Brazil’s Food and Beverage Market.
May 2012 osec.ch
2 | Brazilian Food and Beverage Market Report 2012
Brazil’s Food and Beverage Market.
Title. Language. Number of pages. Author.
Brazil’s Food and Beverage Market
English
77 pages
Camila Jerger
1. Foreword. ..................................................4
2. Brazil: Profile and Economy. .....................5
3. Consumer Trends. ....................................7
4. Regulatory Environment. ........................ 11 4.1 Authorities Involved in Food Industry
Regulations. .......................................................... 11 4.2 Regulations Concerning the Food and Beverage
Industry. ................................................................ 12 4.3 Import Procedures. ............................................... 17 4.4 Tariffs. ................................................................... 18
5. Food Industry. .........................................19 5.1 Food and Beverage Industry. ................................ 19 5.2 Organic and Natural Food. .................................... 20 5.3 Functional Food. ................................................... 22 5.4 Processed Food. ................................................... 24 5.5 Beverages. ............................................................ 28 5.6 Private Labels. ...................................................... 30 5.7 Foodservice / HoReCa. ......................................... 33 5.8 Industry Trends. .................................................... 35
6. Food Distribution. ....................................38 6.1 Route to Market. ................................................... 38 6.2 Importers and Distributors. .................................... 38
6.3 Retailers. .............................................................. 39 6.4 Specialty / Gourmet Stores. .................................. 42 6.5 Pricing. .................................................................. 43
7. Opportunities and Challenges. .............. 44 7.1 Opportunities. ....................................................... 44 7.2 Challenges. ........................................................... 45
8. Export Check List. .................................. 47 8.1 Readiness to export. ............................................. 47 8.2 Market Research. ................................................ 48 8.3 Trade fairs. ............................................................ 49 8.4 Regulatory – Your Product in Brazil. ..................... 50 8.5 Finding a Distributor / Importer. ............................. 51 8.6 Regulatory: Adapting to the Local Legislation. ...... 53 8.7 Logistics and Imports. ........................................... 54 8.8 Product Launch. .................................................... 54
9. Appendix. ............................................... 57 9.1 Trade Shows. ........................................................ 57 9.2 Trade Associations ................................................ 59 9.3 Publications .......................................................... 61 9.4 List of Abbreviations .............................................. 62 9.5 Import Duties ........................................................ 63
10. Trade statistics 2011. ............................. 71
Table of Contents.
4 | Brazilian Food and Beverage Market Report 2012
Brazil – you can just smell the aroma of roasted coffee, hear the samba rhythms on Copacabana Beach, and see the large cocoa plantations and vast plains with herds of grazing cattle and end-less fields of soya plants and sunflowers, which stretch as far as the edge of the dense primeval forest. This is the clichéd idea many Europeans have of this exotic country – just like Switzerland is associated with mountains, chocolate and cheese – and a smil-ing Heidi in the Alps. This report shows a different, no less fascinating image of the world’s fifth largest country, which today has a population of almost 200 million. Brazil has long been more than just a raw-materials supplier for industrialised nations. It has one of the most dynamic economies, with a predicted GDP growth of between 3 and 5% over the next five years – a figure European countries can only dream about. Brazil is the “B” in the BRIC countries (with Russia, India and China), belonging to the top category of emerging mar-kets whose worldwide influence – economically and therefore also politically – has increased tremendously over the last decade. The boom in the Brazilian economy is coupled with a constant improvement in the population’s wealth. The middle class has grown from 38% to 51% since 2003, and purchasing power has also risen accordingly – though this is heavily concentrated in the major metropolitan areas near the coast. This has resulted in an increased demand for high-quality food-stuffs. Convenience foods, organic products and functional food-stuffs have recorded impressive growth rates, albeit starting from a relatively low level. This has created interesting prospects for smaller and medium-sized businesses in the Swiss foodstuffs industry, even though it involves niche markets. “Swissness” en-joys an excellent reputation in Brazil! However, entering a market as large as Brazil’s requires well-founded knowledge of the local conditions and careful weighing-up of opportunities, and this study provides a wealth of valuable sta-tistical information, analyses of consumer trends and many practi-cal tips for this. The data on the most important players in the food retail trade, the trade fairs specialising in the food industry, and possible partners already importing successful, reputable brands from Europe for the Brazilian market, as well as the references to sources for more in-depth market analyses, is particularly useful. The publication in-cludes an extensive checklist which helps interested companies keep an eye on all relevant aspects of preparing and executing market entry. However, we should not forget the obstacles which arise, starting with language – Brazilian Portuguese is different from the Portu-guese spoken in Portugal! – and also including statutory foodstuffs rules which are not always easy to understand, and administrative requirements and registration duties for importing foodstuffs into Brazil. Unfortunately, no free trade agreement exists (as yet) between Brazil and Switzerland, which is detrimental to pricing competitive-ness, particularly compared to competitors from the MERCOSUR region.
Customs duties on foodstuffs can total up to 30% - one of many factors to be taken into account in calculations. A detailed list contains the latest tariffs for the various customs sections. I would like to acknowledge and thank the authors of the study, and Osec as its initiator, for the well-founded research and prac-tice-oriented content. I hope you, the readers, enjoy this expedition – and wish you all the best for your Brazil project! Beat Hodler Consultant, Former member the Board of Directors of the Federa-tion of Swiss Food Industries (fial)
1. Foreword.
Brazilian Food and Beverage Market Report 2012 | 5
With its continental size and a population of 192 million, Brazil is
the giant of South America. It is an agricultural superpower, an
important exporter of commodities, and also has well-developed
manufacturing and service sectors, being self-sufficient in many
segments. Its GDP reached 2’518 billion in 2011, making Brazil the
world’s sixth largest economy, ahead of the UK and Italy.
In the last decade, Brazil has improved its macroeconomic stabil-
ity. Thanks to government stimulus, resilient consumer demand
and low exposure to foreign trade, the economy quickly recovered
from a short recession in 2009, and posted a strong 7.5% GDP
growth in 2010, the highest rate in 25 years. For fear of inflation,
Brazilian authorities took measures to cool down the economy in
2011. As a result, Brazil’s GDP grew by just 2.7%.
Figure 1: GDP and family consumption growth
Source: IBGE, www.ibge.gov.br
GDP growth is expected to continue in the range of 3 to 5% over
the next few years. The country now boasts the lowest levels of
unemployment recorded in its history, and many industries are
already feeling the effects of the lack of qualified professionals.
Stronger growth is also inhibited by infrastructure bottlenecks.
The combination of higher income levels, economic stability, social
programs, extended credit and creation of new jobs has allowed
millions of consumers to rise from lower-income segments and
form a “new middle class” (see Chapter2). As a result, Brazil has
emerged as one of the leading markets in the world for many
industrial segments, including food and beverage. For companies
like Nestlé, Brazil is already the second most important market.
Most of Brazil’s population is concentrated in the large cities along
the coastline. In terms of population, the largest cities are São
Paulo (11 million inhabitants) and Rio de Janeiro (6 million), but
Brazil has another 150 metropolitan areas with over 100’000 in-
habitants each. Overall, Brazil has 5’000 municipalities grouped in
26 states, which in turn make up the five macro-regions.
The most developed regions of Brazil, which present higher in-
comes and superior living standards, are the Southeast and the
South. The Southeast also contributes 55% to Brazil’s total pro-
duction, with the state of São Paulo accounting for almost a third
of the country’s GDP due to its strong industrial base. The three
states that form the South region of Brazil account for 18% of the
country’s GDP. Despite the fact that the North region is the largest
in size, it has the smallest population and contributes just 6% to
Brazil’s GDP, while the Northeast accounts for 14% and the Cen-
ter-west 8%.
The richest states of São Paulo, Minas Gerais and Rio de Janeiro
contrast with inferior living standards in the North and Northeast,
although the Brazilian Northeast has been showing stronger
growth rates when compared to the rest of the country, encourag-
ing companies to expand to this region.
The Southeast (with the cities of São Paulo, Rio de Janeiro and
Belo Horizonte) also concentrates more than half of Brazil’s retail
businesses. Although the Northeast of Brazil accounts for just 18%
of Brazil’s retail turnover, its fast growth rates and market potential
started to attract investments. Large supermarket chains started a
few years ago to acquire local supermarkets in that region, in order
to quickly gain share and take advantage of their knowledge on
those consumers.
Brazil is the only Portuguese speaking country in Latin America.
This makes it different from the rest of the Latin America not only
language-wise but also in terms of habits, preferences and culture,
which are key aspects to be taken into consideration when launch-
ing new products and conducting negotiations.
2. Brazil: Profile and Economy.
6 | Brazilian Food and Beverage Market Report 2012
Brazil’s currency is the Real – R$ (reais in plural). Like the Swiss
Franc, it has had a tendency to gain value since the financial crisis
erupted. R$ 1 was equivalent to CHF 0.51 in March 2012.
