"The business had its best year ever in terms of economic results."

Gilberto Tomazoni (vice-president of the Food & Ingredients business).

Food & Ingredients 2.2

Quality and tradition define the products made and sold by the Food & Ingredients business. Its many product lines serve end-consumers and the food sector, including restaurants, bakeries, confectioners and industries. Bunge is the market leader in the segments of margarines, bottled oils, flours and premixes for bread making.  

In terms of end-consumption, its brands include Delícia, Primor Cyclus, Soya, Salada, Andorinha, Cocinero and Soleada, for margarines, mayonnaise, vegetable oil, special oil, olive oils and rice. In the confection, bakery and meals sector, it also sells flours, premixes, vegetable fat, chocolate and icings, under the brands Gardina, Ricca, Suprema, Cukin, Primor and Soya; and, aimed at more specialized industry, it has the brands Probisc, Promac, Prospecial, Promult and Profry, among others.

Established brands integrates the portfolio of Bunge, which is market leader in margarines, oils, flour and baking

The Year

The excellent performance witnessed in 2011, with changes in attitude, processes and dissemination of the concepts of efficiency, was fundamental to the growth of the business’ earnings. In terms of economic results, it was the best year ever for the Food & Ingredients business, especially in the line of flours, which achieved an expressive result thanks to the development of increasingly more practical products, and ones that were aimed at healthy eating, such as whole-wheat flours.    

Efficiency, profitability and growth were key concepts in the success of the operations. The business’ employees experienced the change in the management process to a standardization of best practices, as well as the search for excellence in the industrial, commercial and logistical areas. This resulted in the creation of a more dynamic business: more specialized and adapted to the needs of customers and consumers alike.   

After developing, in 2010, four new products aimed at the professional and domestic markets, in 2011 Bunge gained an even greater market focus. It registered a 50% increase in the number of customers buying direct, without going through a distributor or wholesaler. The sales team was better trained and equipped.  

The business’ margarine line obtained greater market share, while that of mayonnaise went through a major restructuring that included the launch of a new brand in the segment: Salada.

The year was especially marked by Bunge’s entry into the tomato-based products segment, which helped strengthen the business’ portfolio of consumer products.

Etti and tomato-based products

In May of 2011, the company announced its entry into the tomato-based products segment, through its brand Primor, mainly concentrated in the North and Northeast of Brazil and, in December, announced the acquisition of the Hypermarcas food business, which includes the brands Etti, Salsaretti, Puropurê and Cajamar and an extensive product line of sauces and concentrated tomato paste, soups, sauces and flavorings, and ready-made and instant meals. 

The cost of the acquisition, totaling R$180 million, included the acquisition of a plant in the town of Araçatuba (SP), which is also home to the Distribution Center, employing around 250 employees. This deal helped Bunge strengthen its strategy of increasing its presence in the food business, a promising market of extreme importance in Brazil’s retail sector. 

By incorporating into its portfolio traditional, strong brands and in the South and Southeast of the country, Bunge was able to increase its participation in the tomato-based products segment, thereby strengthening its portfolio of consumer products as a whole.  

Bunge’s tomato-based products line is produced using tomatoes grown from special seeds, in plantations that are totally natural, without the addition of preservatives, and that are monitored 24 hours a day. The sauces are offered in sachet versions: Traditional (140g and 340g), Basel (340g) and Pizza (340g), while the extracts are sold in cans (340g) and glass containers (190g). In the food service market, products are sold in sachet versions: sauce (4.1kg) concentrated tomato paste (1kg and 4.1kg) and Passata, or sieved uncooked tomatoes (3.1kg).

Bunge’s care for quality begins even before the planting stage, in the use of the highest quality seeds. The seedlings are carefully monitored to guarantee irrigation and nutrition in the precise and required quantities. Planting and harvesting are carried out at the ideal times of the year (dry months) and all the processes used ensure a strong and active growth of the tomatoes, which result in consumers having access to tomatoes that are redder, have more flavor and are consistent in all their attributes (shape, size, texture etc.). Careful monitoring of the tomato plantations ensures that less water and pest control measures are needed during the whole process.

