Market shrinks, but the owner of the Ments increases sales

The Dutch-Italian multinational corporation Perfetti Van Melle, owner of brands such as Mentos, Chupa Chups and Fruittella, advances in the Brazilian market of candies and chewing gum with a new distribution strategy, product launches and prices below the inflation rate increase this year.
While the chewing gum market shrank 4 percent in 12 months accumulated until April, according to Nielsen, the sales of Perfetti Van Melle increased by 9.2%. In the category of bullets, industry sales shrank 5 percent in volume and Italian-Dutch sales had increased 0.2%. Henrique Veloso, President of Perfetti Van Melle in Brazil, said he expected an improvement in the conditions of the market in the second half and that sees space to close the year with growth in sales in the country of two digits.
"In times of crisis it is more difficult to consolidate the brand, but I believe it will be possible to get out of this period, in 2017 or 2018, in a strengthened position," said Veloso. The Perfetti is in Brazil since 1999. From 2013, the company went on to occupy the second position in the market of candies and chewing gum, surpassing the Arcor and behind only the Mondelez International.
According to data from Euromonitor International, in 2015 the company reached in Brazil 8.6% market share in the category of candies and gums, up from 8.3% in the previous year. The Mondelez lost 0.2 percentage point in market share in 2015, 77.8%. The Arcor, reached 6.5% stake, with drop of 0.1 percentage point compared to the previous year.
Veloso said that part of this market gain resulted from changes in product distribution strategy, completed two months ago. The company expanded the distribution of candies and gums for atacarejo networks and neighborhood supermarkets, to reach consumers who have reduced trips to hypermarkets to do economics. The company also extended the distribution to bars, convenience stores, bakeries and restaurants. "We deal with a consumer product. It is essential to be close to where is the consumer right now, "said Veloso.
As part of the strategy of improvement in logistics, the company also inaugurates in July a distribution center in Cabo de Santo Agostinho (PE), which will be responsible for logistics for the Northeast and North of the country. The amount invested in the unit is kept confidential by the company. Currently, all production and distribution in Brazil is made from the complex than the Perfetti Van Melle has in Vinhedo (SP).
The Executive said that extends this year the supply of bullets and gum in packs like a economic package of Mentos, with ten bullets, sold the $ 1. The company also evaluates market new lines of chewing gum and mints to "oxygenate" the market. The forecast is to launch 10 products this year, the same number as last year.
Veloso added that the company has made changes in the industrial area and switched suppliers to contain rising costs. According to the Brazilian Association of the Industry of Chocolates, cocoa, peanuts, hard candies and derivatives (Abicab), the costs of raw materials for the production of candies and gums are 20% larger this year, on average, whereas inputs like sugar, energy, labor and fuel. "Improvements made at the factory and logistics enabled the Perfetti Van Melle control costs and pass on to consumers a price adjustment this year below inflation," he said. Banded competitors prices in line with inflation.
The Perfetti Van Melle is a privately held company and does not disclose information about its financial results. In the world, the company invoice, on average, € 2.5 billion per year. The company does not report revenue in Brazil.