Figure 2: Retail in Brazil: turnover share by region (2009)
Source: Deloitte Brasil, www.deloitte.com.br
Brazilian Food and Beverage Market Report 2012 | 7
Consumer trends in the Brazilian food and beverage sector are
heading towards a more mature scenario, becoming similar to
American and European consumption patterns. Nevertheless,
there are many peculiarities that food manufacturers and exporters
need to be aware of.
As a result of higher income and better education, Brazilians are
living longer, having fewer children, staying single for longer peri-
ods of time and eating out more often. Women are also gaining
more and more opportunities in the workplace, which makes a big
difference in the household dynamics. At the same time, due to the
low unemployment rate and rising minimum wages, even high-
income families find it ever harder to employ maids and other
household aides. The old Brazilian way of life, where the maid took
care of the kitchen, including the preparation of meals, is disap-
pearing. More and more families need to cater for themselves.
Brazil has traditionally been an extreme case of income inequality.
The upper classes (A and B) continue to thrive and grow. At the
same time, the country has seen an enormous social transfor-
mation in the past decade: millions of Brazilians have moved out of
poverty to become part of an emerging middle class (Class C, blue
in Figure 3), which now comprises close to 100 million people with
a family income in the range of R$1’100 to R$ 2’750.
Figure 3: Growing upper (AB) and middle income (C) classes
Source: FGV, www.fgv.br
Brazilians spend an average 30% of their incomes on food and
beverages. Studies show that the diet of people from the lowest
income levels is based on lower cost foods, such as cereals, sugar
and basic processed foods. With an increase in income levels, one
of the first impacts is on food choices – the consumer adds more
industrialized foods such as milk and poultry, and on a next level,
other types of meat, fruits and vegetables. This movement contin-
ues as the income grows, adding pleasure foods such as yoghurts,
chocolates, cheese, ready meals and biscuits.
The increase in purchasing power has also brought the so-called “I
deserve” effect, i.e.: consumers, even from class C and D, occa-
sionally buy more sophisticated foods or beverages to celebrate a
special occasion – or the end of a hard week.
In 2004, 23% of consumers bought premium items and today this
percentage has grown to 35%, while the appeal of low end prod-
ucts has decreased from 30% to 28%. (The situation is different in
the Northeast, with low end products still on the lead, as 64% of
sales in this region are made by consumers from classes C and
D.)
Higher employment rates and the increasing presence of women
in the workplace also drove Brazilians to include more processed
foods in their daily diet. Microwave oven prices have gone down
significantly over the last 10 years, motivating families to consume
frozen foods.
City-dwellers are eating out more frequently, too, sustaining high
growth rates in the foodservice industry. Many international
chained restaurants are setting up or expanding operations in
Brazil attracted by the boom of the sector. They are competing with
national chains and labels (like Casa do Pão de Queijo, Habib’s,
Frango Assado, Giraffa’s, etc.) and innovative gastro-
entrepreneurs with national ambitions.
With the hectic lifestyles in big cities the country has seen an
increase in obesity levels – today more than 40% of Brazilians are
overweight. As a result, there is an increasing concern and aware-
ness among Brazilian consumers of the importance of a healthy
diet, and healthy food items, such as low fat, low sugar, functional
and organics are becoming more popular.
Eating habits vary greatly from region to region: While the North-
east consumes more fresh fruit and vegetables, the diet in the
South is based on meat and the Southeast is the largest market
for processed foods due to its large cities.
54 46
37
38 45
51
8 9 12
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2006 2010
AB
C
DE
3. Consumer Trends.
8 | Brazilian Food and Beverage Market Report 2012
Taste varies considerably from state to state, but overall Brazilians
have a much sweeter taste than the Swiss, probably due to the
abundance of sugar throughout Brazil’s history and its influence on
traditional Brazilian recipes.
Television shows with participation of chefs and launches in book-
stores of more sophisticated recipe books also drive the search for
innovative and gourmet products.
The main consumer trends in Brazil for food and beverage are
presented below:
Figure 4: Food and beverage consumer trends
Trend Driver and public Products and strategies
Convenience Population ageing, increase in the
number of single and smaller
households, lifestyle of the big
cities, higher participation of the
women in the workplace.
All income levels are affected,
mostly people who live in larger
cities.
One portion size, smaller packs, frozen/ / refriger-
ated meals, ready to eat foods and beverages,
easy resealable packs, microwavable products,
foodservice and delivery.
Food and beverage manufacturers are launching
more and more products that bring convenience to
the households. Investment in taste (additives,
natural ingredients) and packaging by the food
and beverage producers are the main opportuni-
ties.
Indulgence and pleasure Income growth, higher educational
level.
All income levels, genders and
ages are affected by this trend,
particularly A and B classes.
Gourmet and premium products, use of ingredi-
ents such as chocolate, cheese, milk, fats and
products with a homemade appeal. Products with
special editions and premium pricing strategy.
In foodservice, slow food and also the homemade
appeal attracts the upper social classes.
To attract the lowest income consumers that are
also looking for indulgence, food and beverage
companies in Brazil usually launch the same
products on portion size.
Wine and premium alcoholic beverages are also
favored by this trend.
Health and wellness Population ageing, higher educa-
tional level, lifestyle of the large
cities (obesity and stress).
Mostly affects Brazilians over 25
years of age.
Organics, functional foods, probiotics, light and
diet foods.
Food producers are investing heavily in improving
taste and consistency on diet and light products,
Brazilian Food and Beverage Market Report 2012 | 9
opening opportunities for additives producers.
Other launches include products with low fat,
reduced salt, reduced sugar, added vitamins and
fiber and grains added foods.
The main example of successful functional foods
is the yoghurt line Activia, a best seller in Brazil
and that put Danone back on the market leader-
ship on this category.
Nutraceutical products are also starting to raise
awareness in Brazil, although the few available
options in the market are expensive for most
Brazilians and despite the fact that nutraceuticals
do not exist in the Brazilian legislation.
ANVISA is watching closely the movement on
functional foods and nutraceuticals, and legislation
changes are expected.
Local flavors Growth in consumption on the
lower income levels, and high
growth rates in the North and
Northeast of Brazil
All income levels are affected by
this trend, in particular those in the
target regions.
Products using local flavors, fruits (e.g. guaraná,
açaí, cupuaçu), vegetables (e.g. cará) or tradition-
al recipes from a certain region (e.g. vatapá).
Even the larger food and beverage producers are
now launching specific products on certain regions
to gain share over the local competitors. Quite
often, those products are only launched in those
regions and not throughout Brazil.
Imported classics Increase in income and education-
al level, with more Brazilians travel-
ling abroad
Social classes from A, B and C.
Imported products that are successful amongst
Brazilians who live or traveled abroad.
With Brazilians traveling abroad more often, the
knowledge and awareness on different foods and
brands increases and many international produc-
ers are taking advantage of this trend.
This is particularly beneficial to producers of choc-
olates, cheeses, rice, premium olive oil, snacks,
sauces, teas and wines.
10 | Brazilian Food and Beverage Market Report 2012
In foodservice, there is a consistent increase in
the number of international food restaurants –
generating opportunities for providing the original
imported ingredients for their recipes.
Quality and reliability Income growth, higher educational
levels
All income levels are affected by
this trend, even the lower income,
as high quality products are aspira-
tional.
Products with better flavors, better ingredients,
food safety, tradition.
Brazilians are loyal to some traditional food and
beverage brands, even if those are more expen-
sive. This applies also to foodservice. Food and
beverage producers with traditional products
usually take advantage of their brand position and
launch other products under the same brand
umbrella.
Sustainability and ethics
Higher educational levels, increase
in income and environment con-
cerns
Brazilians with higher income and
education are mainly the ones
concerned about sustainability.
Recycled and recyclable packaging, reduction on
packaging, fairtrade.
This trend is expected to catch the Brazilian con-
sumer in a few years. Nowadays most Brazilians
are more worried about product quality and price
rather than sustainability related issues. Re-
searches show, though, that if two products pre-
sent the same quality and price, the Brazilian
consumer will choose the one with the sustainable
claim.
Many food manufacturers and even restaurant
chains are investing in this trend and requiring
certifications and social responsibility auditing
from their suppliers.
Source: Osec from desk research
Brazilian Food and Beverage Market Report 2012 | 11
4.1 Authorities Involved in Food Industry Regulations.
As a member of the World Trade Organization (WTO), Brazil is
committed to the practices and regulations of the Sanitary and
Phytosanitary Agreement (SPS) and to the Codex Alimentarius
(CODEX) principles. Any regulation, though, has to be published in
Brazil’s Official Gazette (Diário Oficial) before taking effect.
