Brazil`s Food and Beverage Market.
Transcription
Brazil`s Food and Beverage Market.
Brazil’s Food and Beverage Market. May 2012 osec.ch Brazil’s Food and Beverage Market. 2 Title. Brazil’s Food and Beverage Market Language. English Number of pages. 77 pages Author. Camila Jerger | Brazilian Food and Beverage Market Report 2012 Table of Contents. 1. Foreword. ..................................................4 2. Brazil: Profile and Economy. .....................5 6.3 6.4 6.5 Retailers. .............................................................. 39 Specialty / Gourmet Stores. .................................. 42 Pricing................................................................... 43 3. Consumer Trends. ....................................7 7. Opportunities and Challenges. .............. 44 4. Regulatory Environment. ........................ 11 7.1 7.2 Opportunities. ....................................................... 44 Challenges. ........................................................... 45 4.1 8. Export Check List. .................................. 47 4.3 4.4 Authorities Involved in Food Industry Regulations. .......................................................... 11 Regulations Concerning the Food and Beverage Industry. ................................................................ 12 Import Procedures. ............................................... 17 Tariffs. ................................................................... 18 5. Food Industry. .........................................19 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Food and Beverage Industry. ................................ 19 Organic and Natural Food. .................................... 20 Functional Food. ................................................... 22 Processed Food. ................................................... 24 Beverages. ............................................................ 28 Private Labels. ...................................................... 30 Foodservice / HoReCa. ......................................... 33 Industry Trends. .................................................... 35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 Readiness to export. ............................................. 47 Market Research. ................................................ 48 Trade fairs............................................................. 49 Regulatory – Your Product in Brazil. ..................... 50 Finding a Distributor / Importer. ............................. 51 Regulatory: Adapting to the Local Legislation. ...... 53 Logistics and Imports. ........................................... 54 Product Launch. .................................................... 54 9. Appendix. ............................................... 57 9.1 9.2 9.3 9.4 9.5 Trade Shows. ........................................................ 57 Trade Associations ................................................ 59 Publications .......................................................... 61 List of Abbreviations .............................................. 62 Import Duties ........................................................ 63 6. Food Distribution.....................................38 6.1 6.2 Route to Market. ................................................... 38 Importers and Distributors. .................................... 38 10. Trade statistics 2011. ............................. 71 4.2 1. Foreword. Brazil – you can just smell the aroma of roasted coffee, hear the samba rhythms on Copacabana Beach, and see the large cocoa plantations and vast plains with herds of grazing cattle and endless fields of soya plants and sunflowers, which stretch as far as the edge of the dense primeval forest. This is the clichéd idea many Europeans have of this exotic country – just like Switzerland is associated with mountains, chocolate and cheese – and a smiling Heidi in the Alps. This report shows a different, no less fascinating image of the world’s fifth largest country, which today has a population of almost 200 million. Brazil has long been more than just a raw-materials supplier for industrialised nations. It has one of the most dynamic economies, with a predicted GDP growth of between 3 and 5% over the next five years – a figure European countries can only dream about. Brazil is the “B” in the BRIC countries (with Russia, India and China), belonging to the top category of emerging markets whose worldwide influence – economically and therefore also politically – has increased tremendously over the last decade. The boom in the Brazilian economy is coupled with a constant improvement in the population’s wealth. The middle class has grown from 38% to 51% since 2003, and purchasing power has also risen accordingly – though this is heavily concentrated in the major metropolitan areas near the coast. This has resulted in an increased demand for high-quality foodstuffs. Convenience foods, organic products and functional foodstuffs have recorded impressive growth rates, albeit starting from a relatively low level. This has created interesting prospects for smaller and medium-sized businesses in the Swiss foodstuffs industry, even though it involves niche markets. “Swissness” enjoys an excellent reputation in Brazil! However, entering a market as large as Brazil’s requires wellfounded knowledge of the local conditions and careful weighing-up of opportunities, and this study provides a wealth of valuable statistical information, analyses of consumer trends and many practical tips for this. The data on the most important players in the food retail trade, the trade fairs specialising in the food industry, and possible partners already importing successful, reputable brands from Europe for the Brazilian market, as well as the references to sources for more indepth market analyses, is particularly useful. The publication includes an extensive checklist which helps interested companies keep an eye on all relevant aspects of preparing and executing market entry. However, we should not forget the obstacles which arise, starting with language – Brazilian Portuguese is different from the Portuguese spoken in Portugal! – and also including statutory foodstuffs rules which are not always easy to understand, and administrative requirements and registration duties for importing foodstuffs into Brazil. Unfortunately, no free trade agreement exists (as yet) between Brazil and Switzerland, which is detrimental to pricing competitiveness, particularly compared to competitors from the MERCOSUR region. 4 | Brazilian Food and Beverage Market Report 2012 Customs duties on foodstuffs can total up to 30% - one of many factors to be taken into account in calculations. A detailed list contains the latest tariffs for the various customs sections. I would like to acknowledge and thank the authors of the study, and Osec as its initiator, for the well-founded research and practice-oriented content. I hope you, the readers, enjoy this expedition – and wish you all the best for your Brazil project! Beat Hodler Consultant, Former member the Board of Directors of the Federation of Swiss Food Industries (fial) 2. Brazil: Profile and Economy. With its continental size and a population of 192 million, Brazil is the giant of South America. It is an agricultural superpower, an important exporter of commodities, and also has well-developed manufacturing and service sectors, being self-sufficient in many segments. Its GDP reached 2’518 billion in 2011, making Brazil the world’s sixth largest economy, ahead of the UK and Italy. In the last decade, Brazil has improved its macroeconomic stability. Thanks to government stimulus, resilient consumer demand and low exposure to foreign trade, the economy quickly recovered from a short recession in 2009, and posted a strong 7.5% GDP growth in 2010, the highest rate in 25 years. For fear of inflation, Brazilian authorities took measures to cool down the economy in 2011. As a result, Brazil’s GDP grew by just 2.7%. Figure 1: GDP and family consumption growth industrial segments, including food and beverage. For companies like Nestlé, Brazil is already the second most important market. Most of Brazil’s population is concentrated in the large cities along the coastline. In terms of population, the largest cities are São Paulo (11 million inhabitants) and Rio de Janeiro (6 million), but Brazil has another 150 metropolitan areas with over 100’000 inhabitants each. Overall, Brazil has 5’000 municipalities grouped in 26 states, which in turn make up the five macro-regions. The most developed regions of Brazil, which present higher incomes and superior living standards, are the Southeast and the South. The Southeast also contributes 55% to Brazil’s total production, with the state of São Paulo accounting for almost a third of the country’s GDP due to its strong industrial base. The three states that form the South region of Brazil account for 18% of the country’s GDP. Despite the fact that the North region is the largest in size, it has the smallest population and contributes just 6% to Brazil’s GDP, while the Northeast accounts for 14% and the Center-west 8%. The richest states of São Paulo, Minas Gerais and Rio de Janeiro contrast with inferior living standards in the North and Northeast, although the Brazilian Northeast has been showing stronger growth rates when compared to the rest of the country, encouraging companies to expand to this region. Source: IBGE, www.ibge.gov.br GDP growth is expected to continue in the range of 3 to 5% over the next few years. The country now boasts the lowest levels of unemployment recorded in its history, and many industries are already feeling the effects of the lack of qualified professionals. Stronger growth is also inhibited by infrastructure bottlenecks. The combination of higher income levels, economic stability, social programs, extended credit and creation of new jobs has allowed millions of consumers to rise from lower-income segments and form a “new middle class” (see Chapter2). As a result, Brazil has emerged as one of the leading markets in the world for many The Southeast (with the cities of São Paulo, Rio de Janeiro and Belo Horizonte) also concentrates more than half of Brazil’s retail businesses. Although the Northeast of Brazil accounts for just 18% of Brazil’s retail turnover, its fast growth rates and market potential started to attract investments. Large supermarket chains started a few years ago to acquire local supermarkets in that region, in order to quickly gain share and take advantage of their knowledge on those consumers. Brazil is the only Portuguese speaking country in Latin America. This makes it different from the rest of the Latin America not only language-wise but also in terms of habits, preferences and culture, which are key aspects to be taken into consideration when launching new products and conducting negotiations. Brazilian Food and Beverage Market Report 2012 | 5 Brazil’s currency is the Real – R$ (reais in plural). Like the Swiss Franc, it has had a tendency to gain value since the financial crisis erupted. R$ 1 was equivalent to CHF 0.51 in March 2012. Figure 2: Retail in Brazil: turnover share by region (2009) Source: Deloitte Brasil, www.deloitte.com.br 6 | Brazilian Food and Beverage Market Report 2012 3. Consumer Trends. Consumer trends in the Brazilian food and beverage sector are heading towards a more mature scenario, becoming similar to American and European consumption patterns. Nevertheless, there are many peculiarities that food manufacturers and exporters need to be aware of. of the first impacts is on food choices – the consumer adds more industrialized foods such as milk and poultry, and on a next level, other types of meat, fruits and vegetables. This movement continues as the income grows, adding pleasure foods such as yoghurts, chocolates, cheese, ready meals and biscuits. As a result of higher income and better education, Brazilians are living longer, having fewer children, staying single for longer periods of time and eating out more often. Women are also gaining more and more opportunities in the workplace, which makes a big difference in the household dynamics. At the same time, due to the low unemployment rate and rising minimum wages, even highincome families find it ever harder to employ maids and other household aides. The old Brazilian way of life, where the maid took care of the kitchen, including the preparation of meals, is disappearing. More and more families need to cater for themselves. The increase in purchasing power has also brought the so-called “I deserve” effect, i.e.: consumers, even from class C and D, occasionally buy more sophisticated foods or beverages to celebrate a special occasion – or the end of a hard week. Brazil has traditionally been an extreme case of income inequality. The upper classes (A and B) continue to thrive and grow. At the same time, the country has seen an enormous social transformation in the past decade: millions of Brazilians have moved out of poverty to become part of an emerging middle class (Class C, blue in Figure 3), which now comprises close to 100 million people with a family income in the range of R$1’100 to R$ 2’750. Figure 3: Growing upper (AB) and middle income (C) classes 100% 8 90% 9 12 80% 70% 38 45 51 60% 50% C 40% 30% AB DE 54 20% 46 37 10% In 2004, 23% of consumers bought premium items and today this percentage has grown to 35%, while the appeal of low end products has decreased from 30% to 28%. (The situation is different in the Northeast, with low end products still on the lead, as 64% of sales in this region are made by consumers from classes C and D.) Higher employment rates and the increasing presence of women in the workplace also drove Brazilians to include more processed foods in their daily diet. Microwave oven prices have gone down significantly over the last 10 years, motivating families to consume frozen foods. City-dwellers are eating out more frequently, too, sustaining high growth rates in the foodservice industry. Many international chained restaurants are setting up or expanding operations in Brazil attracted by the boom of the sector. They are competing with national chains and labels (like Casa do Pão de Queijo, Habib’s, Frango Assado, Giraffa’s, etc.) and innovative gastroentrepreneurs with national ambitions. With the hectic lifestyles in big cities the country has seen an increase in obesity levels – today more than 40% of Brazilians are overweight. As a result, there is an increasing concern and awareness among Brazilian consumers of the importance of a healthy diet, and healthy food items, such as low fat, low sugar, functional and organics are becoming more popular. 0% 2003 2006 2010 Source: FGV, www.fgv.br Brazilians spend an average 30% of their incomes on food and beverages. Studies show that the diet of people from the lowest income levels is based on lower cost foods, such as cereals, sugar and basic processed foods. With an increase in income levels, one Eating habits vary greatly from region to region: While the Northeast consumes more fresh fruit and vegetables, the diet in the South is based on meat and the Southeast is the largest market for processed foods due to its large cities. Brazilian Food and Beverage Market Report 2012 | 7 Taste varies considerably from state to state, but overall Brazilians have a much sweeter taste than the Swiss, probably due to the abundance of sugar throughout Brazil’s history and its influence on traditional Brazilian recipes. Television shows with participation of chefs and launches in bookstores of more sophisticated recipe books also drive the search for innovative and gourmet products. The main consumer trends in Brazil for food and beverage are presented below: Figure 4: Food and beverage consumer trends Trend Driver and public Products and strategies Convenience Population ageing, increase in the number of single and smaller households, lifestyle of the big cities, higher participation of the women in the workplace. One portion size, smaller packs, frozen/ / refrigerated meals, ready to eat foods and beverages, easy resealable packs, microwavable products, foodservice and delivery. All income levels are affected, mostly people who live in larger cities. Indulgence and pleasure Income growth, higher educational level. All income levels, genders and ages are affected by this trend, particularly A and B classes. Food and beverage manufacturers are launching more and more products that bring convenience to the households. Investment in taste (additives, natural ingredients) and packaging by the food and beverage producers are the main opportunities. Gourmet and premium products, use of ingredients such as chocolate, cheese, milk, fats and products with a homemade appeal. Products with special editions and premium pricing strategy. In foodservice, slow food and also the homemade appeal attracts the upper social classes. To attract the lowest income consumers that are also looking for indulgence, food and beverage companies in Brazil usually launch the same products on portion size. Wine and premium alcoholic beverages are also favored by this trend. Health and wellness 8 Population ageing, higher educational level, lifestyle of the large cities (obesity and stress). Mostly affects Brazilians over 25 years of age. | Brazilian Food and Beverage Market Report 2012 Organics, functional foods, probiotics, light and diet foods. Food producers are investing heavily in improving taste and consistency on diet and light products, opening opportunities for additives producers. Other launches include products with low fat, reduced salt, reduced sugar, added vitamins and fiber and grains added foods. The main example of successful functional foods is the yoghurt line Activia, a best seller in Brazil and that put Danone back on the market leadership on this category. Nutraceutical products are also starting to raise awareness in Brazil, although the few available options in the market are expensive for most Brazilians and despite the fact that nutraceuticals do not exist in the Brazilian legislation. ANVISA is watching closely the movement on functional foods and nutraceuticals, and legislation changes are expected. Local flavors Growth in consumption on the lower income levels, and high growth rates in the North and Northeast of Brazil Products using local flavors, fruits (e.g. guaraná, açaí, cupuaçu), vegetables (e.g. cará) or traditional recipes from a certain region (e.g. vatapá). All income levels are affected by this trend, in particular those in the target regions. Imported classics Increase in income and educational level, with more Brazilians travelling abroad Social classes from A, B and C. Even the larger food and beverage producers are now launching specific products on certain regions to gain share over the local competitors. Quite often, those products are only launched in those regions and not throughout Brazil. Imported products that are successful amongst Brazilians who live or traveled abroad. With Brazilians traveling abroad more often, the knowledge and awareness on different foods and brands increases and many international producers are taking advantage of this trend. This is particularly beneficial to producers of chocolates, cheeses, rice, premium olive oil, snacks, sauces, teas and wines. Brazilian Food and Beverage Market Report 2012 | 9 In foodservice, there is a consistent increase in the number of international food restaurants – generating opportunities for providing the original imported ingredients for their recipes. Quality and reliability Sustainability and ethics Income growth, higher educational levels Products with better flavors, better ingredients, food safety, tradition. All income levels are affected by this trend, even the lower income, as high quality products are aspirational. Brazilians are loyal to some traditional food and beverage brands, even if those are more expensive. This applies also to foodservice. Food and beverage producers with traditional products usually take advantage of their brand position and launch other products under the same brand umbrella. Higher educational levels, increase in income and environment concerns Recycled and recyclable packaging, reduction on packaging, fairtrade. Brazilians with higher income and education are mainly the ones concerned about sustainability. This trend is expected to catch the Brazilian consumer in a few years. Nowadays most Brazilians are more worried about product quality and price rather than sustainability related issues. Researches show, though, that if two products present the same quality and price, the Brazilian consumer will choose the one with the sustainable claim. Many food manufacturers and even restaurant chains are investing in this trend and requiring certifications and social responsibility auditing from their suppliers. Source: Osec from desk research 10 | Brazilian Food and Beverage Market Report 2012 4. Regulatory Environment. 