Piá suspends production as Tirol weighs buying its brand

Cooperativa Piá has temporarily stopped operations at its factory in Nova Petrópolis, in the Serra Gaúcha region of Rio Grande do Sul. The company said the employees’ collective leave forms part of an operational adjustment while broader negotiations take place.

The co-operative was established in 1967 and has accumulated liabilities of more than R$200m. Its financial difficulties have led to management changes and the disposal of significant assets, including the supermarket chain it previously operated.

Tirol, a dairy company based in Santa Catarina, is considering acquiring the Piá brand. Piá said the purpose of the proposed transaction would be to keep the Nova Petrópolis plant operating. The negotiations therefore concern a possible change in control rather than a stated closure of the facility.

During the stoppage, Piá has told customers and commercial partners that its products will not be supplied to shops. The company has not set a date for the resumption of deliveries or production, and it has not disclosed how many employees were placed on collective leave.

Piá has also not provided a timetable for completing discussions with Tirol. The co-operative’s management said in a statement that its financial position “remains challenging” and that it was working to keep the interruption as short as possible.

The company’s latest measures follow earlier changes made during its financial crisis, including the sale of assets. Piá’s brand has been present in the Rio Grande do Sul dairy sector for almost six decades. The proposed transaction with Tirol would determine whether the Nova Petrópolis factory continues under new ownership.