Monday, December 11, 2017

J. M enters the market of soda powder with the brand Sun

The j. M, food manufacturer owner Dona Benta marks, Sun and Petybon products, will compete in the Brazilian market of soft drinks in powder, with the Sun brand. The new product line reaches the whole country retail this month.
The market for powdered juices moves per year around £ $3 billion, according to the Kantar Worldpanel: consumer. The cumulative 12 months until September, the market has shrunk 4.6% in sales volume and grew 9% in value, according to the consultancy. Christiane Sposato, Kantar Worldpanel: consumer accounts Executive, said consumers have reduced their trips to the supermarket, but kept the volume of purchase of fruit punch per visit. The number of visitors dropped from 16 per year to 12. Powdered soft drinks are present in 91.2% of homes, with concentration in classes C2, D and e.
The Mondelez, owner of the Tang, and Fresh Clight marks, leads the market with 38.3% share, according to Euromonitor International. The Ajinomoto (owner of MID and brands FIT) is the runner-up, with 10.5%; General Brands, owner of the Camp, is the third with 7.4 percent of the market. The Euromonitor estimates that the powdered beverage market will grow, on average, 2.6% annually in volume during the period from 2017 to 2021, leaving 140,100 tons this year to 155,200 tonnes in 2021.
"This is a market with positive trend of growth. We saw the possibility of entering the segment with a strong brand and a more affordable price positioning, "said Christianne Rego, Director of j. M. The Executive considers that, even with the beginning of recovery in the consumer market, the Brazilians still prefer products with lower prices.
The line of powdered refreshments Sun will have 1 liter of beverage packaging, in the flavors Orange, grape, pineapple and passion fruit. According to Christiane, the four flavors represent today between 60% and 70% of the volume consumed in the country, and the envelope of 1 litre represents 89% of the market. The new line is produced in the industrial complex of São José dos Campos (SP), where are also manufactured gelatin and cake mixes.
The j. M decided to compete with prices 30 percent lower than the leading brand (Tang), or something around £ $0.90 per unit. "Let's start with an aggressive stance, to grow rapidly on the market. Estimate of 1% to reach 2% in the first year of operation, "said Christiane.
The j. M expects to grow 15% in revenue in 2018 and the kool-aid powder will represent 2.5% of this growth, said the Executive.
The Sun is the second brand to the j. M, accounting for 14% of the company's revenue. Holy is the first owner, with a participation of 49% in turnover. Sun's portfolio includes wheat flours, mixes for cakes, jellies and cookies. Christiane provides that the category of soft drink powder will represent 18% of the Sun's brand in 2018.
In the first nine months of the year, the company introduced a 5.6% drop in net revenues, to $1.1 billion. Earnings before interest, taxes, and depreciation and amortization (Ebitda) reached $85.7 million, compared to R a negative result of R $37.9 million in the same range of 2016. Net profit reached $14.9 million R, 39.2% below the established a year earlier. The company partnered with the result of the increased competition for industry price and higher spending on marketing.
Supermercado Moderno - 08/12/2017
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