4.1 Authorities Involved in Food Industry Regulations. As a member of the World Trade Organization (WTO), Brazil is committed to the practices and regulations of the Sanitary and Phytosanitary Agreement (SPS) and to the Codex Alimentarius (CODEX) principles. Any regulation, though, has to be published in Brazil’s Official Gazette (Diário Oficial) before taking effect. A number of agencies and ministries are co-responsible for ensuring the safety of the Brazilian food supply and regulating imports of agricultural commodities and foods. The main entities involved in the food industry regulations are: Figure 5: Entities involved in the regulatory environment Abbreviation Website Entity name Main Functions MAPA www.agricultura.gov.br Ministry of Agriculture, Livestock and Food Supply - Food products jurisdiction: animal, fresh fruit and vegetables, alcoholic beverages, juices, grains, seeds, animal feed and pet food. - Oversees and enforces regulations related with production, marketing, import and export of products listed above. - Regulates, classifies and inspects imported products entering Brazil. - Ensures that all animal origin products (meat, dairy products, eggs, seafood, honey and other products with more than 50% of animal composition) traded interstate and abroad are safe, appropriate for consumption and accurately labeled. - Enforces federal laws regarding registration, compliance and labeling of alcoholic and non-alcoholic beverages such as distilled spirits, wine, soft drinks and juices. - Inspection and clearance of foreign products under MAPA’s jurisdiction at Brazilian ports and airports as well as establishing documents and procedures for such products to enter Brazil. ANVISA www.anvisa.gov.br National Agency of Sanitary Surveillance - Food products jurisdiction: mainly processed foods - Autonomous agency, part of the Ministry of Health with a primary function of protecting human health. - Oversees the production and registration of drugs, food additives, medical devices and tobacco products. - Establishes standards and regulations regarding food safety and contaminants. Brazilian Food and Beverage Market Report 2012 | 11 - Responsible for the compliance and registration of any food processing facility established in, or exporting to, Brazil. - Implements regulations and inspections of all food products under ANVISA’s competence. - Responsible for the clearance and inspection procedures of any food product under ANVISA’s competence at entry ports. INMETRO www.inmetro.gov.br (part of MDIC – Ministry of Development, Industry and Foreign Trade) National Institute of Metrology, Standardization and Industrial Quality - Conducts tests on domestic and imported products (be they industrial or food products) to make sure they meet the specifications of their labels, Brazilian standards and the safety of their packaging materials. - Establishes some standards for packaging and labeling. PROCON www.procon.sp.gov.br (São Paulo branch, there is one on each Brazilian state) (part of MJ – Ministry of Justice) Department of Consumer Protection and Defense (DPDC) - Enforces the Brazilian Consumer Code (CDC), which regulates consumer claims against adulterated food products, incorrect or misleading labels and fraud. - Each Brazilian state in Brazil has an office of the Department of Consumer Protection and Defense that assists consumers directly in pursuing their rights. Source: Osec via desk research; Ministries websites An important remark in terms of sanitary legislation is that the principle of positive legislation is valid in Brazil, which means that only what is expressly established can be practiced. Therefore, companies must not market anything that is not expressly allowed by law. Anything that is not expressly addressed is prohibited. Direct contacts with the authorities listed above may be difficult – not all departments have English speaking staff and usually queries should go through official consultations (directly or using experts), which can take long unless directed at the right department. It is highly recommended in such cases to use a regulatory affairs office (which the Swiss Business Hub Brazil or a Brazilian trade association may recommend) to clarify doubts, ask questions to the authorities or request products registration / authorization related to food industry regulations. Certain products require registration within MAPA and / or ANVISA, following strict control and documentation. Although most products are exempt from registration, a new law is currently under discus- 12 | Brazilian Food and Beverage Market Report 2012 sion. The current proposal states that all food products today exempt will need to be registered electronically on ANVISA’s website, including its packaging images and details (ingredients, nutritional facts, etc.). ANVISA will charge a fee per product or groups of products and the authorization number will need to be included on the packaging. 4.2 Regulations Concerning the Food and Beverage Industry. 4.2.1 Packaging In Brazil, all consumer packaging – including paper and carton boxes, plastic bags, steel sheets, cans or PET bottles, must be certified. All manufacturers are individually responsible for the recycling, disposal and removal of all packages and containers that pose a threat to the environment and that could lead to possible pollution in the country. The Brazilian Association of Technical Norms (ABNT) is responsible for implementing regulations regarding packaging and it is important to comply with these when distributing food and beverage products within the country. The regulations on food packaging and containers are under ANVISA’s jurisdiction, with the exception of dairy products, under the umbrella of MAPA. ANVISA is responsible for establishing the quality and identity standards for different types of materials (e.g. plastic, glass, metal, ceramic, carton, etc.) in order to guarantee that the packages do not contain any prohibited or toxic substance nor causes contamination or changes in the food over time. There are tolerance limits for certain substances to be used in the packaging, so it is advisable to check the current legislation when launching a new product or package. Since 2000, food packages are exempt from registration but if recycled packages are used, the food / beverage manufacturer will need to require an authorization. When using new technologies not foreseen in the current laws, the food company will need to request a package / technology registration from ANVISA as well. 4.2.2 Labeling requirements The labeling requirements are defined by MAPA and / or ANVISA (depending on the type of product). Most packed and processed products have a specific PIQ – Product Identity and Quality Standard defined and officially published. The PIQ establishes all requirements for a product, including ingredients that can or cannot be used, product denomination, and regulatory framework for labeling domestic and imported food products. When a product is not under PIQ specifications, the importer must still follow all other regulations in terms of use of additives, general labeling and the Consumer Code. The Consumer Protection Code establishes that all domestic and imported foods and beverages must provide the consumer with correct, precise, clear and easily readable information about the product in Portuguese. Therefore, all products imported into Brazil must be labeled and contain all information in Portuguese. If the packaging is written in another language, the legislation allows the use of an adhesive sticker containing all the required information in Portuguese. The sticker can either be applied before shipment at the origin or when already in Brazil, but this must be added before its commercialization. The Portuguese language from Portugal can be quite different from the Brazilian one, and many words are not common to both countries. Therefore, it is advisable to translate the labels to Brazilian Portuguese to avoid misunderstandings by consumers and problems with the authorities. 4.2.3 Claims The label and / or packaging must follow a series of requirements by MAPA / ANVISA and also a number of MERCOSUR rules. As the positive legislation principle is in place, companies must be careful when making certain claims on their packaging – if those are not authorized by any of the current pieces of legislation, the products may be taken off the market by ANVISA and penalties may be applied to the importer / distributor / manufacturer. Every information or claim contained on the label / package must be proved and must not mislead the consumer (e.g. making the consumer believe the product has qualities or benefits that it does not have or that are not scientifically proven). The label should not emphasize qualities that any similar product has (e.g. a milk carton should not have the information “Contains calcium” as any milk contains calcium – being calcium not a specific quality of that brand but common to any brand). The label also cannot inform therapeutic or medical properties or advise its consumption to cure or prevent diseases. Some of the claims not authorized by Brazilian laws for processed foods are: “pure product”, “natural product” and similar expressions. The use of the word organic is allowed if previously authorized according to specific legislation. “no additives”, “free of preservatives” and similar expressions; “0% trans”, “free of trans-fat” and similar terms: those can only be applied if the trans-fat content is 0% AND the content of saturated fat is below 2%. This is a recommendation by ANVISA and is currently under discussion in MERCOSUR to become stricter. The table below presents the general minimum content of a beverage or food product label, based on current ANVISA legislation for food and beverage products (RDC 259/2002). As certain requirements may change depending on the product, it is highly recommended to analyze the legislation and the product PIQ (Product Identity and Quality standards) before labeling the product. Brazilian Food and Beverage Market Report 2012 | 13 Figure 6: Labeling legislation Examples Product denomination (technical name) - Product denomination is different from brand / name of the product. - Most products have a PIQ (Product Identity and Quality Standards), which contains the product accepted denomination(s). - Bolo de avelã com recheio sabor chocolate (Hazelnut cake with chocolate flavored filling) Net content - In kilograms/ grams or milliliters/ liters - Specific regulation on minimum font and numeral size applies according to the size of the packaging. - In case the imported original packaging has indications of measures not accepted by INMETRO in the front panel, a special authorization must be requested to allow this information to be included elsewhere. - Peso líquido: 50ml - Peso líquido: 500g - Peso líquido: 1kg PACKAGING SIDE OR BACK PANEL 14 Explanation/ remark PACKAGING FRONT PANEL Label / package information List of ingredients - Ordered by content of ingredient (from higher to lower content). - Products that contain only one ingredient (e.g. sugar, coffee, milk, etc.) are exempt. - Must be preceded by “ingredientes:” or “ingr.:” - Use of fruits, water, additives and composed ingredients follows specific legislation. Ingredientes: Açúcar, ovo integral pasteurizado, farinha de trigo enriquecida com ferro e ácido fólico, gordura vegetal, avelãs, estabilizante lecitina de soja, aromatizante. Contains Gluten Should be informed nearby (preferably after) the list of ingredients, in bold capital letters CONTÉM GLÚTEN. Manufacturer information and country of production Information on the manufacturer (complete name, address, etc.) and on the country of origin must be included. Fabricante: Swiss Company Ltd. (add address details) Origem: Suíça Importer details Corporate name, address, CNPJ (company ID number) and phone number Importado por: (company name) Full contact details and CNPJ Expiration date (production date is optional) Day/month: expiration date below 3 months Month/year: expiration date over 3 months (may be day/ month/ year) - Validade: 20/06/2012 - Data de validade: 20/06/2012 - Val.: 20/06/2012 - Válido até: 20/06/12 - Consumir antes de: 20/06/12 Lot number Identified by the word: Lote or capital letter L Lote: 1234567 L 1234567 Preparation or use instructions In case the product is not ready to consume and requires preparation. Cooking or preparation instructions in Portuguese Modo de preparo: Ferva 300ml de água. Coloque o macarrão e cozinhe por 3 minutos, mexendo para soltá-lo. Apague o fogo, adicione o tempero em pó ao macarrão e misture bem. | Brazilian Food and Beverage Market Report 2012 Storage care In case the product needs special care to be storage and conserved. Nutritional facts - Must be given in terms of portion size and the portion listing should include the “household measurement” (e.g. cup, tablespoon, etc.). - ANVISA establishes a specific order for the nutritional facts and also regulates the measurements used. - The information on the nutritional facts versus the product can vary 20% for more or less. - If the products are sold bulk by weight in the supermarket and packed in front of the consumer, nutritional facts do not need to be included. Conservar em local fresco, após aberto consumir em 5 dias. Source: Nestlé, www.nestle.com.br Source: Adapted from RDC 259/2002, ANVISA, www.anvisa.gov.br 4.2.4 Other food and beverage relevant legislation Figure 7: Main important food and beverage related laws Subject Treatment Animal products regulations The import and commercialization of animal-origin products (beef, pork, milk, whey, lactose, cheese, seafood, etc.) is subject to a number of procedures. MAPA requires inspection by Brazilian federal agencies of the processing plants in the country of origin. The inspection and the whole process need to be requested by the importer / subsidiary or legal representative and concluded prior to shipment to Brazil or the goods will not be allowed to enter the country. ANVISA registration Some imported food and beverages under ANVISA jurisdiction must be registered. Request of registration or exemption must be filed by the legal representative of the exporting company in Brazil, a local subsidiary or the food importer (when there is more than one importer, each must apply separately). Registration is valid for 5 years and after this period the company must send a new request. The registration fees vary depending on the company size. The exporter usually pays the fees or shares costs with its importer / representative. Food additives ANVISA defines food additives as any ingredient without nutritional benefits deliberately added to food to modify its physical, chemical, biological and sensorial characteristics during any stage. There are maximum limits for some additives and other restrictions depending on the product PIQ and additional legislation. Brazilian Food and Beverage Market Report 2012 | 15 There is specific legislation for the use and labeling of flavors. Some products cannot be artificially flavored. When using flavors, be they natural or artificial, the flavor information should be included in the front panel of the packaging, and the term to be used will depend on the purpose of the flavor: taste reinforcement or taste definition. Before exporting to Brazil, it is highly recommended to verify not only if the final product complies with the current legislation but also its ingredients. Functional foods To be considered functional a food or beverage product has to be approved by ANVISA, with the proof of its benefits via scientific studies and further documentation. The legislation also does not recognize the term “Nutraceutical” and so far there is no legislation applicable to this category. See more on functional foods on Chapter 4.3. Organic foods In order to import organic products into Brazil the local company must follow the standard import procedure for a conventional product, and depending on the product an import authorization must be requested. Additional documents will be required by the local authorities as organic products, either domestic or foreign, must comply with the organic legislation in force: the product must be obtained within an organic agriculture production system, come from a sustainable extraction process and not be harmful to the local ecosystem. The producer must be audited by one of the MAPA authorized certifiers. Legislation in English can be found at: http://www.prefiraorganicos.com.br/media/45792/lei_10.831_ingles.pdf http://www.prefiraorganicos.com.br/media/45792/lei_10.831_ingles.pdf See more on organics on Chapter 4.2. Patents and trademarks The federal agency INPI (National Institute of Industrial Property) is responsible for registration of patents, industrial designs, trademarks, geographic indications, among others. Patents are valid for 15 or 20 years, depending on their nature. Trademarks are valid for 10 years, renewable for the same period. Pesticides and other contaminants Brazil follows international standards, in particular the CODEX. Maximum tolerance levels apply for pesticides and imported products must comply with the same requirements as locally produced items. Salt reduction The Ministry of Health and ANVISA have been working intensively on reducing salt levels on several processed foods, establishing maximum salt content and timeframe for this goal to be achieved. 16 | Brazilian Food and Beverage Market Report 2012 Some of the products that are already obliged to reduce salt content over the next few years are: chips, ready to eat cakes, bread, cake mix, biscuits, noodles, mayonnaise. This is expected to be extended to a larger range of products, in particular those aimed at infants and adolescents. Transgenic ingredients When more than 1% of the food / beverage formula is made with genetically modified ingredients (for both human and animal consumption), the consumer must be informed of its transgenic nature. The product package must contain the “T” symbol and the information on which ingredient is from a transgenic origin. The example below shows a product (soy oil) identified with the transgenic information and the “T” symbol in addition to the phrase “Product produced from transgenic soy”, as required by ANVISA. Source: transgenicos-ufrj.blospot.com Source: Adapted from ANVISA, www.anvisa.gov.br 4.3 Import Procedures. When importing food and beverage products to Brazil, the Brazilian importer is held liable in case of health risk to the consumer or any problems caused by it. All importers are required to register with the Brazilian International Trade Secretariat (SECEX) and obtain import licenses (directly or via private customs agents) before product shipment, depending on the product. By entering the product and origin information on SISCOMEX (Brazil’s automated import system) importers can check whether the product needs a license prior to shipment and which are the involved authorities in the granting of such licenses. Usually food and beverage products require a license prior to shipment and such licenses will be analyzed and issued by MAPA and / or ANVISA. In case the importer does not comply with the standards and regulations pertaining to importation heavy fines apply. It is crucial that all the paperwork is prepared according to Brazilian requirements. Prior to the shipment, animal origin products must have their plant in the country of origin registered and inspected by MAPA staff. MAPA also approves labeling, quota and FPS controls. The registration and inspection process may take over one year. In case of imports of alcoholic and non-alcoholic beverages that are under MAPA’s jurisdiction, the importer must check if the laboratory or producer issuing the lab certificate is eligible to do so. The importer must ascertain whether the Brazilian legislation allows the commercialization of the product. It is important that the list of ingredients is checked, to find out if all components are allowed and within the tolerance limits. It is advisable that a regulatory affairs office with expertise in food and beverages is hired and that the Product Identity and Quality standards (PIQ) are strictly followed. Labels must be translated into Portuguese and an adhesive sticker can be used with the minimum required information (see Figure 6). Brazilian Food and Beverage Market Report 2012 | 17 This can be done either at origin or when the product is already in Brazil, prior to its commercialization. inspectors must perform a re-inspection if they believe it is necessary. After the product formula is checked and the product complies with the local legislation, the legal representative of the exporting company, its local subsidiary or the importer must request product registration with MAPA or ANVISA or an official exemption from registration. When the product is imported by more than one company, each of them must file their own application. 4.4 Tariffs. In order to request an Import License (LI), the importer must have the proforma invoice. The import license (applied to some products) must be obtained prior to shipment. The mandatory import documentation in Brazil includes: Bill of Lading (B/L) or Airway Bill (AWB), Commercial Invoice, Packing List, Certificate of Origin (when applicable), Certificate of Analysis. Other documents required for the licensing process or on a Letter of Credit might be needed. Brazil, with the other MERCOSUR countries, uses the NCM (MERCOSUR Common Nomenclature), which is formed by the 6first digits of the Harmonized System (HS) plus 2 additional digits. Using the correct NCM code avoids problems with customs and wrong taxation, as all taxes are based on the product NCM. When arriving at Brazilian customs, the Declaration of Import (DI) must be filled (electronically) as well as other procedures undertaken by the custom agent hired. The SISCOMEX system randomly chooses shipments to undergo physical inspections, but most imports receive the green light to clearance. MAPA and ANVISA 18 | Brazilian Food and Beverage Market Report 2012 Brazil is a member of the MERCOSUR agreement, together with Argentina, Paraguay, Uruguay and Venezuela (not a full member yet). Those countries within MERCOSUR are usually exempt from paying the import duty when trading with each other (in case of products produced in the member countries with a minimum local content). There is no free movement of imported goods within MERCOSUR. MERCOSUR has also trade agreements with other countries but currently not with Switzerland. Imports from Switzerland and other European countries pay the import duty, which can vary from 0% to 30%, depending on the product. See the Appendix for a list of current import duties for most food and beverage products. The tax system in Brazil is basically tax on tax, which means that taxes apply on top of other taxes, rather than only on the product value. In practical terms, the Import Duty (II) is calculated on the CIF price, and taxes such as Industrial Products Tax (IPI) and the tax on the distribution of goods and services (ICMS) are applied in a cascade, on top of the product value plus the tax. The latter taxes are also paid by local companies and vary according to the product NCM and state. It is advisable to consult with a tax expert to understand the tax system and simulate the landed cost of the product in order to check its competitiveness. Depending on the product NCM, the landed cost of a product can be up to double its FOB price at origin. 5. Food Industry. 