Evan Foods Case

7/24/2019 Evan Foods Case

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INTRODUCTION

In 1985, Alejandro Silva and his partnerpurchased Evans food in Chicago.

Evans food becae largest producer of

por! rinds and por! pellets in the "orld,"ith value of #1$$ illion revenue.

%he& have a largest 'S retailer such as

(E), *eijer, A+I and -alart. %he& operate their business in the 'S

and /0/'S ar!ets.



PRODUCTS

PORK RINDS $2 of revenues

cae fro the 'Sar!ets .

*argin are lo" ascopared to por!pellets.

%he 'S ar!et forpor! rinds "as about#34$ illion andgro"ing at 1242

annuall&.

PORK PELLETS

$2 of revenuescae fro the /on'S

ar!ets. *argin on por!

pellets are higher ascopared to por!

rinds. %he global pellet

ar!et "as #15$illion "ith a 42annual gro"th rate.



CONSUMER

+arge retailers such as-al*art, (E), *eijer,

A+I. Club stores, convenience

stores, discount storesand distributors.

6or! rinds "ere popular

in the Southern 'S and'S *e7ico borderaong African Aericanconsuers.

COMPETITORS

udolph oods, a

copan& based in0hio.

rito +a&:s.

)a!enets.



PROBLEMS

Increase of prices of por! due to 6Evirus.

raatic drop in Evans food argin.

(aving less negotiation;bargaining po"er

"hile dealing "ith large retailers.

Copetitors.



STAY THE COURSE

Soe people in the copan&argued this stor "ould soonpass and the copan& "ould return

to its old pro<table odel.

etain the custoers.

It is unclear "hen the ra" aterialprice "ill coe do"n.



RAISE PRICE

Evan foods increase their price "ithrespect to increase in the cost of 6or!s!ins.

%o reach )rea! Even point. egain its pro<tabilit&.

Copetitors sho"ed no sign of price

raise. Can loose soe of its biggest custoers.



EXPAND

INTERNATIONALLY

In 6ast, Evan food sales increase b& 52.

$2 Sales "ere fro outside 'S.

*argin on the pellets is better than

argin on por! rinds.



THANK

YOU

Evan Foods Case

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