Fourteen companies have expressed interest in BRF’s dairy business, the Brazilian food group has revealed.
In February, BRF said it was looking at the “strategic alternatives” for its dairy arm, including forming “partnerships” or selling off parts of the division.
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Earlier this week, Bloomberg, citing sources, said Mexico’s Grupo Lala, Danone and Lactalis were among those eyeing the business.
Speaking to just-food today, a BRF spokesperson confirmed the number of companies that had lodged interest in the assets but declined to comment on the identity of potential suitors.
“Fourteen companies [have] registered interest in the dairy business,” the spokesperson said. “The company cannot comment on “[the identity of those interested].
BRF has improved the performance of its dairies unit by shifting the product mix away from UHT milk and focusing instead on value-added items. According to its most recent quarterly filing, total sales at the division increased 1.3% despite a 14% drop in volume reflecting this mix shift.
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By GlobalDataHowever, the company has also embarked on a strategic drive to increase its focus on the core meat business. Last October, BRF launched a “business acceleration programme” focusing on four key areas: growing sales, reducing operating costs; reviewing administrative and distribution costs; and improving sourcing efficiency.
BRF’s dairies business controls an 11.2% value share of the Brazilian market for dairy products, the company claimed. It sells products under the Batavo, Elegê and Cotochés brands.
This week, it emerged Brazilian dairy Vigor had taken over a dairy plant BRF was had been building in Rio de Janeiro state.
