Boost consumption yields to Mars 19% increase in sales of 2016

Mars, which owns the brands of chocolates M&M''s, Twix and Snickers, tripled in size in Brazil between 2012 and 2016, rising from 2% to 6% of the total sales of the category, according to data from Nielsen. Last year, multinational''s sales grew 19%, while the market of chocolates grew 5.4% in revenue. By volume, sales shrank 10.6% category. The company has supported your growth in those four years keeping structure in Brazil betting on products for immediate consumption.
For the period from 2017 to 2020 Mars provides triple again in size, with reinforcement in the distribution and increased local production of chocolates. As part of the expansion plan, Mars gives progress an investment of 500 million R$ in chocolate Division, announced in 2015 and will be completed in 2020.
The investment includes the installation of a new administrative unit and the expansion of the factory to Guararema (SP) for the local production of Snickers, that today is imported from the United States. "The expectation is to have local production until 2019," said Philip Fonseca, President of the Mars Brazil.
The plant will have production capacity of M&M''s and Twix. Mars also has invested in increasing the productive capacity of the lines of Whiskas and food rations from the brands Uncle Ben''s, Master Foods and Raris. American''s total investment in the country between 2015 and 2020 is estimated at $1 billion.
Fonseca said that when entered in the command of the brazilian subsidiary, in 2012, the company already had flagship chocolate Snickers, but the product that was imported, had a high price, of R$ 3.50 per unit. The price has been reduced to 1.49 R$.
The company also took its gondolas towards chocolates and transferred the products to the retailers. In addition, invested in the campaign "you''re not you when you''re hungry" for the Snickers, reinforcing the concept of immediate consumption. And again M&M branded campaigns.
According to Fonseca, 20% of all the chocolates sold in the country were facing immediate consumption in 2012. Or other 80% were boxes of chocolates and chocolate bars, more geared to family consumption. With the stock at stores and marketing campaigns, in 2016, the participation of chocolates for immediate consumption in the total sales in the sector rose to 35% of the total.
According to the Executive, Brazil is currently one of the largest markets for Mars in chocolate sales. The company is privately held and doesn''t publish balance sheet. The company reports only that your global revenue came to $35 billion in 2016.
In Brazil, the company works only with three brands of chocolates-MilkyWay is imported by a third party, without partnership with the brazilian subsidiary. Last year, the company expanded the offering with economic packaging and smaller portions of the three brands. "Mars still need to consolidate the brands that it has in Brazil before bringing other lines," says Fonseca.
The Commission notes that, currently, 50% of the sales of chocolate in the country is made by major retailers and the other half by small retail shops. "Mars has already made a major expansion in large-scale retail, now will work to broaden the distribution in medium and small retail stores," says Fonseca.
In 2012, the Mars distributes chocolates in 30000 points of sale in the country. In 2016, has reached 100000 points of sale. Only in 2016, the company expanded distribution network in your 15%. "The Nielsen audits 480,000 points of sale in the country. Just for this base you can see that the company has plenty of room to grow, "said the Executive.
About 2017, Fonseca says view a positive scenario for the sector. "The Brazil faced two difficult years, with high inflation, falling agricultural harvest, recession. The trend for this year seems more positive. I think 2017 will be an important year for the company in the country and it is expected to have accelerated growth in 2017, "said Fonseca.