McCain Foods announced on July 19 that it will spend approximately US $100 million to build its first frozen french fry factory in Brazil. The investment signals a strengthening of the Florenceville, New Brunswick, Canada-headquartered company’s expansion strategy in the Brazilian market.
After acquiring 49% of bread snacks and appetizers maker Forno de Minas in 2018, followed in May of 2019 with the acquisition of 70% of Sérya, a Brazilian operation specializing in pre-formed potato products, McCain is now focusing on its main growth category – frozen french fries.
Plans are in hand to build a state-of-the-art factory in Araxá, Minas Gerais (where Sérya is situated), on a schedule that calls for opening during the first half of 2021. The project is expected to generate 150 direct jobs plus 450 indirect jobs, and positively impact approximately 750 farmers and agricultural professionals in the area.
Once up and running, the plant will significantly increase McCain’s production capacity in Latin America, supplementing output from a well established factory in Balcarce, Argentina.
Brazil ranks as the fifth largest pre-fried frozen potato market in the world, and therefore is one of McCain Foods’ major global focus points in a business strategy that concentrates efforts on investments that enable accelerated growth.
“With the construction of the new factory in Brazil, McCain will enhance its distribution, create efficiencies in supply and consequently improve levels of service and product offering in the local market,” said Aluizio Neto, general director of McCain do Brasil Alimentos.
