Yakult tries to increase distribution outside of SP

The goal of the new President of Yakult in Brazil, Eishin Shimada, is that 5% of Brazilians consume its fermented milk every day. The Japanese company produces 2.1 million units of alcohol a day in the country, the equivalent of the daily consumption by 2% of the population. The greater São Paulo, where most of the sales are concentrated, has already achieved the desired index. Now, the Executive seeks to reach this level nationally. To do this, Shimada will invest in the expansion of the channel door-to-door.
The Yakult has approximately 5 000 resellers in Brazil, leading the consumer products in refrigerated trolleys. This sales force had about 6 thousand people, but, according to Shimada, the company shrank in recent years. "There was a period of growth in the years 90-Bull, we opened several branches, without adequate infrastructure. We didn't have the ' know-how ' that we have today and it was necessary to give the brakes ". For him, the Yakult is poised to expand and double the number of consultants in the country in about four years.
Currently, the company is present in 15 Brazilian States. The challenge of Shimada's reach to the other units of the Federation and no longer have a business so dependent on the market. The greater São Paulo sintering 3.5 thousand of total autonomous traders or "Yakult ladies", as they are traditionally known. They are responsible for 60% of sales in the region, while the retail market represents 40%. Shimada believes they are one of the reasons that keep the company at the top of the category. "They have knowledge to explain the benefits of the product and speak with passion."
According to Euromonitor, the Brazilian market of probiotic drinks and Prebiotics grew 157 percent in the last five years and moved approximately r $ 3.7 billion last year. The Yakult has 40% market share, according to the consultancy. Then is Danone, with 24%, and Nestlé, with 20%. In the past three years, these slices were virtually stable.
The prices of rivals come to be 50% to 60% lower than those of Yakult, but Shimada will keep the placement and does not intend to fight price to grow in other regions. In the Northeast, Chamyto, Nestlé, is a leader. "I am confident about our price. Today we have a few stand-alone merchants in Salvador, and they deliver results similar to those of Sao Paulo, "he says. The company also has branch offices in Belo Horizonte, Porto Alegre, Curitiba and Recife. The entire distribution is made from Lorraine (SP), where the production was concentrated in 2013. "I believe that in the future we will have more factories in other regions such as the Northeast," said Shimada.
The cart used by resellers weigh 50 pounds when fueled. But the weight, they find other obstacles in your path. The bumpy sidewalks-"a typical problem of Brazil, according to Shimada-the force to share the pavement with the vehicles. The job becomes even more complicated when implies going up and down hills. "We have been working to deal with these problems," said Shimada. In Japan and in Indonesia, "Yakult ladies" using electric bicycles, motorcycles and cars. According to the Executive, these means of transport are not used in Brazil by the high rate of theft of two-wheelers and the fact that many of the dealerships, which mostly are housewives, not having a driver's license.
The Yakult manufactures there are 48 years in Brazil, where Bill $ 390 million. The country is the sixth largest in sales volume among the 33 multinational operations. Without detailing, Shimada says the operation has a "healthy profits". In the first five months of 2014, sales volume increased 10% over the same period last year. Since mid-May, however, the pace is "slower". The fall in temperature cooled the demand and, in addition, some dealerships have gotten that flu.
Created by Japanese doctor Minoru Shirota in 1930, milk fermented with Lactobacillus Yakult, considered a probiotic, is still the core business of the company. The portfolio in Brazil also has the Milky dessert, Apple Juice Sofyl Yakult and the vitamin supplement Taffman-EX, among others.
In the fiscal year ended in March, Yakult had revenue of 350 billion yen ($ 3.4 billion), up from 10% on the previous year. The net profit advanced 38 percent to 22.5 billion yen ($ 218 million), boosted by emerging markets performance. The company is publicly traded on the Tokyo Stock Exchange.
Shimada, 64 years, is 40 in Yakult and a decade ago in Brazil. The Executive arrived in the country as Sales Director in 2003 and, since 2010, was Vice President. In April, took command. In recent years, Shimada has acquired knowledge of the Brazilian market, but not became intimate da língua portuguesa. The Executive has granted interview at the company's Office in Alameda Santos, in Sao Paulo, with the aid of your translator. Many of the directors who report to him are Japanese or of Japanese descent.