Suzano will launch his own brand of toilet paper

Suzano will spend the next months preparing your arrival in the Brazilian retail sector. In a recent reorganization, the pulp and paper manufacturer has created a division dedicated to consumer goods, with the aim of launching a brand – still not defined – in stores from January 2018. To prepare the ground for this new business, the company invested $540 million R. Renewed two equipment factories, and hired executives with passages by multinationals such as Unilever and Kimberly Clark.
The former Chairman of Unilever in Mexico, the Brazilian Flávio Prado will spearhead the launch of a line of toilet paper. The production begins this quarter, still facing the attacked. Yesterday, in an interview to the State, the President of Suzano, Walter Schalka, said the first items intended for retail will be produced at the end of the year, scheduled for release in January 2018.
The Executive says that, right now, are being fitted to distribution and marketing teams of Suzano. After that, it will be created a new brand, sold directly to the consumer – today, the Suzano''s relationship is restricted to other companies, with little contact with individuals.
According to Schalka, the toilet paper market will be just the first step of the strategy of the consumer goods company. "We will seek other ways to monetize the assets that we have," he says. The idea is to make relatively low investments to create new revenue options. After the line of toilet paper, Suzano intends to launch at retail other derivatives of "tissue", such as tissues and napkins.
As the goal of the company is to launch your first brand in the markets of the North and Northeast, the factories that received the investment to produce tissue paper were those of Mucuri (BA) and Empress (MA). Schalka says that the consumer division of Suzano may seek other alternative products to connect directly with the consumer. "We are not '' experts '' yet, but we''re about to start playing in this sector," he says. "The goal is that our new brand reaches millions of homes."
According to Euromonitor consulting, the toilet paper market should move R $7.1 billion in 2017, with 1.8 percent expansion forecast about the outcome of 2016. The five major brands add up to 44% of the sector-which highlights a spraying. The top five brands in the industry are Personal, Mili, snow, Paloma and Sublime, according to Euromonitor.
Adjusted production. Without new forecast projects for significant expansion of the production of cellulose, Suzano invests in incremental gains to continue to grow – Empress factory, for example, will soon be a stop for technical adjustments, according to Schalka, will expand your capacity in 10%, to 1.65 million tons.
Although not dispose of any offer for the Eldorado (read more below), Suzano has already warned that it will not enter into any "auction" at active. According to the President of the company, although it is expanding, the pulp market will receive 4,700,000 tons of extras product with the new factories provided for by Fibria and the Chinese brazilian APP (Asia Pulp and Paper).