A number of agencies and ministries are co-responsible for ensur-
ing the safety of the Brazilian food supply and regulating imports of
agricultural commodities and foods.
The main entities involved in the food industry regulations are:
Figure 5: Entities involved in the regulatory environment
Abbreviation
Website
Entity name Main Functions
MAPA
www.agricultura.gov.br
Ministry of Agriculture, Livestock and
Food Supply
- Food products jurisdiction: animal, fresh fruit and vegetables,
alcoholic beverages, juices, grains, seeds, animal feed and pet
food.
- Oversees and enforces regulations related with production,
marketing, import and export of products listed above.
- Regulates, classifies and inspects imported products entering
Brazil.
- Ensures that all animal origin products (meat, dairy products,
eggs, seafood, honey and other products with more than 50% of
animal composition) traded interstate and abroad are safe, ap-
propriate for consumption and accurately labeled.
- Enforces federal laws regarding registration, compliance and
labeling of alcoholic and non-alcoholic beverages such as dis-
tilled spirits, wine, soft drinks and juices.
- Inspection and clearance of foreign products under MAPA’s
jurisdiction at Brazilian ports and airports as well as establishing
documents and procedures for such products to enter Brazil.
ANVISA
www.anvisa.gov.br
National Agency of Sanitary Surveil-
lance
- Food products jurisdiction: mainly processed foods
- Autonomous agency, part of the Ministry of Health with a prima-
ry function of protecting human health.
- Oversees the production and registration of drugs, food addi-
tives, medical devices and tobacco products.
- Establishes standards and regulations regarding food safety
and contaminants.
4. Regulatory Environment.
12 | Brazilian Food and Beverage Market Report 2012
- Responsible for the compliance and registration of any food
processing facility established in, or exporting to, Brazil.
- Implements regulations and inspections of all food products
under ANVISA’s competence.
- Responsible for the clearance and inspection procedures of
any food product under ANVISA’s competence at entry ports.
INMETRO
www.inmetro.gov.br
(part of MDIC – Ministry of
Development, Industry and
Foreign Trade)
National Institute of Metrology, Stand-
ardization and Industrial Quality
- Conducts tests on domestic and imported products (be they
industrial or food products) to make sure they meet the specifica-
tions of their labels, Brazilian standards and the safety of their
packaging materials.
- Establishes some standards for packaging and labeling.
PROCON
www.procon.sp.gov.br
(São Paulo branch, there is
one on each Brazilian state)
(part of MJ – Ministry of
Justice)
Department of Consumer Protection
and Defense (DPDC)
- Enforces the Brazilian Consumer Code (CDC), which regulates
consumer claims against adulterated food products, incorrect or
misleading labels and fraud.
- Each Brazilian state in Brazil has an office of the Department of
Consumer Protection and Defense that assists consumers di-
rectly in pursuing their rights.
Source: Osec via desk research; Ministries websites
An important remark in terms of sanitary legislation is that the
principle of positive legislation is valid in Brazil, which means that
only what is expressly established can be practiced. Therefore,
companies must not market anything that is not expressly allowed
by law. Anything that is not expressly addressed is prohibited.
Direct contacts with the authorities listed above may be difficult –
not all departments have English speaking staff and usually que-
ries should go through official consultations (directly or using ex-
perts), which can take long unless directed at the right department.
It is highly recommended in such cases to use a regulatory affairs
office (which the Swiss Business Hub Brazil or a Brazilian trade
association may recommend) to clarify doubts, ask questions to
the authorities or request products registration / authorization
related to food industry regulations.
Certain products require registration within MAPA and / or ANVISA,
following strict control and documentation. Although most products
are exempt from registration, a new law is currently under discus-
sion. The current proposal states that all food products today ex-
empt will need to be registered electronically on ANVISA’s website,
including its packaging images and details (ingredients, nutritional
facts, etc.). ANVISA will charge a fee per product or groups of
products and the authorization number will need to be included on
the packaging.
4.2 Regulations Concerning the
Food and Beverage Industry.
4.2.1 Packaging
In Brazil, all consumer packaging – including paper and carton
boxes, plastic bags, steel sheets, cans or PET bottles, must be
certified. All manufacturers are individually responsible for the
recycling, disposal and removal of all packages and containers
that pose a threat to the environment and that could lead to possi-
ble pollution in the country.
Brazilian Food and Beverage Market Report 2012 | 13
The Brazilian Association of Technical Norms (ABNT) is responsi-
ble for implementing regulations regarding packaging and it is
important to comply with these when distributing food and bever-
age products within the country.
The regulations on food packaging and containers are under AN-
VISA’s jurisdiction, with the exception of dairy products, under the
umbrella of MAPA. ANVISA is responsible for establishing the
quality and identity standards for different types of materials (e.g.
plastic, glass, metal, ceramic, carton, etc.) in order to guarantee
that the packages do not contain any prohibited or toxic substance
nor causes contamination or changes in the food over time. There
are tolerance limits for certain substances to be used in the pack-
aging, so it is advisable to check the current legislation when
launching a new product or package.
Since 2000, food packages are exempt from registration but if
recycled packages are used, the food / beverage manufacturer will
need to require an authorization. When using new technologies
not foreseen in the current laws, the food company will need to
request a package / technology registration from ANVISA as well.
4.2.2 Labeling requirements
The labeling requirements are defined by MAPA and / or ANVISA
(depending on the type of product). Most packed and processed
products have a specific PIQ – Product Identity and Quality Stand-
ard defined and officially published. The PIQ establishes all re-
quirements for a product, including ingredients that can or cannot
be used, product denomination, and regulatory framework for
labeling domestic and imported food products.
When a product is not under PIQ specifications, the importer must
still follow all other regulations in terms of use of additives, general
labeling and the Consumer Code. The Consumer Protection Code
establishes that all domestic and imported foods and beverages
must provide the consumer with correct, precise, clear and easily
readable information about the product in Portuguese.
Therefore, all products imported into Brazil must be labeled and
contain all information in Portuguese. If the packaging is written in
another language, the legislation allows the use of an adhesive
sticker containing all the required information in Portuguese. The
sticker can either be applied before shipment at the origin or when
already in Brazil, but this must be added before its commercializa-
tion.
The Portuguese language from Portugal can be quite different
from the Brazilian one, and many words are not common to both
countries. Therefore, it is advisable to translate the labels to Brazil-
ian Portuguese to avoid misunderstandings by consumers and
problems with the authorities.
4.2.3 Claims
The label and / or packaging must follow a series of requirements
by MAPA / ANVISA and also a number of MERCOSUR rules. As
the positive legislation principle is in place, companies must be
careful when making certain claims on their packaging – if those
are not authorized by any of the current pieces of legislation, the
products may be taken off the market by ANVISA and penalties
may be applied to the importer / distributor / manufacturer.
Every information or claim contained on the label / package must
be proved and must not mislead the consumer (e.g. making the
consumer believe the product has qualities or benefits that it does
not have or that are not scientifically proven). The label should not
emphasize qualities that any similar product has (e.g. a milk carton
should not have the information “Contains calcium” as any milk
contains calcium – being calcium not a specific quality of that
brand but common to any brand). The label also cannot inform
therapeutic or medical properties or advise its consumption to cure
or prevent diseases.
Some of the claims not authorized by Brazilian laws for processed
foods are:
“pure product”, “natural product” and similar expres-
sions. The use of the word organic is allowed if previous-
ly authorized according to specific legislation.
“no additives”, “free of preservatives” and similar ex-
pressions;
“0% trans”, “free of trans-fat” and similar terms: those
can only be applied if the trans-fat content is 0% AND
the content of saturated fat is below 2%. This is a rec-
ommendation by ANVISA and is currently under discus-
sion in MERCOSUR to become stricter.
The table below presents the general minimum content of a bev-
erage or food product label, based on current ANVISA legislation
for food and beverage products (RDC 259/2002). As certain re-
quirements may change depending on the product, it is highly
recommended to analyze the legislation and the product PIQ
(Product Identity and Quality standards) before labeling the prod-
uct.
14 | Brazilian Food and Beverage Market Report 2012
Figure 6: Labeling legislation
Label / package information Explanation/ remark Examples
PA
CK
AG
ING
FR
ON
T P
AN
EL
Product denomination
(technical name)
- Product denomination is different from brand / name
of the product.
- Most products have a PIQ (Product Identity and
Quality Standards), which contains the product ac-
cepted denomination(s).
- Bolo de avelã com recheio
sabor chocolate (Hazelnut cake
with chocolate flavored filling)
Net content - In kilograms/ grams or milliliters/ liters
- Specific regulation on minimum font and numeral
size applies according to the size of the packaging.
- In case the imported original packaging has indica-
tions of measures not accepted by INMETRO in the
front panel, a special authorization must be requested
to allow this information to be included elsewhere.
