McCain Foods increases its stake in Brazilian potato specialty manufacturer Sérya

Two examples of the pre-formed frozen potato products offered by the Brazilian potato processor Sérya

May 04, 2019

Source

McCain Foods Limited

McCain Foods, the global leader in frozen french fries and potato specialties, announces the acquisition of 70% of Sérya , a Brazilian food company which operates in the pre-formed potato specialty market.

With this investment, McCain continues to strengthen its expansion strategy in the Brazilian market, just one year after establishing a partnership with Forno de Minas, in which it acquired 49% of the company. Forno de Minas owns the remaining 30% of the Sérya business.

Brazil is one of the main focus areas of McCain globally, where the business strategy is to invest in enabling accelerated growth.

Aluizo Neto, Managing Director of McCain in Brazil:

“Brazil currently reports as the 5th largest market in the world for frozen french fries, with broad potential to become the third largest market by 2021.”

Aluizo Neto, will from now on also lead Sérya’s operations.

(Click to enlarge)

The Serya Alimentos factory in Araxá started production in 2015. Its annual production capacity is 12,000 tons potato specialties.

Aluizo Neto:

“This investment allows McCain to focus more efforts on local development of high value-added products and in line with our leadership strategy in the potatoes and appetizers market.”

Reuters adds that McCain’s Brazilian subsidiary received a $15 million capital injection from the parent company this week to secure the deal, citing a person familiar with McCain’s operations in Brazil.

The source, who asked not be named to openly discuss the company’s plans, said McCain also expects to buy the remaining stake in Forno de Minas within the next five years.

Its acquisition is seen as McCain’s first step to produce frozen potatoes locally.