Cargill invests in microwave popcorn

The American multinational Cargill, strong in areas such as grains and soybeans in Brazil, is investing to expand its activities on the market of processed foods. In October, the company closed a partnership with American also ConAgra Foods to distribute a line of sauces (ketchup, mustard and barbecue) Hunt's brand and Act II microwave popcorn in Brazil, mainly from 2015. The company also is studying distribute the oils in spray Pam brand, currently imported directly by some supermarkets in the country.
Cargill's net revenue was r $ 24.8 billion in Brazil in 2013-high of 4.4% over the previous year. Food business unit, one of five of the group in the country, had revenue of $ 2.5 billion in 2013 and grew 13% in the last two years, according to the Director of the Division, Rubens Pereira. In addition to consumer products, the area includes the supply of vegetable oils and fats for industry.
The year of 2014 was "positive" for the unit, according to Pereira, who did not inform the growth during the period. "The fact of acting in basic categories has helped. As employment is still maintained, the consumer hasn't changed in the food habits ".
Cargill also took this year's marketing of tomato for the "food service" (restaurants and snack bars), with the brands, Pomarola elephant and Tarantella, paying $ 12 million to Unilever. The transaction occurred three years after the company bought the operation of these brands to retailers, including the factory in Goiânia, by approximately $ 600 million.
The multinational will invest in 2015 in new lines of tomato plant in Goiânia, in carton packs and sachet. "We will have new presentations of tomato for food service," says Pereira. There was a rapid migration of packages of tomato sauces at retail, in recent years. The cans were the main form of presentation and ceded space for sachets, cheaper. Currently, 80% of the market is in sachet, which caused a price drop in the category.
The tomato market was buzzing by multinational companies in the last three years and grew 7.5% in volume in the 12 months ending emoutubro. In 2011, the Cargill acquired Unilever's business. In the same year, Heinz bought the Brazilian Want. The American brand is now produced in Brazil in 2013, the year in which it was bought by private equity fund, 3 g Capital, Jorge Paulo Lemann, and by the American Investor Warren Buffett, for $ 28 billion. At the end of 2011, the Bunge bought the Etti, Hypermarcas, for $ 180 million.
The greatest interest of the partnership with the ConAgra, right now, is to develop the category of microwave popcorn, according to the Executive. The Yoki, bought by General Mills in 2012, accounts for more than 70% of sales. Act II prices are higher than those of competitor. The popcorn are produced in Brazil by a third-party manufacturer.
The per capita consumption of microwave popcorn in Brazil is 80 grams per year-less than a package per person. Cargill sees potential to elevate the Brazilian market of $ 112 million to $ 260 million, to increase the per capita consumption to two packages per year. Act II is sold in 130 countries and leads the category emmercados of Latin America, such as Chile, Colombia, Peru and Mexico.
Sauces, imported from the USA, will battle the more premium segment, in which acts to Heinz. According to Pereira, the Hunt's launch is unrelated to larger rival brand investment in the country. "I think it has more to do with the interest of ConAgra in having a larger role in Brazil than a reaction to a competitor". The Spice market grows 4.5% per annum. The ketchups represent 93% of the total.
For 2015, the biggest concern of Pereira is the impact of the exchange rate in production costs and hence prices at retail. In addition to the items imported oils Gallo and Hunt's-flavorings, locally manufactured products have packaging with prices referenced emdólar. "The demand side, even if we don't have an accelerated growth of the economy as food consumption, may not advance as quickly as before, but still growing," says the Director. "We rely on the natural expansion of the categories where we operate, but we see room to grow into other categories, through partnerships and acquisitions," says Pereira.
The exchange rate has impacted sales this year. Leader of the category, the Gallo olive oil, imported from Portugal and distributed by Cargill in Brazil, was pressed by the appreciation of the euro against real. The average price of oil increased by 10% in 12 months in Brazilian retail until October, to $ 12,40, according to data from Nielsen. With that, the market was growing close to 10% by volume, advanced just 4.5% over the same period.
Liza soya-bean oil has 20% share on the market led by the American Soya Bunge. This category is practically stable while consumers flock to other oils (corn, sunflower and canola), which still represent 10% of the total, but grows 7% emvolume the year. "It's a sign that, even in a period of low economic growth, the Brazilian consumer search emprodutos more healthy and nutritional alternatives," says Pereira. The company invested r $ 52 million in 2013 and 2014 to enlarge the productive capacity of the category.
The business unit commanded by Pereira has four factories in the country. Four other facilities that manufacture soy oil are under the responsibility of the area of grains and soybeans, although its products are marketed by food Division