- Peso líquido: 50ml
- Peso líquido: 500g
- Peso líquido: 1kg
PA
CK
AG
ING
SID
E O
R B
AC
K P
AN
EL
List of ingredients - Ordered by content of ingredient (from higher to
lower content).
- Products that contain only one ingredient (e.g. sug-
ar, coffee, milk, etc.) are exempt.
- Must be preceded by “ingredientes:” or “ingr.:”
- Use of fruits, water, additives and composed ingre-
dients follows specific legislation.
Ingredientes: Açúcar, ovo integral
pasteurizado, farinha de trigo
enriquecida com ferro e ácido
fólico, gordura vegetal, avelãs,
estabilizante lecitina de soja,
aromatizante.
Contains Gluten Should be informed nearby (preferably after) the list of
ingredients, in bold capital letters
CONTÉM GLÚTEN.
Manufacturer infor-
mation and country of
production
Information on the manufacturer (complete name,
address, etc.) and on the country of origin must be
included.
Fabricante: Swiss Company Ltd.
(add address details)
Origem: Suíça
Importer details Corporate name, address, CNPJ (company ID num-
ber) and phone number
Importado por: (company name)
Full contact details and CNPJ
Expiration date (produc-
tion date is optional)
Day/month: expiration date below 3 months
Month/year: expiration date over 3 months (may be
day/ month/ year)
- Validade: 20/06/2012
- Data de validade: 20/06/2012
- Val.: 20/06/2012
- Válido até: 20/06/12
- Consumir antes de: 20/06/12
Lot number Identified by the word: Lote or capital letter L Lote: 1234567
L 1234567
Preparation or use in-
structions
In case the product is not ready to consume and
requires preparation. Cooking or preparation instruc-
tions in Portuguese
Modo de preparo: Ferva 300ml
de água. Coloque o macarrão e
cozinhe por 3 minutos, mexendo
para soltá-lo. Apague o fogo,
adicione o tempero em pó ao
macarrão e misture bem.
Brazilian Food and Beverage Market Report 2012 | 15
Storage care In case the product needs special care to be storage
and conserved.
Conservar em local fresco, após
aberto consumir em 5 dias.
Nutritional facts - Must be given in terms of portion size and the por-
tion listing should include the “household measure-
ment” (e.g. cup, tablespoon, etc.).
- ANVISA establishes a specific order for the nutri-
tional facts and also regulates the measurements
used.
- The information on the nutritional facts versus the
product can vary 20% for more or less.
- If the products are sold bulk by weight in the super-
market and packed in front of the consumer, nutrition-
al facts do not need to be included.
Source: Nestlé, www.nestle.com.br
Source: Adapted from RDC 259/2002, ANVISA, www.anvisa.gov.br
4.2.4 Other food and beverage relevant legislation
Figure 7: Main important food and beverage related laws
Subject Treatment
Animal products regulations The import and commercialization of animal-origin products (beef, pork, milk, whey, lactose,
cheese, seafood, etc.) is subject to a number of procedures.
MAPA requires inspection by Brazilian federal agencies of the processing plants in the country of
origin. The inspection and the whole process need to be requested by the importer / subsidiary
or legal representative and concluded prior to shipment to Brazil or the goods will not be allowed
to enter the country.
ANVISA registration Some imported food and beverages under ANVISA jurisdiction must be registered. Request of
registration or exemption must be filed by the legal representative of the exporting company in
Brazil, a local subsidiary or the food importer (when there is more than one importer, each must
apply separately).
Registration is valid for 5 years and after this period the company must send a new request. The
registration fees vary depending on the company size. The exporter usually pays the fees or
shares costs with its importer / representative.
Food additives ANVISA defines food additives as any ingredient without nutritional benefits deliberately added
to food to modify its physical, chemical, biological and sensorial characteristics during any stage.
There are maximum limits for some additives and other restrictions depending on the product
PIQ and additional legislation.
16 | Brazilian Food and Beverage Market Report 2012
There is specific legislation for the use and labeling of flavors. Some products cannot be artifi-
cially flavored. When using flavors, be they natural or artificial, the flavor information should be
included in the front panel of the packaging, and the term to be used will depend on the purpose
of the flavor: taste reinforcement or taste definition.
Before exporting to Brazil, it is highly recommended to verify not only if the final product complies
with the current legislation but also its ingredients.
Functional foods To be considered functional a food or beverage product has to be approved by ANVISA, with the
proof of its benefits via scientific studies and further documentation.
The legislation also does not recognize the term “Nutraceutical” and so far there is no legislation
applicable to this category.
See more on functional foods on Chapter 4.3.
Organic foods In order to import organic products into Brazil the local company must follow the standard import
procedure for a conventional product, and depending on the product an import authorization
must be requested.
Additional documents will be required by the local authorities as organic products, either domes-
tic or foreign, must comply with the organic legislation in force: the product must be obtained
within an organic agriculture production system, come from a sustainable extraction process and
not be harmful to the local ecosystem.
The producer must be audited by one of the MAPA authorized certifiers.
Legislation in English can be found at:
http://www.prefiraorganicos.com.br/media/45792/lei_10.831_ingles.pdf
http://www.prefiraorganicos.com.br/media/45792/lei_10.831_ingles.pdf
See more on organics on Chapter 4.2.
Patents and trademarks The federal agency INPI (National Institute of Industrial Property) is responsible for registration of
patents, industrial designs, trademarks, geographic indications, among others.
Patents are valid for 15 or 20 years, depending on their nature. Trademarks are valid for 10
years, renewable for the same period.
Pesticides and other contami-
nants
Brazil follows international standards, in particular the CODEX. Maximum tolerance levels apply
for pesticides and imported products must comply with the same requirements as locally pro-
duced items.
Salt reduction The Ministry of Health and ANVISA have been working intensively on reducing salt levels on
several processed foods, establishing maximum salt content and timeframe for this goal to be
achieved.
Brazilian Food and Beverage Market Report 2012 | 17
Some of the products that are already obliged to reduce salt content over the next few years are:
chips, ready to eat cakes, bread, cake mix, biscuits, noodles, mayonnaise. This is expected to be
extended to a larger range of products, in particular those aimed at infants and adolescents.
Transgenic ingredients When more than 1% of the food / beverage formula is made with genetically modified ingredients
(for both human and animal consumption), the consumer must be informed of its transgenic
nature. The product package must contain the “T” symbol and the information on which ingredi-
ent is from a transgenic origin.
The example below shows a product (soy oil) identified with the transgenic information and the
“T” symbol in addition to the phrase “Product produced from transgenic soy”, as required by
ANVISA.
Source: transgenicos-ufrj.blospot.com
Source: Adapted from ANVISA, www.anvisa.gov.br
4.3 Import Procedures.
When importing food and beverage products to Brazil, the Brazili-
an importer is held liable in case of health risk to the consumer or
any problems caused by it.
All importers are required to register with the Brazilian International
Trade Secretariat (SECEX) and obtain import licenses (directly or
via private customs agents) before product shipment, depending
on the product. By entering the product and origin information on
SISCOMEX (Brazil’s automated import system) importers can
check whether the product needs a license prior to shipment and
which are the involved authorities in the granting of such licenses.
Usually food and beverage products require a license prior to
shipment and such licenses will be analyzed and issued by MAPA
and / or ANVISA.
In case the importer does not comply with the standards and regu-
lations pertaining to importation heavy fines apply. It is crucial that
all the paperwork is prepared according to Brazilian requirements.
Prior to the shipment, animal origin products must have their plant
in the country of origin registered and inspected by MAPA staff.
MAPA also approves labeling, quota and FPS controls. The regis-
tration and inspection process may take over one year.
In case of imports of alcoholic and non-alcoholic beverages that
are under MAPA’s jurisdiction, the importer must check if the la-
boratory or producer issuing the lab certificate is eligible to do so.
The importer must ascertain whether the Brazilian legislation al-
lows the commercialization of the product. It is important that the
list of ingredients is checked, to find out if all components are
allowed and within the tolerance limits. It is advisable that a regula-
tory affairs office with expertise in food and beverages is hired and
that the Product Identity and Quality standards (PIQ) are strictly
followed.
Labels must be translated into Portuguese and an adhesive sticker
can be used with the minimum required information (see Figure 6).
18 | Brazilian Food and Beverage Market Report 2012
This can be done either at origin or when the product is already in
Brazil, prior to its commercialization.
After the product formula is checked and the product complies with
the local legislation, the legal representative of the exporting com-
pany, its local subsidiary or the importer must request product
registration with MAPA or ANVISA or an official exemption from
registration. When the product is imported by more than one com-
pany, each of them must file their own application.
In order to request an Import License (LI), the importer must have
the proforma invoice. The import license (applied to some prod-
ucts) must be obtained prior to shipment.
