Retaining Pride & Passion in a Conglomerate World

Companies make acquisitions for a number of reasons; often to gain new market share, intellectual property, additional products and new revenue streams. Most of the time however, mergers and acquisitions are driven by a desire for higher stock prices under shareholder pressure.

We’ve seen plenty of consolidations in the food industry over the past year. The largest pork producer, Smithfield Foods, sold to the Chinese group, Shuanghui, Sysco is acquiring US Foods, Hillshire Brands moved to acquire Pinnacle Foods and then Tyson is acquiring Hillshire Brands.                                                        meat-knife-colorado-premium 

Lost in Transition

Acquired companies frequently lose their identity when they’re “synergized” into the large acquiring companies. (That’s code for grabbing the customers, products and profits while eliminating everything else that already exists within the acquiring company.) In essence, much of what made the acquired company valuable in the first place is tossed out, ultimately forcing the customer base into a commoditized system of doing business.

The not so synergistic trail has played out more than several times over in the meat industry. In recent years, privately held Chicago meat companies have been gobbled up by multi channel food industry companies. US Foods [now being acquired by Sysco as noted above] bought privately held Stockyards Packing and New City Meats and Allen Brothers was acquired by Chef’s Warehouse, a publically traded specialty foods distributor.

What would happen if two family run meat companies combined?

Buedel & CPF

Up until now, privately held meat companies have been largely acquired by food conglomerates with multiple lines of business. We are excited to share news of just the opposite: Colorado Premium Foods, a privately held family run fine meats processor, has acquired Buedel.

Buedel Fine Meats & Provisions will now operate as a wholly owned subsidiary of Colorado Premium (CPF). Other than the change in entityPicture1 backing of our company, Buedel Fine Meats continues to operate with business as usual – abiding by our commitment to listen to our customers first, and deliver premium quality meats with professional services.

This marriage makes Buedel Fine Meats stronger than ever and gives us increased size, scale and capacity to continue to develop new offerings, expand into new markets and lead by example into the future.

Our profile now provides:

  • A complimentary customer base to serve larger multi-concept owners
  • Additional product lines, with more buying power benefits to our customers
  • Geographical expansion of the distribution footprint for both companies
  • Mutual growth potential to reach new customers with our value nationally
  • Additional capacity to support growth in both businesses across geographic markets

Wrap Up

Retaining value is a top priority for Buedel and CPF. Our respective customers will not experience the pitfalls of commodity service but gain the opportunity to reap new benefits from a combined product and resource pool solely dedicated to fine meats.

Unlike many of the acquisitions before us, Buedel will continue to operate with pride and passion in a conglomerate world – merging old world family traditions with the best modern practices of today.

From the desk of John Cecala || Website LinkedIn @BuedelFineMeats  Facebook

About CPF: Colorado Premium Foods is a family run, privately held premier value added manufacturer of premium beef products focused on serving major U.S. retailers, restaurant chains and co-packing of specialty items for packers across the nation. Colorado Premium custom processes over 100 million pounds of beef annually, operates 2 production and 2 storage facilities with approximately 500 employees and over 100 customers nationwide.                                               Read more at: www.coloradopremium.com

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