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Brazil ‘scandals’ no concern, says DAT-Schaub CEO

By Oscar Rousseau

- Last updated on GMT

DAT-Schaub CEO Jan Roelsgaard has eyes on more acquisitions in 2018
DAT-Schaub CEO Jan Roelsgaard has eyes on more acquisitions in 2018

Related tags South america Brazil Beef Pork

Brazilian corruption and food safety scandals do not alarm leading natural casings supplier DAT-Schaub, which aims to double the profits of four South American firms it acquired this week.

Danish Crown subsidiary DAT-Schaub paid cash for a majority stake in five companies across South America and Spain, including Brazilian pig casings producer ESB.

Jan Roelsgaard, CEO, DAT-Schaub, told this site in his only interview with British media that he hoped to double the sales and profits of the four South American companies by 2020.

When asked if Brazil’s financial and food safety standards, previously criticised by the EU, were a problem, Roelsgaard replied: “No. And why? Because this is about different scandals and food safety [issues] and we operate our own casings departments. Some of the products we are going to sell in the Brazilian market through ESB will still be European or US material that will be completely within our hands.

‘World’s best’

When you look at market potential, Brazil is a very big market for natural casings,​” he added.

DAT-Schaub, sister company of Danish Crown​, one of the world’s largest pork exporters, wants to be the “world’s best​” natural sausage casings supplier, Roelsgaard said.

As a result, the company is engaging in an intensive global acquisition campaign. And DAT-Schaub has already bought controlling stakes in companies from Brazil, Chile, Colombia and Spain, with more takeovers expected in 2018.

DAT-Schaub even sold its ingredients business​ Arne B Corneliussen (ABC) to Orkla Food Ingredients for an undisclosed sum. Proceeds from the sale may be used to finance further takeovers of natural casings producers too.

Doubling of profits

When we buy something we want to grow it,​” Roelsgaard added. “My expectation is at least to double the sales and profits of the companies we have bought within the next three years​.​”

DAT-Schaub acquired Brazil’s ESB; Colombian company Tricolsa; Chile-based firms Insuban and Indexna; and multi-species Spanish casings firm Agrimares.

DAT-Schaub retains a majority stake in all five companies.

Manuel and Daniel Céspedes, from the founding family of Agrimares, remain minority shareholders in Agrimares, Insuban, Indexna and Tricolsa. Daniel Berlitz has retained a minority stake in Brazil’s ESB.

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