The mandatory import documentation in Brazil includes: Bill of
Lading (B/L) or Airway Bill (AWB), Commercial Invoice, Packing
List, Certificate of Origin (when applicable), Certificate of Analysis.
Other documents required for the licensing process or on a Letter
of Credit might be needed.
Brazil, with the other MERCOSUR countries, uses the NCM
(MERCOSUR Common Nomenclature), which is formed by the 6-
first digits of the Harmonized System (HS) plus 2 additional digits.
Using the correct NCM code avoids problems with customs and
wrong taxation, as all taxes are based on the product NCM.
When arriving at Brazilian customs, the Declaration of Import (DI)
must be filled (electronically) as well as other procedures under-
taken by the custom agent hired. The SISCOMEX system random-
ly chooses shipments to undergo physical inspections, but most
imports receive the green light to clearance. MAPA and ANVISA
inspectors must perform a re-inspection if they believe it is neces-
sary.
4.4 Tariffs.
Brazil is a member of the MERCOSUR agreement, together with
Argentina, Paraguay, Uruguay and Venezuela (not a full member
yet). Those countries within MERCOSUR are usually exempt from
paying the import duty when trading with each other (in case of
products produced in the member countries with a minimum local
content). There is no free movement of imported goods within
MERCOSUR.
MERCOSUR has also trade agreements with other countries but
currently not with Switzerland. Imports from Switzerland and other
European countries pay the import duty, which can vary from 0%
to 30%, depending on the product. See the Appendix for a list of
current import duties for most food and beverage products.
The tax system in Brazil is basically tax on tax, which means that
taxes apply on top of other taxes, rather than only on the product
value. In practical terms, the Import Duty (II) is calculated on the
CIF price, and taxes such as Industrial Products Tax (IPI) and the
tax on the distribution of goods and services (ICMS) are applied in
a cascade, on top of the product value plus the tax.
The latter taxes are also paid by local companies and vary accord-
ing to the product NCM and state. It is advisable to consult with a
tax expert to understand the tax system and simulate the landed
cost of the product in order to check its competitiveness. Depend-
ing on the product NCM, the landed cost of a product can be up to
double its FOB price at origin.
Brazilian Food and Beverage Market Report 2012 | 19
5.1 Food and Beverage Industry.
The food and beverage industry is one of the key segments of the
Brazilian economy, being the leader in gross value, exceeding all
other industry segments and accounting for more than 18% of
national production, according to the Brazilian Institute of Geogra-
phy and Statistics (IBGE). The food and beverage industry is also
the biggest employer of Brazil, accounting for approximately 20%
of the total jobs.
While 75% of all foods produced in Brazil are for domestic con-
sumption, Brazil is also a relevant exporter. Its food trade volume
reached US$ 10 billion in 2011, with a heavy surplus: US$ 8.8
billion in exports (main products are sugar, meats, juices and
vegetable oils) and US$ 1.2 billion in imports (wheat and milk are
the main imported items).
When analyzing the period from 2007 till 2011, Brazilian imports on
foods and beverages have grown 102% in value and 8% in vol-
ume.
Figure 8: Brazilian food and beverage imports
Source: Adapted from Aliceweb, aliceweb.mdic.gov.br
The largest growth in imports in the period 2007-2011 was seen in
the beverage sector (Chapter 22 of the Harmonized System),
accounting with 374% in value terms and 860% in volume terms.
Processed foods, mainly from HS Chapters 16 to 21 have also
shown steady growth in the 5-year period, as seen on Figure 9.
Figure 9: Brazilian imports growth by HS Chapter
HS Chapter/ Description Growth
(value)
2007-11
Growth
(volume)
2007-11
02. Meat 147% 28%
03. Fish and Crustaceans 119% 61%
04. Dairy produce, eggs, honey 261% 159%
07. Edible vegetables and roots 143% 50%
08. Edible fruits and nuts 130% 75%
09. Coffee, tea, mate and spices 146% -5%
10. Cereals 30% -16%
11. Products of the milling industry,
malt, starches, inulin, gluten
79% 11%
12. Oil seeds, grains 64% -27%
13. Lac, gums, resins 56% 7%
15. Animal or vegetable fats and oils 128% 66%
16. Preparations of meat 229% 124%
17. Sugar and sugar confectionary 96% 70%
18. Cocoa and cocoa preparations 22% -45%
19. Preparations of cereals, flour,
starch or milk, pastrycooks’ products
181% 91%
20. Preparations of vegetables,
fruits, nuts
107% 91%
21. Miscellaneous edible prepara-
tions
106% 56%
22. Beverages, spirits and vinegar 374% 860%
Source: Adapted from Aliceweb, aliceweb.mdic.gov.br
Taking into account Brazil’s continental dimensions, it is not un-
common that large food producers set up distribution centers and
plants in different states, taking advantage of tax benefits, proximi-
ty to customers, possibility of producing regional products, etc.
Climate also affects the food and beverage industry to a large
extent. The North and Northeast are close to the Equator and have
high temperatures all year round, forcing producers to use refrig-
erated transportation and adapt their products to the local climate
conditions.
0
2'000'000
4'000'000
6'000'000
8'000'000
10'000'000
12'000'000
14'000'000
2007 2008 2009 2010 2011
Value US$ million
Volume (kg)
5. Food Industry.
20 | Brazilian Food and Beverage Market Report 2012
5.2 Organic and Natural Food.
According to research from IBO (Instituto Biodinâmico, 2010),
Brazil is one of the largest organics producers in the world, with
635 million hectares of land for the cultivation of organics, area
growing 30% on a yearly basis. There are over 90’000 companies /
farms operating with organic products in Brazil, but only 5’500 of
those are registered in the Ministry of Agriculture (MAPA, 2011).
Sales of organic certified products in Brazil grew 40% in 2010,
reaching R$ 350 million. Sales of perisible organic products (fruits
and vegetables, meat, etc) showed 16% growth in 2010 whereas
processed organic foods grew 24% in the same period. Market
sources estimate a continous growth of 20% to 30% per annum for
the next 5 years in sales of organic foods and beverages in Brazil.
Despite the fast growth rates in sales of organic foods and bever-
ages, such products have a very low penetration in Brazilian
households – estimated at less than 1%. Most Brazilian consum-
ers are still not aware of the benefits of organic products and are
not willing to pay the higher prices for a benefit they do not recog-
nize. There is, though, considerable space for growth in sales of
organic and natural products, driven by the increase in education
and income levels of the Brazilian population.
Figure 10: Organic Products in Brazil: Key Facts
Market size R$ 350 million in sales
(certified products)
Number of companies and
farms (certified and non-
certified)
90’000
Household penetration Less than 1%
Growth (2009 – 2010) 40% (certified products)
Main Distribution Channels Supermarkets (70-80%
of sales), specialized
shops, street markets
Pricing strategy Average 30% higher
than conventional prod-
ucts – up to 450% more
expensive for some
products.
Trends Health & well being
Source: Osec via desk research
The consumer of natural food and organic products in Brazil is
typically a member of the A and B classes, counting with a higher-
than-average income and educational level. The drivers are health
consciousness and food safety (concerns about the use of pesti-
cides and other potentially harmful substances) and environmental
concerns.
The most common organic processed products found in the su-
permarkets shelves in Brazil are biscuits, jam, tea, juices, rice,
olive oil, sugar, honey and coffee.
Figure 11: Organic Products in a Brazilian supermarket
Source: Pão de Açúcar, www.paodeacucar.com.br
According to MAPA, for a processed food or beverage to use the
organic denomination its industrialization process must comply
with strict regulations to assure that there is no contamination from
other production lines or products; the product’s ingredients must
be harmless to health and the product has to be made of at least
95% of organic ingredients. Products with lower percentage (at
least 70%) of organic ingredients can only be called “products with
organic ingredients”. Products that contain less than 70% of
organic ingredients cannot be sold as organics nor have any indi-
cation of organic on the package.
Legislation in place since 2011 requires that all organic producers
must be registered in the National Database of Organic Producers
from MAPA to be considered a certified organic producer and to
have the right to use the SISORG label (granted only to certified
organic producers) in the products. The producer has to comply
with a number of federal laws and specific production require-
ments defined by MAPA, including tracking of each ingredient used
Brazilian Food and Beverage Market Report 2012 | 21
in the product with proof of its organic origin. The certification
process and auditing has to go through one of the certifiers author-
ized by MAPA. Products with organic product claims that are not
registered are subject to penalties and withdrawal from the market
by the authorities.
To sell products as certified organic, producers must meet the
criteria that prohibit the use of pesticides, herbicides and chemical
fertilizers, monoculture farming, besides complying with labor and
environmental laws, undertake sustainable management of natural
resources and waste generated in the production and undergo
annual certification audits, as well as surprise visits from experts.
