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Nestle and Danone are fighting for the water market in the country |
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The small Bundanoon, Australia, has just become the first city in the world to ban the sale of mineral water in plastic bottles. In Europe and the United States, the patrol against mineral water in plastic bottles has also been making noise. In Brazil, market of 2 billion liters (Nielsen) has attracted global players such as Nestle and Danone - fleeing the saturation of American and European markets. The two corporations are involved in a dispute in the mineral water market, according to Nielsen, grew 10% in volume and 14.7% in sales in the first nine months of the year. The Brazilian takes on average 20 liters of mineral water per year. In Argentina, the average is 70 liters, Italy and France are 150 and 160 liters, says Edson Ebizawa, director of Nestlé Waters in Brazil. The company, which last year bought a supply of water in Santa Barbara, has invested (including purchase) $ 70 million in facilities and the launch of the Vital Purity replacing Aquarel in the Southeastern states, where the company limited its activities . The goal in a year is the leader in water in the Southeast, says the director. For this, the company, which owns the famous Panna and Perrier, will have to run down to Crystal, the Coca-Cola, the leader in Sao Paulo, with 27% of sales. Southeast concentrates 57% of sales in the country and the bottles up to 5 gallons dominate 80% of revenues - although 60% of the volume is sold in containers of 20 liters, with home delivery. This market is mainly regional bottle, explains Ebizawa, Nestlé Waters. This is because the profitability of this trade is limited by logistics. (Source: Economic Value-Business & Technology - 09.11.09) |
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Classes D and E have seen priority for companies |
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The class C, which until recently was the most courted by industry and trade, begins to lose attractiveness to the lower layers, classes D and E, which also have little access to credit national income and less committed to other expenditures, as internet, cable TV and benefits of payroll loans. According to research by LatinPanel, the class C of the North and Northeast, which has a monthly income family of four ($ 1.860) and ten minimum wages (R$ 4.650) spent the past 12 months to September this year for $ 5.46 billion with food, drinks and toiletries and cleaning. This figure is 35% lower than that released on the same products for the layers A and B of the population living in the Southeast. The classes D and E come to be regarded with more affection for entrepreneurs because they are leaving the stage of subsistence consumption, says the chief economist of the LCA Consultants, Braulio Borges. Isael Pinto, president of General Brands, which produces powdered juices and ready to drink, have detected the potential of this new market. A month ago the company, which owns the brand Camp, launched a new juice powder. Christine Pereira, director of LatinPanel and responsible search for household consumption, notes there are many opportunities in the North and Northeast for the food and hygiene products and cleaning. She cites the example of five products that still have little presence in the shopping basket of the local population with lower income for the rest of the country are: cream, condensed milk, mayonnaise, tomato sauce and fabric softener. (Source: O Estado de S Paulo - Economy - 08.11.09) |
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Label will identify organic products in Brazil |
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Organic products will have a label on the packaging from next year. The information was released by the Ministry of Agriculture, which today published a decree in the Official Gazette to regulate the use of the instrument. The stamp is part of the Brazilian System of Conformity Assessment Organic (SISOrg) and its use is restricted to the assessment of conformity of the production process. The rules governing their use are regulated by the Conformity Assessment Bodies (CABs), which is accredited by the Ministry of Agriculture. A spokesperson for the ministry said the handle of organic products has been chosen through public consultation in the first half of this year. (Source: Agência Estado - 06.11.09) |
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With diaper, class D is the target of Kimberly |
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A disposable diaper narrower and fitted with a washable Cintinho in place of (expensive) tapes, made especially to convince the class D to leave the cloth model and two new toilet paper wrapped in a flattened to occupy half space in the bathroom cabinet, are the first release of Kimberly-Clark provided the president in Brazil, Joao Luiz Damato, adopted a strategy of blue ocean - a business philosophy that provides opportunities generate demand from the creation of new markets, without the need to compete in a bloody red ocean around the same products and consumers.
Damato is taking the idea seriously and mobilized at least 30 people in projects involving the company s three brands - Fralda Mágica Turma da Mônica, Neve Naturali and Scott - who together received investments of $ 2 million. Especially the new diaper illustrates the blue ocean strategy: create a new market for the company, the only major manufacturer to offer this benefit to a public that had not previously had access to brand Monica s Gang, the president of the manufacturer of personal hygiene products and household cleaning.
Damato created the Kimberly-Clark Blue Ocean Strategy Institute, in order to make the company think of novel solutions for Brazilian consumers. The new products - the flank flat and toilet paper - are results of the first groups formed by the institute. The ideas are being exported to other units of Kimberly in the world. Here in Brazil, ten groups now working in new projects.
