Wednesday, September 16, 2015

Company dribbles high price with own cocoa

The production of cocoa was the alternative found by Mendoá Chocolates to grow in the premium segment with a differential. The business model ensures the company's competitiveness even with the price of cocoa.
The price of the commodity, which since last year's high, has been one of the main complaints of the domestic manufacturers of chocolate. Although it is not completely dependent on imports, the cocoa used for chocolate industry trades in dollars and a shot at the price of foreign currency has weighed on business costs.
"Today we are all along the production chain of chocolate, cocoa production to the manufacturing of our chocolates. A model that you don't find in other companies, "says his partner and Manager of Mendoá Chocolate Factory, Raymond Mayes.
According to him, the period between the harvesting of cocoa and chocolate production takes about 25 days. Currently, the company has an installed capacity to produce 300 pounds of chocolate daily, but it invests to expand that volume.
"The premium chocolate is very promising, but it's still a small niche-represents 3% of the 5% of what is consumed in the country," says the Vice President of the Brazilian Chocolate of Chocolates, cocoa, peanuts, hard candies and derivatives (Abicab), Dan Franco.
He points out that the national production of premium chocolate has less shrinkage when compared to other segments of this industry in the country.
According to Abicab, domestic production of chocolates fell 6% in the first six months of the year compared with the same period in 2014. In all, 231 million tons were manufactured the product this year. The fall was attributed by the advance of inflation and the unemployment rate this year.
"The advantage of the premium segment is that the price increase doesn't have that much reflection on demand, since most of the consumers of those products have higher purchasing power," recalls the leader.
On Mendoá. a kilo of chocolate hits the shelves for around $ 260, details the company executive.
"Our plan now is to get into a much larger market for premium chocolate business, exporting our products to other countries," Mayes. The Mendoá is present today in 16 Brazilian States and plans to close partnerships with distributors and international sellers during the Paris Chocolate salon, which begins in October.
"We already have contacts in Portugal and in France since last year, but now the goal is to expose the products and see if we can close any sale effective partnership."
The export Vice President of Abicab, Laura Schwyn, points out that the European market represents an interesting opportunity for companies in the industry, but the competitiveness is higher relative to other markets. "The big industries control the European market," he says.
Silva remembers the Exchange, until so unfavorable to export, is now an attractive. "Today the national price of the product was more competitive, especially at first. In the medium term, however, the manufacturers should feel the impact of high raw material prices, since many are traded in dollars ", he ponders.
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