Luis Pagani: “There are two Argentines, one is consuming and the other is struggling to earn”

Ang high inflationary pressure, rising production costs, the new wave of pandemics and the result of the war between Russia and Ukraine These are some of the challenges that companies must face in the local market, according to Luis Pagani, CEO and president of Arcor, the largest food company in the country and the local business group with the largest number of open world market.

The businessman gave a speech – yesterday – to students from Torcuato Di Tella University, moderated by economist Bernardo Kosacoff. There he examined the keys to Arcor’s development, its global projection and the opportunities and changes it faces, in the complex local and global economic context.

Regarding the situation, the businessman specified “profound change ”taking place on the world stagely, in the way in which the company adapts to the new scenario of rising commodity prices, for example: “When we thought the pandemic would be a bad memory, we continued with that theme and also added the conflict in Ukraine and Russia, which increases maritime transport costs and complicates logistics “Pagani noted.

The data is not small when Arcor, in the process of internationalization, is about to open a new industrial plant in Angola, on the continent of Africa which will, by 2050, have the largest population on the planet. Asia, due to its population density, is also among the entrepreneur’s plans for the future.

In the domestic market, la.Argentina, is passing a complex, “with alarming inflationary levels”, described. “Despite us we will invest more. The company is working throughout the region to grow through exports“, he pointed out. And he decided that” at this time, the most important thing is to see a horizon that provides more certainty. kasi “there are two Argentines, one is consuming and the other is struggling to survive “, directed by the businessman.

Among the postcards from the local market, Pagani said: “It is difficult in Argentina to say the word entrepreneur, it is used more entrepreneurial ”, he said when asked what the entrepreneurial gene is in Arcor’s DNA. “The entrepreneurial gene is inherent in one, it implies more, having a long-term perspective, learning from experiences. An entrepreneur is a maker of wealth, which must exceed “, said. He also recalls that, “in the 90s, the country has lost a generation of business and that’s why it’s worth so much, ” mentioned in obvious allusion those selling their companies at the time.

theAs advice, he repeated to the students: “Don’t lose the North, that desire, you need rejoice, bet on a product, a market. And if that is put together, move forward to a neighboring country and grow ”.

Previously, guided by Kosacoff’s questions, Pagani reviewed Arcor’s beginnings 70 years ago when a group of friends, including his father, had the goal of forming a candy company. Then, he reviewed some details of its expansion, as in the early 1970s, the company saw another opportunity to join the distribution system that tobacco company Nobleza Piccardo had along with Gillette products and Eveready. That was the beginning of a network that now has more than 280 thousand points of sale in the country, These are provided on a weekly basis.

Pagani, also referred to the alliances that have allowed Arcor to continue to grow and position its brands such as getting Agila, which allowed it to reach first place in the chocolate category. Then the relation to danone, also in the markets of Brazil and Chile. And with a century -old La Campagnola brand that has been able to enhance the offer. “Ours is a consumer brand “specified.

In other alliances, the owner of Arcor also reminded the Mexican Bimbo, the multinational Coca Cola, Bagley, Mastellone and Laboratorios Bagó, in the development of nutrigenetics. The last alliance is with the company Ingredion, (formerly Corn Refineries) for the manufacture of starches, syrups, among other ingredients. “It allows us to re-convert many of our products by replacing raw materials. It is a global leader that gives us strength ”, said the businessman about this merger which is on the agenda of the Commission for the Defense of Competition.