Figure 12: SISORG organic Label for registered producers
Source: MAPA, www.agricultura.gov.br
In the case of imported organic products, the same registration
and certification process is in place: the imported product must
comply with the same regulations as local producers. Even if the
imported organic product is certified in their country of origin, it has
to be again re-certified in Brazil following the Brazilian organics
standards.
The MAPA authorized certifiers for organic products in Brazil are:
ECOCERT (www.ecocert.com.br), IBD (www.ibd.com.br), IMO do
Brasil (www.imocontrol.com.br) and Tecpar (www.tecpar.br/cert/).
The legislation change in 2011 encouraged premium retailers such
as Pão de Açúcar (who buys organic products from more than 100
local and international producers) and Casa Santa Luzia to inter-
rupt imports of products from producers that were not able to
obtain the certification. According to market sources, imports of
such products were also drastically reduced as many international
organic producers were not willing to pay the certification costs
and go through the auditing – resulting in an impact of 10% lower
sales of organic products in retail.
Price of organic products is still an issue in Brazil. Researches
show that organic products can be up to 450% more expensive
than non-organic ones – the average is 30% more expensive.
Such high prices of organics in Brazil can be explained by the
extra costs generated by the lack of pesticides, higher production
risks, the certification and auditing process and the lower produc-
tion scale.
In the Southeast region, where most organic products are sold,
80% of such sales are via chained supermarkets. Other channels
include direct sales from the producer to the consumer (street
markets, for example) and shops specialized in natural and organ-
ic products such as Mundo Verde (www.mundoverde.com.br),
Biocarioca (www.biocarioca.com.br) and Bioé Orgânicos
(www.bioeorganicos.com.br).
There are also a number of online organic shops such as Quintal
dos Orgânicos (www.quintaldosorganicos.com.br), Vida Saudável
Orgânicos (www.vidasaudavelorganicos.com.br), Horta da Vovó
(www.hortadavovo.com.br), Sabor Natural
(www.sabornatural.com.br), Ecobio (www.ecobiosaude.com.br),
Loja Orgânica (www.lojaorganica.com.br), which sell organic fresh
and processed products with delivery all over Brazil.
Natural restaurants are also becoming more popular in Brazil, in
particular in the largest cities, generating opportunities for distribu-
tors of fresh organic fruits and vegetables as well as other organic
ingredients.
Figure 13: Specialized organic and natural products shop
Source: Mundo Verde, www.mundoverde.com.br
22 | Brazilian Food and Beverage Market Report 2012
5.3 Functional Food.
Functional foods are those that may provide health benefits be-
yond basic nutrition due to the presence of a physiologically active
component, counting with scientific evidence.
Today, light, diet and functional foods represent 6% of the total
production of foods in Brazil. Industry experts believe that in less
than 10 years, the functional foods will reach 15-20% of the sales
of processed foods. A study conducted in 2007 showed that 75%
of the 24 most sold food categories were somehow related to
health and that 44% of Brazilians of social classes A and B choose
their foods considering health aspects, the highest level in Latin
America.
Figure 14: Functional Foods in Brazil: Key Facts
Market size (2007) US$ 600 million
Number of functional products
registered with ANVISA
130
Household penetration Less than 1%
Growth (2009 – 2010) 20%
Share of functional foods in
total production of processed
foods
6%
Pricing strategy Premium, 20 to 100%
more expensive than
the traditional product
Trends - Health & well being
- Indulgence (eating
well without guilt)
- Attractive packaging
Source: Osec via desk research
There are mainly 4 product categories counting with functional
products: drinks, dairy, pastry and cereals. Examples of functional
products sold in Brazil are: margarines and milks that help reduc-
ing cholesterol levels and protect the heart against cardiac dis-
ease; yoghurts and drinks that help digestion flows, soy and dairy
based products with calcium aimed at osteoporosis (those not
considered as functional by ANVISA), amongst others. There are
more than 130 products registered in Brazil as functional.
Figure 15: Unilever’s functional line of products Becel
Source: Unilever, www.unilever.com.br
The segment is dominated by dairy products, in particular yoghurts
– a segment dominated by Danone and Nestlé. Launched in 2004,
the Activia and Actimel lines by Danone are the greatest success
of the company in Brazil, and helped Danone reach the leadership
in this segment. Today’s 30% of Danone’s sales in Brazil come
from the Activia line and its sales are growing by impressive rates
of 50% per year. There is still room to grow, as the per capita
consumption of yoghurts (functional and non-functional) is only
5kg per year, while Argentineans consume 10kg and the French
35kg.
Danone gained share with its Activia line with a strong market
campaign showing its benefits and asking consumers to claim the
money spent back if they were not satisfied with the results. Alt-
hough this is a common strategy in European and American mar-
kets, for Brazil it was quite daring, and the results proved that the
company was right: market share increased and only 0.02% of
consumers claimed their money back.
Figure 16: Danone’s enriched calcium yoghurt
Source: Danone, www.danone.com.br
To gain relevance in this market, food companies in Brazil started
to use strategies of pharmaceutical companies, straightening
relationship with doctors and nutritionists and even partnering with
Brazilian Food and Beverage Market Report 2012 | 23
pharma laboratories for research and joint health seminars and
events for doctors. The scientific evidence is not only used for
ANVISA’s registration purposes: usually companies use the results
in their marketing materials, in order to show to the consumers the
products benefits and persuade them to pay the premium. Com-
panies like Danone use real customers to tell in their adverts that
the product works and how it helped them.
Since 1999, ANVISA started to monitor the functional foods trend,
and created a specific commission to monitor and analyze this
segment. In order to be called functional, ANVISA requires a num-
ber of documents (detailed in the legislation), a technical / scien-
tific report including evidence of the product benefits and its safety.
One important remark is that ANVISA does not use the term
“Functional Food” but “Food with Functional Quality Claim”. The
legislation also does not recognize the term “Nutraceutical” and so
far there is no legislation applicable to this category.
Products with functional claims (previously authorized by ANVISA)
also have to include other information in the packaging, depending
on the health benefit claimed – usually a phrase recommending a
healthy diet and healthy lifestyle to the consumer. Claims of cure
or sickness prevention are not allowed.
Figure 17: Functional ingredients allowed by ANVISA
Ingredients with Functional Quality Claim allowed by ANVISA
(each group follows specific requirements)
Carotenoids (Lycophen, Lutein, Zeaxanthin)
Dietary Fiber (B-glucans, Resistant Dextrin, Fructooligosaccharides
(FOS), Inulin, Psyllium, Guar Gum, Polydextrose, Cytosan, Lactu-
lose)
Fatty Acids Omega 3
Phytosterols
Polyol (mannitol, xylitol, sorbitol)
Probiotics (Lactobacillus acidophilus, Lactobacillus casei shirota,
Lactobacillus paracasei, Lactococcus lactis, Bifidobacterium bifidum,
Bifidobacterium animallis, Bifidobacterium longum, Enterococcus
faecium)
Soy protein
Source: Adapted from ANVISA, www.anvisa.gov.br
Brazilian authorities are very strict about advertising the potential
benefits of such products and Danone and other players had to
modify their adverts a few times as they were too explicit about
benefits that were not proven or giving the impression that the
product would solve health problems. Danone’s low sodium water,
Bonafont, although not considered functional, also had problems
with the authorities and had to modify its campaign in order to
avoid giving the idea that the water would assist in losing weight.
Giving the success of brands like Danone, the higher margins and
the growth rates of functional foods in Brazil, it is expected that
many new functional products will be launched during the next few
years. The increase in the population over 60s (11.3% of Brazili-
ans) and the increase in life expectancy will also encourage
launchings in the functional foods segment. Today, most functional
foods in Brazil are aimed at women over 30.
Brazil has seen considerable growth in obesity rates – it is esti-
mated that around 40% of Brazilians are overweight and many
have a lifestyle that includes consumption of fast food, products
rich in sugar, fats and salt, and sedentariness, increasing the risk
of chronic diseases such as diabetes, coronary heart disease as
well as stress. It is expected that some of the new developments
focus on the most common diseases seen in the Brazilian popula-
tion.
Figure 18: Main diseases in Brazil
Disease % of Brazilian
population
Obesity and overweight 40% to 50%
Diabetes 6%
Hypertension 14% to 25%
Back problems 13,5%
Heart disease 4%
Asthma or bronchitis 5%
Stress 50%
Constipation 20%
Osteoporosis 5%
Gastro esophageal reflux 12%
Depression 9%
Source: Osec from desk research
24 | Brazilian Food and Beverage Market Report 2012
5.4 Processed Food.
Processed food is a very promising segment in Brazil and it has
grown significantly over the last years: for some categories at 2-
digit growth rates. Between 2009 and 2013, experts believe that
the market size of some packaged food, such as dairy products,
snack bars, ice cream, confectionery, and bakery goods are ex-
pected to grow by 86.2%, 75%, 55.4%, 51.9%, and 39.4%, respec-
tively.
