We aim to become the most inspiring and relevant global food company. To achieve this, we reviewed our long-term plan in our yearly strategic planning process. We set four main goals for our company in the next years:
Have a global brand portfolio. We seek to expand our brand portfolio throughout the world. Sadia, for example, has different brand stages across our markets. In Brazil and Middle East countries, it has impressive penetration and preference levels. Qualy is our most relevant margarine brand, with an innovative approach to our consumers in Brazil and abroad. Paty and Danica are renowned brands for burgers and condiments, respectively, in Argentina
Focus in key global categories. Strengthening our portfolio and its quality must be a continuous effort, therefore, we elected our most important categories, considering strategic and value importance. Our global focus is in value added poultry and pork cuts, cold cuts, cooked and coated, ready-to-eat meals, on-the-go and food service portfolio.
Capture global opportunities. Internationally, we made important steps to solidify BRF as a global company. In Middle East, we continued to improve our halal brands. In Asia, we invested in branded portfolio and acquisitions in Thailand and Malaysia. In Eastern Europe, we focused on retailing presence and, in the U.K., our food service channel became even more relevant. In Argentina, we expanded our position in the cold-cuts market by acquiring two more companies. In Turkey, we acquired the largest poultry producer, with fully integrated operations and the highest brand awareness in the sector.
Transformational changes. In the second semester of 2016, we announced our intention to focus on the halal market. In this context, BRF analyzed strategic alternatives for its new subsidiary, OneFoods. In the beginning of 2017, OneFoods became operational.
Our major competitive advantages are:
Leadership in the Brazilian Food Market with Strong Brands and a Global Presence. We are one of the largest producers of fresh and frozen protein food in the world with a size and scale that allows us to compete in Brazil and abroad. Our own and licensed brands are highly recognized in many countries, such as Brazil, Argentina, Saudi Arabia and we are expanding the presence with local brands in key markets. Our Sadia and Perdigão brands were included among the “Most Valuable Brand in Brazil” in 2016 and 2015, respectively, by Millward Brown Vermeer.
Extensive Distribution Network in Brazil and the Export Markets. We have an established distribution network that can deliver frozen and chilled products in practically any region of Brazil. Moreover, we export products to over 150 countries and are developing distribution networks where we sell directly to food processing companies and local distributors.
Low Cost Producers in a Growing Global Market. We have a competitive advantage over producers in some of our export markets due to our lower production costs and gains of efficiency in animal production in Brazil. We have also achieved a scale of production and quality that allows us to compete effectively with the main producers in Brazil and other countries. Furthermore, we set up a series of programs aimed at maintaining and improving our cost effectiveness, including programs to optimize our supply chain by integrating demand, production, inventory management and customer service.
Strategic and Diversified Geographic Allocation. Our slaughterhouses are strategically located in different regions of Brazil (South, Southeast and Midwest). The geographical diversity of our distribution centers also allows us to reduce the cost of transport. In the past years, we took great steps forward as part of our international expansion and providing the best options to clients through local operations, which allow rapid and efficient access to strategic markets and increase the flexibility of the adaptation of products to local wishes.
Emphasis on Quality, Safety and Diversified Portfolio of the Product. We monitor the treatment of our poultry and swine raised in all the stages of their lives and throughout the entire production process. In 2013, we launched a campaign in Brazil to publicize the Sadia Total Guarantee Program (Programa de Garantia Total Sadia) that ensures our chickens have no hormones or preservatives and are individually inspected. Moreover, we were the first Brazilian company approved by the European Food Safety and Inspection System, which qualified us to sell processed poultry products to European consumers. This means that our clients include some of the most demanding clients in the world and that we meet their quality controls and external audits.
Committed Management Team. We have improved our organizational structure and have redesigned it. The new structure has 14 vice-presidencies reporting directly to the Global CEO, visioning a more integrated and transversal management. They are: Brazil, OneFoods, International (Europe/Eurasia, Asia, Africa e Americas), South Cone, Corporate Development and Growth, Integrated Planning and Supply, Global Operations, Quality, Management & Information, Corporate Integrity, Finances, Marketing, HR e Corporate Efficiency.