5.1 Food and Beverage Industry. Figure 9: Brazilian imports growth by HS Chapter HS Chapter/ Description The food and beverage industry is one of the key segments of the Brazilian economy, being the leader in gross value, exceeding all other industry segments and accounting for more than 18% of national production, according to the Brazilian Institute of Geography and Statistics (IBGE). The food and beverage industry is also the biggest employer of Brazil, accounting for approximately 20% of the total jobs. While 75% of all foods produced in Brazil are for domestic consumption, Brazil is also a relevant exporter. Its food trade volume reached US$ 10 billion in 2011, with a heavy surplus: US$ 8.8 billion in exports (main products are sugar, meats, juices and vegetable oils) and US$ 1.2 billion in imports (wheat and milk are the main imported items). When analyzing the period from 2007 till 2011, Brazilian imports on foods and beverages have grown 102% in value and 8% in volume. Figure 8: Brazilian food and beverage imports 14'000'000 12'000'000 10'000'000 8'000'000 Value US$ million 6'000'000 Volume (kg) 4'000'000 2'000'000 0 2007 2008 2009 2010 2011 Growth (value) 2007-11 Growth (volume) 2007-11 02. Meat 147% 28% 03. Fish and Crustaceans 119% 61% 04. Dairy produce, eggs, honey 261% 159% 07. Edible vegetables and roots 143% 50% 08. Edible fruits and nuts 130% 75% 09. Coffee, tea, mate and spices 146% -5% 10. Cereals 30% -16% 11. Products of the milling industry, malt, starches, inulin, gluten 79% 11% 12. Oil seeds, grains 64% -27% 13. Lac, gums, resins 56% 7% 15. Animal or vegetable fats and oils 128% 66% 16. Preparations of meat 229% 124% 17. Sugar and sugar confectionary 96% 70% 18. Cocoa and cocoa preparations 22% -45% 19. Preparations of cereals, flour, starch or milk, pastrycooks’ products 181% 91% 20. Preparations of vegetables, fruits, nuts 107% 91% 21. Miscellaneous edible preparations 106% 56% 22. Beverages, spirits and vinegar 374% 860% Source: Adapted from Aliceweb, aliceweb.mdic.gov.br Taking into account Brazil’s continental dimensions, it is not uncommon that large food producers set up distribution centers and plants in different states, taking advantage of tax benefits, proximity to customers, possibility of producing regional products, etc. Source: Adapted from Aliceweb, aliceweb.mdic.gov.br The largest growth in imports in the period 2007-2011 was seen in the beverage sector (Chapter 22 of the Harmonized System), accounting with 374% in value terms and 860% in volume terms. Processed foods, mainly from HS Chapters 16 to 21 have also shown steady growth in the 5-year period, as seen on Figure 9. Climate also affects the food and beverage industry to a large extent. The North and Northeast are close to the Equator and have high temperatures all year round, forcing producers to use refrigerated transportation and adapt their products to the local climate conditions. Brazilian Food and Beverage Market Report 2012 | 19 5.2 Organic and Natural Food. According to research from IBO (Instituto Biodinâmico, 2010), Brazil is one of the largest organics producers in the world, with 635 million hectares of land for the cultivation of organics, area growing 30% on a yearly basis. There are over 90’000 companies / farms operating with organic products in Brazil, but only 5’500 of those are registered in the Ministry of Agriculture (MAPA, 2011). Sales of organic certified products in Brazil grew 40% in 2010, reaching R$ 350 million. Sales of perisible organic products (fruits and vegetables, meat, etc) showed 16% growth in 2010 whereas processed organic foods grew 24% in the same period. Market sources estimate a continous growth of 20% to 30% per annum for the next 5 years in sales of organic foods and beverages in Brazil. The consumer of natural food and organic products in Brazil is typically a member of the A and B classes, counting with a higherthan-average income and educational level. The drivers are health consciousness and food safety (concerns about the use of pesticides and other potentially harmful substances) and environmental concerns. The most common organic processed products found in the supermarkets shelves in Brazil are biscuits, jam, tea, juices, rice, olive oil, sugar, honey and coffee. Figure 11: Organic Products in a Brazilian supermarket Despite the fast growth rates in sales of organic foods and beverages, such products have a very low penetration in Brazilian households – estimated at less than 1%. Most Brazilian consumers are still not aware of the benefits of organic products and are not willing to pay the higher prices for a benefit they do not recognize. There is, though, considerable space for growth in sales of organic and natural products, driven by the increase in education and income levels of the Brazilian population. Source: Pão de Açúcar, www.paodeacucar.com.br Figure 10: Organic Products in Brazil: Key Facts Market size Number of companies and farms (certified and noncertified) Household penetration R$ 350 million in sales (certified products) 90’000 Less than 1% Growth (2009 – 2010) 40% (certified products) Main Distribution Channels Supermarkets (70-80% of sales), specialized shops, street markets Pricing strategy Average 30% higher than conventional products – up to 450% more expensive for some products. Trends Health & well being Source: Osec via desk research 20 | Brazilian Food and Beverage Market Report 2012 According to MAPA, for a processed food or beverage to use the organic denomination its industrialization process must comply with strict regulations to assure that there is no contamination from other production lines or products; the product’s ingredients must be harmless to health and the product has to be made of at least 95% of organic ingredients. Products with lower percentage (at least 70%) of organic ingredients can only be called “products with organic ingredients”. Products that contain less than 70% of organic ingredients cannot be sold as organics nor have any indication of organic on the package. Legislation in place since 2011 requires that all organic producers must be registered in the National Database of Organic Producers from MAPA to be considered a certified organic producer and to have the right to use the SISORG label (granted only to certified organic producers) in the products. The producer has to comply with a number of federal laws and specific production requirements defined by MAPA, including tracking of each ingredient used in the product with proof of its organic origin. The certification process and auditing has to go through one of the certifiers authorized by MAPA. Products with organic product claims that are not registered are subject to penalties and withdrawal from the market by the authorities. than non-organic ones – the average is 30% more expensive. Such high prices of organics in Brazil can be explained by the extra costs generated by the lack of pesticides, higher production risks, the certification and auditing process and the lower production scale. To sell products as certified organic, producers must meet the criteria that prohibit the use of pesticides, herbicides and chemical fertilizers, monoculture farming, besides complying with labor and environmental laws, undertake sustainable management of natural resources and waste generated in the production and undergo annual certification audits, as well as surprise visits from experts. In the Southeast region, where most organic products are sold, 80% of such sales are via chained supermarkets. Other channels include direct sales from the producer to the consumer (street markets, for example) and shops specialized in natural and organic products such as Mundo Verde (www.mundoverde.com.br), Biocarioca (www.biocarioca.com.br) and Bioé Orgânicos (www.bioeorganicos.com.br). Figure 12: SISORG organic Label for registered producers There are also a number of online organic shops such as Quintal dos Orgânicos (www.quintaldosorganicos.com.br), Vida Saudável Orgânicos (www.vidasaudavelorganicos.com.br), Horta da Vovó (www.hortadavovo.com.br), Sabor Natural (www.sabornatural.com.br), Ecobio (www.ecobiosaude.com.br), Loja Orgânica (www.lojaorganica.com.br), which sell organic fresh and processed products with delivery all over Brazil. Source: MAPA, www.agricultura.gov.br In the case of imported organic products, the same registration and certification process is in place: the imported product must comply with the same regulations as local producers. Even if the imported organic product is certified in their country of origin, it has to be again re-certified in Brazil following the Brazilian organics standards. Natural restaurants are also becoming more popular in Brazil, in particular in the largest cities, generating opportunities for distributors of fresh organic fruits and vegetables as well as other organic ingredients. Figure 13: Specialized organic and natural products shop The MAPA authorized certifiers for organic products in Brazil are: ECOCERT (www.ecocert.com.br), IBD (www.ibd.com.br), IMO do Brasil (www.imocontrol.com.br) and Tecpar (www.tecpar.br/cert/). The legislation change in 2011 encouraged premium retailers such as Pão de Açúcar (who buys organic products from more than 100 local and international producers) and Casa Santa Luzia to interrupt imports of products from producers that were not able to obtain the certification. According to market sources, imports of such products were also drastically reduced as many international organic producers were not willing to pay the certification costs and go through the auditing – resulting in an impact of 10% lower sales of organic products in retail. Source: Mundo Verde, www.mundoverde.com.br Price of organic products is still an issue in Brazil. Researches show that organic products can be up to 450% more expensive Brazilian Food and Beverage Market Report 2012 | 21 5.3 Functional Food. Functional foods are those that may provide health benefits beyond basic nutrition due to the presence of a physiologically active component, counting with scientific evidence. Today, light, diet and functional foods represent 6% of the total production of foods in Brazil. Industry experts believe that in less than 10 years, the functional foods will reach 15-20% of the sales of processed foods. A study conducted in 2007 showed that 75% of the 24 most sold food categories were somehow related to health and that 44% of Brazilians of social classes A and B choose their foods considering health aspects, the highest level in Latin America. Figure 14: Functional Foods in Brazil: Key Facts Market size (2007) US$ 600 million Number of functional products registered with ANVISA Household penetration Growth (2009 – 2010) 130 Less than 1% 20% Share of functional foods in total production of processed foods 6% Pricing strategy Premium, 20 to 100% more expensive than the traditional product Trends - Health & well being - Indulgence (eating well without guilt) - Attractive packaging Source: Unilever, www.unilever.com.br The segment is dominated by dairy products, in particular yoghurts – a segment dominated by Danone and Nestlé. Launched in 2004, the Activia and Actimel lines by Danone are the greatest success of the company in Brazil, and helped Danone reach the leadership in this segment. Today’s 30% of Danone’s sales in Brazil come from the Activia line and its sales are growing by impressive rates of 50% per year. There is still room to grow, as the per capita consumption of yoghurts (functional and non-functional) is only 5kg per year, while Argentineans consume 10kg and the French 35kg. Danone gained share with its Activia line with a strong market campaign showing its benefits and asking consumers to claim the money spent back if they were not satisfied with the results. Although this is a common strategy in European and American markets, for Brazil it was quite daring, and the results proved that the company was right: market share increased and only 0.02% of consumers claimed their money back. Figure 16: Danone’s enriched calcium yoghurt Source: Osec via desk research There are mainly 4 product categories counting with functional products: drinks, dairy, pastry and cereals. Examples of functional products sold in Brazil are: margarines and milks that help reducing cholesterol levels and protect the heart against cardiac disease; yoghurts and drinks that help digestion flows, soy and dairy based products with calcium aimed at osteoporosis (those not considered as functional by ANVISA), amongst others. There are more than 130 products registered in Brazil as functional. Source: Danone, www.danone.com.br Figure 15: Unilever’s functional line of products Becel To gain relevance in this market, food companies in Brazil started to use strategies of pharmaceutical companies, straightening relationship with doctors and nutritionists and even partnering with 22 | Brazilian Food and Beverage Market Report 2012 pharma laboratories for research and joint health seminars and events for doctors. The scientific evidence is not only used for ANVISA’s registration purposes: usually companies use the results in their marketing materials, in order to show to the consumers the products benefits and persuade them to pay the premium. Companies like Danone use real customers to tell in their adverts that the product works and how it helped them. Since 1999, ANVISA started to monitor the functional foods trend, and created a specific commission to monitor and analyze this segment. In order to be called functional, ANVISA requires a number of documents (detailed in the legislation), a technical / scientific report including evidence of the product benefits and its safety. One important remark is that ANVISA does not use the term “Functional Food” but “Food with Functional Quality Claim”. The legislation also does not recognize the term “Nutraceutical” and so far there is no legislation applicable to this category. Products with functional claims (previously authorized by ANVISA) also have to include other information in the packaging, depending on the health benefit claimed – usually a phrase recommending a healthy diet and healthy lifestyle to the consumer. Claims of cure or sickness prevention are not allowed. Figure 17: Functional ingredients allowed by ANVISA product would solve health problems. Danone’s low sodium water, Bonafont, although not considered functional, also had problems with the authorities and had to modify its campaign in order to avoid giving the idea that the water would assist in losing weight. Giving the success of brands like Danone, the higher margins and the growth rates of functional foods in Brazil, it is expected that many new functional products will be launched during the next few years. The increase in the population over 60s (11.3% of Brazilians) and the increase in life expectancy will also encourage launchings in the functional foods segment. Today, most functional foods in Brazil are aimed at women over 30. Brazil has seen considerable growth in obesity rates – it is estimated that around 40% of Brazilians are overweight and many have a lifestyle that includes consumption of fast food, products rich in sugar, fats and salt, and sedentariness, increasing the risk of chronic diseases such as diabetes, coronary heart disease as well as stress. It is expected that some of the new developments focus on the most common diseases seen in the Brazilian population. Figure 18: Main diseases in Brazil Disease Ingredients with Functional Quality Claim allowed by ANVISA Obesity and overweight (each group follows specific requirements) Diabetes Carotenoids (Lycophen, Lutein, Zeaxanthin) Hypertension Dietary Fiber (B-glucans, Resistant Dextrin, Fructooligosaccharides Back problems (FOS), Inulin, Psyllium, Guar Gum, Polydextrose, Cytosan, Lactulose) Fatty Acids Omega 3 Phytosterols Polyol (mannitol, xylitol, sorbitol) Probiotics (Lactobacillus acidophilus, Lactobacillus casei shirota, Lactobacillus paracasei, Lactococcus lactis, Bifidobacterium bifidum, Bifidobacterium animallis, Bifidobacterium longum, Enterococcus faecium) % of Brazilian population 40% to 50% 6% 14% to 25% 13,5% Heart disease 4% Asthma or bronchitis 5% Stress 50% Constipation 20% Osteoporosis 5% Gastro esophageal reflux Depression 12% 9% Source: Osec from desk research Soy protein Source: Adapted from ANVISA, www.anvisa.gov.br Brazilian authorities are very strict about advertising the potential benefits of such products and Danone and other players had to modify their adverts a few times as they were too explicit about benefits that were not proven or giving the impression that the Brazilian Food and Beverage Market Report 2012 | 23 5.4 Processed Food. Processed food is a very promising segment in Brazil and it has grown significantly over the last years: for some categories at 2digit growth rates. Between 2009 and 2013, experts believe that the market size of some packaged food, such as dairy products, snack bars, ice cream, confectionery, and bakery goods are expected to grow by 86.2%, 75%, 55.4%, 51.9%, and 39.4%, respectively. The main drivers of growth are the higher income levels of the Brazilian population and the need for easy-to-consume products, due to the changing lifestyle of Brazilians in urban areas. The majority of processed foods are sold via supermarkets and specialty stores. In terms of industry capacity, Brazil has a well-developed food processing industry with almost 50’000 plants, supplying the complete range of processed foods. Most of them are locally produced yet imports are growing year by year – mostly on more sophisticated and premium products. In the food processing industry there are manufacturers of all sizes, but around 20% of the production is done by large companies, with more than 500 employees. 43% of the production comes from medium companies (from 100 to 499 employees) and the remaining from small enterprises. One of the reasons that Brazil has a large industrial base for processing foods is due to the fact that for many years, until the 1990s, Brazil was highly protective in terms of imports / market access, and multinationals had to install their plants in Brazil if they wanted to enter the market. Today, the multinationals account for over a third of the food processing industry. Companies such as Nestlé, Bunge, Unilever, Cargill, Danone and many others are responsible for some of the bestselling products in Brazil. Brazil also has large national food processors, such as Brasil Foods, Hypermarcas, etc. There are production plants all over Brazil, but most of them are concentrated in the Southeast region. With increase in income and consumption in the Northeast of Brazil, many food processors are now opening new plants and distribution centers to supply the region, develop regional solutions and save on logistics. 24 | Brazilian Food and Beverage Market Report 2012 The best sellers are meat products, fats and oils, dairy products, beverages and sugar but segments such as snacks, biscuits and ready meals are also showing high growth rates. Brazilian companies dominate the processing of meat products and milk – Brasil Foods and JBS are the main players and multinational companies such as Nestlé, Unilever and Danone are leaders in several segments such as ice-cream and yoghurts, while Bunge and Cargill are leaders in cooking oil. In terms of opportunities for Swiss companies, all mentioned sectors present good potential, either for the processed food itself, or for ingredients and additives, packaging solutions and laboratory equipment and machinery. The main challenge for the processed food players is to produce healthier products without losing their characteristics such as flavor and texture. The additives and ingredients industry will have to develop solutions to tackle this issue. Opportunities also arise in the development of packaging solutions, as producers of processed foods are looking for lower cost materials and consumers for convenience, single portions and onthe-go. The challenge is to find the balance between those two needs. 5.4.1 Bakery (including biscuits) Bakery products include biscuits, cakes and breakfast cereals. With the increase in consuming power, the three products have showed good performance in terms of sales in 2009 / 2010. Biscuits grew by 7% in value, breakfast cereals showed 16% growth and cakes sales rose approximately 13% in 2010. The main players in this segment are Pandurata Alimentos, under its brand Bauducco, with operations in cakes and biscuits; M Dias Branco with 4 main brands is the leader in biscuits, competing with multinationals such as Nestlé, and with a large advantage in the Northeast of Brazil. For breakfast cereals, Kellogg Brasil is the leader with over 40% share, but feeling the pressure from other Brazilian players. Biscuit is the product with the higher household penetration, reaching 99% of all Brazilian homes. Manufacturers are investing in new products and marketing in order to increase consumption and purchase frequency. There are also opportunities for higher quality biscuits, including cookies (sales grew by almost 30% in 2010), chocolate covered biscuits, biscuits with added fiber and wholegrain and individually packed, in line with the trends of indulgence, health and convenience. The segment depends greatly on wheat, fat and sugar prices. Cakes: Pandurata (Bauducco) Breakfast cereals: Kellogg Trends Brazil mainly imports biscuits and other baked goods from Argentina, Germany and Italy; imports have grown 45% in value and 37% in volume in 2011. Those are mainly premium biscuits and cakes for specialized shops and supermarkets. Figure 19: Premium cake made in Brazil Health & well being Indulgence Convenience Source: Osec from desk research 5.4.2 Cheese, yoghurt and ice-cream Cheese, yoghurt and ice-cream have shown growth in 2010; cheese grew by 9% in volume terms, reaching US$ 7 billion in sales, yoghurt grew 31%, reaching US$ 3.5 billion and ice-cream rose by 28%. Dairy producers are investing in research and development in order to get ahead in the market with innovative solutions and healthier products, such as low fat and with added vitamins – with the challenge of keeping the product’s flavor and texture. Despite Brazil’s large production of milk, the product prices are subject to climate changes and during certain periods of the year, they increase up to 20% for the end consumer. Source: Casa Suíça, www.casasuica.com.br Figure 20: Bakery goods in Brazil: Key Facts Market Size (2010) Household Penetration Biscuits: US$ 7 billion Cakes and other baked goods: US$ 20 billion Breakfast cereal: US$ 450 million Biscuits: 99% Cakes and other baked goods: 99% Breakfast cereal: 13% Growth in value terms (2009 – 2010) Biscuits 7% Cakes and other baked goods: 13% Breakfast cereal 16% Main Distribution Channels Supermarkets Pricing strategy There are brands for every pocket. The increase in consumption of premium biscuits, mainly imported, show that there are opportunities for higher quality products. Market Leaders Biscuits: M Dias Branco The leader brand in cheese is Polenghi Indústrias Alimentícias, with a share of 10%. The segment has a large number of players, and despite the rigid controls of MAPA, there are still a large number of unregistered companies operating with cheap products with no food safety. Brazil’s imports of cheese come mainly from Argentina, Uruguay, Netherlands, France, Italy and Switzerland and have grown 99% in value terms and 77% in volume terms in 2010 / 2011. Figure 21: Premium cheese from Brazilian producer Source: Hippo Supermarket, www.hippo.com.br Brazilian Food and Beverage Market Report 2012 | 25 Yoghurt is considered a star product for supermarkets: over the last five years, it has grown at impressive rates and in 2010 grew by over 30%. This is one of the first products that a consumer adds to the shopping list when additional income comes in. Still many Brazilians see yoghurt as a dessert rather than a healthy product, but this has been changing since the launch of the Activia line by Danone, which rapidly achieved market leadership, despite its higher prices (approximately 30% more than traditional yoghurts). Imports of yoghurt are minimal, as Brazil has large players with local production that supplies the domestic market. The ice-cream market is dominated by Unilever and Nestlé, with scattered players selling lower cost products in general. Ice-cream sales grew by 5% in 2010, and one player performed particularly well: General Mills, with its premium imported brand Häagen Dazs, which also encouraged Nestlé and Unilever to launch premium versions of their ice-creams. Imports of ice-cream come mainly from Argentina and France. Figure 22: Dairy goods in Brazil: Key Facts Market size (2010) Cheese: US$ 7 billion Yoghurt: US$ 3.5 billion Ice-cream: US$ 2 billion Household penetration Cheese: 80% Yoghurt: 31% Ice-cream:28% Growth in value terms (2009 – 2010) Cheese 9% Yoghurt:30% Ice Cream: 5% Main distribution channels Supermarkets Pricing strategy All types of price - companies are focusing on launching value-added products Market leaders Cheese: Polenghi Yoghurt: Danone Ice-cream: Unilever Trends Health & well being Indulgence Convenience Source: Osec from desk research 26 | Brazilian Food and Beverage Market Report 2012 5.4.3 Chocolate Chocolate confectionery performed very well in 2010, with increases of 17% in current value and 7% in volume terms, accounting with sales of US$ 4 billion. Brazilians are now consuming three times more chocolate than in the 1980s and now rank fourth in the world in terms of per capita consumption. Figure 23: Chocolate in Brazil: Key Facts Market size (2010) US$ 4 billion Household penetration 70% Growth in value terms (2009 – 2010) 17% Main distribution channels Supermarkets Pricing strategy Premium and seasonal chocolate are usually overpriced and bring extra margins Market leaders Nestlé / Garoto and Kraft (90%) Trends Indulgence Convenience Source: Osec from desk research Chocolate is a very seasonal product, and most sales are concentrated in Easter and Christmas. Seasonal chocolate and chocolate with toy products achieved the strongest growth in 2010, growing 21% according to Euromonitor. Chocolate is very dependent on raw material prices, as usually 90% of a chocolate price comes from inputs. Cocoa butter prices went down in 2011 and many chocolate producers are now shifting from equivalent fats to cocoa butter in their product formulas. The leader brand in chocolate is Nestlé / Garoto, with Kraft foods coming second. There are also other relevant players, such as Argentinean Arcor, which has increased recently its plant capacity in Brazil and decided to redirect its focus on the chocolate business. Figure 24: Arcor’s chocolates produced in Brazil Figure 25: Frozen Meals in Brazil: Key Facts Market size (2010) Household penetration 19% Growth in value terms (2009 – 2010) 20% Main distribution channels Supermarkets Pricing strategy Frozen meals are still expensive for most Brazilians. Smaller players are entering the market with lower cost items. Market leaders BRF (Sadia / Perdigão) Source: Arcor, www.arcor.com.br Premium chocolate is becoming more affordable to Brazilians, although still most of the chocolate consumed in Brazil is actually compound (a similar product with little cocoa content and added vegetable fat). The growth of brands such as Kopenhagen and Cacau Show, with their dedicated chocolate shops providing better quality products, has encouraged other large players to launch special editions and more premium recipes, including dark chocolate with high cocoa content. The Brazilian taste, still, is not keen on dark chocolate, but usually perceives Swiss milk chocolate as very good. US$ 540 million Trends Indulgence Convenience Source: Osec from desk research The market is dominated by Brasil Foods (BRF) with the brands Sadia and Perdigão. Compared to European countries and the US, the assortment of frozen meals available in Brazil is small, and most sales are concentrated in frozen lasagna. Figure 26: Supermarket alley with frozen foods Brazilian imports of chocolate rose by 24% in value terms and 8% in volume terms in 2011. The main origins are Argentina, Belgium, Switzerland, Italy and the US. 5.4.4 Frozen meals In the Brazilian main cities, many households are formed by couples that work, leaving less time to cook during weekdays. Maids are becoming more expensive and rarer, so frozen meals are occupying the space before taken by homemade food. Microwave ovens are now present in over 32% of Brazilian households and with prices becoming more affordable, it is expected that many more families purchase their first microwave in a short time, also benefiting the frozen meals segment. The Brazilian frozen meals segment grew 20% in 2011, reaching sales of US$ 540 million. Source: Veja, www.veja.com.br Imports of frozen meals are not relevant; all players are located in Brazil and producing for the domestic market and exporting. There are opportunities in terms of increasing options assortment but pricing is a key issue, as even the locally produced meals are already expensive for most Brazilians. With Brazilians looking for more healthy products, there are opportunities for suppliers of food additives to be incorporated into the frozen meals, replacing or compensating the lower levels of salt and fat. Brazilian Food and Beverage Market Report 2012 | 27 5.5 Beverages. Figure 28: Consumption of non-alcoholic beverages Brazil has one of the largest beverage industries in the world, both for soft drinks and alcoholic beverages. Sales of beverages in Brazil have performed well in 2010, in particular in segments such as energy drinks, beer, carbonates and juices. According to industry experts, the most promising products in the beverage business for the next 5 years are: Energetic and sports drinks (development, flavors, packaging on the go) Coffee and chocolate cold drinks Yoghurt with added juice Probiotic drinks Soy and rice based drinks Vitamin, fibers and minerals enriched waters Flavored waters Ice teas Sales of alcoholic drinks correspond to 20% of the beverage industry, mainly concentrated in beer. Carbonates, juices and other non-alcoholic drinks except hot drinks and dairy correspond to 53% of the Brazilian market. Figure 27: Share of beverage categories Source: ABIR, www.abir.org.br The Brazilian non-alcoholic beverages’ revenue in 2010 reached US$ 28.7 billion, US$ 15 million coming from carbonates. Revenues are expected to reach over US$ 40 billion by 2016. Figure 29: Non-alcoholic drinks in Brazil: Key Facts Market size (2010) US$ 28.7 billion Household penetration 99% Growth in value (2009 – 2010) 13% terms Main distribution channels Supermarkets and foodservice Pricing strategy There are all prices for nonalcoholic beverages. Foodservice usually gains 100%200% in margins Market leaders Coca-Cola, AmBev, Unilever Trends Convenience Indulgence Source: Osec from desk research Source: ABIR, www.abir.org.br 5.5.1 Non-alcoholic beverages As seen in other food products, the increase in the income of Brazilians is boosting consumption of non-alcoholic beverages and all subcategories have seen growth in 2010, as seen in the graph below. 28 | Brazilian Food and Beverage Market Report 2012 This sector is dominated by global brands such as Coke and Pepsi, but there are also significant share of local brands, notably Guaraná. Brazil is the third country in the world in carbonates consumption, with 86 liters per capita, just behind the USA (198 liters) and Mexico (147 liters). Diet / light carbonates correspond to over 10% of the total volume consumed in Brazil. Bottled water is another category that has been showing impressive growth and revenues in 2010 reached US$ 5.9 billion. Juices and soy drinks Sales of juices showed growth of 53% between 2006 and 2010 – Brazil is the 11th country in the world in volume, having sold 1.52 million liters in 2009. Figure 30: Local brand of energy drink in Brazil Brazil has still space to grow in premium juices, as 87% of juices sold are juice drinks (juices with water and sugar added and a very low concentration of fruit, usually 20%), while 8.7% are for nectars (75% of juice) and only 4% are for 100% fruit juices. As it happens, sales of nectar and 100% fruit juices are growing at a much faster pace than juice drinks. Soy drinks are also a fast growing category: between 2002 and 2007, consumption grew from 51 million liters to 175 million liters and continued growing by 20% per year. The main challenge for soy drinks and ingredient producers is to reduce the aftertaste and improve flavor and viscosity. Market leaders in this segment are Unilever (70% share) and Nestlé, but those also face increasing competition from local players. There is little importation in the soy drinks category, 99% of products sold are made in Brazil. Source: TNT, www.tntenergydrink.com.br Energy Drinks Energy drinks have been showing the largest growth of all nonalcoholic beverages. From 2006 to 2010, energy drinks have grown 325% in sales. This was driven by the income growth enabling more Brazilians to buy such products. Figure 31: Alcoholic Beverages in Brazil: Key Facts Even with the fast growth, the category has a small share of the total sales of beverages: 87 million liters per year out of a total of 72 billion liters. With the impressive growth shown over the last few years, many new brands entered the Brazilian market with energy drinks – specialists estimate over 100 brands being sold in supermarkets, bars and gyms. The leading brands are Red Bull, Burn and Gladiator (Coca-Cola), Flying Horse, TNT and Flash Power. Despite market growth, the multinationals are losing share to Brazilian producers – Red Bull had 60% of the energy drinks market in 2005 and today its share is reduced to 40% - which made the company start planning to launch their energy drink in pet bottles, in order to attract consumers from the C class. Although most sales of energy drinks are in metal cans, pet bottles already represent 8% of sales and are expected to keep growing. 5.5.2 Alcoholic Beverages The value of the country’s alcoholic drinks industry was US$ 16 billion in 2010. This segment is expected to grow significantly in the next few years and forecasts suggest that the value of the alcoholic drinks industry could reach US$ 18 billion in 2013. Market size (2010) US$ 16 billion Household penetration Growth in value (2009 – 2010) terms Main distribution channels 82% 7% Supermarkets and foodservice Pricing strategy There are all prices for alcoholic beverages. Foodservice usually gains 100%-200% in margins Market leaders Coca-Cola, AmBev, Unilever Trends Convenience Indulgence Source: Osec from desk research Alcohol sales in Brazil have been affected by strict new drink & driving laws implemented in the country in June 2008. The new law includes tougher penalties for transgressors and lower allowed alcohol limits, and has prompted several of Brazil’s leading brew- Brazilian Food and Beverage Market Report 2012 | 29 ers to increase the volume of production of a low-alcohol alternative – sales of non-alcohol beer are growing on a 30% rates per year since the law was introduced. Also, sales of alcoholic beverages in supermarkets grew at faster rates than in the foodservice. Beer With an annual consumption of 50 liters per capita – half the consumption in Germany, Brazil is the fourth market for beer in the world, accounting for sales of 10 billion liters in 2010. Sales of beer in Brazil grew 18% in 2010. Figure 32: Beer alley at local supermarket Per capita consumption is still very low when compared to European countries and even neighbors such as Argentina and Chile. Brazilians consume 1.85 liters of wine per capita per year, a very low quantity when compared to countries such as France (45 liters), Switzerland (40 liters) and Chile (14 liters), according to the Wine Institute. Thanks to higher incomes and a favorable exchange rate, consumption of imported wines is growing each year. Most imports come from Argentina, Chile, Uruguay, France, Italy and Portugal. Figure 33: Wine at local supermarket Exame, www.exame.com.br Most of the beer sold are conventional lager beer, but premium beers, priced 20% to 100% more than conventional beers, are gaining market and today account with 5% of share. This segment includes beers produced locally and imported brands. Brazil has also increasing sales of super premium beers, priced more than double the price of conventional beers, accounting with a share of 0,5% - those are imported ones and also beers produced in small local breweries. It is expected that the premium segment reaches 8% of share and the super-premium 0.8% in 2014. Wine The wine industry in Brazil started in the 1800s and is largely dominated by family-owned businesses, mostly in the South and Southeast regions. Despite Brazil’s continental size, the country is only the fifth producer of wine in the Southern Hemisphere. The local wine industry has been showing consistent growth both on the domestic and export markets. 30 | Brazilian Food and Beverage Market Report 2012 Source: Veja, www.veja.com.br 5.6 Private Labels. Present in Brazil since the 1970s, private label food products (products sold in stores with the store’s own brand, produced by third party manufacturers) have been shifting over the last few years from commoditized foods such as rice, beans, flour and coffee to more elaborated products, with higher investment in innovation, quality and flavor. Sales of private labels on basic foods are still quite high, but more added value products such as biscuits, yoghurt, olive oil, etc., are growing faster in this segment. Differently from European rates, which can be as high as 50%, sales of private label food products on total sales of food in Brazil are around 7%, with considerable room to grow. According to industry sources, beverage on private label is the bigger challenge, in particular for alcoholic drinks: Brazilians are usually loyal to beer brands as well as soft drinks and supermarket brands are perceived as low quality. All the large supermarket chains in Brazil, including cash & carry stores, have their own brands in many different product categories. Private label food and beverage correspond to 50% of sales of total private label products. Although usually perceived by the Brazilian consumer as lowquality low-price, private label food products have been showing consistent growth in sales on all social levels of the income pyramid. Investment in research, package and quality improvement are leading to better products, mostly locally produced. Imports of private label, in particular by international supermarket chains, such as Carrefour, Walmart, Makro and Grupo Pão de Açúcar (Casino) are also gaining space in their shelves. Those products present higher prices and usually are perceived as higher quality by the consumers and can be as varied as Thai rice, fine biscuits, jam, chocolates and sauces. Many of the imported private label products compete directly with local and imported brands but usually have a premium appeal and higher prices. A chocolate by Casino (sold at Grupo Pão de Açúcar’s stores) is priced double the price of a similar chocolate made in Brazil. Figure 34: Casino brand product sold in Brazil Figure 35: Walmart line of healthy products Source: Walmart Brasil, www.walmart.com.br Figure 36: Private label for food and bev in Brazil: Key Facts Market Size Number of private label brands (food and beverage only) Household Penetration Growth (2009 – 2010) Share of private label food products on total supermarket food sales Pricing strategy Trends 15’000 50% (food only) 21% (total private label, including food and beverage) 7% 10% to 30% lower prices than reference products (except for imported private label products) - Health & well being - Indulgence - Products with similar or higher quality than reference brands - Attractive and convenient packaging Source: Pão de Açúcar, www.paodeacucar.com.br Private label is thus migrating from cheaper and low-marketing products to more elaborated and innovative products. One key example is the brand Taeq, from Grupo Pão de Açúcar, which has benefited from investments in flavor, quality, packages and innovative ingredients. Most supermarket chains are also investing heavily in their lines of products with a healthy appeal, including vitamins, reduced sugar / fats and wholesome grains. The three largest supermarket chains of Brazil, Walmart, Carrefour and Grupo Pão de Açúcar have their health oriented private label brands. US$ 500 million Source: Osec via desk research There are over 15’000 private label food and beverage products in Brazil. According to market studies conducted by Nielson, the largest sales volume in private label food products are (in order of importance): milk, vegetable oils, sugar, rice, biscuits, yoghurt, frozen Brazilian Food and Beverage Market Report 2012 | 31 meat, bread and cakes. Other relevant private label products seen on the market are vegetable preserves, tomato sauce, condensed milk, powdered beverages, ketchup and margarine. For the supermarket chains, the private label usually brings higher margins as the manufacturers usually do not pay the contract fees mandatory for other suppliers and do not need to add marketing and research investments to the basic product price, as usually the private label is a “me too” product of a well-known brand. Makro Aro and M&K Baldaracci Walmart Bom Preço/ Great Value Sentir Bem Food and beverage products in general (several categories) Seasonal products, such as panettones, Easter Eggs Large assortment of foods and beverages with discounted prices Healthy products Source: Osec from desk research Supermarket chains like Walmart, Carrefour and Grupo Pão de Açúcar have invested heavily in their private label products. Pão de Açúcar has invested almost R$ 20 million in private label developments and built a private label innovation laboratory; one of their supermarkets has a sensorial analysis area for tests with consumers of their products against reference brands. There are many food and beverage private label producers in Brazil, some are specialized in this segment, others are well known brands which also produce for supermarkets in order to diversify its business / risks and reduce plant idle capacity. Figure 38: Private label manufacturers Figure 37: Key players & brands in private label in Brazil Players Main Food Brands Carrefour Carrefour Viver Grupo Pão de Açúcar Qualitá Taeq Club des Sommeliers Casino 32 Players (Manufacturers) Customers Products Emifor Alimentos www.emifor.com.br Carrefour, Walmart 120 products (chocolate powder, cake mix, powder juices, etc.) Village Cepam www.villagecepam.com.br Biscuits, cakes, Easter eggs, etc. Rice, beans, coffee, eggs, yoghurts, biscuits, More than 800 products in their 5 supermarkets Carrefour, Walmart, Makro, Grupo Pão de Açúcar and large industries such as Nestlé Cinalp www.cinalp.com.br Powdered chocolate Healthy and natural products (more than 1’000 brands aimed at life quality). Sales of Taeq products grow at a rate of 15% per year. Carrefour, Makro, Grupo Pão de Açúcar, etc. Predilecta www.predilecta.com.br Food products/ Facts 1’000 private label food products, including basic foods and other products such as olive oil, yoghurts, cereal bars, frozen meals More than 300 healthier products, such as light, diet, organic, functional and soy based. Wines, mainly imported. Sauces, jams, powdered chocolate, condiments, etc. Source: Osec from desk research Premium products in categories such as biscuits, chocolates, jam, sauces, etc. | Brazilian Food and Beverage Market Report 2012 Researches conducted by GS&MD with consumers have shown that still 45% of the Brazilian consumers value the brand when buying a product in the case of foods. It’s one of the highest rates, only behind medicines. More than 70% of consumers buy a private label product due to its lower price and 46% usually buy when they receive a free sample or a tasting at the point of sale. In the Northeast, the rejection rates to private label foods are much lower than in São Paulo and the Brazilian South. Consumers are usually less loyal to private label brands. In terms of B2B, chained restaurants that require constant innovation by their suppliers also tend to pay a premium prize on the products bought. Large chains also pay extra for increased food safety and supply guarantee. 5.7 Foodservice / HoReCa. Foodservice is defined as the sale of food and drinks for immediate consumption either on the premises from which they were bought or in designated eating areas shared with other foodservice operators (for example in shopping centers). It also includes takeaway transactions. The HoReCa channel accounts for hotels, restaurants and catering and for the purpose of this report will be considered within foodservice. The industry is broken down into four segments: Cafes & Restaurants (cafés, pubs, bars, full service restaurants, hotels and retail locations) Fast-food (quick service restaurants, takeaways and leisure locations such as cinemas) Other (nightclubs, sales on transportation) Cost (provided by employers, government, etc.) The foodservice sector in Brazil has performed very well over the last 10 years: showing two-digit growth and revenues of R$ 89 billion in 2011, a growth of 17% when compared to 2010. The industry estimates over R$ 100 billion in revenues for 2014. The segment Cafés & Restaurants is the largest of the Foodservice industry in Brazil, accounting for 68.3% of the industry's total value. Figure 39: Foodservice in Brazil: Key Facts Market Size R$ 89 billion Number of restaurants in Brazil Expenditure (eating out) with Growth (2010 – 2011) Pricing strategy Foodservice Over 2 million 31% of total consumer expenses on food 17% There are many types of outlets and each category has a different pricing strategy. Trends Indulgence Convenience Source: Osec from desk research The impressive growth was boosted by a number of drivers: a) Increase in purchasing power b) Need for convenience – lower unemployment rates and the increasing presence of women in the workplace in particular in big centers c) Growth in tourism and traveling within Brazil d) Increasing number of shopping centers Food experts expect a growth of 15% in 2012 and continuous twodigit growth rates over the next few years, also motivated by the two global sports events in 2014 and 2016 (World Cup and the Olympic Games). Growth in the foodservice is seen all over Brazil. In terms of volumes and values, the city of São Paulo is the undisputed leader. Brazil’s biggest city has 13’000 restaurants, 15’000 bars and over 3’000 bakeries. The average paulistano spends R$ 27 per day on eating out. This is the highest value of Brazil. Statistics from IBGE show that Brazilian families in urban areas spend on average 33% of all their food-related expenses in the foodservice industry (17.5% in rural areas). Although foodservice grew in all categories, chained establishments registered the most dynamic performance in terms of the number of outlets and transactions. In general in big cities like São Paulo and Rio de Janeiro, chained establishments (full service or quick service restaurants) offers lower prices when compared to other independent restaurants, and affordable by the consumers of classes A, B and C. Many of the chained restaurants have an aspirational appeal to the consumer of class C as well. Many of the chained restaurants are located in shopping centers, a sector that is also growing fast in Brazil, both in large and medium cities. Brazilian Food and Beverage Market Report 2012 | 33 A small number of companies dominate the Foodservice scenario accounting for more than 50% of sales: McDonald’s (in Brazil, run by Argentinian Arcos Dorados), Al Saraiva Empreendimentos Imobiliários e Participações (Habib’s and Ragazzo), Brazil Fast Food Corp (Bob’s and Pizza Hut), Restpar Alimentos (Giraffa’s), International Meal Co (Viena, Frango Assado and Brunella) and Subway. All those companies / brands have similar strategies: affordable prices, combos, constant investment in new products and innovations and aggressive marketing campaigns in television. Those companies are present all over Brazil, mainly in cities over 100’000 inhabitants. areas the number of independent outlets remains very high. Brazilians are not used to have a quick snack for lunch and usually prefer a full meal – this explains the large number of kilo restaurants in Brazil. Those are popular buffet restaurants, offering a number of self-service options and with a fixed price per kilo. Figure 41: Kilo restaurant in Brazil Figure 40: Foodservice in Brazil: main players Company/ Brand Name Number of restaurants Mc Donald’s (Arcos Dorados) 677 Subway 600 Bob’s (BFFC) 500 Habib’s / Ragazzo (Saraiva) 340 Giraffas 305 Burger King (3G Capital) 140 International Meal Co (Viena, Frango Assado, Brunella) 98 Source: Osec from desk research With pressure on chains like Mc Donald’s by authorities and on an attempt to attract more consumers, the fast food chains are investing in healthier solutions and requiring efforts of their suppliers in research and development. Innovation is also key in this industry, and fast food restaurants usually launch new products every 6 months or less. Apart from the chained restaurants listed above, fast food premium chains are also gaining force and increasing presence in the larger cities of Brazil – examples include the international brands Applebee’s and Outback and other national chains. Due to the large volumes and specific demands in terms of food safety and constant innovation, the chained restaurants, both premium and fast food, are usually supplied by large companies, such as Nestlé, Bunge, McCain, Cargill, Brasil Foods (Sadia / Perdigão), AmBev, Coca-Cola, etc. Despite the strong presence of chained restaurants, the foodservice channel in Brazil is very scattered. Many small towns do not have a single chained restaurant and even in the metropolitan 34 | Brazilian Food and Beverage Market Report 2012 Source: IG: www.ig.com.br Strong macroeconomic trends and investments from both domestic and international operators are expected to support the performance of the Brazilian foodservice market. Industry analysts expect more mergers and acquisitions over the coming years and the continuous entrance of international chains will be also boosted by the sports events to take place in 2014 and 2016 and the opening of new shopping centers (more than 100 are expected for the next 3-5 years). The foodservice growth does not only benefit the restaurants but the whole industry due to the need of ingredients, equipment, training, logistics, packaging, etc. One sector that was particularly benefited was the kitchen appliances producers, which has registered an average of 15% annual growth over the last 3 years. Experts estimate that the initial investment with kitchen equipment when opening a new restaurant is 35% to 55% of the total spent. 