The Spanish Calvo Group is reaching final negotiations on the purchase of the Brazilian cannery Gomes da Costa. The final buy is expected within the next few days placing Calvo at the top of the South American canning sector.
The Calvo Group, property of the Calvo family, is leader in Spain with a 17% share, according to AC Nielson reports, and is situated in second place in Italy, with a 14% share, through its brand Nostromo. The Italian Nostromo plant was purchased and closed down by the group in 2000, relocating its production of Nostromo canned fish at the Carballo plant in Spain. Calvo is also the third leading cannery in Portugal with a 10% market share. The group invoiced 257,69 million Euros in 2003. With the purchase of the Brazilian cannery Gomes da Costa, the group will increase its turnover by 100 million Euros.
Gomes da Costa is located in Itajai and is the most important port of Brazil, where the artisanal fleet catching tuna and sardine is situated and south to Sao Paulo. The factory has 1,000 workers and is considered one of the most modern plants of South America, producing one million cans per day. It holds 50% of the domestic market share, between tuna and sardine. Gomes da Costa exports to Argentina, Chile, Uruguay and Paraguay. It also has facilities in Minas Gerais, Sao Paulo, Pernambuco, Rio de Janeiro and Parana.
The Calvo Group Brazil-factory will continue supplying the domestic market with its Brazilian product, under the same brands: Gomes de Costa and 88. This acquisition is a great step for the group, because the Brazilian population consists of 180 million, with very significant annual consumption increases.
For the past three years, the Spanish group has been studying expansion possibilities, mainly in South America. Apart from the Gomes da Costa plant, Calvo considered purchasing Coqueiro, the second company of the sector in Brazil. Factors such as location, staff skills and the access to tuna fishing quotas were essential issues in the final decision, which lead Calvo to opt for Gomes da Costa.
Venezuela
The plant in Guanta, Venezuela, which was robbed and put on fire last August, is under repair and is expected to start operating in about six months, approximately by March 2005. Venezuela was producing 150 tons of tuna loins and shipping the to the Carballo factory, in Spain for canning.
El Salvador
The Calvo Group’s plant in El Salvador was opened in September 2003, which is six times the size of the Venezuelan plant since El Salvador has zero tariffs for export.