Ajinomoto bet on growth in Brazil and launches 1st supplement

The Japanese Takaaki President Ajinomoto Nishii, commands a conglomerate unlikely-its flagship product is a flavor enhancer monosodium glutamate-based.
But, beyond that, the Ajinomoto manufactures juices the amino acids used in cosmetics and medicine. Nishii was President of the brazilian unit, between 2013 and 2015, and left the operation with great results, even in times of crisis.
The brazilian revenue of Ajinomoto in 2015 totaled 2.3 billion reais, 13.3% over the previous year. For 2016, it is expected to grow 16.6%.
Today, the brazilian operation represents 10% of the global business of Ajinomoto, with operations in 27 countries, 125 factories and 33,000 employees worldwide. Here, the company sells soups, spices and other products.
In the world, the Group made a 9.9 billion dollars last year, a rise of 17.8%. In Brazil, the scenario is promising: the company plans to enter the field of frozen and began selling sports supplements.
In an interview the exam today, Takaaki Nishii talked about the company''s expectations in relation to Brazil and the uniqueness of its consumers: with exception of the Enhancer, all products have been specially developed for the national market.
In 2016, the Ajinomoto completed 60 years in Brazil. What is the importance of the Brazilian market for the Group and what the potential for growth?
The Japan is still the core business of the group. The Brazil is the third out of the matrix, behind the UNITED STATES and Thailand, and represents about 10% of global business. I believe, however, the potential of Thailand to overcome Brazil in the coming years.
There, the frozen dishes and coffee markets are already consolidated and, in Brazil, we enter in these segments. We don''t know if we will enter in frozen by acquisitions or if we open the front of business ourselves – we analyze local businesses constantly, but we haven''t found what we want.
In the food service segment, which serves restaurants, Brazil is already in front of Thailand – and this branch represents only 4% of national revenues. We''re increasing the portfolio. Our goal is to be among the 10 largest companies in the world in the food segment.
Is a challenging goal and we hope that help Brazil, leading our growth curve. We hope to triple revenues until 2020, with an average of 15% per year growth.
The crisis will not impact that forecast for the performance in Brazil?
Last year was quite difficult, but even with negative GDP grew 5% in food (spices, juices, powders and soups) and 15% in total, whereas the production of ingredients for processed foods, such as amino acids.
Our main consumers are the classes C and D, and in the last 10 years, the rise of the middle class gave us a great chance to grow together.
Our big question right now is figuring out how to expand the export of ingredients that produce here, since 40% ends up for national consumption.
To which countries the company exports products made here?
In addition to Japan''s own, United States, Africa and Latin America. The raw material used in our amino acids for medical use or production of animal feed is the brazilian sugar cane.
The Ajinomoto already use 1% of the total domestic production of sugar cane. Contracts with producers from São Paulo of Laranjal, Limeira, Valparaiso and Flints.
We export the raw material, but also to transform into a high-quality product for export. We see an opportunity to grow, too.
Which products you should throw in Brazil soon?
In addition to expanding the portfolio of flavors of spices and Sazón Satis, we started selling e-commerce, in September, the first amino acid supplement for practitioners of physical activity, the AminoVital.
This is the first time that we sell for our electronic channel and also marks the beginning of a new category in the portfolio of amino acids for the final consumer.
In Japan, our brand line AminoVital invoice 100 million dollars a year and is geared towards recovery of muscle fibers after intense physical activity. For Brazil, we''re bringing more premium product line, focusing on street racers.
You intend to bring more products of sports supplementation to the country?
Yes, but first we need to adopt the Anvisa creation of sports supplement category, which currently does not exist. The AminoVital took five years to be approved and is classified as a food.
Here, manufacturers import the protein and make your own combination. Until 2019, we intend to produce these supplements here, probably in Limeira, in São Paulo.
The acquisitions are part of the investment plan of 320 million reais of this three-year term, which ends in March 2017.
The investment plan is following as planned. The Ajinomoto has been working in the expansion of production and infrastructure of existing plants.
We invest 100 million reais to expand to 15% in the area of food production. We are negotiating acquisitions of Brazilian companies, but our goal here is not to invest the values within the planned period, is to expand the portfolio.
Brazilians have something different compared to other countries?
We have business in 27 countries around the world and each one has its particularity. Regarding business, here there is a huge delay in certifications and approvals, high load and frequent change of labor policies.
But the main difference is the multiculturalism of the population. All products sold here were developed especially for the Brazilian consumer. The only common to other locations is the Ajinomoto itself.