5.8 Industry Trends. As Brazilians are now able to consume more sophisticated food and beverages than ever before, their demand for new and innovative products generates a need for quick adaptations and investments by the industry. Industry trends directly impact on ingredient and additives producers, packaging manufacturers, machinery and equipment for food and beverage production. 5.8.1 Trends for additives Additives are substances with or without nutritional value of their own that are added to the food with the objective of preventing changes, preserving, adding or enhancing the aroma, color or taste, modifying or maintaining the physical state of the food. Although contrasting, the health and wellness trend (low salt, low fat, reduced or no sugar, etc.) and the indulgence trend (products with a pleasure appeal) both benefit the additives producers. First because consumers are looking for healthier products that taste good. By reducing fats, sugar, salt, etc., the basic characteristics of a product are changed, including aroma, thickness and flavor. The industry has to include other additives to compensate the ingredients that are missing or reduced, including food enhancers, artificial or natural flavors, texturizing agents (emulsifiers, modified starches, fibers, etc.), color enhancers, etc. The indulgence trend works in the same way: to have a better flavor and texture, quite often it is not enough just to use higher quality and natural ingredients, thus additives are needed. In terms of flavors, it is expected that the natural flavors, usually more expensive than the synthetic ones, will present higher growth over the next few years, with some opportunities for bio-flavors (natural flavor chemicals produced with the use of enzymes or by fermentation, with the use of different microorganisms). Products with more natural appeal and legislation issues are some of the drivers for growth on natural flavors. Color enhancers are also following the “more natural the better” path, replacing the synthetic versions. Although there are clearly many opportunities for natural color enhancers, there are technical difficulties still to be overcome, as nowadays many synthetic colors cannot be fully replaced by natural ones (blue is one example, with some interesting fruit developments ongoing). Another interesting opportunity in terms of color enhancers is the possibility to use additives with additional substances that are good for health such as antioxidants. Texturizing solutions, in particular modified starches and emulsifiers, will continue to show consistent growth due to the increase in the consumption of processed foods. The natural appeal also will play an important role for texturizers, with the reduction in the use of chemicals, and use of enzymatic processes. Soy lecithin, a largely used emulsifier, is a case that needs attention, due to the possibility of containing transgenic material, not well accepted by Brazilian consumers in general. It is expected that ANVISA will look more carefully into this additive in the near future. The use of vitamins, nutrients and other “good for health” substances will also show continuous growth according to experts. Products with added vitamins, minerals, antioxidants, omega 3, peptides, fiber, probiotics and similar substances are expected to become more popular in Brazil. Vitamins and minerals, quite often used in products such as infant and teenage foods, are already being added to a whole range of staple foods in Brazil, from rice to bread. With the reduced sugar trend, the use of sweeteners will also increase in beverage and food products, also leaning towards natural sweeteners rather than artificial ones, focusing on better taste (“taste likes sugar”) and less use of chemicals. This trend is not only motivated by legislation but by the consumers themselves, who want to reduce the caloric content without losing the pleasure of eating and drinking their favorite products. Fat replacers are also gaining space in the industry, motivated by both legislation and consumer demand. The use of fats with lower saturation and zero trans (in particular vegetable fats) is growing year by year, according to industry sources. In many products, like snacks, the use of animal fats is practically abolished and the industry has been studying options of lighter vegetable fats or use of substitutes. 5.8.2 Trends for packaging As in other countries, packaging plays a key role in the Brazilian food and beverage industry. Studies show that 85% of the items purchased in the supermarket are not planned – meaning that impulse purchases represent most of the consumption of Brazilians, and an attractive package will influence consumer decisions. Brazilian Food and Beverage Market Report 2012 | 35 Amongst the trends that will affect the packaging industry is the use of smaller / single portion packs, due to the growing number of smaller households and increasing presence of women in the workplace – less time to cook meals for the family. This trend will open opportunities for packaging designers and packaging producers. Single portion will also gain force in alcoholic beverages, including smaller wine bottles, which are becoming more popular in Brazil. With an increasing quantity of product launches per year in the food and beverage industry, in addition to a growing competition from imported goods, innovation in packaging formats, shapes and materials, in for shelf differentiation and attractiveness will be also a trend generating opportunities for designers and pack producers. The use of special editions to test the market also shows steady growth. The increasing presence of women in the workplace added to the fact that maids are becoming rarer (and more expensive) in Brazil, drive the consumers towards easy to prepare foods, and packaging plays a key role in this, in particular in the case of frozen or microwavable shelf stable meals. without altering the product characteristics while keeping its nutrients. Technologies such as ultrasound, ultraviolet radiation, infrared, microwaves, radiofrequency, high pressure, etc., are some of the developments expected in the food and beverage industry. Many small and medium food and beverage producers are now starting to pay more attention to food safety due to increasing competition with multinational players, consumer awareness and legislation requirements, so providing the first equipments to those companies may pose a good opportunity, having in mind, though that smaller companies are usually cost oriented and may not look for state-of-the-art equipment and machinery. With the smaller packs trend, the industry will also need versatile equipment that accepts different types of packs / lids for the same products, optimizing time, space and set-ups in the plants. Figure 42: Sadia manufacturing plant in Brazil The appetite appeal required by the indulgence trend will drive growth in the use of special inks, metallic, pearlescent, day-glow, matt finish varnishes and paints and will demand investment in new inks, printing technologies and varnish solutions. The food and beverage industry, together with the packaging producers are working on new lighter packs, using less raw material and this trend will continue, driven by the need for cost reductions and sustainability. 5.8.3 Trends for machinery and equipment All new technologies and product developments will require adaptations of the existing machinery or completely new equipment for producing food and beverage. Opportunities include machines that avoid product manipulation, destroy bacteria and other organisms 36 | Brazilian Food and Beverage Market Report 2012 Source: Exame, www.exame.com.br Figure 43: Trends for the food and beverage industry Trend Driver Benefited segment Examples Smaller packs - Lower income (C and D) for pricing strategy - Higher income (A and B) for convenience - Machinery producers - Packaging producers - Packaging designers Single portion biscuits; smaller milk cartons; single portion wine bottles. Low salt, low trans, less sugar - Legislation - Consumer demand (obesity and healthier lifestyle) - Food enhancers - Flavors - Texturizing agents Margarine with less saturated fat; low sodium ready meals Lighter packs (use of less pack material) Cost reduction and environmental concerns - Machinery producers - Packaging producers - Packaging designers Water bottles with less plastic; smaller lids; recyclable packs. Focus on innovation Market – need to launch new products and / or new packs on a regular basis - The whole industry, in particular packaging producers. New drink combinations (coconut water with juice); meal kits. Convenience All segments are affected, in particular people from larger cities. - Packaging - Texturizing agents - Easy to peel, easy to seal - Products with better resistance to temperature variation or that do not need refrigeration - Packaging that goes directly into the microwave / oven Quality / food safety - Legislation - Consumer demand - The whole industry, in particular machinery and laboratory equipment manufacturers. - Machinery to avoid food manipulation (food safety); machinery that kills bacteria keeping the product nutrients. - Equipment for faster and more efficient laboratory analysis. Indulgence and pleasure - Customer demand: customers are not willing to give up on pleasure to eat healthier. Industry needs to change as little as possible the product characteristics (flavor, consistency, crunchiness, etc.) - Food enhancers - Flavors - Texturizing agents - Packaging producers - Packaging designers - More attractive packs made with more “noble” materials such as glass, showing appetite appeal on the label / pack. - Food with a premium and homemade appeal. Foodservice Lifestyle in large cities, low unemployment rates, increase in income Industry as a whole, specially ingredient and additives suppliers and kitchen appliances producers - Texturizers to compensate lower use of fat - Kitchen appliances and equipment such as industrial stoves Source: Osec from desk research Brazilian Food and Beverage Market Report 2012 | 37 6. Food Distribution. 6.1 Route to Market. the retailer will prefer to buy from a third party, even knowing that an extra cost will be included in the product price. To reach Brazilian consumers through supermarkets, specialty and gourmet stores, it is recommended to have a local distributor / importer, ideally with good contacts and ongoing business in the different outlets. Exporting directly to supermarkets may be possible, but it is not usual, especially when dealing with small volumes. The leading retailers are well aware of their importance and power in the food distribution system and their advantageous position in comparison to the suppliers. Tough negotiations including contractual fees (including fees for promotional materials, logistics and other costs) and forcing reduced margins by buying large quantities of products are common place in the retail industry. For imported goods, the scenario is different, with supermarket chains buying smaller quantities with a great variety rather than buying large volumes. But as the import operation involves costs and time to deal with bureaucracy, if the quantity is not significant, Importers / distributors are generally interested in adding wellknown brands and high-end products to their portfolio. In this context, the Swiss appeal is always a good selling argument. In terms of shelf life, it is easier to find distributors when the product’s expiration date is over 6 months (avoids trouble with expired products in stock). 6.2 Importers and Distributors. There are a large number of food and beverage importers and distributors in Brazil, mostly located in São Paulo city; Figure 45 lists some of the most important players. Many of the smaller food and beverage importers / distributors do not have a website, even when they represent important international brands in Brazil. Figure 44: Food and beverage importers and distributors in Brazil Food importer Headquarters Main products/ brands Allfood www.allfood.com.br São Paulo, SP Azal, Villa Milena, Longovilo, Rafael Salgado (olive oil); Fragata (jam); Bauli (cakes); Cara Nonna, Di Martino (pasta); Valor (chocolate); Cheese and wines from several brands. Aurora www.aurora.com.br São Paulo, SP Bahlsen and Jules Destrooper (biscuits), Campbell’s (soup),Blue Diamond Almonds (nuts), Riso Gallo (rice), Haribo (sweets), Celestial Seasonings (tea), Lindt (chocolate); Bonne Maman (jam); Tabasco (pepper sauce); Maille (mustard) and wines and spirits. Calimp www.calimp.com.br Santana de Parnaíba, SP Cheese from brands: Bergader, Alpex, Soignon, Stilton, Joseph Heller, Latteria Soresina, Emmi; biscuits: Walkers, Casa Flora www.casaflora.com.br São Paulo, SP Goldkenn and Jubileu (chocolate), Fromalp (fondue). Expand www.adegaexpand.com.br São Paulo, SP Wines and other alcoholic beverages from all over the world. Franco Suissa www.francosuissa.com.br São Paulo, SP Wines and other alcoholic beverages from all over the world, Hart Foods (rice); Guylian (chocolate); etc. Gourmand www.gourmand.com.br São Paulo, SP Swiss Delice- Midor, Pepperridge Farm and Omira (biscuits); Halter (sweets); Baci, Penigotti, Droste, After Eight, Belgiam, Hamlet, Cupido, Delizstcher, Weinrich, Camille Bloch, Nestlé Gold, Wonka, Jacquot and Villars (chocolate); Marco Polo and Clipper (tea); Schluckwerder (marzipan sweets); 38 | Brazilian Food and Beverage Market Report 2012 Schneekoppe (several products); Rauch (juice); Leighton Foods (snacks); Scandic and Baxters (jam); Grain d’Or and Colman’s (mustard); Latinex www.latinex.com.br Curitiba, PR Bertolli, World Foods, Ragu, Wish Bone (sauces); Lipton (tea); Smart Spice, Nomu (herbs and condiments); Ceres (juice); Voortman, Merba (biscuits); Belgid’Or (chocolates), etc. Le Paul www.lepaul.com.br São Paulo, SP Baron, Cavalier, Feodora, Hachez, Hibbi, (chocolate); Carr’s, Chio, Coppenrath, Granforno, Grisbì, Vicenzi (biscuits); Cavendish & Harvey, Heller & Strauss (sweets); De Kroes, Intersnack, Snyder’s (snacks); Emco (cereals), Poco Loco (sauces) Sttutgart Artigos Finos www.stuttgart.com.br Blumenau, SC Tchibo (coffee); Krüger and Teekane (tea); Rabenhorst and Possman (juices); German beers and wines (several brands); Storck, Niederegger, Frankonia, Heidel, Sarotti, Mauxion, Karina, Tibi, Trumpf, Piasten, Royal Alps (chocolates); Jacobsens, Lambertz, Brink, Weiss (biscuits); Pauli, Huober Brezel (snacks); Göbber (jam); Winsenia (chocolate cream); Oebel (cake); Hela, Mondamin (sauces); etc. Source: Osec from desk research Importers tend to buy smaller quantities of new products to test the market – it is advisable to consider the logistics costs to export such small quantities at the beginning of operations. Usually the distributor is not only in charge of sales but also deals with marketing and food promotion, from adapting promotional materials to the local language and culture to developing brand new marketing pieces – this depends on the type of contract and negotiation with the represented brand. There are a number of distributors who import / sell products from two or more competitors, and this is a normal practice in Brazil. Exclusivity is an option which may be explored in negotiations, but most food importers may not accept such terms or may require further compensation. Due to Brazil’s continental size and potential, deficient infrastructure and persisting trade barriers within the region, usually the food importers / distributors focus only on the country and do not attempt to export or explore other nearby countries; so if a Swiss company is looking for a South American presence, it is recommended to have distributors in each of the target countries rather than trying to find one which covers the whole region. 6.3 Retailers. According to the Brazilian Supermarket Association (ABRAS), in 2010, the retail (supermarkets) revenues totaled R$ 201.6 billion (a nominal growth of 14% and a real growth of 7.5%). The number of stores grew by almost 4%, reaching more than 81 thousand stores. Figure 45: Retail in Brazil: Key Facts Market size (2010) R$ 201.6 billion Number of stores 81’128 (+3.6%) Number of check outs 199’376 (+4.1%) Growth (2009 – 2010) 14% (7.5% real growth) Share of private label food products on total supermarket food sales Pricing strategy Trends With the increase in consumption of imported goods, it is expected that many international brands, today operating via an importer, decide to set ground in Brazil, opening a subsidiary or a small sales office. 7% Varies according to the supermarket location and brand. All trends in the industry apply Source: Osec via desk research Brazilian Food and Beverage Market Report 2012 | 39 Although Brazil still has a significant number of grocery stores, the supermarket is the most relevant distribution channel (see Figure 46) for a heavily urbanized and motorized population. Figure 48: Leading supermarket chains in Brazil (market share %) Grupo Pão de Açúcar Figure 46: Mass Grocery Retail - Sales by Format (R$ billion) Carrefour 18 200 180 160 140 120 100 80 60 40 20 0 Walmart Convenience stores 14.4 53.6 G Barbosa Discount stores 11.1 Záffari Hypermarkets Supermarkets 1.2 1.7 Others Source: ABRAS, www.abrasnet.com.br Source: www.businessmonitor.com/Brazil The main players are developing different store formats and sizes in order to serve all types of consumers. The most important retailers are investing in smaller shops, which have shown better financial performance. Discount stores and cash & carries are other fast growing formats. Companies like Assai (Grupo Pão de Açúcar) and Makro are not only increasing their sales to small and medium businesses but also catering for consumers (in particular from the C class) willing to buy in large quantities to take advantage of lower prices. Overall, Brazilian retail has become more professional and competitive – strategies of retailers included increasing their regional power by acquiring local competitors, implementing prices reductions to the consumers, forcing cost cuts with the suppliers, optimizing inventory management and investing in opening neighborhood shops. While it remains fairly scattered, the retail business has experienced some consolidation – result of many acquisitions that took place over the last 10 years. The top three supermarket chains in Brazil now belong (totally or partially) to foreign groups, and account together for 47% of total revenue. 