p.12 NT - BW Spring 2013_p.12 NT - BW Spring 2013.qxd 13/03/2013 10:07 Page 12
national TRENDS: braZil
booming
business
well on track to becoming an economic
superpower, brazil’s business is booming
and the buoyant biscuit sector has grown
accordingly, report simon Jones.
B
razil has just overtaken
below 10kg – up from 8.4kg as
the UK to become the
recently as 2009. Leading
sixth-largest economy in
players are looking to value
the world. By 2020 it
added products to compensate
will also be one of the world’s
for any sluggish volumes.
biggest consumer markets.
Dias Branco has built a 25
Years of rapid growth in GDP
per cent market share via a
has already created a middle
series of well-judged takeovers.
class of over 100 million
The acquisition of Adria
consumers.
Alimentos and Bomgosto in the
Long labelled the ‘land of the
last decade established Dias
future,’ Brazil’s hosting of the
Branco in south/south east and
next World Cup and Olympics
north/north east Brazil
looks set to mark its emergence
respectively. Bomgosto brand
as a global economic
Vitarella is now Dias Branco’s
huge investment has helped
superpower.
best-selling biscuit. Most recently
eqlibri grow in volume.
The biscuit sector has grown
the firm consolidated its position
in step with Brazil’s huge population and booming
in fast-growing northern Brazil – where incomes are
economy. Brazil is the world’s second-biggest biscuit
lower but growing faster – with the €88 million
producer, with high consumption among all classes
purchase of Pelágio Participações in 2011.
and regions. Biscuit sales rose another 10 per cent
Founded in the 1940s, Dias Branco grew out of
by value to almost €5 billion in 2012. Segments
Ceara province to build a national presence in
such as cookies (up over 30 per cent by value) and
biscuits and pasta.
filled biscuits delivered even better numbers.
Today the group controls its own raw materials,
No surprise then that local market leader M Dias
with several wheat mills integrated into its extensive
Branco faces a growing challenge
from global multis such as Nestle
(already well-established in
Brazil), Kraft and PepsiCo.
Volume sales were little
changed last year in a market
where biscuits already enjoy high
household penetration. Per capita
consumption is hovering just
pepsico’s eqlibri brand is widely available.
12
Spring 2013
BISCUIT WORLD