McCain Foods has announced plans to invest around $100 million to construct its first French fry factory in Brazil.
The plant, due to be opened in the first half of 2021, will “significantly increase” McCain’s production capacity in Latin America.
The factory, combined with the company’s continued supply of products from its plant in Balcarce, Argentina, will serve to fuel McCain’s growth plans for the Brazilian market.
Brazil is the fifth-largest frozen pre-fried potato market in the world and therefore is one of McCain Foods’ major global focuses within 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 its service level and product offering in the local market,” said Aluizio Neto, general director of McCain in Brazil.
The announcement comes to months after McCain acquired a 70% stake in Sérya, a Brazilian food company that operates in the pre-formed potato market.
The new French fry facility will be built in the city of Araxá, in the state of Minas Gerais, which is where Sérya is located.
Last year, McCain Foods’ Brazilian subsidiary acquired a 49% stake in Brazil-based food manufacturer Forno de Minas Alimentos.
Earlier this month, McCain took part in a funding round in Nuggs, a start-up that has developed a nugget featuring texturised pea protein technology and is free from major allergens, including eggs, wheat, dairy and soy.
© FoodBev Media Ltd 2019