Marfrig, which currently holds a 51% stake in BRF, is pursuing further synergy between the two companies. This move follows a September announcement that merged key brands to strengthen their presence in Brazil’s processed beef market. Under this strategy, Marfrig’s premium beef hamburgers began carrying the Sadia/Bassi label, while Perdigão/Montana was adopted for BRF’s Perdigão line of processed beef products.

“We will extend this brand merger to beef cuts in Brazil starting in November… Now, globally, Sadia becomes the expansion brand for the Marfrig BRF group’s beef business,” said Marcel Sacco, vice president of marketing and new business at BRF.

Marfrig operates several beef brands worldwide, such as GJ, Pampeano, Tacuarembó, and Quickfood—the latter two being produced in its Uruguayan and Argentine units. While these brands will continue, GJ, currently present in 91 countries, will gradually be replaced as a priority brand, though it will remain in the market. “We’re also introducing Sadia due to its international recognition and existing presence,” said Mr. Sacco, noting that the brand is a leader in Brazil’s food segment, ranks third in Latin America, and holds a strong position in the halal market.

The group plans to use Sadia in new markets and assess the need for changes in markets where other brands are already established, according to Miguel Gularte, CEO of BRF. Rui Mendonça, Marfrig’s CEO for South America, emphasized that the “preferred brand will be Sadia.”

This synergy extends to their international sales operations, where “multiprotein” sales teams are in place. Sales representatives from both companies now sell beef produced by Marfrig and pork and chicken from BRF. For instance, BRF’s Shanghai office now serves both companies, and Marfrig handles the distribution of BRF products in Argentina and Uruguay, according to Alisson Navarro, Marfrig’s export director. “All employees sell all the proteins,” he noted.

According to Marfrig, selecting Sadia as the brand for expanding beef exports also positions the company to strengthen its presence in the Middle East’s halal market. The Sadia brand has been a staple in the region for 50 years, already well-regarded for its chicken products.

Igor Marti, vice president of Halal Markets, highlighted that efforts to promote the brand have begun at the point of sale. “We are giving the Sadia brand a strong presence at retail locations and providing support materials to show consumers that the brand they trust for chicken and vegetables can also be trusted for red meat,” he said.

The group aims to capture market share and boost margins by using the Sadia brand in export markets. The integration between Marfrig and BRF extends beyond branding to include efficiencies in sales, supply chain, and services. According to Mr. Gularte, this is already evident in freight negotiations.

In this integrated sales model, many clients who previously sourced chicken and pork from BRF but purchased beef elsewhere now buy all three proteins directly from Marfrig and BRF, Mr. Gularte noted.

The portfolio integration is part of a broader strategy that began when Marfrig took control of BRF. “When Marfrig took control, it introduced a performance culture program, focusing on areas where improvements could be made and identifying practices in one company that could be applied to the other,” Mr. Gularte said.

Reflecting on these recent developments, Marfrig’s founder, Marcos Molina, emphasized the mutual benefits of this collaborative approach. “The global expansion of the Sadia brand into the beef market showcases the potential for value creation through our joint efforts,” he said. Addressing the merger prospect, Mr. Molina added, “Regardless of the corporate structure, which is neither a concern nor a priority, both companies are already operating as a multiprotein entity across various regions.”

As he prepares for the following stages of integration with BRF, he notes, “There is still much to accomplish.” Mr. Molina awaits a decision from Uruguay’s competition authorities regarding the sale of three beef assets in the country to Minerva. These units are part of a larger package of 16 plants that Marfrig sold to Minerva in August 2023 for R$7.5 billion. While Brazil’s Administrative Council for Economic Defense (CADE) approved the sale of 13 plants (11 in Brazil, one in Chile, and one in Argentina), Uruguay’s antitrust agency blocked the transfer of the three plants within its jurisdiction, prompting an appeal from Minerva. Approximately R$6 billion from the deal is expected to enter Marfrig’s cash flow on October 28.

The journalist traveled at the invitation of Marfrig and BRF.