The main drivers of growth are the higher income levels of the
Brazilian population and the need for easy-to-consume products,
due to the changing lifestyle of Brazilians in urban areas. The
majority of processed foods are sold via supermarkets and spe-
cialty stores.
In terms of industry capacity, Brazil has a well-developed food
processing industry with almost 50’000 plants, supplying the com-
plete range of processed foods. Most of them are locally produced
yet imports are growing year by year – mostly on more sophisti-
cated and premium products.
In the food processing industry there are manufacturers of all
sizes, but around 20% of the production is done by large compa-
nies, with more than 500 employees. 43% of the production comes
from medium companies (from 100 to 499 employees) and the
remaining from small enterprises.
One of the reasons that Brazil has a large industrial base for pro-
cessing foods is due to the fact that for many years, until the
1990s, Brazil was highly protective in terms of imports / market
access, and multinationals had to install their plants in Brazil if they
wanted to enter the market. Today, the multinationals account for
over a third of the food processing industry. Companies such as
Nestlé, Bunge, Unilever, Cargill, Danone and many others are
responsible for some of the bestselling products in Brazil. Brazil
also has large national food processors, such as Brasil Foods,
Hypermarcas, etc.
There are production plants all over Brazil, but most of them are
concentrated in the Southeast region. With increase in income and
consumption in the Northeast of Brazil, many food processors are
now opening new plants and distribution centers to supply the
region, develop regional solutions and save on logistics.
The best sellers are meat products, fats and oils, dairy products,
beverages and sugar but segments such as snacks, biscuits and
ready meals are also showing high growth rates.
Brazilian companies dominate the processing of meat products
and milk – Brasil Foods and JBS are the main players and multina-
tional companies such as Nestlé, Unilever and Danone are leaders
in several segments such as ice-cream and yoghurts, while Bunge
and Cargill are leaders in cooking oil.
In terms of opportunities for Swiss companies, all mentioned sec-
tors present good potential, either for the processed food itself, or
for ingredients and additives, packaging solutions and laboratory
equipment and machinery. The main challenge for the processed
food players is to produce healthier products without losing their
characteristics such as flavor and texture. The additives and ingre-
dients industry will have to develop solutions to tackle this issue.
Opportunities also arise in the development of packaging solu-
tions, as producers of processed foods are looking for lower cost
materials and consumers for convenience, single portions and on-
the-go. The challenge is to find the balance between those two
needs.
5.4.1 Bakery (including biscuits)
Bakery products include biscuits, cakes and breakfast cereals.
With the increase in consuming power, the three products have
showed good performance in terms of sales in 2009 / 2010. Bis-
cuits grew by 7% in value, breakfast cereals showed 16% growth
and cakes sales rose approximately 13% in 2010.
The main players in this segment are Pandurata Alimentos, under
its brand Bauducco, with operations in cakes and biscuits; M Dias
Branco with 4 main brands is the leader in biscuits, competing with
multinationals such as Nestlé, and with a large advantage in the
Northeast of Brazil. For breakfast cereals, Kellogg Brasil is the
leader with over 40% share, but feeling the pressure from other
Brazilian players.
Biscuit is the product with the higher household penetration, reach-
ing 99% of all Brazilian homes. Manufacturers are investing in new
products and marketing in order to increase consumption and
purchase frequency. There are also opportunities for higher quality
biscuits, including cookies (sales grew by almost 30% in 2010),
chocolate covered biscuits, biscuits with added fiber and
wholegrain and individually packed, in line with the trends of
Brazilian Food and Beverage Market Report 2012 | 25
indulgence, health and convenience. The segment depends great-
ly on wheat, fat and sugar prices.
Brazil mainly imports biscuits and other baked goods from Argenti-
na, Germany and Italy; imports have grown 45% in value and 37%
in volume in 2011. Those are mainly premium biscuits and cakes
for specialized shops and supermarkets.
Figure 19: Premium cake made in Brazil
Source: Casa Suíça, www.casasuica.com.br
Figure 20: Bakery goods in Brazil: Key Facts
Market Size (2010) Biscuits: US$ 7 billion
Cakes and other baked goods:
US$ 20 billion
Breakfast cereal: US$ 450 million
Household Penetration Biscuits: 99%
Cakes and other baked goods:
99%
Breakfast cereal: 13%
Growth in value terms
(2009 – 2010)
Biscuits 7%
Cakes and other baked goods:
13%
Breakfast cereal 16%
Main Distribution Channels Supermarkets
Pricing strategy There are brands for every pocket.
The increase in consumption of
premium biscuits, mainly imported,
show that there are opportunities
for higher quality products.
Market Leaders Biscuits: M Dias Branco
Cakes: Pandurata (Bauducco)
Breakfast cereals: Kellogg
Trends Health & well being
Indulgence
Convenience
Source: Osec from desk research
5.4.2 Cheese, yoghurt and ice-cream
Cheese, yoghurt and ice-cream have shown growth in 2010;
cheese grew by 9% in volume terms, reaching US$ 7 billion in
sales, yoghurt grew 31%, reaching US$ 3.5 billion and ice-cream
rose by 28%.
Dairy producers are investing in research and development in
order to get ahead in the market with innovative solutions and
healthier products, such as low fat and with added vitamins – with
the challenge of keeping the product’s flavor and texture. Despite
Brazil’s large production of milk, the product prices are subject to
climate changes and during certain periods of the year, they in-
crease up to 20% for the end consumer.
The leader brand in cheese is Polenghi Indústrias Alimentícias,
with a share of 10%. The segment has a large number of players,
and despite the rigid controls of MAPA, there are still a large num-
ber of unregistered companies operating with cheap products with
no food safety.
Brazil’s imports of cheese come mainly from Argentina, Uruguay,
Netherlands, France, Italy and Switzerland and have grown 99% in
value terms and 77% in volume terms in 2010 / 2011.
Figure 21: Premium cheese from Brazilian producer
Source: Hippo Supermarket, www.hippo.com.br
26 | Brazilian Food and Beverage Market Report 2012
Yoghurt is considered a star product for supermarkets: over the
last five years, it has grown at impressive rates and in 2010 grew
by over 30%. This is one of the first products that a consumer adds
to the shopping list when additional income comes in. Still many
Brazilians see yoghurt as a dessert rather than a healthy product,
but this has been changing since the launch of the Activia line by
Danone, which rapidly achieved market leadership, despite its
higher prices (approximately 30% more than traditional yoghurts).
Imports of yoghurt are minimal, as Brazil has large players with
local production that supplies the domestic market.
The ice-cream market is dominated by Unilever and Nestlé, with
scattered players selling lower cost products in general. Ice-cream
sales grew by 5% in 2010, and one player performed particularly
well: General Mills, with its premium imported brand Häagen Dazs,
which also encouraged Nestlé and Unilever to launch premium
versions of their ice-creams. Imports of ice-cream come mainly
from Argentina and France.
Figure 22: Dairy goods in Brazil: Key Facts
Market size (2010) Cheese: US$ 7 billion
Yoghurt: US$ 3.5 billion
Ice-cream: US$ 2 billion
Household penetration Cheese: 80%
Yoghurt: 31%
Ice-cream:28%
Growth in value terms
(2009 – 2010)
Cheese 9%
Yoghurt:30%
Ice Cream: 5%
Main distribution channels Supermarkets
Pricing strategy All types of price - compa-
nies are focusing on
launching value-added
products
Market leaders Cheese: Polenghi
Yoghurt: Danone
Ice-cream: Unilever
Trends Health & well being
Indulgence
Convenience
Source: Osec from desk research
5.4.3 Chocolate
Chocolate confectionery performed very well in 2010, with in-
creases of 17% in current value and 7% in volume terms, account-
ing with sales of US$ 4 billion. Brazilians are now consuming three
times more chocolate than in the 1980s and now rank fourth in the
world in terms of per capita consumption.
Figure 23: Chocolate in Brazil: Key Facts
Market size (2010) US$ 4 billion
Household penetration 70%
Growth in value terms
(2009 – 2010)
17%
Main distribution chan-
nels
Supermarkets
Pricing strategy Premium and seasonal
chocolate are usually over-
priced and bring extra
margins
Market leaders Nestlé / Garoto and Kraft
(90%)
Trends Indulgence
Convenience
Source: Osec from desk research
Chocolate is a very seasonal product, and most sales are concen-
trated in Easter and Christmas. Seasonal chocolate and chocolate
with toy products achieved the strongest growth in 2010, growing
21% according to Euromonitor.
Chocolate is very dependent on raw material prices, as usually
90% of a chocolate price comes from inputs. Cocoa butter prices
went down in 2011 and many chocolate producers are now shifting
from equivalent fats to cocoa butter in their product formulas.
