Friday, December 13, 2013

Mondelez will bet on Oreo, again

The American food manufacturer Mondelez (formerly Kraft Foods) makes its third attempt to launch the biscuit stuffed Oreo in Brazil. Sales were resumed last month. The company invested r $ 72 million on a factory production line of Vitória de Santo Antão, Pernambuco, where it's been the Club Social biscuit and chocolate Lacta and Bis.
According to the multinational, the Oreo is a global leader in the category of tarts, with sales of $ 2 billion a year. Is one of the main brands of Mondelez-which has the powdered juice Tang, the Trident gum and chocolate Lacta, for example. The company's overall revenue was $ 35 billion in 2012.
In September, the Mondelez announced a restructuring plan of its supply chain to save $ 5.5 billion by 2016. The modernisation of the production line of the Oreo was included in the project. The new method requires 30% less capital and reduces operating costs by $ 10 million per line.
These "lines of the future", as the company classified, can be installed in a third of the time and offer twice the capacity in half the space of older models. The Mondelez is implementing similar transformations in other brands. The company also announced in September that it would increase investment in emerging countries. The subsidiary did not inform if the production line in Pernambuco or if the investments in the country are part of that plan.
The Oreo is done in 20 factories in the world, and is sold in more than 100 countries. The production line in Brazil follows the model of an installed in Peru. "Inside the production of Oreo, [Pernambuco Factory] is the most modern that everybody has. There is another one of these in Lima, Peru, installed in 2012, "says brand manager in Brazil, Flavio Ackel. "There is a plan to modernise the production line in other countries, following what we have here."
This is the third attempt to bring the Oreo to Brazil. In 1995, it began to be sold here, imported. "Was released without communication support, and was left without the strength that I needed. Stayed at most one year in the market, "says Ackel.
In 2004, went on to be manufactured in Piracicaba (SP), one of the four Mondelez factories-the others are in Bauru (SP), Curitiba (PR) and Vitória de Santo Antão (PE). Just that some imported raw materials were replaced by national inputs, the taste of the cookie has changed and the company discontinued the line two years later, in 2006.
Last month, the Oreo back to retail, supported by social networking campaigns launched by the Agency Lov. At the beginning of 2014, the Mondelez should throw a marketing campaign that includes ads in TV and print media, created by Giovanni + DraftFCB.
Oreo will compete in a market with tight margins, sales, strong regional brands and sprayed it grows supported in appreciation of the product, not by volume. Manufacturers as m. Dias, industry leader, 1906, PepsiCo and Nestle are betting, to enhance their products and raise prices, in-style cookies cookies (with chocolate), ingredients that help the digestive system or packages easier to open and close.
The National Association of industries of cookies (Anib) has more than 50 members, represents 80% of the market and estimates that sales of cookies should terminate 2013 level on volume with 2012. But the industry's revenue should grow between 8% and 10% due to the transfer of high costs to consumer prices. According to Ackel, the Mondelez, the sweet biscuits represent 60% of the volume sold in the country.
Valor Econômico - 12/12/2013
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