A SUPER GIANT IS BORN
Brasil Foods (BRF) is the mega corporation that could result from the announced merger of Brazilian giant food groups Sadia and Perdigão on May 19, 2009. The combined firms makes BRF the country´s single largest employer with over 100,000 employees and the third largest exporter from Brazil, with reach to over 110 countries. Their goal is to stake the pole position as the world´s leading exporter of processed meat worldwide.
MEGA BRANDS VS MICRO BRANDS AT HOME
While BRF can build a platform to reach super scale for pumping out the processed meat, I think this will open up the field for micro-brands to emerge. What we are witnessing is a similar landscape that was found in the US over the past 20 to 50 years, where food companies merged, merged and merged till they were super giants.
And while they built massive revenue streams, plumped up the average American and generated solid financial returns, they totally missed the boat on the evolution of a growing audience focused on higher quality, organics, naturals and premium niche brands.
I think that we will witness a steady emergence of micro food brands focused on quality ingredients, local sourcing, sustainable farming and smaller scale farming techniques. These players will have to compete on taste and back story of sustainability.
Here at Letters From Brazil, we will treasure hunt for the emerging players and follow their stories. Many of these will produce solid product ranges, yet suffer from insufficient scale or management talent and result in groups like BRF buying them out.
BRF is already advocating the benefits of the merger and reaching on channels like twitter. Their corporate site is parked and being readied for action.
The marketing effort is on:
http://twitter.com/brasilfoods
http://www.brf.com.br/
