INTRODUCTION

In 1985, Alejandro Silva and his partner

purchased Evans food in Chicago.
Evans food became largest producer of
pork rinds and pork pellets in the world,
with value of $100 million revenue.
They have a largest US retailer such as
HEB, Meijer, ALDI and Wal-mart.
They operate their business in the US
and NON-US markets.

PRODUCTS
PORK RINDS
60% of revenues
came from the US
markets .
Margin are low as
compared to pork
pellets.
The US market for
pork rinds was about
$320 million and
growing at 1%-2%
annually.

PORK PELLETS
40% of revenues
came from the Non-US
markets.
Margin on pork
pellets are higher as
compared to pork
rinds.
The global pellet
market was $150
million with a 2%
annual growth rate.

CONSUMER
Large retailers such as
Wal-Mart, HEB, Meijer,
ALDI.
Club stores, convenience
stores, discount stores
and distributors.
Pork rinds were popular
in the Southern US and
US- Mexico border
among African American
consumers.

COMPETITORS
Rudolph Foods, a
company based in
Ohio.
Frito Lays.
Baken-ets.

PROBLEMS
Increase of prices of pork due to PED
virus.
Dramatic drop in Evans food margin.
Having less negotiation/bargaining power
while dealing with large retailers.
Competitors.

STAY THE COURSE

Some people in the company
argued this
storm would soon
pass and the company would return
to its old profitable model.
Retain the customers.
It is unclear when the raw material
price will
come down.

RAISE PRICE
Evan foods increase their price with
respect to increase in the cost of Pork
skins.
To reach Break Even point.
Regain its profitability.
Competitors showed no sign of price
raise.
Can loose some of its biggest customers.

EXPAND
INTERNATIONALLY
In Past, Evan food sales increase by 5%.
40% Sales were from outside US.
Margin on the pellets is better than
margin on pork rinds.

THANK
YOU