(Yicai Global) Nov. 8 -- Alibaba has agreed a deal with JBS, the biggest meat processor globally, to provide e-commerce and supply chain services as part of the Brazilian firm's efforts to expand in business-to-business and business-to-consumer markets in China.
The parties inked a three-year agreement, potentially worth USD1.5 billion based on previous revenues, covering beef, pork and poultry, the Sao Paulo-based firm said in a statement. JBS will use Alibaba's fresh food distribution unit Win Chain for its Friboi brand, which was launched domestically during the China International Import Expo. The event is running until Nov. 10 in Shanghai.
"This deal will significantly expand our beef business and build further value for the Friboi brand," said Renato Costa, chief executive of JBS' beef division in Brazil. "We have developed products based on packaging, cuts and portions specifically designed for the Chinese market."
JBS has already been conducting tests with Hangzhou-based Alibaba to meet the demand for online meat purchases and packaging with first shipments expected to take place within 30 days.
Win Chain platform will provide JBS with adequate solutions for the Chinese market including sales channels, cold chain distribution and big data support while guaranteeing the full integration of processes.
JBS' serves more than 350,000 customers from over 150 countries and regions and operates brands including Moy Park, Pilgrim's Pride, Primo, Seara, Swift and Gold'n Plump.
The firm's aims to grow its market share in China by meeting product variation demands and implementing channel segmentation. "JBS understands the complexity of the Chinese market and has the capacity to produce on a large scale and fully meet local demands," Costa added.
Editor: William Clegg