Grupo Romero’s Alicorp is the largest consumer goods company in Peru. Over the approximately 60 years it has been in business, Alicorp has grown through several merger and acquisition transactions with other local firms. The company currently has clear market leadership in most of the key categories it competes in. Alicorp’s revenue comes mainly from five countries – Peru, Argentina, Brazil, Chile and Ecuador – and, to a lesser extent, from exports to other regions. At present, Peru contributes slightly more than 60% of total sales, which is down from 100% about 10 years ago.
Alicorp’s controlling group is the Romero family, which holds a majority stake in the company through different investment vehicles. In total the Romeros hold as much as 24% of the company’s 855m outstanding shares, including both common and investment shares.
Exchange & Reach
Alicorp’s shares have been trading on the Lima Stock Exchange since 1995 under two tickers: ALICORC1 for its common shares, of which 99% are outstanding; and ALICORI1 for its investment shares, of which 1% of shares are outstanding. Peru remains the most important market for Alicorp, and the company has a large presence there in the consumer goods and business-to-business (B2B) segments. Nearly 75% of Peru’s contribution is concentrated in the 10 consumer goods and three B2B categories in which Alicorp has market shares exceeding 60% on average. The firm’s relevance in its native country is underlined by a solid distribution network, which constitutes a strong barrier to entry for competitors.
Production & Distribution
Alicorp has 39 plants and mills, 29 of which are in Peru, at five main locations. On the international side, Alicorp has three plants in Brazil, used for pasta and other products; five in Argentina, three of which are used for high-performance computing-related products, with the other two used for pasta and crackers; one plant in Ecuador for shrimp feed production under the Nicovita brand; and one facility in Chile specialising in fish feed production.
Alicorp has a distribution model that favours direct exclusive distributors that receive incentives tied to their sales performance. The company also commercialises its products indirectly through wholesalers and non-exclusive distributors, and another portion goes to industrial clients and bakeries. The firm sells its products mainly through traditional channels, which is still the most common type of retail distribution in the country. In order reach its customers in Peru, Alicorp has 10 plant warehouses and 13 distribution centres, most of them located in the coastal region. To reach locations that are farther afield, Alicorp operates 25 sales offices around the country. For its international operations, Alicorp owns seven distribution centres in Argentina, while in Ecuador the company operates three warehouses for clients to receive products they have ordered. Distribution is mainly carried out through local third-party distributors and, to a lesser extent, through wholesalers and retailers.
Alicorp’s consumer goods division in Peru includes approximately 58 brands. Alicorp has managed to gain share of wallet by being present not only in several categories, but also in different price segments of the same product category. In the case of B2B products, which are mainly offered in Peru, Alicorp has tapped into its consumer goods presence to market industrial flours under flagship, long-standing brands such as Santa Rosa, Sayon, Victoria, Inca and Blanca Flor, reaching 50% market penetration. Its penetration among industrial clients in the oils, fats and industrial margarines categories is also significant, reaching nearly 60% of that segment. At the international level, its pasta brands in Brazil and high-performance computing products in Argentina together represent 12% of Alicorp’s consolidated sales. Alicorp’s aquaculture flagship brands lead the shrimp feed markets in Ecuador, Peru and Central America, while its fish feed brand is the fourth most popular in Chile. Together, shrimp feed and fish feed represent 21% of consolidated sales.