Camil’s strategy is to strengthen our position as a consolidator in the South American food sector, which we believe is the result of our business model based on a broad portfolio of leading brands in several product categories and a solid distribution platform in the regions where we operate, allied to the efficient management of our operations. The main elements of our strategy are based on:
Expand our brand leadership and share in the Brazilian rice and beans market
In recent years, we have significantly increased our share of the rice market in Brazil, representing a market share of 14%¹ in the market. This market is highly fragmented and has been heading towards consolidation. In the metropolitan region of São Paulo, the largest consumer center in Brazil, our share of the rice market is +40%¹.
We intend to use our already consolidated leadership position in the São Paulo market, the strength of our leading brand “Camil”, our solid distribution structure and the successful experience in acquisitions and integration of different operations, as well as our complete portfolio of products. , to grow in the regions where we already operate, expanding our leadership in the Brazilian rice and beans market. We also work on gaining market share in regions where we have little market share, such as the interior of São Paulo, Northeast, Minas Gerais and Goiás.
1Source: Nielsen Retail Index INA+CC; Top of Mind Camil Ipsos
Continue to expand our operations in Brazil and other countries where we operate
Supported by our current industrial plants, synergies and scale gains provided by the strength of our brands and the scope of our distribution platform, we intend to maintain our organic growth by expanding our operations in the product categories and regions in which we already operate, increasing our efficiency operational.
In Brazil, our positioning in the category of grains under the brand “Camil”, sugar and coffee under the brand “União”, canned fish under the brand “Coqueiro” and pasta under the brand name “Santa Amália” puts us in a privileged position to execute the expected growth. In addition to the growth in share gains in the regions where we already operate, our brands allow us the opportunity to use them in other segments that have affinities with the market, such as in the sugar category through the “União” brand, which we have developed a portfolio of coffee and other products such as sweeteners and cake batters in the sweetened part.
Internationally, in Peru, where approximately 85% of rice marketing is still done in bulk, given our absolute leadership in the packaged rice market in the country, we can benefit from the increasing migration from bulk marketing to packaged products. In Chile, our positioning and profitability growth with products recognized in the market and with higher added value allow us to occupy a privileged position for the growth of current operations and continue with the expansion of new product lines and categories. In Ecuador and Uruguay, we are preparing to expand within the commercial strategy in the domestic market and synergies with our new acquisitions, and we continue to evaluate opportunities for growth and expansion.
Expand our portfolio of brands and products into new categories with growth potential through selective and strategic acquisitions
We intend to apply our proven ability to identify, acquire and integrate operations and strategic assets in the expansion of our brands and products portfolio in Brazil and South America, whether through acquisitions, brownfield projects or brand acquisitions, giving preference to leaders in top of mind and market share.
We also plan to extend the line of our products through acquisitions of companies or assets that operate in non-perishable dry grocery food markets, with growth potential that present synergy with those of our current portfolio and add scale gains to our model. business.
Strengthen our supply, distribution and sales platform and keep our operational administration efficient
Our activity depends on a broad and structured distribution platform. We intend to continue investing in the training and qualification of our sales team, as well as in the strengthening of our sales and distribution structure. We manage our activities in an efficient, integrated and low-cost manner. We intend to increase our efficiency through scale gains in the supply chain and logistics and by expanding our coverage and presence in the regions where we operate. We intend to strengthen our partnerships with large and medium-sized retailers for promotions and other marketing actions and to adopt a differentiated logistics strategy, combining our marketing and communication strategy with the efficient distribution of our products.
The Company also focuses on identifying, acquiring and successfully integrating new structures and operations into our business model, quickly and with increased operational efficiency, by taking advantage of synergies, rationalization of costs and expenses and economies of scale as more brands, products, distribution centers and plants were included in our business model. We believe that our extensive and proven experience acquired in these processes gives us a unique position not only to correctly identify possible acquisitions, but mainly to quickly integrate them into our business model, providing these gains in scale and efficiency.
Our competitive advantages are based on:
Leading brands with strong recognition in the food sector in South America
We have a portfolio of leading brands in several product categories, the result of our experience, solid marketing strategy, know-how and national coverage in the countries in which we operate.
In Brazil, we occupy the 1st position in the rice market with a share of 14%¹, with our Camil brand having 60% of Top of Mind². In beans, we occupy the 2nd position in terms of market share, with 9%³ of market share and 53%² of Top of Mind. In the refined sugar market, we are also leaders in Brazil, with a market share of 40%4, with our “União” brand having 82% of Top of Mind ². In the canned fish market, we occupy the 2nd position in terms of market share for sardines and tuna, with 40%5 and 23%5, respectively, with our “Coqueiro” brand having 56% and 55% of Top of Mind² in sardines. and tuna, respectively. And in the mass market, occupying the 1st place in market share in the region of Minas Gerais (40%) and 7% in Brazil.