The package costs $ 9.80, which means the unit price at around $ 0.38. Until then, the diaper cheaper Kimberly was for $ 0.50. This product category is the flagship of Kimberly in the country, accounting for 30% of its revenue in 2008, equivalent to $ 690 million. Overall, the company s revenue should grow 10% this year, to $ 2.3 billion.
A year ago, Kimberly took the lead in the market for disposable diapers in a tight competition with Procter & Gamble, which owns the Pampers. Kimb |
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Brazil Foods announces capital increase of Avipal for $ 1.5 billion |
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The Brazil Foods announced this evening (5) the market that the Board of Directors approved the proposed capital increase of its wholly owned subsidiary Avipal Nordeste SA The value of the increase is $ 1.5 billion, with a view to obtaining the financial stability of this company through the investment of necessary resources to increase and diversify their activities. (Source: Brasil Economico - 05.11.09) |
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JBS will open plant in Russia in 2009 |
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The Italian Inalca JBS, joint venture of the giant Brazilian beef with Cremonini group, inaugurated in December a plant for the production of hamburgers in the Russian city of Odinzovo, located on the outskirts of Moscow. |
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Hygiene: true even under water |
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The financial crisis that shook markets around the world, passed away of national hygiene products. The industry should end the year with a growth of 11%, a rate more than double the planned by the end of 2008, in a crisis, according to ABIHPEC (Brazilian Association of Toiletries, Perfumes and Cosmetics). The year of 2009 is also historic for the segment in the Top of Mind. The index of Brazilians who remember the brand of deodorant is one of the largest recorded by Datafolha in 18 years. In February 1992, 33% of respondents could not recall a single brand of product. This year, the index fell to 14%. For experts, the change can be explained by better income distribution in Brazil and the ongoing transformation in the market for personal hygiene. There is strong segmentation in progress, says Richard Vinic, r Marketing coordinato from FAAP graduation (Fundação Armando Alvares Penteado). What was once part of the basket of family use, now is personal and individualized for each member of the family. When asked to Brazilians that the first brand of deodorant that comes to mind, Rexona is the most remembered in all editions. Just over a third of respondents (35%) cited the mark this year. Axe and Dove were remembered by 10% of respondents each. More importantly, the three brands belonging to Unilever. The company holds 62.9% of the national deodorant, according to the August consulting A / C Nielsen. The level of competition changed the market, says director of marketing for Unilever deodorants, Roberta Santanna. Today, it is necessary to create identity for products. After registering its lowest rate last year, when he was recalled by 40% of the interviewees, Seda fell by four percentage points, leaving 36% of memory in this year s survey. However, the brand has the lead and wins the shampoo category for the fourth consecutive time. According to Erik Galardi, director of marketing for Unilever s hair, the Brazilian woman is very much linked to the appearanc |
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Unilever provides deflation in prices |
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Paul Polman, president of Unilever, warned yesterday to a global economic recovery, lengthy and a deflation in prices, while the maker of Lipton tea and Sunsilk shampoo announced improved results for the third quarter.
Polman won the confidence of investors and analysts this year, to submit recipes and a good solid growth in sales volumes, which led to the action of the Unilever building up an appreciation of 36% over the last six months, more than double the valuation of FTSE 100 index of London Stock Exchange. Yesterday, Polman has proven that its changes - which include a recovery of brands that were not doing well and the acceleration in the pace of innovation (as well as price cuts on certain products) - have made a difference in Unilever, as the company exceeded the expectations of analysts with a global revenue growth of 3.4% and an increase in sales volumes of 3.6%.
James Edwardes Jones, analyst at Execution, said: The excellent third quarter results indicate that Unilever is doing what he said he would do.
Analysts were encouraged by the fact that the growth in volumes and revenue, which occurred in all regions, has not been achieved by cuts in marketing. Instead, Unilever increased spending on advertising and promotions by 1.3 percentage points. But the share price of Unilever fell 1.9%, to 17.94 pounds, yesterday afternoon after it said it is reducing its prices. Polman warned that more declines in prices in the fourth quarter will take a little of the brilliance of our organic growth.
Jim Lawrence, chief financial officer of Unilever, said prices will rise only 1.5% in the year as a whole (compared to an increase of 7.2% in 2008), falling between 2% and 3% in the fourth quarter.
Analysts said they were not worried about falling prices, as long as the sales of the company continue to grow. Polman also warned of the weak market conditions, noting that consumer confidence in the United States fell to its lowest level in eight mon |
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