Efficiency

The business seeks operational and management excellence by promoting programs that are both targeted and focused.

The PEOB (Bunge Operational Excellence Program)

The creation of the Operational Excellence Committee is aimed at making Bunge the biggest company in all the business segments in which it operates, while at the same time obtaining a high level of excellence in all its operations and businesses, in accordance with the company’s global strategic pillars. 

The Committee is made up of the company’s leading executives and is based on the ideal of respect for the company’s values, so as to ensure that all those relevant stakeholders with whom it has a relationship, are fully satisfied.   

Excellent People

Around 800 employees and representatives from the Food & Ingredients commercial area participated in the Excellent People program, a new initiative aimed at professional development. The program is based on a set of pillars that are directed at its different stakeholders, ranging from sales rep to management.

In order to ensure that the program was fully available to all of the company’s professionals on a national level, 26 managers from the commercial area were chosen to act as Content Multipliers, disseminating knowledge and helping in the learning process.

Bunge Academy

A Project run by the Food Service’s Trade Marketing department, in partnership with the SAC (the Customer Service Center), the Bunge Academy was set up in the first half of 2011 and aimed at providing some 500 employees across Brazil with theoretical and practical knowledge and training. 

Internally, the company seeks to train its professionals through the development of programs, technologies, processes and information, applied technically and with a commercial slant. In addition to handling products in an industrial kitchen, the team is offered the opportunity to get to know the technical characteristics of products, learn about good practices and receive tips on best use practices that can eventually be passed on to, and adopted by customers. 

In 2011, professionals from the Commercial and the Trade and Marketing teams participated in the Basic Module, two modules of Bread Making (Intermediate and Advanced), and the totally new Confectionary course. The circuit reached the cities of Manaus (AM), Recife (PE), Fortaleza (CE), Rio de Janeiro (RJ), São Paulo (SP), Ponta Grossa (PR), Salvador (BA) and Gaspar (SC).

July marked the inauguration of the Master Bunge Rio Academy, for Rio de Janeiro-based customers, at the Fluminense Mill. This is divided up between the theoretical and practical areas, and segmented into Bread Making, Confectionary and Meals.

The idea of the Bunge Academy Project is to set up 10 units in Brazil by 2015 through partnerships between the Food Service Department and Universities, gastronomy and bread making courses, equipment companies and partners from the professional segment. 

The initiative is headquartered at the Center of Excellence Academy, in São Paulo, in the neighborhood of Jabaquara. Its quarters, covering an area of 700m2, are divided up into the segments of Bread Making, Confectionary, Meals, Chocolate and Library, auditoriums and an internal area set aside for the development and application of recipes and products. 

2012 Outlook

  • Over the long term, to become the biggest and the best food and ingredients company in Brazil.
  • To be market leader in the segments in which it operates.
  • To have brands admired by consumers.
  • To have products desired by customers.
  • To employ a team made up of the very best professionals.
  • To be a leader in Sustainability. 1.2

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Commitment to Brazil. Field to table.
Bunge Brasil's Sustainability Icons
Represent the Social, Environmental and Economic dimensions of the actions and projects of the company in the Country. Learn more about Bunge Brasil Sustainability Platform in
www.bunge.com.br/sustentabilidade.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Sustainable Agriculture Bunge is committed to raise awareness and train farmers to produce in order to reduce environmental impacts and maximize the use of finite natural resources.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Climate Change Climate Change can bring significant impacts to food production worldwide. Therefore, Bunge believes it is a key factor in sustainability analyzes.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Healthy Diets Offering safe and beneficial products to health. Bunge works to identify customer needs and provide the best food ever in the market.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Waste Reduction Development of mechanisms and processes for the reduction of waste in industrial processes and expansion of the rational use of water and other non-renewable resources in the management of operational efficiency.