Food manufacturers expands distribution

The ZDA Group, specialized in the production of candies, chocolates, snacks and dairy products, ended the year 2016 with an increase of 12% in turnover, coming to 360 million R$, and waiting for 2017 the same growth rate, to 403 million R$. The reason for the growth this year will be different: while in 2016 the company concentrated on expanding the product offering, in 2017, the increase in sales will be with the expansion of the distribution network.
Founded 40 years ago by Paulo Sergio Dedemo, ZDA group is a privately held company, still controlled by the Dedemo family. The company owns the Bel-marks of chocolates and sweets, including the Moranguete, most famous-brand line, Diatt (dietetic chocolate), Hercules (dairy products),-Fit (bars) and Pop Up (popcorn ready).
In 2016, the ZDA Group ended the year with turnover of 360 million, compared with R$ R$ 321 million in 2015, representing an increase of 12%. In 2015, the company recorded net revenues of R$ 309,500,000 and net profits of R$ 11,400,000.
The sales performance was above average presented by the market in 2016. According to data from Euromonitor International, last year, sales of chocolates on Brazil shrank 3.2%, to $3.4 billion; Candy sales, in turn, had a fall of 5.8% to $2.1 billion. Dairy sales already grew by 2.3% to $22.1 billion.
José Fontelles, ZDA group commercial Director, says that the company worked with tighter margins compared to the previous year. "Profitability hasn''t grown at the same rate that sales. All the companies had to make concessions to be able to grow in this period, "he said, without giving details about the financial performance of the company last year.
In relation to sales, Fontelles said the company was able to grow in all areas of business. But he stressed that part of the increase was due to the company''s entry in the category of flavored popcorn and ready for consumption, with the brand name Pop Up, and the recasting of dietary Diatt branded chocolates.
"We have invested 40 million R$ in the last two years in production lines to work better some product categories," said Fontelles. The investment was for the installation of automated production lines of popcorn and modernization of lines of chocolate, located in the industrial park of Marília (SP). The Park has a capacity of producing 2000 tons of chocolate per month, candy and cereal bars.
The ZDA Group also installed new lines for the production of lactose-free milk with the Hercules brand. Dairy production is done at the factory of Herculândia (SP) and has a capacity to process 11 million liters of milk per month.
Fontelles said that investments in these product lines will enable the company to move into sales channels where is not present today, as networks of pharmacies, convenience stores and small retail. "Currently, the distribution is concentrated in wholesale, with nine distributors. The goal is to expand to approximately 20 distributors in 2017, which will be devoted to delivery of products in the small retail, pharmacies and convenience stores, "said the Executive.