In Uruguay, the rice brand “Saman” is the first in terms of market share with 43%6. In Chile, we occupy the 1st position in the rice market with a share of 36%7, with our “Tucapel” brand having 50%7 of Top of Mind. In Peru, we also occupy the 1st position in the packaged rice market with a share of 34%8, with our “Costeño” brand having 72%8 of Top of Mind. In Ecuador, we hold a 20%9 market share in the aged rice market, leading this market.
Our brands have a tradition and wide recognition by consumers in their respective product categories and regions where we operate, which allows us to obtain a premium in the price of our products in relation to competitors. In sugar through the União brand and in rice through the Camil brand, this premium reaches an average of 15% and 5%, respectively9
Source: (1) Market share Camil + SLC Alimentos; Nielsen Retail Index Arroz (INA+C&C); (2) Top of Mind Camil Ipsos; (3) Nielsen Scantrack Index Feijão (AS+C&); (4) Nielsen Retail Index Açúcar (INA+C&C 1kg – representa ~90% do market share de açúcar refinado); (5) Nielsen Retail Index Sardinhas e Atum (INA+C&C); (6) Uruguai: market share Consecha Comision Sectorial del Arroz; (7) Nielsen Scantrack Chile; (8) Kantar Worldpanel Peru; (9) Price Index Nielsen;
Distribution platform with wide capillarity and solid relationship with our customers
Our distribution platform gives us wide reach and coverage in the markets where we operate, allowing the distribution of our products to be carried out efficiently, with economies of scale, agility, flexibility and, consequently, proximity and access to a greater number of customers in the different profiles and sizes. We believe that we can benefit from this already consolidated distribution platform, both to include new products and to expand our geographic areas of operation, which positions us in a differentiated way to take advantage of the potential for organic growth and the ongoing consolidation in the food sector in Brazil and in South America.
Solid and resilient business model
Our business model is based on three pillars. The first is our broad portfolio of leading brands in various product categories; the second, our solid distribution platform with geographic and consumer market coverage; and the third, our operational focus on the higher value-added phases of the production chain, mainly beneficiation, processing, packaging and marketing. This positioning in the production chain, together with our broad portfolio of several products and brands, reduces our exposure to price and volume volatility, which allows us to pass on cost variations to the final prices of our products, even under adverse economic conditions.
Proven ability to successfully identify, acquire and integrate acquisitions
Over the past 20 years, we have implemented a successful expansion strategy through strategic acquisitions, both in the domestic and international markets, in order to expand our portfolio of brands, product categories and geographic areas of operation. At Internacional, as of 2007, we expanded our rice operations to Uruguay, Chile, Peru and Ecuador. In Brazil, we added to our portfolio, in addition to the grains category, the categories of canned fish with the Coqueiro and Pescador brands, sugar with the União brands, in addition to others of regional relevance, the pasta category with the acquisition of Santa Amália, and launch of coffee, with investment in Café Bom Dia and launch of coffee under the União brand. All acquisitions reinforce our entrepreneurial spirit and strategic growth through the sum of synergies with the entry into new countries and categories. Industrial improvement, product blending and our pricing capacity mean that the acquired companies have significant growth in quality and market presence.
The various strategic acquisitions we made contributed significantly to the increase in our results, mainly due to the ability to identify, acquire and successfully integrate new structures and operations into our business model, quickly and without harming the quality and competitiveness of our companies. other brands and products. Our integration process allowed us to achieve increased operational efficiency in the acquired companies, by taking advantage of synergies, rationalization of costs and expenses and economies of scale as more brands, products, distribution centers and plants were included in our business model. We believe that our extensive and proven experience acquired in these processes gives us a unique position to not only correctly identify possible acquisitions, but mainly to quickly integrate them into our business model, providing gains in scale and efficiency. The diversity of businesses, in addition to reducing risk and increasing structural and cost synergy, allows for greater expertise in different distribution and supply models and greater strength with trade marketing, through cross selling initiatives.
History of good corporate governance practices and professionalized management
We have an experienced and professional management and we have historically presented corporate governance standards that differentiate us in the markets in which we operate. Since 2008, we have had a Board of Directors composed of independent members and we have been audited by a recognized auditing firm for over 20 years. In the late 1990s, we had our first contact with a private equity fund and, since 2011, we have had private equity funds as relevant shareholders, working together with our controllers in the Company’s strategic decisions. As a result of the experience of living with investors, we developed an agile, transparent and efficient management and governance model that allowed us to implement our strategies with professionalism, precision and security.
Updated at 05/22/2023 at 10:52 am