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Interview with the CEO

Paolo Sacchi

Chief Executive Officer

"We will have tripled the company’s value by 2021. It is a challenge with long-term vision that will allow us to reach a sustainable growth".

Which are the company’s milestones in your first year as General Manager?

There are two key successes: We defined a new vision and established a long-term organic and inorganic growth strategy. It has allowed the cooperators to better understand why we do certain things and make better decisions.

Did Alicorp need a new vision and strategy?

Our company’s historical growth has been very good. From 2007 to 2011, we grew by 16.1%, so it was a challenge to remain stable. For this reason, one of the first things I did when I became the CEO was to establish a new challenge with a long-term vision allowing us to reach a sustainable growth: tripling the company’s value by 2021.

"Our organic growth will be through the development of our products, management of our brands, and innovation, so that our consumers prefer our products over and o ver again.»

How to triple the company’s value?

We will maximize the value of our competitive advantages: Brand management, distribution efficiency, our experience in the purchase of raw materials, and our expertise in mergers and acquisitions. For this purpose, we have a team focused on the company’s strategy with high quality standards and very rigorous in the analysis of the investment decisions. We will pursue leadership in everything we do and meet our consumers’ needs improving their quality of life.

Which businesses do you anticipate growing the most using these principles?

Our growth focal point will be the Consumer Goods business, particularly in our core platforms: oils, farinaceous, home care, sauces, cookies, personal care, and bakery. We plan to be one of the Latin America’s Top 10.

"We have a team focused on the company’s strategy with high quality standards and very rigorous in the analysis of the investment decisions. We will pursue leadership excellence in everything we do and meet our consumers’ needs improving their quality of life".

What will happen with the Animal Nutrition and Industrial Products Businesses?

The Industrial Products Business will be a perfect strategic supplement for the growth of the Consumer Goods business, mainly in the Pacific Coast since it also includes other platforms to attain consumers. Regarding the Animal Nutrition Business, we will invest in maximizing its value and becoming a leading company in aquaculture in Latin America.

One of the strategic keys is the inorganic growth or acquisitions.

Indeed. We will acquire companies with a strategic value in the region and congruent with our platforms allowing us to maximize competitive advantages. We have a staff composed of many professional backgrounds that fully analyze all acquisition aspects allowing us to have a clear and defined business plan to determine the actual value and optimistically appreciate the possible synergy.

Are last year’s acquisitions good examples?

Yes. The acquisition of Ucisa, Salmofood, Industrias Teal and Incalsa brands will result in sales over 280 million dollars but the most important long-term benefit is that they are improving our skills and helping us achieve our vision: increased market share, new categories, loving and strong brands, synergies, among others.

"We will acquire companies with a strategic value in the region congruent with our platforms allowing us to take competitive advantages".

Besides growth by purchasing companies…

Our organic growth will be based on the development of products, management of our brands, and innovation, so that our consumers prefer our products over and over again. Our goal is to have new products representing 10% of the total sales in the next three years.

What is the meaning of creating extraordinary experiences for the consumers?

Giving our consumers an opportunity to improve their own quality of life, as well as their family’s through our brands. For this reason, when we create a product, we transform lives converting something common into extraordinary. Our new mission is "We create leading brands that transform markets creating extraordinary experiences for our consumers. We are in constant motion searching for innovation to produce value and well-being in the society".

VICE-PRESIDENTS

What is the most important for you as the leader of a company with more than 6.800 cooperators?

The cooperators. The people that are part of this company. They are the center of my attention. I want all of them to have the same opportunities and the best tools to develop themselves.

Which was the best lesson that allowed you to grow?

A lesson that represents strength is the skill to face and adapt to a constantly changing market year by year. We learn from our mistakes and transform them into opportunities.

What have you learnt from them?

We have learnt to take risks constantly in order to create value, incorporating and adapting our decisions to meet our increasingly demanding clients’ needs with more options.

Learning not only means having new ideas but learning from our mistakes…

Errors are the company’s assets since we have to learn from successful ideas and outcomes as well as from mistakes. Making a mistake is not something bad. The person who does not make a mistake is a person who does not make anything. The most important thing about mistakes is how we learn from them and develop based on them.

In your opinion, what characteristic makes Alicorp a unique company?

Its people: Very united, professional and outcome-oriented, working under the same vision willing to risk in order to win.