BRF Acquires 75% of Frozen Food Distributor in Kuwait
Itajaí, Brazil-headquartered BRF SA has signed an agreement with Al Yasra Foods, its distributor in Kuwait, to acquire 75% of that company’s frozen food distribution business. The deal is reportedly valued at $160 million, and is in line with the BRF’s strategy of expanding business in the Middle East.
In addition to supplying the retail, foodservice and industrial further processor markets of Kuwait, Al Yasra is active in other GCC territories as well as in Iraq. Its client list of major brand names includes Lamb Weston, Danone, Sadia and Al Safi.
The company employs approximately 1,500 persons engaged in distributing frozen food products to end users via a fleet of some 400 vehicles. The logistics network includes a centrally-based distribution center in Kuwait with over 40,000 cubic meters of refrigerated warehouse capacity and approximately 10,000 square meters of ambient space.
In Iraq it operates from 15 branches in the nation’s three main regions, with hubs in Baghdad and Basra. Its fleet in that country exceeds 150 vehicles that service 450 customers and cover about 75% of the market.
BRF, which ranks among the world’s Top 10 value added food companies, was created by the merger between Perdigão and Sadia. It operates in the meat segment (poultry, pork and beef), as well as in the processed foods, milk, margarine, pasta, pizza and frozen vegetable segments. BRF brands, ranging from Sadia, Perdigão, Perdix, Batavo, Elegê and Qualy, among others, are sold at home and abroad.
With net revenues of R$ 28.5 billion rung up in 2012, BRF is one of the world's largest exporters of poultry and stands out among the biggest global food companies by market value. It is also one of the largest private employers in Brazil, with about 110,000 employees.
The company operates 50 factories in all regions of Brazil and has a solid distribution network through 33 distribution centers, taking its products to consumers in 98% of the national territory.
External sales accounted for 40.8% of net revenues in 2012. In foreign markets, BRF operates nine plants in Argentina and two in Europe (England and Holland), and has 19 sales offices that serve more than 120 countries on the five continents.
In 2013, BRF opened a factory in Abu Dhabi, United Arab Emirates, and entered into a joint venture with Dah Chong Hong Limited (DCH) in China.