40 | Brazilian Food and Beverage Market Report 2012 As gourmet stores are becoming more popular, in particular in the main cities, the traditional supermarket chains are also investing in specific areas for imported and gourmet goods, in an effort to attract consumers looking for premium products. As shown in Chapter 4.6, another relevant trend is the private label products, and all large retailers now have their own brands in segments such as foods and cleaning products – the industry estimates that private label products are already present in 50% of Brazilian households. In terms of main segments sold in retail, grocery items correspond to 40% of food and beverage products, while 18% are perishable items, 12% beverages and 3% bakery. Foreign items represent approximately 4% of sales of the supermarket chains (considering all products, not only food and beverage). The five main supermarket chains in Brazil registered impressive growth in revenues in 2010 and their positive results together with the good economic environment will boost further investments. According to ABRAS, investments by the supermarket companies (not including the top 3 chains) amounted to R$ 2.85 billion in 2010, with 26% spent in acquisitions of other supermarkets, 16% in refitting the existing shops, 31% for new stores, 5% in land acquisition and 5% in equipment purchases. For 2011, investments reached almost R$ 4 billion, with 52% in the construction of new stores, 17% in refitting existing stores and 4% for equipment purchases. bringing opportunities to suppliers of security and inventory systems. Supermarkets in Brazil are also investing in technologies to increase efficiency and reduce problems such as goods losses and lack of products (inventory management) and avoid shoplifting, Retailers usually obtain the highest margins of the whole chain, an average of 37% of the price paid by the consumer. Figure 48: Top five supermarket chains in Brazil Company Cia Brasileira Distribuição (Casino) Brands de Extra Stores Share Gross revenue 2010 Growth R$ million 2010 626 18% 36’144 37.83% 500 14.4% 29’000 13.18% 479 11.1% 22’334 13.22% 149 1.7% 3’501 40.54% Pão de Açúcar Assaí Carrefour Carrefour Dia% Atacadão WalMart Walmart Sam’s Club Bom Preço Big Mercadorama Maxxi G Barbosa G Barbosa Bretas (does not include Bretas new acquisition) Zaffari Zaffari 24 1.2% 2’490 18.01% Bourbon Source: ABRAS, www.abrasnet.com.br Brazilian Food and Beverage Market Report 2012 | 41 6.4 Specialty / Gourmet Stores. Most specialty and gourmet stores are based in Brazil’s larger cities, in particular in the richer states of São Paulo, Minas Gerais and Rio de Janeiro. Imported products are also sold in premium bakery shops, in particular in the cities of São Paulo, Belo Horizonte and Rio de Janeiro. Those bakeries usually offer meals, premium products produced in house and imported goods, such as wines, chocolates, olive oil, snacks and biscuits, usually purchased from food importers or distributors. Figure 49: Emporium São Paulo shop Figure 50: Main Gourmet stores in Brazil (including supermarkets) Store name/ Website Location Number of stores Casa Santa Luzia São Paulo, SP 1 Campinas, SP 2 São Paulo, SP 2 São Paulo, SP 1 São Paulo, SP 1 São Paulo, SP 6 Hippo Florianópolis, 2 www.hippo.com.br SC Horto Mercado/ Extra Plus Vitória, ES 2 Brasília, DF 2 São Paulo, SP 6 Mart Plus Belo Horizon- 7 www.martplus.com.br te, MG Natural da Terra Hortifruti São Paulo, SP 8 Oba Hortifruti Several shops Over 30 www.grupooba.com.br in São Paulo www.santaluzia.com.br Dalben www.supermercadosdalben.com.br Empório Chiappetta www.emporiochiappetta.com.br Source: apoplife.wordpress.com The specialty and gourmet stores can be divided into smaller stores (neighborhood shops), medium sized stores and gourmet supermarkets. There are also higher-end supermarkets, which in addition to the traditional and everyday products also focus on premium and imported goods. It is important to note that all supermarket chains in Brazil have an “imported goods” section. Retail experts explain that this is a strategy to captivate customers and attract them to buy more expensive imported products without comparing their price to that of the local ones. In addition to those multiproduct shops, there is a large number of smaller stores all over Brazil focused on items such as premium chocolate, tea, coffee and alcoholic beverages. In some of the main cities it is also easy to find gourmet shops specialized in products from a particular country, such as Portugal, Italy, Spain, Germany, Japan, Israel and Lebanon. Empório Moema www.emporiomoema.com.br Empório Santa Maria www.emporiosantamaria.com.br Emporium São Paulo www.emporiumsaopaulo.com.br www.hortovitoria.com.br La Palma www.lapalma.com.br Mambo www.mambo.com.br www.naturaldaterra.com.br The multiproduct shops, as the ones on the Figure 50, usually dedicate one large area to imported products, although in these stores it is becoming more common to have the imported good sharing the same shelf space with the locally produced ones, as their customers are usually less price driven and more focused on quality. Horizonte, MG, Brasília, DF Pão de Açúcar (Casino) www.paodeacucar.com.br 42 | Brazilian Food and Beverage Market Report 2012 shops state, Belo Brazil Over 150 shops Perini Salvador, BA 8 www.perini.com.br St Marche São Paulo, SP 10 items from Europe and the USA. Products imported from MERCOSUR member countries are also more competitive in terms of price as they enjoy zero import duties for most categories. www.marche.com.br Supermercado Modelo Cuiabá, MT www.supermercadomodelo.com.br Over 10 shops Super Muffato State of Para- Over 30 www.muffato.com.br ná and 1 shop shops in São Paulo, SP Super Nosso Belo Horizon- www.supernosso.com.br te, MG Verdemar Belo Horizon- www.superverdemar.com.br te, MG Zaffari Rio Grande do www.zaffari.com.br Sul and São Through a Store Check as offered by Osec, Swiss companies may get an idea of retail prices practiced by their competitors. Products at shelf can be as much as 5 times the retail price on their country of origin. Nonetheless, Brazilian high-end consumers are willing to pay a premium for certain products, and the market for luxury products has grown consistently. Over 10 shops 6 Over 20 shops Figure 51: Examples of imported foods in Brazil Product / Brand Price Gorgonzola Cheese Fondue EMMI 400g R$ 28.99 Appenzeller Swiss Cheese 150g R$ 20.38 Lindt Chocolate Lindor Milk 100g R$ 14.61 Vicenzi Biscuit Mini Voglie Cocoa Creme 225g R$ 19.15 BAHLSEN Waffeletten German Biscuit 100g R$ 13.38 German beer Weienstephaners Hefe Weissbier 500ml R$ 10.89 Image Paulo states Zona Sul Rio de Janeiro www.zonasul.com.br state Over 30 shops Source: Osec via desk research 6.5 Pricing. The Brazilian food industry is well developed and highly competitive, with the most important multinationals usually producing locally. Ingredients and raw materials are also widely available in the country, making the cost usually much lower than that of imported goods. Imported goods are used by retailers to differentiate themselves, develop new niches and conquer new high-end customers. As a consequence, imported goods are considered luxury and aspirational items. When crisis comes, these are usually switched to local brands, with a lower cost. Exporters must be aware that usually their prices in Brazil will not be competitive with locally manufactured products, due to the availability of cheap raw materials in Brazil and the high import tariffs. Swiss products’ main competitors in Brazil will be imported Source: Pão de Açúcar, www.paodeacucar.com.br Brazilian Food and Beverage Market Report 2012 | 43 7. Opportunities and Challenges. 7.1 Opportunities. The Brazilian food and beverage industry has been showing consistent growth over the years, in terms of production, consumption and imports. With Brazilians being able to increase spending on more elaborated foods, there are many opportunities for Swiss exporters, especially considering that Swiss products already have a premium appeal to Brazilians. In terms of product opportunities, the fastest growing sectors for the food industry in Brazil, according to experts, are: 44 Processed foods Frozen meals Snacks Biscuits Yoghurt Ready sauces Organic and functional food Premium oils Beverages Ready to drink milk Soy drinks Wine Premium beer Energy and sports drinks Premium waters Ingredients and additives Texturizers Natural flavors and colorings Sweeteners Vitamins, minerals, fibers, omega 3 Machinery & equipment Packaging machinery with high flexibility in terms of pack sizes Food safety aimed equipment: x-rays, ultrasound, electromagnetic, high pressure Dryers Automation solutions Packaging solutions | Brazilian Food and Beverage Market Report 2012 Packaging designer aimed at convenience Use of premium packaging materials Resealable packs Portion sized packs Laboratory equipment Easy to use food analysis equipment (for viscosity, humidity, microbiology analysis, etc.) Rapid microbiology analyzers Brazil’s good economic performance and the large numbers of people recently added to the middle class who are now able to consume will continue to boost the food industry. The trends mentioned in this report, indulgence, convenience, health, etc., are also expected to keep driving the industry for the next few years, benefiting players from different segments such as packaging, machinery, laboratory equipment, ingredient and additive producers, etc. For Swiss companies, the perspectives are positive, as imports of foods are generally growing in Brazil for traditional Swiss products such as cheese, chocolate, biscuits and wine. Swiss exporters, though, did not perform that well in 2010-2011 in Brazil, as statistics show that despite considerable growth in those categories, Swiss imports were reduced, while other European countries such as Germany and France increased their share. Brazilians are becoming more aware of quality. Premium products, both imported and locally produced, are gaining market, particularly amongst classes A and B. The main opportunities for Swiss companies are in niches where the higher quality is valued, such as providing state-of-the-art machinery and equipment, ingredients and additives with outstanding performance for specific applications, and food and beverages aimed at higher income consumers. Brazil has a large food and beverage industrial base, from multinationals to small food producers and Swiss companies can take advantage of the need of innovation in this industry, offering new technologies to provide safer and more reliable food, reduce production times and increase flexibility in terms of sizes, shapes and packs. Due to the strong competition, most large Brazilian food producers are focused on innovation and intervals between product launches have been shortened. To reduce the time between idea and launch, it is common that the industry requires joint developments with the suppliers. In terms of ingredients and additives, Swiss companies will have opportunities in niches were premium and outstanding performance is needed, and where the industry is willing to pay the price. With the trends of health and indulgence, use of texturizers and flavors is expected to grow, as well as the adding of vitamins and minerals to products. Organic and functional products are also niches were high growth rates are seen. Most Brazilians, though, are still not aware of the benefits of such products and legislation might pose a barrier, as both organic and functional products have to go through a registration process by ANVISA / MAPA, which can take months. continuous growth of the food and beverage industry. Those events are expected to have a positive impact on most sectors, but particularly in the foodservice business, with growth in sales of restaurants, hotels and catering in the host cities. This will drive growth also in kitchen equipment and appliances, as it is expected that new venues will open as well as existing ones will be modernized. 7.2 Challenges. Doing business in Brazil also brings challenges that your company may face for the first time. The key to success is to know beforehand your limits and the possible challenges and be prepared for them, counting on the knowledge and expertise of professionals. The World Cup and the Olympic Games that will take place in Brazil in 2014 and 2016, respectively, are also important drivers for Figure 52: Challenges for Swiss companies Challenges How to overcome ANVISA / MAPA regulations: regulations for the Food and Beverage industry can be confusing and difficult to understand. - Use the services of a regulatory expert specialized in the Brazilian food industry. - Learn more about the legislation regarding your product. High taxes / pricing: due to the high taxes, imported products can be very expensive in Brazil. - There is no way to avoid taxes, but remember that your competitors are also paying them. - Hire a good accountant in Brazil or make sure your partner works with a good one. - Double check with an expert the tariff code of your product in Brazil to avoid paying too high import duties. Logistics and regionalization: Brazil’s continental size and regional particularities can be a barrier when launching a product - Start in one regional market – do not set plans to distribute all over Brazil until you feel the environment. - Take into consideration on your expansion plans Brazil’s continental size and key aspects such as difference in climate, culture and food preferences which can vary greatly from region to region. Finding the right distributor / importer: your partner will be the face of your company in Brazil, so it is key to find the right one. - Ask Osec to run a Business Contact Check to identify your ideal partner. Do not consider only one option and make sure all background checks are made. Do not rush the process. - Use a Brazilian lawyer to draft the contract. Language barrier: many Brazilians do not speak English, even in the largest companies. - When visiting Brazil, always make sure you will be able to communicate. If you are not sure, consider using an interpreter – Osec can provide such services. Brazilian Food and Beverage Market Report 2012 | 45 - Make sure all promotional materials, packaging, etc. are in Brazilian Portuguese. Competition: Brazil is very competitive in the food and beverage industry, counting with local production in almost all segments. - Capitalize on the “Swissness” of your product. Brazilian taste: Brazilian taste and preferences are different from European and also Latin American tastes. This also changes according to the Brazilian region. - Focus on one region first and test the market. Use the expertise of your distributor and if necessary conduct samplings and panels with consumers to find out their opinion. - In the case of B2B, be prepared to adapt your product to the need of your customers, even if you already provide solutions to them in other countries. Source: Osec from desk research Knowing that the challenges can be tackled, there are many opportunities for Swiss companies in the Brazilian food and beverage market, and companies willing to take their time to understand the market and its regulations and to plan their entrance in Brazil, 46 | Brazilian Food and Beverage Market Report 2012 either directly via a subsidiary or through a local partner, will almost certainly be rewarded. Osec and the Swiss Business Hub are looking forward to supporting Swiss companies on this path! 8. Export Check List. The success of your business in Brazil depends on a series of actions and it is vital that your company does not skip essential steps. Taking a step-by-step approach, as enshrined in Osec’s methodology, will save time, resources and will avoid problems with Brazili- an authorities and will allow your company to select the right products and strategy for Brazil. Based on our experience in assisting Swiss companies exporting to Brazil, here are some key aspects your company should consider when starting business with this country. 8.1 Readiness to export. Is your company already exporting to other countries? Brazil is not an easy market, so if your company does not have experience in exporting, it is highly recommended to focus first on nearby countries with similar regulations. Is your company willing to invest in product launch, traveling, trade fairs, adaptation of labels and marketing materials, registration process, market research and to find the ideal partner? There are ways to save costs on your internationalization process, but your company will still need to invest in this new market. Using specialists from Brazil (who can assist you from there, avoiding trips) and sharing costs with your Brazilian partner are some of the ways to spend less on the initial costs. Will your company focus on a small number of countries? Exporting to a new country is always a challenge, so it is recommended that your company focus on one or only a few countries at a time. Is your company willing and able to make product adaptations if the local market and / or legislation requires so? When learning more about the local market and regulatory aspects you might find out that some product or package adaptations might be necessary. Do you have a strategy for export to Brazil? During the course of the project, your strategy may change, according to the market research findings, for example. It is key, though, that you have in mind a few initial aspects: - which products you want to focus on - what is your investment budget on this new market - what kind of information you still need before you can take decisions - what is the ideal partner profile Are you using Osec’s network in order to take the most of it in your new markets? Osec and the Swiss Business Hubs with their network of experts can assist you in exporting to Brazil and other countries with a wide range of services that will fit exactly your needs. Brazilian Food and Beverage Market Report 2012 | 47 8.2 Market Research. How much do you know about Brazil? Research and collect as much information as possible about Brazil – always from trusted sources. Useful sources may be Osec and the Swiss Business Hubs and their network of experts, the Chambers of Commerce, your suppliers and customers already present in the market, trade associations, etc. Do you know if Brazil is the right market for your product? Even if you are an experienced exporter, you may need further research in order to understand better how the Brazilian market will receive your product. Osec offers a menu of market research services that will provide the basis for making a strategic decision. Do you know the right place to launch your product? Most companies launch products in Brazil initially in São Paulo, but there are also opportunities in other Brazilian states. Osec’s services can help you decide where to start. Do you know your competitors, their products, strengths, weaknesses and pricing strategy? For some sectors, competition in Brazil can be fierce. It is key to understand who are your competitors, how they are operating in Brazil, what are their prices, who are their customers, what are their product sizes and packages, what is their market position, etc. A customized competition analysis is one of the services offered by Osec and the Swiss Business Hub Brazil and will be tailormade to your company needs. Is your product competitive in Brazil? After you find out your competitors’ prices, how do you know if your own product is competitive? It is recommend having a landed cost analysis, which will show you, starting from your FOB price, how much your product will cost in Brazil, after all taxes. This service can be rendered by a local customs broker and will not only help you to understand your price X your competitor’s but will be also prove useful in your negotiation with a future local partner (for setting commission, margins, targets, etc.). Osec offers this service counting on the assistance of local experts. 48 | Brazilian Food and Beverage Market Report 2012 8.3 Trade fairs. Do you know the most important Brazilian food and beverage trade fairs? Most Brazilian trade fairs take place in the city of São Paulo. The majority (please refer to the Appendix at the end of this report) publish the exhibitors’ list on their website. Checking if your competitors are exhibiting and the size of their booth (when a map is available) will give you a good hint if your company should or not be present. Also check if other Swiss companies are exhibiting – maybe you can ask them for their inputs on the fair. Having a booth on a trade fair is a high investment, and ideally you should visit the trade fairs prior to exhibiting to check if it is worth it. Sometimes, due to costs or time, this is not possible, so you may hire local assistance for that. Osec and its network partners can assist you with obtaining further information on trade fairs, including visiting the trade fairs for you and reporting the main findings. Do you know how to save costs on trade fairs? There are a number of ways your company can save costs and time when exhibiting at a trade fair: - consider using the services of a local trade fair expert, such as the Swiss-Brazilian Chamber of Commerce, which has the experience and the necessary contacts. - if you know other Swiss companies who will be at the fair, why not contact them to share a booth? - in case you have already a local partner, you can try to negotiate sharing the trade fair costs. Just remember that your partner might be exhibiting other products as well. If this is arranged and you will not visit the fair, you should ask your partner for photos, details on the visitors as well as all expenses receipts. Brazilian Food and Beverage Market Report 2012 | 49 8.4 Regulatory – Your Product in Brazil. Hire a food expert Brazilian legislation on Food and Beverage can be tricky and sometimes confusing. Hiring a regulatory affairs specialist with expertise on food and beverage will save you time and problems with the local authorities. The Swiss Business Hub Brazil can recommend regulatory specialists from its network. Does the product have a PIQ? Are the ingredients of your product and packaging material allowed? The Product Identity and Quality Standard (PIQ), published by ANVISA, is one the key pieces of legislation you need to look for. Most food and beverage products have a PIQ and it helps to understand important aspects such as product definition, allowed and prohibited additives, specific label requirements, etc. You will also need to check other ingredients of your product, since additives, transgenic ingredients, organics and also packaging materials have specific legislation. PIQs and other regulations are only published in Portuguese, so you will need to count on a Regulatory Affairs specialist with expertise on food and beverage to assist you. Does your product need prior registration with ANVISA or MAPA? Prior registration may be necessary, depending on the product. Plant inspections and a number of certifications and documents may be also required. The registration process can take more than one year and your company will need a local partner / importer / subsidiary to start the process. Register your trademark Trademark registration can also take more than one year, so it is recommended to start the process as soon as you decide to start business with Brazil. It is recommended to use a specialized trademark registration office / patent law office to conduct the process. You may rely on the Swiss Business Hub for indications of specialized offices. 50 | Brazilian Food and Beverage Market Report 2012 Do you know your product NCM? Do you need an import license prior to shipment? The MERCOSUR product customs code (NCM), formed by the first 6-digits of the Harmonized System may be different from the one you use in Switzerland. Check with a Brazilian customs broker and with your local partner the most appropriate code, as this affects taxes and import licensing. With the NCM code, you will be able to check if the product needs an import license prior to shipment. 