. "To have strong consumer market, helps to gain critical mass and volume to make Argentina an export platform".
This year, the BRF has been investing in Argentina, as Borges himself said the value in June this year. Among the investments announced, was the sum of $ 5.4 million to expand the production capacity of sausages and cold cuts in Baradero, which lies in the province of Buenos Aires. In addition, $ 16 million would be earmarked for slaughter poultry unit of Rio Cuarto, Cordoba.