Unformatted text preview: Brazilian Avipal Food 969 Brazilian Personal Care 850 American Company name Louis Dreyfus Samsung Johnson &
Johnson 11 2006/2007 FROM SÃO PAULO TO SHANGHAI
New consumer dynamics: the impact on modern retailing* Brazil Category 2005
(USD m) Controlling
Shareholder LG Electronics 847 Korean Semp Toshiba Electronics 807 Brazilian Kaiser / Femsa Beverages 775 Mexican Aurora Food 750 Brazilian Doux Frangosul Food 718 French Coteminas Textiles 734 Brazilian Vicunha Textiles 714 Brazilian Food 713 Brazilian Company name Caramuru Source: Exame Melhores e Maiores, Balanço Anual Gazeta Mercantil Although there are some multinational companies with relevant marketshare, there are also important local players in certain market segments
who lead regional consumer goods companies, with strong brands, modern
manufacturing facilities, in-depth knowledge of consumer preferences and
The market concentration process that has taken place in the Brazilian retail
market over the past years has helped larger consumer manufacturing goods
companies, since they are in a better position being large scale suppliers.
Brazilian companies like Sadia, Perdigão, Ambev, Bertin and Friboi in the
food and beverage sector, and Natura in the personal care and cosmetics
products sector, have also expanded overseas through exports or the opening
of subsidiaries abroad, and so have prepared themselves to compete against
other multinationals in different countries. Food and beverages
An expanding food and
beverages sector According to the Brazilian Food Industries Association (ABIA), this sector
expanded by 4.7% in 2005, obtaining revenues of BRL184.2 billion and
accounting for 9.5% of GDP. The beverage segment showed a strong
expansion of 8.9% in comparison with 2004, with total revenues of BRL25.7
In 2005, Brazil retained its leading position as one of the largest meat
exporters, being the first in the bovine meat segment, the second in poultry
and the fourth in pork.
12 2006/2007 FROM SÃO PAULO TO SHANGHAI
New consumer dynamics: the impact on modern retailing* Brazil
In addition to the strong competitiveness of Brazil as a food producer, its
domestic market offers huge growth potential. A very significant contingent
of potential consumers has currently not attained the minimal levels of
consumption and any increase in the income of this group will likely boost
demand, particularly in this industry.
This growth perspective has attracted financial and strategic investors such
as AIG, Nestlé, Cargill, Ambev and Coca-Cola. Most of them are interested in
strengthening their market position, adding production capacity or are even
looking for opportunities for geographic consolidation.
In fact, there still are a significant number of companies in the second-tier,
most of them facing succession issues and needing to step-up revenues to
become sizeable in a market that is in the process of concentration. Limited
resources for cashing-out to shareholders and cashing-in for capital and
marketing expenditure creates room which is favourable to strategic and...
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This document was uploaded on 02/14/2014 for the course MBA MBA at SPSU.
- Spring '08