Plumrose

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Strategic focus and growth

Going forward, Plumrose will double its meat processing plant capacity in almost all product categories. Pig farm and slaughterhouse capacities will be increased accordingly to support the plant expansion, thus maintaining sufficient control over the value chain.

Reinforced marketing and sales initiatives along with EAC's unique chilled distribution system will drive growth and assist in increasing Plumrose' market share in Venezuela.

Business model

Plumrose has operated in Venezuela for more than 50 years, and today, Plumrose is the undisputed market leader within the market for processed meat holding a market share of around 35%.

The business owns and controls the entire value chain from production of feed stuff, pig farms, slaughtering and meat processing to marketing, sales and nationwide refrigerated distribution. This unique concept has yielded significant strategic and financial advantages, permitting Plumrose to produce quality products from prime raw materials at competitive costs.

Continuous sales growth is achieved through ongoing innovative product development and a broad range of products among others. Premium products are sold under the market leading brands Plumrose, Oscar Mayer and Montserratina, while a series of other EAC-owned and licensed brands are used to target other market segments. The portfolio covers products for every eating occasion, including hams, chicken and turkey products, wiener sausages, canned products, pre-sliced bacon and Christmas products.

Value drivers

Continued GDP growth with increasing living standards, high fiscal spending and government support to social and health programmes in Venezuela are key drivers for Plumrose' continued growth. Plumrose' product and packaging innovation is unique in the industry and well set to meet the growing demand for quality food products.

There are also challenges for Plumrose going forward. Price and exchange controls imposed by the Venezuelan government, and inflation and devaluations continue to be risk factors in the Venezuelan economy, which is closely correlated to the development in the world's oil prices. These factors have affected Plumrose' operations for many years, but the strong business model and a highly experienced management have succeeded in continuously adapting the business to the changing conditions.