8.5 Finding a Distributor / Importer. Do you know what kind of partner you are looking for? Name the must have, the nice to have and the don’ts of your ideal partner. This profile may change during search, but it is a starting point. Some aspects to think about: - level of experience or expertise - language skills - clients and market served - need for exclusivity - size (company or one-man-show) - need for warehouse for keeping inventory - type of import license - geographic coverage - type of partner: distributor, importer or representative Do you already know candidates for a partnership? Maybe your company has already done business with Brazil, visited the country a few times or was even contacted by Brazilian companies and has a few names of potential local partners. It is highly recommended to check the candidates, be they companies or persons. Checking their background, experience, creditworthiness and comparing their expertise and reputation can avoid future problems. Osec, through its local experts, can provide partner verification services for your company. Identify a number of potential partners – do not consider only one option. The selection of your local business partner is probably the single most important step in your export project. This should not be left to luck. A thorough partner search is highly recommended. Brazilian Food and Beverage Market Report 2012 | 51 Osec and the Swiss Business Hub Brazil have assisted hundreds of Swiss SME in the selection process, through business contact checks. This service extends from the compilation of a checked long list of company addresses to the analysis of which candidates best meet your criteria. The result is a short list of potential partners. Have you considered a partnership with a local manufacturer with complementary products or acquiring a local competitor? Even if you have your pre-set distribution model, you may consider alternatives, including acquiring a local competitor, with expertise and a customer base already established. Osec and the Swiss Business Hub Brazil may indicate M&A experts from their network to you. Meeting the candidates Study your partner candidates’ profiles in advance and make sure you have enough time to meet them. It is not unlikely, if the conversation goes well, that they might invite you for another meeting or dinner, so leave some open spaces on your schedule for such occasions. Make sure you will be able to communicate with them. Many Brazilians are not fluent in English, so you might need an interpreter. Do not consider English fluency an insurmountable barrier. Osec and the Swiss Business Hub Brazil offer services to help you preparing your schedule, including all trip arrangements and interpretation. Put an effort on promoting your company / product When meeting the potential partners, have in mind that you might need to persuade them to work with you. Present your company and products well to leave a good impression. Careful when bringing samples of your product (food / beverage) – it is recommended to check if those are allowed to be brought in your luggage. Define with your partner the marketing budget, sales forecast, client goals and period for reviews. 52 | Brazilian Food and Beverage Market Report 2012 If you found the right partner you need to start negotiating a few aspects regarding sales goals, product registration, costs sharing, development of promotional materials, marketing budget, financial resources remittance (amount and periodicity), product launching plan, trade fairs, need for additional staff, training program in Switzerland or Brazil, etc. Take advantage of your partner’s expertise and past experiences. Establishing a contract It is recommended that the first contract is signed for a shorter period of time (e.g. one year). It must contain your representative’s / distributor’s obligations and goals, exclusivity clauses (if agreed), financial agreements on commissions, etc. A confidentially clause is also recommended. The contract should be elaborated / analyzed by a lawyer, considering both Swiss and Brazilian laws. It is likely that your standard contract is not applicable or valid in Brazil. For lawyers recommendations, contact the Swiss Business Hub. 8.6 Regulatory: Adapting to the Local Legislation. Translate the labels, specifications, certificates, promotional materials, product catalogue and website (if necessary). Make sure those materials will be translated into Brazilian Portuguese. Count with a translator but ask your distributor to double check the work done and correct specific technical terms if necessary. Remember that any imported product will need to have at least an adhesive sticker with all mandatory information in Portuguese. For labels and package information, use the assistance of a regulatory affairs specialist with expertise on food and beverage. You must follow the applicable Brazilian laws (see Chapter 3) and be careful with including information or claims not allowed by law. Once you have the final text for your label, you must decide whether it will be added to the product in Switzerland or in Brazil by your importer / representative. It is mandatory, though, that the label is in Portuguese before commercialization. Osec and the Swiss Business Hub can recommend translators and regulatory affairs experts. Are the preparation and storage instructions clear? For products that are not ready to consume, you must include the preparation instructions in Portuguese on the label. Although you do not need to write a long text, consumers will appreciate a clear explanation, and this will also prevent them from contacting your importer / distributor to clarify their doubts. Brazilian Food and Beverage Market Report 2012 | 53 8.7 Logistics and Imports. How is your product going to be shipped to Brazil? Have you considered the lead time? Depending on the type of transportation and the customs clearance time, goods can take more than a month to arrive at the final destination. Customs strikes and delays are not uncommon and your product may also require further inspection, so you should consider some extra time and plan accordingly to avoid surprises. Having the documentation clear and containing the correct information will avoid delays. Is your product going to be launched in regions with higher temperatures that may require refrigeration? Is your partner aware of this? The north of Brazil has high temperatures all year round, so if you plan to ship your food / beverage products to those regions, you should consider refrigerated transportation, if there is a risk of heat causing problems to your product. Your partner must be aware of this, and also inform the customers on the transportation requirements to hotter regions. Necessary certificates Make sure you have all necessary certificates according to Brazilian regulations shipped with the export documents. The certificates will vary according to ANVISA and MAPA’ s product requirements. If you ship directly to your customer, also check if they have any specific requirement in terms of documentation and certificates. 8.8 Product Launch. Are you going to launch the product on a trade fair or event? If you are planning a special launch event with your partner, make sure that: - products / samples will arrive on time (consider extra lead time due to customs) - you picked a date considering local holidays and hired the venue in advance The Swiss Business Hub Brazil may provide services to assist you in the organization of your product launch. 54 | Brazilian Food and Beverage Market Report 2012 Do you have all materials in Brazilian Portuguese? All product and promotional materials should be in Brazilian Portuguese: catalogues, mailing lists, brochures, technical manuals, specifications, analysis certificates, website, etc. Are your partner and their team well trained and prepared for launch? Your local partner’s staff is your company’s door opener and face in Brazil - they need to be prepared and know your product well. Do you have a clear pricing strategy? Have you thought about warranty and exchange policies and negotiated this with your partner? When launching the product, your clients will expect to know about prices, terms and conditions. Make sure you have discussed and arranged your pricing strategy, warranty, exchange policies, etc. with your local partner. Does your importer have stocks for launch? Launching a product and not being able to sell immediately due to customs delays, for example, will be frustrating to your customer and damage your image. Make sure the products arrive before launch. Have you thought about advertising on specialized publications? Consider this possibility with your local partner, but check first about the target readers of the publication and the expected results. Have you scheduled a program for continuous training? You should train your partner before launch, but it is important that you follow up and organize additional training sessions periodically. Visit some clients with your partner when possible, so you have a feeling of their needs and doubts. Finally, a few points to bear in mind when dealing with Brazilians: Brazilians are usually not punctual. Being late for a meal or a meeting is usually acceptable. If you plan a product launch event, understand that most people will arrive at least 30 minutes after the announced start. This, of course, varies according to the region, background of the people (usually Brazilians with European background tend to be more punctual). Traffic can play an important role in big cities such as São Paulo and Rio de Janeiro, so avoiding organizing meetings on peak times and days is always a good start. Brazilians tend to straighten interpersonal relations quite quickly. It is not uncommon to see them shift a business relationship into a friendship. Do not be surprised if the person you are dealing with for the first time invites you over for a dinner in his house or asks personal questions. The negotiation rhythm is usually slow, with pauses to discuss other subjects. Brazilians value informality (except on cases where formality is required, such as lawyers) and are generally spontaneous and impulsive. Be prepared to be interrupted frequently, and understand that non-verbal communication is an important aspect of the Brazilians’ personality. Hugging and kissing (the number of Brazilian Food and Beverage Market Report 2012 | 55 kisses depending on the region) are also common when meeting people, even in a business environment. Usually Brazilians call each other, even on formal situations, by the first name. If you are dealing with a more senior person (in age or position), you may use the word Sr. (Sir) or Sra. (Madam) accompanied by the first name: Sra. Maria, for example unless the other part asks you not to do so. use the services of experts in matchmaking. Bear in mind your ideal profile, but also be flexible where appropriate. Take as long as needed to identify the right partner as he will be the door opener and the face of your company in Brazil. Understand that Brazil is now on the spotlight and this affects the Brazilian food importers and distributors, who are being contacted by companies from all over the world. This means you may need to make additional efforts to persuade a good candidate to work with your company. Prepare your presentations carefully, show how good your company / product is and have a good offer in hand if your ideal candidate is not interested. Remember: information is the basis for an export success story. Be organized: during the course of the export project and product launch, you will come across a large number of data, information and contacts, which may be valuable in the future. Store them properly. Most Brazilians do not speak English and the use of interpreters may be needed in important meetings. Learning some phrases in Portuguese will score good points with your client or counterparts. Do not forget: 56 Take your time. An export project should not be rushed into. It is better to take time to understand the market and check if it is worth entering rather than to find out later that Brazil was not the market for you. Invest in finding the right partner. Finding the perfect partner is not an easy task, so we recommend that you | Brazilian Food and Beverage Market Report 2012 9. Appendix. 9.1 Trade Shows. The trade shows listed below are the most representative of the respective categories, there are also many other regional trade shows and fairs in other locations of Brazil. Figure 53: FIPAN (bakery) trade show in Brazil Website: www.exponor.com.br/expovinis and www.exponor.com.br/oliveexperience VINOTECH & ENVASE BRASIL Trade show on Wine Technology & Beverage Packaging Location: Bento Gonçalves, RS Periodicity: Annual Website: www.vinotech.com.br 9.1.2 Foods ABAD & SWEET BRAZIL Convention of the Cash and Carry / Candies and confectionary Trade Fair Location: Each year on a different city Periodicity: Annual Website: www.abad.com.br Source: Sindipan, www.sindipan.org.br If you require more information on any of the trade shows, details on how to exhibit, please contact Osec and the Swiss Business Hub Brazil. 9.1.1 Beverages BRASIL BRAU International Exhibition of Beer Technology Location: São Paulo, SP Periodicity: Biannual Website: www.brasilbrau.com.br EXPO BEBIDAS & SERVIÇOS Beverages and Services Trade Fair Location: São Paulo, SP Periodicity: Annual Website: www.expobebidas.com.br EXPOVINIS BRASIL & OLIVE EXPERIENCE Wine & Olive Oil Trade Fair Location: São Paulo, SP Periodicity: Annual EXPO BRASIL CHOCOLATE Chocolate Trade Fair Location: São Paulo, SP Periodicity: Annual Website: www.expobrasilchocolate.com.br FEILEITE Dairy fair Location: São Paulo, SP Periodicity: Annual Website: www.feileite.com.br FIPAN International Bakery, Confectionery and Independent Food Retail Trade Fair Location: São Paulo, SP Periodicity: Annual Website: www.fipan.com.br FISPAL CAFÉ International Coffee Trade Show Location: São Paulo, SP Periodicity: Annual Website: www.fispalcafe.com.br Brazilian Food and Beverage Market Report 2012 | 57 FRUIT & TECH International Trade Fair for Fruits and Vegetables, Processing Technology and Logistics Location: São Paulo, SP Periodicity: Biannual Website: www.fruitetech.com.br Location: São Paulo, SP Periodicity: Annual Website: www.fispalfoodservice.com.br and www.fispalhotel.com.br SIAL BRAZIL Food and Beverage Trade Show Location: São Paulo, SP Periodicity: Annual Website: www.sialbrazil.com 9.1.5 TECNOSORVETES International Ice Cream Technology Trade Show Location: São Paulo, SP Periodicity: Annual Website: www.tecnosorvetes.com.br 9.1.3 HEALTH INGREDIENTS SOUTH AMERICA Trade show on Healthy Ingredients Location: São Paulo, SP Periodicity: Annual Website: www.hi-events.com.br/hi Foodservice and HoReCa EQUIPOTEL / EQUIPOTEL FOOD & DRINKS Hospitality and Food Trade Show Location: São Paulo, SP Periodicity: Annual Website: www.equipotel.com.br FISPAL FOODSERVICE AND FISPAL HOTEL International Foodservice and Food and Hospitality Trade Show 58 AVESUI LATIN AMERICA Latin American Trade Fair for the Poultry and Swine Industry Location: São Paulo, SP Periodicity: Annual Website: www.avesui.com TECNOCARNE International Technology fair for the Meat Industry Location: São Paulo, SP Periodicity: Biannual Website: www.tecnocarne.com.br Food Ingredients FOOD INGREDIENTS SOUTH AMERICA Food Ingredients Trade Show Location: São Paulo, SP Periodicity: Biannual Website: www.fi-events.com.br 9.1.4 Meat and Poultry | Brazilian Food and Beverage Market Report 2012 9.1.6 Natural and Organic Products BIO BRASIL / NATURAL TECH International Fair of Natural and Organic Products, Food and Health Location: São Paulo, SP Periodicity: Annual Website: www.biobrazilfair.com.br / www.naturaltech.com.br BIOFACH AMÉRICA LATINA Organic Products Trade Fair Location: São Paulo, SP Periodicity: Biannual Website: www.biofach-americalatina.com.br GANEPÃO International Conference of Nutritional Oncology Location: São Paulo, SP Periodicity: Annual Website: www.ganepao.com.br VITAFOODS SOUTH AMERICA Nutraceuticals, Functional Food and Drink Ingredients Trade Show Location: São Paulo, SP Periodicity: Annual Website: www.vitafoodssouthamerica.com 9.1.7 Packaging and Technology BRASIL PACK Packaging trade fair Location: São Paulo, SP Periodicity: Annual Website: www.semanainternacional.com.br EXPO EMBALA Packaging trade fair Location: São Paulo, SP Periodicity: Annual Website: www.expoembala.com.br FISPAL TECNOLOGIA International Packaging, Processing and Logistics Trade Show for the Food and Beverage Industries Location: São Paulo, SP Periodicity: Annual Website: www.fispaltecnologia.com.br 9.1.8 9.2 Trade Associations 9.2.1 Beverages ABE – Associação Brasileira de Enologia Brazilian Enology Association Website: www.enologia.org.br ABINAM – Associação Brasileira das Indústrias de Água Mineral Brazilian Mineral Water Industry Association Website: www.abinam.com.br ABIR – Associação Brasileira Associação Brasileira das Indústrias de Refrigerantes e de Bebidas Não Alcoólicas Brazilian Non-Alcoholic Beverages Industry Association Website: www.abir.org.br ABRABE – Associação Brasileira de Bebidas Brazilian Beverages Association Website: www.abrabe.org.br IBRAVIN – Instituto Brasileiro do Vinho Brazilian Wine Institute Website: www.ibravin.org.br SINDISERV – Sindicato Nacional da Indústria da Cerveja National Brewing Industry Union Website: www.sindicerv.com.br Retail APAS Congress and Supermarket Business Fair Location: São Paulo, SP Periodicity: Annual Website: www.feiraapas.com.br SUPER RIO EXPOFOOD Food Retail and Food Technology Trade Show Location: Rio de Janeiro, RJ Periodicity: Annual Website: www.superrio.com.br 9.2.2 Food AABBA – Associação Brasileira de Exportadores e Importadores de Alimentos e Bebidas Brazilian Food and Beverage Exporters and Importers Association Website: www.aabba.org.br ABIA – Associação Brasileira das Indústrias da Alimentação Brazilian Food Industry Association Website: www.abia.org.br Brazilian Food and Beverage Market Report 2012 | 59 ABIAM – Associação Brasileira da Indústria e Comércio de Ingredientes e Aditivos para Alimentos Brazilian Association of Industry and Trade for Food Ingredients and Additives Website: www.abiam.com.br 9.2.3 ABICAB – Associação Brasileira da Indústria de Chocolates, Cacau, Amendoim, Balas e Derivados Brazilian Association of Chocolates, Cocoa, Candies and Related Goods Industry Website: www.abicab.org.br ABRASEL – Associação Brasileira de Bares e Restaurantes Brazilian Bar and Restaurants Association Website: www.abrasel.com.br ABAGA – Associação Brasileira de Alta Gastronomia Brazilian Association of the High Gastronomy Website: www.abaga.com.br 9.2.4 ABIAD – Associação Brasileira da Indústria de Alimentos para Fins Especiais e Congêneres Brazilian Association of The Dietary Food Website: www.abiad.org.br ABIMA – Associação Brasileira das Indústrias de Massas Alimentícias Brazilian Pasta Producers Association Website: www.abima.com.br Foodservice and HoReCa Machinery ABIMAQ – Associação Brasileira da Indústria de Máquinas e Equipamentos Brazilian Machinery and Equipment Association Website: www.abimaq.org.br ABIMEI – Associação Brasileira dos Importadores de Máquinas e Equipamentos Industriais Brazilian Machinery and Industrial Equipment Importers Website: www.abimei.org.br ABMAPRO – Associação Brasileira de Marcas Próprias Brazilian Private Label Association Website: www.abmapro.org.br 9.2.5 ABIOVE – Associação Brasileira das Indústrias de Óleos Vegetais Brazilian Association of Vegetable Oil Industries Website: www.abiove.com.br BrasilBio – Associação Brasileira de Orgânicos Brazilian Organics Association Website: www.brasilbio.com.br ABIP – Associação Brasileira da Indústria de Panificação e Confeitaria Brazilian Bakery and Confectionery Industry Association Website: www.abima.com.br ABIQ – Associação Brasileira das Indústrias de Queijo Brazilian Cheese Industry Association Website: www.abiq.com.br ANIB – Associação Nacional das Indústrias de Biscoitos National Biscuit Manufacturers Association Website: www.anib.com.br 60 | Brazilian Food and Beverage Market Report 2012 9.2.6 Natural and Organic Products Packaging ABRE – Associação Brasileira de Embalagem Brazilian Packaging Association Website: www.abre.org.br 9.2.7 Retail APAS – Associação Paulista de Supermercados - APAS São Paulo State Association of Supermarket Website: www.portalapas.org.br ABRAS - Associação Brasileira dos Supermercados Brazilian Supermarket Association Website: www.abrasnet.com.br 9.2.8 Technology Institutes 9.3.3 Food Ingredients REVISTA ADITIVOS & INGREDIENTES Website: www.insumos.com.br Focused on Additives and Ingredients ITAL – Instituto de Tecnologia de Alimentos Food Technology Institute Website: www.ital.sp.gov.br REVISTA FI Website: www.revista-fi.com Focused on Food Ingredients SBCTA – Sociedade Brasileira da Ciência e Tecnologia de Alimentos Brazilian Society on Food Science and Technology Website: www.sbcta.org.br REVISTA INGREDIENTES E TECNOLOGIA Website: www.revistait.com.br Focused on Ingredients and Technology 9.3.4 9.3 Publications 9.3.1 Beverages BEBIDAS NET Website: www.bebidasnet.com.br Website aimed at the beverage business 9.3.2 Foods REVISTA LATICÍNIOS Website: www.revistalaticinios.com.br Focused on Dairy Products REVISTA ALIMENTOS & BEBIDAS Website: www.revistaalimentosebebidas.com.br Publication aimed at manufacturers of foods and beverages REVISTA PADARIA MODERNA Website: www.padariamoderna.com.br Publication focused on bakery business REVISTA IP&C Website: www.revistaipc.com.br Publication focused on bakery business Food Safety REVISTA HIGIENE ALIMENTAR Website: www.higienealimentar.com.br Focused on Food Safety 9.3.5 Foodservice and HoReCa REVISTA FOODSERVICE NEWS Website: www.foodservicenews.com.br Focused on Foodservice REVISTA NUTRINEWS Website: www.nutrinews.ws Focused on Foodservice 9.3.6 Packaging REVISTA EMBALAGEM E TECNOLOGIA Website: www.embalagemetecnologia.com.br Publication aimed at manufacturers of food and beverages and packaging REVISTA ENGARRAFADOR MODERNO Website: www.engarrafadormoderno.com.br Publication aimed the beverage business REVISTA EMBANEWS Website: www.embanews.com Brazilian Food and Beverage Market Report 2012 | 61 Publication aimed at the packaging business 9.3.7 Retail REVISTA SUPERMERCADO MODERNO Website: www.sm.com.br Publication focused on the supermarket and retail business REVISTA SUPER VAREJO Website: www.supervarejo.com.br Publication focused on the supermarket and retail business 9.4 List of Abbreviations ABNT ANVISA AWB B/L CDC CIF CODEX DI DPDC FOB GDP HS IBGE ICMS II INMETRO INPI IPI LI MAPA MDIC MERCOSUR MJ MS NCM PIQ PROCON SECEX SME SISCOMEX SISORG SPS WTO 62 Brazilian Association of Technical Norms National Agency of Sanitary Surveillance Airway Bill Bill of Lading Consumer’s Defense Code Cost and Freight (Incoterm) FAO / WHO Food Standard Import declaration Department of Consumer Protection and Defense Free on Board (Incoterm) Gross Domestic Product Harmonized System Brazilian Institute of Geography and Statistics Tax on Circulation of Goods and Services Import Duty National Institute of Metrology, Standardization and Industrial Quality National Institute of Industrial Property Tax on Industrialized Goods Import License Ministry of Agriculture, Livestock and Food Supply Ministry of Development, Industry and Foreign Trade Common Market of the South Ministry of Justice Ministry of Health Common MERCOSUR Nomenclature Product Identity and Quality