Cooper Farms: - Urner Barry Publications, Inc.

Expanding demographic outreach…
Cold food makes Sigma hot stuff
On September 6th 2010,
Sigma Alimentos, S.A. of
Mexico, a subsidiary of
ALFA group—one of the
largest industrial companies
in Mexico, concluded the
acquisition of Bar-S Foods
Co. which was originally
announced on August 9th
2010. Sigma Alimentos is
the leader in the refrigerated
and frozen processed meats
market in Mexico, with market
presence in the U.S., Central &
South America and the Caribbean. This
acquisition simply shows that the Mexican
giant is serious about making its presence
in the U.S. more noticeable. Alvaro
Fernandez Garza, General Director of
ALFA commented: “We are very satisfied
in having completed this transaction,
which will help us gain a relevant position
in the processed meats market in the U.S.”
He further added that “by combining
Sigma’s operations in the
U.S. with those of Bar-S, the
company would be able to
generate additional value to
its stockholders.”
Prior to the acquisition,
Bar-S Foods was a private
company based in Phoenix,
Arizona with processing plants
and a distribution center in
Oklahoma. Its products vary
from hot dogs to hams and
bacon, among others, and are
sold across the U.S. under the Bar-S brand.
Bar-S registered revenues of $535 million
and more than 1,600 employees in 2009.
Sigma, on the other hand has 31 processing
plants and 144 distribution centers with
revenues reported in 2009 of $2,186 million
and more than 30,000 employees.
In an exclusive interview for Urner Barry’s
Reporter, Sigma Alimentos planning
Manager, Eugenio Caballero commented
that the Bar-S acquisition gives Sigma
Alimentos the position to expand its
current demographic outreach of the
Hispanic market to the mainstream
market. He also expressed Sigma
Alimentos’ motivation into the future as
Bar-S enjoys “very good efficiency, and low
cost management...Given Bar-S’s position
and efficiency, pricing for its products
can be as competitive as store brands
providing the consumer with affordable
and quality products.”
Yes, times are harsh. One can give up that
plasma TV for Christmas, but as Caballero
puts it, “people have to eat, and what one
sees in this environment is a trade down to
more inexpensive protein sources.” Bar-S
gives Sigma Alimentos this competitive
advantage. “We are looking forward into
expanding our demographic outreach and
very motivated to start competing in the
U.S. market” Caballero added.UB
VOL. 6, NO. 1 / WINTER 2011 / URNER BARRY’S REPORTER • 33