Monday, May 30, 2016

Multinationals invest in factories of food for pets

São Paulo-despite the expectation of retraction of 5% for the pet market in Brazil in Brazil in 2016, two multinational giants are betting high on new lines of production of food for domestic animals, which moves almost $ 13 billion a year in the country.
Nestlé Purina-Nestle-Switzerland''s arm will invest 500 million R$ in the next four years, which will include a new factory. American Mars already applies R$ 250 million by 2018. The value is considered a new industrial unit R$ 160 million, which is being built in Ponta Grossa (PR).
What motivates the race of these companies even in the scenario of crisis is the potential of pet market in Brazil, which grew over 10% a year, over the past two decades. According to Ibope, however, less than 40% of the owners of domestic animals feed their animals with processed products. The idea of the big companies of the sector is doing this percentage to grow.
Despite this space that can still be exploited, the Brazil has great importance for the industry: the country is the second largest consumer of products for pets after the United States. The segment as a whole moves about $ 18 billion a year.
According to Sandro Cimatti, Director of brand consultancy CVA, multinationals have a relatively low market domain. "Currently, there are 29 brands of kibble that Act on a national level," says the consultant. Together, both leaders-Mars and Nestlé-add up 36.8 percent of the market. Today, according to the State, found the Mars Bill about to 1.2 billion R$ in your feed, while Nestle''s recipe would be in 600 million R$.
Releases. According to the ceo of Nestlé Purina, Anderson Duarte, one of the weapons that the multinational will use in 2016 will be the relaunch of the brand Bonzo, who stayed away for 15 years. The Bonzo is positioned as a brand of "entry", with lower prices. "The timing (of the economy) asks actions more competitive," explains Duarte.
Mars is also expanding its scope. In the started of the year, started production of Eukanuba in Brazil-line that belonged to Procter and Gamble was purchased globally & two years ago by the American. Mars owns the leaders in dog and cat food in the country, according to the CVA consulting: Pedigree and Whiskas, respectively.
Smaller companies also are in the expansion phase. The Spanish Guabi, for example, will invest R$ million to expand its current 64 factory. One of the strategies the company is fighting with the Purina, Nestle, which has a strong presence in supermarkets. "I think there''s room for value-added ration in supermarkets, something that competitors don''t offer still in Brazil", says the President of Guabi, Eduardo Aron.
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