Rica Foods, Inc. (Amex: RCF) announced yesterday that Pipasa, one of its Costa Rican subsidiaries, acquired the well- recognized brand name, Zaragoza, the second leading value-added processed products brand name in Costa Rica.
“The acquisition of this brand enhances our leverage as it increases our customer base and broadens our brand exposure. This tremendous opportunity arose out of a symbiotic business relationship between our subsidiaries and Zaragoza, since the consideration for the acquisition of the brand name was a reduction of debt owed by Zaragoza to Pipasa,” stated Mr. Calixto Chaves, RCF’s Chairman and CEO.
“Sales of the Zaragoza brand are approximately US $137,000 a month represented by weekly sales of 10,000 kgrs of precooked and further processed products, such as ham, bologna, salami, sausages, and hot wings. With Pipasa’s expertise, logistics, economies of scale, and value-added services, Zaragoza’s sales are expected to increase, thereby the acquisition of the trademark is expected to be incrementally accretive to the bottom line. Our business model is to capture more shelf space and broaden our wingspan of product offerings to respond to our new and established customer base, accordingly,” Mr. Chaves added.
“Zaragoza represents a value-added processed products market that RCF’s subsidiaries had not accessed before. Some of their clients include six local supermarket chains, which will become clients of Pipasa. Our efforts are focused on enhancing Zaragoza’s market niche, and continuing to deliver to our customers new and improved alternative products across the price spectrum,” Mr. Chaves concluded.
RCF is the parent Company of the largest poultry producers in Costa Rica. RCF’S subsidiaries supply poultry products in Costa Rica to the main international franchises and restaurants in Costa Rica, as well as exports to Central America and the Caribbean.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more complete information concerning factors that could affect the Company’s results, reference is made to the Company’s registration statements, reports, or other documents filed with the Securities and Exchange Commission.