Meet Muffato, a supermarket chain in the interior of Paraná negotiating the purchase of Makro - Estadão stores

Meet Muffato, a supermarket chain in the interior of Paraná negotiating the purchase of Makro – Estadão stores

The Makro Group is ready to leave the country – to implement the strategy, all that remains is to sell the stores that are still in its portfolio. after, after Selling a large part of the units owned by the giant Carrefour company – Now the market leader in the country and owner of cash and carry Atakadaw – Now trying to get rid of the remaining points of sale. After negotiating properties with national chains, the company is now considering selling to a regional group: Muffato, of Parana.

Although unknown in most parts of the country, Moffatu group strong in its home market. Founded in 1974, in Cascavel, west of Paraná, it is now the sixth largest chain in the sector, with 82 stores, taking into account the brand selling by pieces Super Mvato and attack max wholesaler. Present in 31 cities in Paraná and in the interior of São Paulo, the company currently employs 19,000 people.

Now, get ready to take a new leap by purchasing 24 units of macro. The business will be his gateway to the capital of São Paulo. a stadium It found that negotiations have been underway for at least two months, but the parties are not yet on the ground. There will be the question of price: Macro wants about R$2 billion for the assets, and Muffato is still trying to bring the price down.

Muffato negotiated the purchase of Makro units in Sao Paulo take photo: stadium

It started as a dry and wet warehouse

Muffato is a family business, today run by sons Founder Tito Moffatu, who set up the company with his brother, Pedro, and son-in-law, Herminio. It all started with a small grocery store in Cascavel. The goods were purchased in São Paulo or acquired through regional industry representatives. At that time, the grain was sold in large quantities and immediately weighed.

The business experienced a turning point in the late 1970s with the construction of power plant in Itaipu, in Foz do Iguaçu, when Movato opened a store in the city. The network developed in the following decade in the southern region of the country, a movement that continued until the mid-1990s.

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On March 13, 1996, everything changed in running a business. Tito Mavato embarked on a trip on a family plane to the Pantanal, where he would dedicate himself to fishing for a few days, which is his favorite pastime. On that day, the weather was bad and the pilot tried to make an emergency landing in Foz do Iguaçu. However, the plane crashed, leaving no survivors.

His wife René and his three children Ederson, Everton and Eduardo, aged 18, 16 and 14, respectively, had to take over management of the eight stores and what were then 1,500 employees. Today, at the head of the family business, Tito’s children were responsible for the expansion into the interior of São Paulo, in 2002. None of the three replaced their father’s position, and chose the joint management of the company.

Everton Moffatu, one of the brothers who lead Mavato's group
Everton Moffatu, one of the brothers who lead Mavato’s group take photo: Celso Pacheco / Estadao

Discreet, entrepreneurs who started working in the company when they were still children do not want to be interviewed stadium. They are also not active on social media. In 2021, the turnover reached R$10.6 billion, with a growth of 17% over the previous year. Today, the company has 19 thousand employees.

Now, with the negotiation of the acquisition of Makro units in São Paulo, Muffato could open a new chapter in its history and increase the number of stores in the country by nearly 30%. But the task of conquering the capital, São Paulo, will not be easy.

Muffato has units in Paraná and in the interior of São Paulo
Muffato has units in Paraná and in the interior of São Paulo
take photo: stadium

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For Jean-Paul Ribetz, Retail Specialist and Partner at GS & Consulting, the Muffato project in São Paulo will face challenges beyond making the brand known among São Paulo residents.

“Muffato will go into battle with very competent people who not only operate in cash, carry and food trade, but also act as business ecosystems, with credit, CRM and last mile delivery. Carrefour is an example of this, as is Pão de Açúcar. He says: “ It’s a challenging area.”

So Muffato will face the big market heavyweights in São Paulo. Carrefour generated R$81 billion in revenue in 2021, while Assaí generated R$45 billion in revenue, and R$29 billion in GPA.

Muffato will do battle with highly competent people who operate not only cash, carry and food trade, but also act as business ecosystems.”

Jean-Paul Ribetz, Partner at GS & Consulting

In Rebetez’s view, the food retail sector has weathered the economic downturn caused by the covid-19 pandemic by offering the consumer essential items, such as food and beverages. With this, the company seeks to position itself in the capital of São Paulo with strategic points. Upon completion of the Makro purchase, Muffato will have units in the Butantã, Interlagos, Lapa and Vila Maria neighborhoods.

The Dutch group SHV, which owns Makro stores, realized that the business was no longer competitive in the current market context and decided to put the brand’s stores on sale. Mateus Campos, partner at Stocche Forbes Advogados, says the move is in line with the growth of the food retail sector during covid-19 pandemicwhich made the main competitors in the sector more capitalist.

At the moment, what drives acquisitions the most is that cash spending on expansion gives a faster return on investment than investing in opening new units. It is an opportunity for those who have opened new stores only to be able to buy points that actually work. In this merger, smaller companies may conclude that it is a good idea to sell their business to larger competitors,” says Campos.

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