Standard Consumer Protection and Defense Foundation Brazilian International Trade Secretariat Small and medium enterprise Brazilian automated foreign trade system Brazilian organics conformity evaluation system Sanitary and Phytosanitary Agreement World Trade Organization | Brazilian Food and Beverage Market Report 2012 9.5 Import Duties. As import duties may change, it is recommended checking them with a customs broker. Other taxes are also applicable on imported goods in Brazil, HS Code HS Description 0201 Meat of bovine animals, fresh or chilled 0201.30.00 0202 0202.30.00 Import Duty 10% Boneless 12% Meat of bovine animals, frozen 10% Boneless 12% 0203 Meat of swine, fresh, chilled or frozen 10% 0204 Meat of sheep or goats, fresh, chilled or frozen 10% 0205 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen 10% 0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen 10% 0207 Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen 10% 0208 Other meat and edible meat offal, fresh, chilled or frozen 10% 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled or frozen 0210 Meat and edible meat offal, salted, in brine, dried or smoked, edible flours and meals of meat or meat offal 10% 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04 10% 0302.50.00 0303 0303.52.00 Cod, excluding livers and roes 6% 0% Fish, frozen, excluding fish fillets and other fish meat of heading 03.04 10% Cod 0% 0304 Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen 10% 0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and 10% pellets of fish, fit for human consumption 0305.30.10 Cod (fillets) 0% 0305.49.10 Cod (other) 0% 0305.51.00 Cod (dried) 0% 0305.61.00 0306 Cod (salted) 0% Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, crustaceans, in shell cooked by 10% steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption 0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, aquatic invertebrates other than crus- 10% taceans and molluscs, in shell cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption 0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter 12% 0401.10.10 UHT Milk 14% 0401.20.10 UHT Milk 14% UHT 14% 0401.30.21 0402 Milk and cream, concentrated or containing added sugar or other sweetening matter Brazilian Food and Beverage Market Report 2012 | 28% 63 0402.21.30 Cream 16% 0402.29.30 Cream 16% 0402.91.00 Other not containing added sugar or other sweetening matter 14% 0403 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not con- 16% centrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa 0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter, products consisting of natural 28% milk constituents, whether or not concentrated or containing added sugar or other sweetening matter, not elsewhere specified or included 0404.90.00 Other 14% 0405 Butter and other fats and oils from milk, dairy spreads 16% 0406 Cheese and curd 16% 0406.10.10 Mozzarella 28% 0406.90.10 Other cheese, of a moisture content, by weight, of less than 36% (hard cheese) 28% Other cheese, of a moisture content, by weight, of 36% or more but less than 46% (semi hard cheese) 28% 0406.90.10 0407 Birds’ eggs, in shell, fresh, preserved or cooked 0407.00.90 0408 Other Birds’ eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, molded, frozen or otherwise 0% 8% 10% preserved, whether or not concentrated or containing added sugar or other sweetening matter 0409 Natural honey 16% 0410 Edible products of natural origin, not elsewhere specified or included 14% 0701 Potatoes, fresh or chilled 10% 0701.10.00 Seed 0% 0702 Tomatoes, fresh or chilled 10% 0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled 10% Various Seeds 0% 0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled 10% 0705 Lettuce and chicory, fresh or chilled 10% 0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled 10% 0707 Cucumbers and gherkins, fresh or chilled 10% 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled 10% 0709 Other vegetables, fresh or chilled 10% 0709.90.11 Seed 0% 0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen 10% 0711 Fruit and nuts, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preserva- 10% tive solutions), but unsuitable in that state for immediate consumption 0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared 10% 0713 Dried leguminous vegetables, shelled, whether or not skinned or split 10% Various 0714 Seed Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith 64 | Brazilian Food and Beverage Market Report 2012 0% 10% 0801 Coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled 10% 0802 Other nuts, fresh or dried, whether or not shelled or peeled 10% 0802.2 Hazelnuts or filberts (Corylus spp.) 6% 0803 Bananas, including plantains, fresh or dried 10% 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried 10% 0805 Citrus fruit, fresh or dried 10% 0806 Grapes, fresh or dried 10% 0807 Melons (including watermelons) and papaws (papayas), fresh 10% 0808 Apples, pears and quinces, fresh 10% 0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh 10% 0810 Other fruit, fresh 10% 0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other 10% sweetening matter 0812 Fruits and nuts, provisionally preserved (for example: by sulphur dioxide gas, in brine, in sulphur water or in other pre- 10% servative solutions), but unsuitable in that state for immediate consumption 0813 Fruit, dried, other than that of headings 0801 to 0806; mixtures of nuts or dried fruits of this Chapter 10% 0814 Peel of citrus fruit or melons (including watermelons), fresh, frozen, dried or provisionally preserved in brine, in sulphur 10% water or in other preservative solutions 0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any propor- 10% tion 0902 Tea, whether or not flavoured 10% 0903 Maté 10% 0904 Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or the genus Pimenta 10% 0905 Vanilla 10% 0906 Cinnamon and cinnamon-tree flowers 10% 0907 Cloves (whole fruit, cloves and stems) 10% 0908 Nutmeg, mace and cardamoms 10% 0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries 10% 0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices 10% 1001 Wheat and meslin 10% Various 1002 1002.00.10 1003 1003.00.10 1004 1004.00.10 1005 1005.10.00 1006 Seed 0% Rye 10% Seed 0% Barley 10% Seed 0% Oats 10% Seed 0% Maize (corn) 10% Seed 0% Rice 10% Brazilian Food and Beverage Market Report 2012 | 65 1006.10.10 Seed 1006.30.11 Parboiled: polished or glazed 12% 1006.30.21 Not parboiled: polished or glazed 12% 1007 Grain sorghum 1007.00.10 1008 Seed Buckwheat, millet and canary seed; other cereals Various Seed 0% 8% 0% 8% 0% 1101 Wheat or meslin flour 12% 1102 Cereal flours other than of wheat or meslin 10% 1103 Cereal groats, meal and pellets 10% 1104 Cereal grains otherwise worked (for example: hulled, rolled, flaked, pearled, sliced or kibbled), except rice of heading 10% 10.06; germ of cereals, whole, rolled, flaked or ground 1105 Flour, meal, powder, flakes, granules and pellets of potatoes 12% 1106 Flour, meal and powder of the dried leguminous vegetables of heading 0713, of sago or of roots or tubers of heading 0714 10% or of the products of Chapter 8 1107 Malt, whether or not roasted 14% 1108 Starches; inulin 10% 1109 Wheat gluten, whether or not dried 10% 1201 Soya beans, whether or not broken 8% 1201.00.10 1202 For sowing Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken 1202.20.10 For sowing 0% 8% 0% 1203 Copra 8% 1204 Linseed, whether or not broken 8% 1204.00.10 1205 For sowing Rape or colza seeds, whether or not broken Various 1206 For sowing Sunflower seeds, whether or not broken 1206.00.10 1207 For sowing Other oil seeds and oleaginous fruits, whether or not broken Various For sowing 0% 8% 0% 8% 0% 8% 0% 1208 Flours and meals of oil seeds or oleaginous fruits, other than those of mustard 1209 Seeds, fruit and spores, of a kind used for sowing 10% 0% 1210 Hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin 8% 1211 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, 8% in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered 1212 Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included 66 | Brazilian Food and Beverage Market Report 2012 8% 1212.20.00 Seaweeds and other algae 6% 1213 Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets 8% 1214 Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches and similar forage 8% products, whether or not in the form of pellets 1301 1301.90.90 1302 Lac; natural gums, resins, gum-resins and oleoresins (for example: balsam) 4% Other 8% Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, 8% whether or not modified, derived from vegetable products 1302.19.30 Of ginkco biloba, dried 2% 1302.19.40 Of valepotriates (valerian extracts) 2% 1302.19.50 Of ginseng 2% 1302.19.60 Silymarin group 1302.19.91 Of pyrethrum or of the roots of plants containing rotenone 1302.31.00 Agar-agar 10% 1302.39.10 Carrageenan 10% 14% 2% 1501 Pig fat (including lard) and poultry fat, other than that of heading 0209 or 1503 8% 1502 Fats of bovine animals, sheep or goats, other than those of heading 15.03 6% 1503 Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared 8% 1504 Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified 1504.10.11 1505 1505.00.90 Cod-liver oil: crude oil 4% Wool grease and fatty substances derived therefrom (including lanolin) 8% Other 6% 1506 Other animal fats and oils and their fractions, whether or not refined, but not chemically modified 1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified 1507.10.00 1508 1508.10.00 10% Crude oil, whether or not degummed 6% 12% 10% Groundnut oil and its fractions, whether or not refined, but not chemically modified Crude oil 12% 10% 1509 Olive oil and its fractions, whether or not refined, but not chemically modified 10% 1510 Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including 10% blends of these oils or fractions with oils or fractions of heading 15.09 1511 Palm oil and its fractions, whether or not refined, but not chemically modified 10% 1512 Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified 10% 1512.19.11 Sunflower-seed oil: Refined, in containers holding 5 litres or less 12% 1513 Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified 10% 1514 Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified 10% 1515 Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically 10% modified 1516 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, re-esterified or 10% elaidinized, whether or not refined, but not further prepared 1517 Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Brazilian Food and Beverage Market Report 2012 | 12% 67 Chapter, other than edible fats or oils or their fractions of heading 15.16 1518 Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat 10% in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included 1520 Glycerol, crude; glycerol waters and glycerol lyes 1520.00.20 1521 Glycerol waters and glycerol lyes Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or col- 8% 10% 10% oured 1601 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products 16% 1602 Other prepared or preserved meat, meat offal or blood 16% 1603 Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates 16% 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs 16% 1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved 16% 1701 Cane or beet sugar and chemically pure sucrose, in solid form 16% 1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing 16% added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel 1703 Molasses resulting from the extraction or refining of sugar 16% 1704 Sugar confectionery (including white chocolate), not containing cocoa 20% 1801 Cocoa beans, whole or broken, raw or roasted 10% 1802 Cocoa shells, husks, skins and other cocoa waste 10% 1803 Cocoa paste, whether or not defatted 18% 1804 Cocoa butter, fat and oil 12% 1805 Cocoa powder, not containing added sugar or other sweetening matter 14% 1806 Chocolate and other food preparations containing cocoa 20% 1806.10.00 Cocoa powder, containing added sugar or other sweetening matter 18% 1806.20.00 Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk 18% form in containers or immediate packings, of a content exceeding 2 kg 1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 18% 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of headings 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included 1901.10.10 Modified milk 16% 1901.20.00 Mixes and doughs for the preparation of bakers’ wares of heading 19.05 14% 1901.90.10 Malt extracts 14% 1901.90.20 Dulce de leche 16% 1901.90.90 Other 16% 1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, maca- 16% roni, noodles, lasagna, gnocchi, ravioli, cannelloni; couscous, whether or not prepared 1903 68 Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms | Brazilian Food and Beverage Market Report 2012 16% 1904 Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example: corn flakes); cereals (other 16% than maize (corn)) in grain form or in the form of flakes or other worked grains (except flour, groats and meal), pre-cooked or otherwise prepared, not elsewhere specified or included 1905 Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty ca- 18% chets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products 2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid 14% 2002 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid 14% 2003 Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid 14% 2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 14% 20.06 2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 14% 20.06 2006 Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glacé or crystallized) 14% 2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing 14% added sugar or other sweetening matter 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or 14% other sweetening matter or spirit, not elsewhere specified or included 2009 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not 14% containing added sugar or other sweetening matter 2101 Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis 16% of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof 2101.30.00 2102 Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading 30.02); prepared 14% 14% baking powders 2103 Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mus- 16% tard 2103.10.10 Soya sauce: In immediate containers holding not more than 1 kg 18% 2103.20.10 Tomato ketchup and other tomato sauces: In immediate containers holding not more than 1 kg 18% 2103.30.21 Prepared mustard: In immediate containers holding not more than 1 kg 18% 2103.90.11 Mayonnaise: In immediate containers holding not more than 1 kg 18% 2103.90.21 Mixed condiments and mixed seasonings: In immediate containers holding not more than 1 kg 18% Other: In immediate containers holding not more than 1 kg 18% 2103.90.91 2104 Soups and broths and preparations therefor; homogenized composite food preparations 16% 2104.10.11 Preparations for soups and broths: In immediate containers holding not more than 1 kg 18% 2104.10.21 Soups and broths: In immediate containers holding not more than 1 kg 18% 2105 2105.00.90 2106 Ice cream and other edible ice, whether or not containing cocoa 16% In immediate containers holding not more than 2 kg 18% Food preparations not elsewhere specified or included 16% 2106.10.00 Protein concentrates and textured protein substances 14% 2106.90.10 Preparations of a kind used in the manufacture of beverages 14% Brazilian Food and Beverage Market Report 2012 | 69 2106.90.21 Powders for table creams, jellies, ice creams, or similar preparations, whether or not containing 18% added sugar or other sweetening matter: For the manufacture of table creams, in immediate containers holding not more than 1 kg 2106.90.40 2201 Mixtures with a basis of sodium ascorbate and glucose for the preparation of preserved meat Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening 14% 20% matter nor flavoured; ice and snow 2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and 20% other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09 2203 Beer made from malt 20% 2204 Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09 20% 2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 20% 2206 Other fermented beverages (for example: cider, perry, mead); mixtures of fermented beverages and mixtures of fermented 20% beverages and non-alcoholic beverages, not elsewhere specified or included 2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, dena- 20% tured, of any strength 2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and other spirituous 20% beverages 2209 70 Vinegar and substitutes for vinegar obtained from acetic acid | Brazilian Food and Beverage Market Report 2012 20% 10. Trade statistics 2011. 01 Lebende Tiere Richtung Länder CHF % kg % IMPORT Total 83'446'176 100.00 4'729'059 100.00 EXPORT Total 15'005'488 100.00 2'991'294 100.00 02 Fleisch und geniessbare Schlachtnebenerzeugnisse Richtung IMPORT EXPORT Länder CHF % 694'055'278 100.00 105'583'684 100.00 Brasilien 71'632'688 10.32 21'256'709 20.13 Total 79'731'187 100.00 26'106'738 100.00 Total kg % 03 Fische und Krebstiere, Weichtiere und andere wirbellose Wassertiere Richtung IMPORT Länder Total Brasilien EXPORT Total CHF % kg % 475'814'073 100.00 45'382'939 100.00 178'392 0.04 8'700 0.02 5'338'896 100.00 226'397 100.00 04 Milch und Molkereierzeugnisse; Vogeleier; natürlicher Honig; geniessbare Waren tierischen Ursprungs, anderweit weder genannt noch inbegriffen Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 545'551'502 100.00 144'713'070 100.00 150'110 0.03 41'052 0.03 674'560'168 100.00 160'819'043 100.00 430'508 0.06 37'028 0.02 05 Andere Waren tierischen Ursprungs, anderweit weder genannt noch inbegriffen Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 72'112'637 100.00 16'881'308 100.00 2'656'725 3.68 302'390 1.79 29'745'987 100.00 77'775'136 100.00 138'534 0.47 2'001 0.00 Brazilian Food and Beverage Market Report 2012 | 71 06 Lebende Pflanzen und Waren des Blumenhandels Richtung IMPORT Länder Total CHF % 563'944'002 100.00 176'366'418 100.00 2'007 0.00 91 0.00 4'514'528 100.00 834'131 100.00 Brasilien EXPORT Total kg % 07 Gemüse, Pflanzen, Wurzeln und Knollen, zu Ernährungszwecken Richtung IMPORT Länder Total CHF % 557'252'215 100.00 281'560'677 100.00 70'435 0.01 35'802 0.01 4'177'413 100.00 1'475'651 100.00 Brasilien EXPORT Total kg % 08 Geniessbare Früchte; Schalen von Zitrusfrüchten oder von Melonen Richtung IMPORT EXPORT Länder CHF % 957'264'148 100.00 493'696'004 100.00 Brasilien 12'827'545 1.34 4'838'825 0.98 Total 10'298'598 100.00 7'192'850 100.00 Total kg % 09 Kaffee, Tee, Mate und Gewürze Richtung IMPORT EXPORT Länder CHF % Total 861'546'397 100.00 152'457'352 100.00 Brasilien 204'617'544 23.75 41'479'336 27.21 1'565'610'567 100.00 46'092'702 100.00 30'992'633 1.98 382'210 0.83 Total Brasilien kg % 10 Getreide Richtung IMPORT Länder Total Brasilien EXPORT 72 Total CHF % 358'363'166 100.00 873'583'868 100.00 22'696'030 6.33 58'407'786 6.69 3'438'816 100.00 2'158'797 100.00 | Brazilian Food and Beverage Market Report 2012 kg % 11 Müllereierzeugnisse; Malz; Stärke; Inulin; Kleber von Weizen Richtung IMPORT Länder Total CHF Total kg % 85'438'897 100.00 130'497'513 100.00 28'720 0.03 11'833 0.01 10'693'974 100.00 7'083'856 100.00 Brasilien EXPORT % 12 Oelsaaten und ölhaltige Früchte; verschiedene Samen und Früchte; Pflanzen zum Gewerbeoder Heilgebrauch; Stroh und Futter Richtung IMPORT Länder Total Brasilien EXPORT Total CHF % 249'664'188 100.00 589'410'543 100.00 458'753 0.18 868'940 0.15 16'400'489 100.00 7'431'578 100.00 13'930 0.08 404 0.01 Brasilien kg % 13 Gummis, Harze und andere Pflanzensäfte und Pflanzenauszüge Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 69'073'792 100.00 7'911'372 100.00 178'388 0.26 16'445 0.21 108'684'992 100.00 7'143'527 100.00 135'815 0.12 606 0.01 14 Flechtstoffe und andere Waren pflanzlichen Ursprungs, anderweit weder genannt noch inbegriffen Richtung IMPORT Länder Total Brasilien EXPORT Total CHF % kg % 7'588'652 100.00 4'258'983 100.00 1'220 0.02 150 0.00 813'196 100.00 1'744'190 100.00 Brazilian Food and Beverage Market Report 2012 | 73 15 Tierische und pflanzliche Fette und Oele; Erzeugnisse ihrer Spaltung; zubereitete Speisefette; Wachse tierischen oder pflanzlichen Ursprungs Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 355'200'871 100.00 156'421'220 100.00 151'720 0.04 74'027 0.05 82'278'764 100.00 17'350'716 100.00 1'552'313 1.89 57'441 0.33 16 Zubereitungen von Fleisch, Fischen, Krebstieren, Weichtieren oder anderen wirbellosen Wassertieren Richtung IMPORT EXPORT Länder CHF % kg % 346'581'114 100.00 40'175'703 100.00 Brasilien 6'439'296 1.86 955'924 2.38 Total 8'372'449 100.00 596'942 100.00 Total 17 Zucker und Zuckerwaren Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 254'884'865 100.00 207'043'504 100.00 274'987 0.11 160'653 0.08 156'662'417 100.00 30'247'963 100.00 998'919 0.64 161'757 0.53 18 Kakao und Zubereitungen aus Kakao Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien 74 CHF % 512'994'446 100.00 108'611'958 100.00 149'099 0.03 23'134 0.02 804'986'983 100.00 113'695'318 100.00 13'668'363 1.70 1'871'012 1.65 | Brazilian Food and Beverage Market Report 2012 kg % 19 Zubereitungen auf der Grundlage von Getreide, Mehl, Stärke oder Milch; Backwaren Richtung IMPORT Länder Total CHF % 673'103'991 100.00 190'306'871 100.00 49'472 0.01 8'071 0.00 650'648'152 100.00 161'433'910 100.00 264'547 0.04 13'559 0.01 Brasilien EXPORT Total Brasilien kg % 20 Zubereitungen von Gemüse, Früchten oder anderen Pflanzenteilen Richtung IMPORT EXPORT Länder CHF % 455'680'817 100.00 218'649'786 100.00 Brasilien 31'930'815 7.01 18'458'042 8.44 Total 96'889'347 100.00 29'868'194 100.00 192'963 0.20 14'828 0.05 Total Brasilien kg % 21 Verschiedene Lebensmittelzubereitungen Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 743'137'629 100.00 129'803'892 100.00 14'474'358 1.95 3'575'753 2.75 1'085'122'376 100.00 127'241'080 100.00 9'786'185 0.90 804'566 0.63 22 Getränke, alkoholhaltige Flüssigkeiten und Essig Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % kg % 1'703'273'627 100.00 954'035'616 100.00 18'065'881 1.06 17'474'200 1.83 1'513'311'317 100.00 2'023'951'916 100.00 7'628'949 0.50 4'819'617 0.24 Brazilian Food and Beverage Market Report 2012 | 75 23 Rückstände und Abfälle der Lebensmittelindustrie; zubereitete Tierfutter Richtung IMPORT Länder Total Brasilien EXPORT Total Brasilien CHF % 423'954'609 100.00 563'704'452 100.00 73'527'150 17.34 154'865'209 27.47 190'410'548 100.00 90'816'329 100.00 261'835 0.14 16'460 0.02 Quelle: Eidgenössische Zollverwaltung 76 | Brazilian Food and Beverage Market Report 2012 kg % Osec Stampfenbachstrasse 85 CH-8006 Zürich Telefon +41 44 365 51 51 Fax +41 44 365 52 21 [email protected] Osec Corso Elvezia 16 Casella postale 5399 CH-6901 Lugano Telefono +41 91 911 51 35 Fax +41 91 911 51 39 [email protected] Osec Avenue d’Ouchy 47 Case postale 315 CH-1001 Lausanne Téléphone +41 21 613 35 70 Fax +41 21 613 35 02 [email protected] Copyright © Osec Mai 2012. 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