BRF, the Brazil-based food giant, has moved to strengthen its presence in Argentina through the acquisition of a range of brands from local group Molinos Rio de la Plata.
The company has struck a deal to buy two margarine brands – Delicia and Manty – as well as Viennísima sausages, GoodMark hamburgers.
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The transaction, valued at US$43.5m, also includes other less renowned brands such as Hamond and Tres Cruces cold cuts, plus Wilson hamburgers, which Molinos owns but has not used in any commercial products for a long time.
In a statement, BRF said it plans to "grow in the local market and consolidate the leading positioning of its brands, as well as expand its exports".
"BRF's strategy for Latin America and specially for Argentina contemplates: accelerating the integration process of its local operations to the global production platform, maintaining investments to increase production capacity and employment generation, as well as to position the country as a competitive place for food production in the international context," it added.
A source at Molinos said the decision to sell the brands was not due to poor performance but because the company wants to "focus its business" in certain sectors.
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By GlobalDataMolinos plans to concentrate its efforts in key categories such as noodles and dried pasta, rice, frozen products and healthy snacks
