Thursday, October 18, 2012

Brazil is the third largest operation of Danone over the next two years

The Brazilian operation of food giant Danone will go down the list of the three biggest in France-based multinational's sales within two years. The expectation of achieving such an outstanding position in the Group's businesses is due to the growth between 12% and 15% in sales that the subsidiary has achieved in recent years in the Brazilian market, where you will arrive to the home of the $ 2 billion in annual revenue in 2013.
In addition to integrating the team formed by six countries would head the company's worldwide expansion strategy, Brazil has in its favor the European crisis which has affected the company's business in Spain, a country that today occupies the third place within the group. Currently, the two largest markets are France and United States of Danone. "Growth in Europe is slower and the company's strategy has been to compensate sales with investments in emerging countries," he said to BRASIL ECONOMICO Mariano Lozano, President of Danone Brazil, commenting that the country is next to Mexico, Indonesia, China, Russia and United States, which are currently the priority markets for the multinational and who respond today to 60% of the overall growth of the group.
What's new in portfolio to keep sales high in Brazil, Danone will invest over $ 100 million next year to expand its production capacity in the country, is expanding the current items and news to enhance your portfolio. The same amount was entered in its units this year and includes the re-release of their first line out of yoghurt, now presented as "the True Danone" and that will be on store shelves across the country already this week. This year's initiatives also included the introduction of PET packaging of 1.350 pint in the segment, which hit the market last month with an investment of r $ 50 million in the plant in Poços de Caldas (MG).
"We have to work to make products more accessible to all classes in Brazil," said Lozano. According to the company, the per capita consumption in the country is 6.5 pounds per annum, a level considered too low compared to other countries. "Our neighbors Argentines consume almost triple yogurts that Brazilians and this shows the growth potential that we have in Brazil", compares the Danone Executive, for whom the per capita consumption in the country will reach 10 pounds to up to 2016. Today, the Brazilian market has been out of yoghurt moves about $ 5 million and Danone claims to have a share in value of 38%.
Featured products even considering the revival of Danone as the main initiative in the country this year, the company will not have a great advertising to publicize action items. The company's strategy is to centralize the actions in points of sale, how to adopt more modern shelves to draw consumers ' attention to their products. "Research shows that only 29% of people who go to the supermarket are part of dairy and only 9% of them buy yogurt. Our work has to be focused in that audience, "says Lozano. According to him, the company invests 10% of its revenue in communications and media, which will involve a fee of $ 200 million for next year.
Brasil Econômico - 18/10/12
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