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MARFRIG Buys ConAgra's Beef Jerky
BRAZIL - Marfrig Group, one of the largest producers of beef and beef by-products in Latin America, has acquired the Pemmican beef jerky brand and related production equipment from ConAgra Foods, Inc. through its subsidiary Mirab USA Inc.The deal was worth $25 million in cash.
Marfrig and ConAgra Foods have also entered into a sales and distribution agreement for the five years up to 20 July 2013 under which ConAgra Foods will sell and distribute the Pemmican brand beef jerky for Marfrig within its existing Consumer Products Division.
Marfrig will also co-pack "Slim Jim" beef jerky for ConAgra Foods pursuant to a co-pack agreement between ConAgra Foods and Mirab USA. This agreement does not include the "Slim Jim" beef stick business.
Marfrig has diversified sources to produce beef jerky from its units in Brazil, Argentina and Uruguay with a combined capacity of 27 tons/day and a packaging facility in Mirab USA.
Though the Pemmican brand has been around for only 35 years, its tradition goes back a few hundred years. The word "pemmican" is Native American in origin and was used to describe a high-protein food source made from dried meat and berries.
Because it was highly nutritious, spoil-resistant, and good for traveling, it was ideal food for their way of life and it became one of the most important survival tools of the early American frontier.
"The acquisition of the Pemmican brand strengthens Marfrig's participation in the branded meat snacks market," says Ricardo Florence, Marfrig's IRO.
"In addition, the transaction will provide to the Group a wealthy partnership with ConAgra Foods in the United States, enhancing the Group's investment in food distribution, reaching its final clients with a well-known and traditional brand.
"As one of the world's largest producers of beef, Marfrig can leverage its capabilities to produce Pemmican more efficiently, while also investing more heavily in innovation and marketing," said Paul Lapadat, president, Consumer Foods Snacks, ConAgra Foods. "We remain committed to our snacks business, and will be focusing our energies moving forward on our core snacks portfolio, which includes Slim Jim and our popcorn and seeds products."
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