General Brands joins dairy company
Valor Econômico
In 1974, owner of Vencedor Laticínios Rodolfo Nagai was 19 and had just opened a bar at Vila Carrão, in São Paulo, where, according to him, "he used to sell booze at the counter". Isael Pinto, current President of General Brands, was a traveling salesman. Both of them, who met each other in the 1980s - Isael used to sell powder juice to Nagai's company - are the protagonists of the merger that generated, in the beginning of the month, the GB Group, with projected earnings of R$ 500 million (US$ 290.7 million) for 2010.
Nagai and his brother-in-law, Luiz Kogashi, are the former owners of the Assai chain, a chain with 30 wholesale stores that was sold by R$ 383 million (US$ 222.7 million) to Grupo Pão de Açúcar. They both will now beChairman of the Board and Commercial Officer , respectively, of the new company, presided by Isael Pinto.
Vencedor Laticínios, biggest national producer of mozzarella (sold sliced in bakeries and supermarkets), was created in 1992 by Nagai and Kogashi. With seven manufacturing units, its income in 2008 amounted to nearly R$ 200 million (US$ 109.3 million). General Brands, which earned R$ 170 million (US$ 92.9 million) last year, should grow 20% this year.
Created to supply the Assai chain, Vencedor Laticínios aimed from 80% to 90% of the production and of other dairy products to the wholesale stores. "Pão de Açúcar still buys that percentage of our production", says Nagai. But with total sale of Assai, the entrepreneur was faced with a challenge: it was necessary to create a sales force, distribution teams and logistics infrastructure to give the company more independence. According to Isael Pinto, General Brands, on the other hand, was being harassed by international investment funds. It was then that both friends had the idea of merging the two companies.
Nagai and Kogashi have 50% of the new company and Isael, the other half. Besides the synergies, the company increases its product portfolio, and in addition to juices, candy, desserts, chocolates and powder soft drinks, it starts offering cheese, yogurt, powdered milk and condensed milk.
The goal is to reach R$ 1 billion (US$ 581.4 million) in sales in three years. In order to do so, new acquisitions and new products are on sight. The plans go through the markets of coconut water in Tetra Pak packaging and cocoa powder. Not bad for a duo formed by a former bar owner who started in the wholesale business buying flour for his friends who made pastry to sell at a street market stand and a former seller of powdered juice.