Xandô expands investment in milk and juice
Valor Econômico
Known in the agribusiness sector by founding the Solorrico, in the 50´s, and Sucorrico, in the next decade, Lair Antonio de Souza is a man of his word. In an interview to Valor in March 2006, then aged 77, he said that he did not think of retiring - "I will stop the day I die", he said at the time - and he will invest in the expansion of the business he developed in the production chains of milk and orange, from his farms in São Paulo, and the brand Xandô, widespread especially in the São Paulo market.
At 81, Souza is not only still on active duty, but is as electric as ever. And the agricultural business of the holding Grupasso, controlled by the family, continue to advance. In 2010, it allowed a total revenue of R$ 84 million (US$ 49.4 million), more than the double of 2006 figure. It is true that the intention of returning to the fertilizer sector (Sucorrico was sold in 1999) does not seem to be on the radar anymore, as it was five years ago, but other investments are already underway.
These businesses are divided between the eight family farms in the interior of São Paulo and the sales of Xandô products. In the properties, most of the earnings come from the orange, while milk accounts for most of the sales of the brand. In both cases, the focus is on the added value. The milk sold is type A and the orange juice is whole, without addition of water or sugar. Two types of products more expensive than competitors such as long life milk and nectars from fruit, which are consumed for public with greater purchasing power.
Even investing in distribution and marketing, the growth engine of the group is in the field, and it is on the farms that Souza concentrates its investments. In Araras, where it is Fazenda Colorado, the first unit purchased by the businessman, a birthing center for 200 animals has already been built, and a building, with housing capacity of 1,580 lactating cows, is being built and should be open in June. The investments altogether reaches R$ 34 million (US$ 20 million), and the complete implementation of a new system that aims to raise the yield in the milk production."We have to have great logistics agility to meet the legal deadlines of validity scheduled. From the cow to the retailers we have no more than nine hours, and the product reaches the shelves with shelf life of six days". Hence the concentration is in São Paulo. In the state there are only four "major" manufacturers of Milk type A, which represents only 0.2% of total sales of milk in the country.
If the the dairy front of the farming business of Grupasso is on Colorado I Farm, the citrus is spread through the eight properties of Lair Antonio de Souza family. With the citrus plantation he owns, the total output of orange of the group reaches 3.110 million of boxes of 40.8 kilograms. With the ongoing planting of new trees, the volume will reach 5 million boxes in five years. The juice sold in retail is also packaged in packaging produced by Plastirrico, it is pasteurized and has no preservatives. Its validity is of 15 days under refrigeration. In retail, it can cost twice more than competitors like ready to drink nectars and powder refreshments.