Businessweek

Pilgrim’s Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products to retailers, distributors, and foodservice operators. The company has the capacity to process approximately 36 million birds per week for a total of approximately 9.5 billion pounds of live chicken annually. Products and Markets The company sells its fresh chicken products to the foodservice and retail markets. Its fresh chicken products consist of refrigerated (nonfrozen) whole or cut-up chicken, either pre-marinated or non-marinated and prepackaged case-ready chicken. Its case-ready chicken includes various combinations of freshly refrigerated, whole chickens, and chicken parts in trays, bags, or other consumer packs labeled and priced ready for the retail grocer’s fresh meat counter. The company also sells prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. These products are sold either refrigerated or frozen and might be fully cooked, partially cooked, or raw. In addition, these products are breaded or non-breaded and either pre-marinated or non-marinated. The company’s export and other chicken products primarily consist of whole chickens and chicken parts sold primarily in bulk, non-branded form either refrigerated for distributors in the United States (U.S.) or frozen for distribution to export markets. It sells U.S.-produced chicken products for export to Mexico, the Far East, countries within the CIS, and other world markets. The company’s primary customer markets consist of the foodservice and retail channels, as well as selected export and other markets. The foodservice market principally consists of chain restaurants, food processors, broad-line distributors, and certain other institutions located throughout the continental U.S. The company supplies chicken products ranging from portion-controlled refrigerated chicken parts to fully-cooked and frozen, breaded, or non-breaded chicken parts or formed products. The company’s categories within foodservice include frozen, fresh, and corporate accounts. Fresh and frozen chicken products are pre-cut to customer specifications and are marinated. The retail market consists primarily of grocery store chains, wholesale clubs, and other retail distributors. The company concentrates its efforts in this market on sales of branded, prepackaged cut-up and whole chicken and chicken parts to grocery store chains and retail distributors. The company sells its chicken products primarily to wholesalers, restaurant chains, fast food accounts, supermarket chains, and direct retail distribution in selected markets. Customers The company has relationships with companies, including Sysco, US Foods, Yum! Brands, Chick-fil-A, Burger King, Kroger, Wal-Mart, Costco, Publix, Sam’s Club, ConAgra Foods, and Nestle. It sells its products to a customer base with approximately 5,000 customers. Its major customer includes Wal-Mart Stores, Inc. It also exports products to customers in approximately 100 countries. The company operates in 12 U.S. states, Puerto Rico, and Mexico. Business Strategy The company’s business strategies are to be a valued partner with its primary customers, relentlessly pursue operational excellence, and strategically improve value added exports. Regulation and Environmental Matters The company’s operations are subject to extensive regulation by the Environmental Protection Agency and other state and local authorities relating to handling and discharge of waste water, storm water, air emissions, treatment, storage and disposal of wastes, handling of hazardous substances and remediation of contaminated soil, surface water and groundwater. History Pilgrim’s Pride Corporation was founded in 1945.