09/26/2008 09h07

Evialis accelerates diversification after taking over Cargill’s assets

Valor Econômico - 09/26/2008

The results of the purchase of Cargill's animal nutrition operations, concluded in May, should take French group Evialis to expand its participation in the segment of feed for pets. With 3% of its sales concentrated in this market share, Evialis may raise this percentage to 10%, says the company's CEO Nilton Ribera Perez. This will happen because the distribution of the products of the small animals line will also start being made in the distribution network that belonged to Cargill, most of which is under the company's umbrella. "The plan is to grow 50% in this segment, but, depending on how many distributors should be included, sales may double or even grow three times", affirms the executive. Cargill's old network has nearly 300 distributors. The other networks, Socil and Zoofort (specializes in confinement animals) have 100 and 20 sales places, respectively. It is not possible to compare Evialis' sales this year with those of 2007, as the company grew much after the acquisition, says Perez. He projects total sales between R$ 450 million (US$ 276.1 million) and R$ 500 million (US$ 306.8 million) until December in Brazil. The whole line of nutrition for small animals, previously identified with the Social brand, will start having the Evialis brand. The swift, which includes not only a change in the products packages, but also of nutritional composition, will effectively reach the market in October - a pre-launching was made this month. The company's market of animal feed sold US$ 3 billion in 2007. For this year, the projection is for 11% growth, according to the National Association of Pets Feed Producers (Anfal Pet).