Case study: Camil – creating a multi brand company in dry goods distribution

Piero Minardi, Partner, Gavea Investimentos

Gavea was acquired by JP Morgan in 2010. This has not changed anything, however, they are using the same strategies. They have 4 PE funds, created in different years, that have been getting good returns.

Camil is a rice producing company, started in the 1970s by a truck driver who was transporting rice. Rice market in Brazil is very interesting because it is very fragmented because of the way the taxes are structured in Brazil. Camil is the biggest player, but has around 11%. The government is moving to remove taxes on basic foods like rice, beans and some other products.

Camil acquires a few different companies and this gives the owners confidence in their ability to expand and grow. Camil had a very stable business, the #1 brand in rice distribution, one of the top 5 recognized brands in the typical Brazilian household, yet they still wanted to grow. While growing, they made sure to stick to what they were good at and make investments that fit their skill.