After six years, Hortifruti chain prepares its return to São Paulo
Folha de S. Paulo 09/10/10
Six years after departing from São Paulo, Espirito Santo´s Hortifruti chain, focused on the sale of fruits and vegetables, is preparing the return to the main consumer market of the country. With a new partner, it will invest at least R$ 36 million (US$ 20.6 million) to open from 6 to 8 stores in upper middle class neighborhoods, next year. Commercial points are being evaluated and possible partners for the new venture, says James Miotti, Hortifruti president. The idea is to have a focus of activity similar to that of Rio de Janeiro, where the chain is concentrated in the South Side and Barra da Tijuca neighborhoods, where residents are predominantly of classes A and B. "The pace of the entry into São Paulo market will depend on opportunities. There is the possibility of establishing partnerships for accelerating expansion", he says.The Hortifruti stayed in the São Paulo market between the mid-1990s and 2004, with stores in Alphaville, Santa Cecília and Brooklyn. According to Miotti, a partner who concentrated most of the investment in São Paulo market decided to go to another area, and the other partners did not want to support the investments. This time, Hortifruti has a new partner willing to invest to double the number of units over the next five years, the chain has 20 stores in Rio and one in Espírito Santo. FIB Brazil fund which has the BB (Banco do Brasil) as shareholder, bought 30% of the chain´s capital.
The projection is that the total investments reach R$ 160 million (US$ 91.4 million) for the expansion. Miotti denies plans to expand its activities. "We offer grocery, meat, frozen and fast food. But we do not want to be a supermarket", he notes. In addition to new stores, creative billboards, mark of the advertising campaigns of the chain, should draw the attention of São Paulo people. In them, okra become protagonists of blockbusters, sprouts pose as success singers, always accompanied by slogans that "stick" in the memory.