Riyadh – Brasil Foods, the company that resulted from the merger between Sadia and Perdigão, is being introduced to the Middle East, the main international market for Brazilian chicken. The organisation is one of the exhibitors in the Brazilian pavilion at Saudi Agro-Food, a fair in the food sector that is taking place in Riyadh, Saudi Arabia.
According to the Sadia manager in Saudi Arabia, Shaikh Nasser, introduction of the new brand in the local market requires care, as the Saudis have been used to the two brands as competitors over the last 35 years. The stand has the BR Foods logo, but products shown are under the “Perdix” brand, the name used by Perdigão in the Arab market. Only Sadia brochures are being shown.
“In future we should place the brands together, but for the time being we do not want to ‘shake’ the market,” said Nasser on Monday (2nd). But the presence of the Sadia manager – well-known among the Saudi businessmen – at a stand with competitor products in itself is causing curiosity among the clients, who stop to ask questions. Nasser talks about the merger and says that it brings together the best of both companies.
This is the first time that Brazil participates in a fair with a large stand. To Nasser, this is good for the country’s image, as it causes an impact on visitors. He was even sought by the local competitors. According to the manager, 50% of the chicken market in Saudi Arabia is dominated by Brazilian companies, whereas the other half is in the hands of companies from the Arab country itself.
“[Saudi consumers] know Brazilian chicken, they know of its quality and accept paying 1 rial (the local currency) more for it,” he said. To Nasser, an Indian who has been living in Saudi Arabia for 15 years, this is the best edition of the fair to date.
Also pleased were José Dantas and Luis Fernando Martinez, respectively the president and export director at Milly, a Brazilian factory that supplies food supplements for athletes, hospital food, chocolate drinks and teas. “The success is great, we did not expect anything so sudden,” said Dantas, referring to the great volume of visitors the company received in the first two days of the fair, which began on Sunday and ends on Wednesday.
The company, which made contact with Arab importers at the Nova Equipotel, a hotel product fair that takes place in São Paulo, is about to close a deal with an importer from Dubai, in the United Arab Emirates. In Riyadh, the company made contact with heavyweight businessmen and even received proposals for the formation of a joint venture in Saudi Arabia.
Saudi Agro-Food is also serving to strengthen relations companies already have in the country. To Guilherme Giffoni, who is responsible for Itambé dairy exports to the Middle East, direct contact is important. “This speeds up contacts, and greatly reduces negotiations,” he said.
For some companies, however, the volume of visits has been smaller. This is the case with Boavistense and Riclan, producers of sweets, chewing gum and lollypops. “The focus [of the fair] is a little different from that of our sector, but some people visited us who may be interested,” said Willian Suyama, from Boavistense. “It is a little weak for our sector, but you never know, a contract may be enough to save the fair,” said Olavo Queiroz, from Riclan.
Both companies already export to the Arab world, where the consumption of sweets is very high. The main focus at Saudi Agro-Food, however, is agribusiness.
*Translated by Mark Ament
