A presentation on BRF's involvement in the 2017 Brazilian meat scandal and a recommended action plan for rebuilding consumer confidence in their products. I did the design and content editing, and co-presented with classmates noted on the opening slide. This was a presentation prepared for a 4th year “Business to Business Marketing” course at Carleton University.

1. BRF S.A
TACKLING THE
BRAZILIAN MEAT
SCANDAL
TEAM: THE STARKS
03/30
Hayley Combaluzier
Antoine Gonnet-Miranda
Kevin McLeod
Kayla Maduk
John Hazel

2. 02
Introduction to BRF
Section One: Situation Analysis
Section Two: Market Analysis
Section Three: Strategic Alternatives
Section Four: Recommendation
Section Five: Implementation
CONTENT
OUTLINE

3. ABOUT THE
COMPANY
Objective: to feed the world
Largest poultry exporter in the world, portfolio of 30 brands
Over $16 billion in net revenue and 940 million in net income in 2016
Products are marketed in more than 150 countries
Over 105,000 employees
54 production units in seven countries
03

4. 04
VALUE CHAIN
1. Grains 2. Animal Feed Factory
3. Farms and Integration
4. Slaughter and
Industrialization
5. Distribution Centre
6. Retailers
6. International
Operations

5. 05
GLOBAL PRESENCE

6. 06
COMPETITION
JBS (3.5B)
BRF (1.724B)
BRAZIL
CHINA
New Hope Group (800MM)
Wen's Food Group (744MM)
UNITED STATES
Tyson Foods Inc (1.977B)
Perdue Foods (675MM)
Koch Food Inc (624MM)
EU
LDC, France (370MM)
Plukon Food Group, Netherlands (354MM)
PHW Group, Germany (350MM)
AIA, Italy (350MM)
2 Sisters Food Group, U.K (317MM)

7. BRAZIL'S
MEAT
INDUSTRY
2016 sales reached $5.9 billion in poultry and $4.3 billion in beef
Meat exports amount to about 7% of exports ($14.5 billion)
Brazil has more than 4,800 meat processing units. 2 largest companies:
JBS and BRF.
07

10. 10
THE
BRAZILIAN
MEAT
SCANDAL
29Brazilian meat manufacturers,
including BRF, accused of bribing
government officials and
selling/exporting rotten meat to
Brazilian and international buyers

11. THE
AFTERMATH
BRF stock fell 7% in a matter of hours
Imports of Brazilian meat have been stopped by
China, EU, S. Korea and Chile
BRF cut production of chicken
Police issued 38 arrest warrants
Brazil's President called an emergency meeting with
ambassadors of several countries
11

12. 12
STRENGTHS
WEAKNESSES
#1 poultry exporter
50% revenue in Brazil, 50% international
Ubiquitous in Brazil
Diversified risk in value chain
Stock price ↓
Legal issues
Poor risk mitigation strategy
Plant shut down
Higher vulnerability to the scandal
Forced to cut production

13. 13
OPPORTUNITIES
THREATS
China, EU, S. Korea and Chile
Consumer confidence shaken
Climate change
13% growth of poultry sales in Brazil by 2021
Global demand for food
Worldwide consumption of poultry ↑

14. THE PROBLEM
STATEMENT
How can BRF rebuild customer
confidence in their products
and pursue further growth
worldwide?
14
OBJECTIVES
Reaffirm company's arch of priorities
1. Governance, transparency and sustainability
2. Supply chain
3. Quality and food security

15. 15
MARKETING STRATEGY

16. 16

17. 17
STRATEGIC ALTERNATIVES

18. 18
DECISION CRITERIA &
EVALUATION

19. 19
Alternative #1: Middle East/Africa Expansion
RECOMMENDATION
Limited domestic production
Long term growth opportunity
Established international supply chain
Competitive advantage over emerging
exporters
Increased global presence

20. 20
IMPLEMENTATION

21. 21

22. 22
CONCLUSION
Big meat
scandal
PROBLEM
Expand into
Middle
East/Africa
Restructuring
for trust
SOLUTION Reaffirm
company's
arch of
priorities
IMPACT

23. QUESTIONS?