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Vigor bets on Rio de Janeiro to reduce dependence on São Paulo

With its sales highly concentrated in São Paulo state, Vigor Alimentos - a dairy company owned by J&F - the holding company that controls JBS - has chosen Rio de Janeiro to speed up its geographical diversification process and to reduce its dependence on consumers in São Paulo state.

In an interview with Valor, the president of Vigor, Gilberto Xandó, confirmed that the company is to invest R$ 180 million in Rio de Janeiro in building a factory and a distribution center, as revealed by the State's Department of Development on Wednesday. The executive cautioned, however, that this investment will only start in 2015. Before that, Vigor plans to increase its penetration in the state with a larger sales and distribution team.

"We want to make Vigor more Brazilian and it makes a lot of sense to start expansion in Rio de Janeiro," said Xandó. The goal is to increase Rio's share in revenues at Vigor from its current 8% to somewhere between 25% and 30% in the next five years. In the first nine months of 2012, São Paulo accounted for 70% of the company's net revenues, which totaled R$ 978.7 million.


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