Strategy
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 various product categories and a solid distribution platform in the regions where we operate, combined with 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 9%¹ market share. This market is highly fragmented and is heading towards consolidation. In the metropolitan region of São Paulo, the largest consumer center in Brazil, our share of the rice market is +39%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 successful experience in acquisitions and integration of different operations, as well as our complete product portfolio, to grown in the regions where we already operate, expanding our leadership in the Brazilian rice and beans market. We are also working to gain market share in regions where we have a low market share, such as the interior of São Paulo, the Northeast, Minas Gerais and Goiás.
1Source: Scanntech
Continue to expand our operations in Brazil and other countries where we operate
Supported by our current industrial plants, the synergies and economies of scale provided by the strength of our brands and the scope of our distribution platform, we intend to maintain our organic growth by expanding our presence in the product categories and regions in which we already operate, increasing our operational efficiency.
In Brazil, our positioning in the grain category with the “Camil” brand, sugar and coffee with the “União” brand, canned fish with the “Coqueiro” brand, pasta with the “Santa Amália” brand and cookies with the “Mabel” brand puts us in a privileged position to execute the expected growth. In addition to the growth in market share gains in the regions where we already operate, our brands give 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, for which we have developed a portfolio of coffee and other products such as sweeteners and cake mixes in the sweetened segment.
Internationally, in Peru, where approximately 85% of rice sales are still in bulk, given our absolute leadership in the packaged rice market in the country, we can benefit from the growing migration from bulk sales to packaged products. In Chile, our positioning and growth in profitability with products recognized in the market and with higher added value allow us to occupy a privileged position to grow current operations and continue to expand new product lines and categories. In Ecuador and Uruguay, we are preparing to expand within the commercial strategy in the domestic market and synergies identified 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 strategic operations and assets to expand our portfolio of brands and products in Brazil and South America, whether through acquisitions, brownfield projects or brand acquisitions, giving preference to top-of-mind and market share leaders.
We intend to seek to extend our product line through acquisitions of companies or assets operating in the non-perishable dry grocery food product markets, with growth potential that present synergies with those in our current portfolio and add economies of scale to our business model.
Strengthen our supply, distribution and sales platform and keep our operational administration efficient
Our business 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 strengthening our sales and distribution structure. We manage our activities in an efficient, integrated and low-cost manner. We intend to increase our efficiency through economies of scale 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 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, rationalizing costs and expenses and economies of scale as more brands, products, distribution centers and plants are 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 potential acquisitions but, more importantly, to quickly integrate them into our business model, providing these gains in scale and efficiency.
Competitive advantages
Our competitive advantages are based on:
Leading brands with strong recognition in the food sector in South America
Camil has a portfolio of leading brands in several product categories, the result of its experience, solid marketing strategy, know-how and national coverage in the countries in which it operates.
In Brazil, Camil is ranked 1st in the rice market with a 9%¹ market share. In beans, it ranks 2nd in terms of market share, with a 4%¹ market share. In the refined sugar market, it is also the leader in Brazil, with a 39% market share. In the canned fish market, it ranks 2nd in terms of market share for sardines and tuna, with 38%¹ and 29%¹, respectively. In the pasta market, it ranks 1st in market share in the Minas Gerais region, with a 31%¹ market share in the region (and 6%¹ in Brazil). In coffee, the Company has a 2%¹ market share in Brazil and a 3%¹ market share in the biscuits market in Brazil.
In Uruguay, the Saman rice brand is the first in terms of market share with 48%². In Chile, Tucapel ranks 1st in the rice market with a 30%³ market share. In Peru, it also holds the 1st position in the packaged rice market with a 29%4 share with the Costeño brand. In Ecuador, Dajahu holds a 9% market share in the aged rice market, leading this market in the country.
Camil’s brands have tradition and are widely recognized by consumers in their respective product categories and regions where they operate, which allows Camil to obtain a price premium for its products compared to its competitors. In sugar through the União brand and in rice through the Camil brand in Brazil, for example, this premium reaches an average of 15% and 5%, respectively.
Source: (1)Scanntech; (2) Informe comission sectorial de arroz 2023; (3) Nielsen Scantrack Chile; (4) Lock & Associados, Canal Supermecados 2023
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.
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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, Camil has implemented a successful expansion strategy through strategic acquisitions, both in the domestic and international markets, in order to expand its portfolio of brands, product categories and geographic areas of operation. In the international market, starting in 2007, it expanded its rice operations to Uruguay, Chile, Peru and Ecuador. In Brazil, in addition to the grain category, it added to its portfolio the categories of canned fish with the Coqueiro and Pescador brands, sugar with the União brands, as well as other regionally relevant brands, the pasta category with the acquisition of Santa Amália, the launch of coffee, with an investment in Café Bom Dia and the launch of coffee with the União brand, and continuing the synergy with wheat, we entered the biscuit category with the acquisition of Mabel. All acquisitions reinforce the entrepreneurial spirit and strategic growth through the sum of synergies with the entry into new countries and categories. Industrial improvement, product blend and pricing capacity mean that the companies acquired by Camil have significant growth in quality and market presence.
The various strategic acquisitions it has made have contributed significantly to the increase in Camil’s results, mainly due to its ability to identify, acquire and successfully integrate new structures and operations into its business model, quickly and without compromising the quality and competitiveness of its other brands and products. Camil’s integration process has enabled it to achieve increased operational efficiency in the acquired companies, by taking advantage of synergies, rationalizing costs and expenses and achieving economies of scale as more brands, products, distribution centers and plants were included in its business model. Camil’s extensive and proven experience acquired in these processes gives it a unique position not only to correctly identify potential acquisitions but, more importantly, to quickly integrate them into the business model, providing gains in scale and efficiency. In addition to reducing risk and increasing structural and cost synergy, the diversity of businesses allows for greater expertise in different distribution and supply models and greater strength in trade marketing through cross-selling initiatives.
History of good corporate governance practices and professionalized management
We have an experienced and professional management team and has historically demonstrated corporate governance standards that set it apart in the markets in which it operates. Since 2008, it has had a Board of Directors composed of independent members and has been audited by a renowned auditing firm for over 20 years. In the late 1990s, Camil had our first contact with a private equity fund and, since 2011, it has had private equity funds as relevant shareholders, working together with the controlling shareholders in Camil’s strategic decisions. As a result of its experience with investors, Camil has developed an agile, transparent and efficient management and governance model that has allowed it to implement its strategies with professionalism, precision and security. In 2022, the Company’s Board of Directors was composed of 71% of its members considered independent, and two women in the composition, which conferred the Women on Board seal to the Company in the period.
Updated at 09/10/2024 at 04:08 pm