The leader brand in chocolate is Nestlé / Garoto, with Kraft foods
coming second. There are also other relevant players, such as
Argentinean Arcor, which has increased recently its plant capacity
in Brazil and decided to redirect its focus on the chocolate busi-
ness.
Brazilian Food and Beverage Market Report 2012 | 27
Figure 24: Arcor’s chocolates produced in Brazil
Source: Arcor, www.arcor.com.br
Premium chocolate is becoming more affordable to Brazilians,
although still most of the chocolate consumed in Brazil is actually
compound (a similar product with little cocoa content and added
vegetable fat). The growth of brands such as Kopenhagen and
Cacau Show, with their dedicated chocolate shops providing better
quality products, has encouraged other large players to launch
special editions and more premium recipes, including dark choco-
late with high cocoa content.
The Brazilian taste, still, is not keen on dark chocolate, but usually
perceives Swiss milk chocolate as very good.
Brazilian imports of chocolate rose by 24% in value terms and 8%
in volume terms in 2011. The main origins are Argentina, Belgium,
Switzerland, Italy and the US.
5.4.4 Frozen meals
In the Brazilian main cities, many households are formed by cou-
ples that work, leaving less time to cook during weekdays. Maids
are becoming more expensive and rarer, so frozen meals are
occupying the space before taken by homemade food.
Microwave ovens are now present in over 32% of Brazilian house-
holds and with prices becoming more affordable, it is expected that
many more families purchase their first microwave in a short time,
also benefiting the frozen meals segment.
The Brazilian frozen meals segment grew 20% in 2011, reaching
sales of US$ 540 million.
Figure 25: Frozen Meals in Brazil: Key Facts
Market size (2010) US$ 540 million
Household penetration 19%
Growth in value terms
(2009 – 2010)
20%
Main distribution channels Supermarkets
Pricing strategy Frozen meals are still
expensive for most Brazili-
ans. Smaller players are
entering the market with
lower cost items.
Market leaders BRF (Sadia / Perdigão)
Trends Indulgence
Convenience
Source: Osec from desk research
The market is dominated by Brasil Foods (BRF) with the brands
Sadia and Perdigão. Compared to European countries and the
US, the assortment of frozen meals available in Brazil is small, and
most sales are concentrated in frozen lasagna.
Figure 26: Supermarket alley with frozen foods
Source: Veja, www.veja.com.br
Imports of frozen meals are not relevant; all players are located in
Brazil and producing for the domestic market and exporting. There
are opportunities in terms of increasing options assortment but
pricing is a key issue, as even the locally produced meals are
already expensive for most Brazilians. With Brazilians looking for
more healthy products, there are opportunities for suppliers of food
additives to be incorporated into the frozen meals, replacing or
compensating the lower levels of salt and fat.
28 | Brazilian Food and Beverage Market Report 2012
5.5 Beverages.
Brazil has one of the largest beverage industries in the world, both
for soft drinks and alcoholic beverages. Sales of beverages in
Brazil have performed well in 2010, in particular in segments such
as energy drinks, beer, carbonates and juices.
According to industry experts, the most promising products in the
beverage business for the next 5 years are:
Energetic and sports drinks (development, flavors, pack-
aging on the go)
Coffee and chocolate cold drinks
Yoghurt with added juice
Probiotic drinks
Soy and rice based drinks
Vitamin, fibers and minerals enriched waters
Flavored waters
Ice teas
Sales of alcoholic drinks correspond to 20% of the beverage in-
dustry, mainly concentrated in beer. Carbonates, juices and other
non-alcoholic drinks except hot drinks and dairy correspond to
53% of the Brazilian market.
Figure 27: Share of beverage categories
Source: ABIR, www.abir.org.br
5.5.1 Non-alcoholic beverages
As seen in other food products, the increase in the income of
Brazilians is boosting consumption of non-alcoholic beverages and
all subcategories have seen growth in 2010, as seen in the graph
below.
Figure 28: Consumption of non-alcoholic beverages
Source: ABIR, www.abir.org.br
The Brazilian non-alcoholic beverages’ revenue in 2010 reached
US$ 28.7 billion, US$ 15 million coming from carbonates. Reve-
nues are expected to reach over US$ 40 billion by 2016.
Figure 29: Non-alcoholic drinks in Brazil: Key Facts
Market size (2010) US$ 28.7 billion
Household penetration 99%
Growth in value terms
(2009 – 2010)
13%
Main distribution channels Supermarkets and foodser-
vice
Pricing strategy There are all prices for non-
alcoholic beverages. Food-
service usually gains 100%-
200% in margins
Market leaders Coca-Cola, AmBev,
Unilever
Trends Convenience
Indulgence
Source: Osec from desk research
This sector is dominated by global brands such as Coke and
Pepsi, but there are also significant share of local brands, notably
Guaraná. Brazil is the third country in the world in carbonates
consumption, with 86 liters per capita, just behind the USA (198
liters) and Mexico (147 liters). Diet / light carbonates correspond to
over 10% of the total volume consumed in Brazil.
Bottled water is another category that has been showing impres-
sive growth and revenues in 2010 reached US$ 5.9 billion.
Brazilian Food and Beverage Market Report 2012 | 29
Juices and soy drinks
Sales of juices showed growth of 53% between 2006 and 2010 –
Brazil is the 11th country in the world in volume, having sold 1.52
million liters in 2009.
Brazil has still space to grow in premium juices, as 87% of juices
sold are juice drinks (juices with water and sugar added and a very
low concentration of fruit, usually 20%), while 8.7% are for nectars
(75% of juice) and only 4% are for 100% fruit juices. As it happens,
sales of nectar and 100% fruit juices are growing at a much faster
pace than juice drinks.
Soy drinks are also a fast growing category: between 2002 and
2007, consumption grew from 51 million liters to 175 million liters
and continued growing by 20% per year. The main challenge for
soy drinks and ingredient producers is to reduce the aftertaste and
improve flavor and viscosity. Market leaders in this segment are
Unilever (70% share) and Nestlé, but those also face increasing
competition from local players. There is little importation in the soy
drinks category, 99% of products sold are made in Brazil.
Energy Drinks
Energy drinks have been showing the largest growth of all non-
alcoholic beverages. From 2006 to 2010, energy drinks have
grown 325% in sales. This was driven by the income growth ena-
bling more Brazilians to buy such products.
Even with the fast growth, the category has a small share of the
total sales of beverages: 87 million liters per year out of a total of
72 billion liters.
With the impressive growth shown over the last few years, many
new brands entered the Brazilian market with energy drinks –
specialists estimate over 100 brands being sold in supermarkets,
bars and gyms. The leading brands are Red Bull, Burn and Gladia-
tor (Coca-Cola), Flying Horse, TNT and Flash Power. Despite
market growth, the multinationals are losing share to Brazilian
producers – Red Bull had 60% of the energy drinks market in 2005
and today its share is reduced to 40% - which made the company
start planning to launch their energy drink in pet bottles, in order to
attract consumers from the C class.
Although most sales of energy drinks are in metal cans, pet bottles
already represent 8% of sales and are expected to keep growing.
Figure 30: Local brand of energy drink in Brazil
Source: TNT, www.tntenergydrink.com.br
5.5.2 Alcoholic Beverages
The value of the country’s alcoholic drinks industry was US$ 16
billion in 2010. This segment is expected to grow significantly in
the next few years and forecasts suggest that the value of the
alcoholic drinks industry could reach US$ 18 billion in 2013.
Figure 31: Alcoholic Beverages in Brazil: Key Facts
Market size (2010) US$ 16 billion
Household penetration 82%
Growth in value terms
(2009 – 2010)
7%
Main distribution channels Supermarkets and food-
service
Pricing strategy There are all prices for
alcoholic beverages.
Foodservice usually
gains 100%-200% in
margins
Market leaders Coca-Cola, AmBev,
Unilever
Trends Convenience
Indulgence
Source: Osec from desk research
Alcohol sales in Brazil have been affected by strict new drink &
driving laws implemented in the country in June 2008. The new
law includes tougher penalties for transgressors and lower allowed
alcohol limits, and has prompted several of Brazil’s leading brew-
30 | Brazilian Food and Beverage Market Report 2012
ers to increase the volume of production of a low-alcohol alterna-
tive – sales of non-alcohol beer are growing on a 30% rates per
year since the law was introduced. Also, sales of alcoholic bever-
ages in supermarkets grew at faster rates than in the foodservice.
Beer
With an annual consumption of 50 liters per capita – half the
consumption in Germany, Brazil is the fourth market for beer in
the world, accounting for sales of 10 billion liters in 2010. Sales
of beer in Brazil grew 18% in 2010.
Figure 32: Beer alley at local supermarket
Exame, www.exame.com.br
Most of the beer sold are conventional lager beer, but premium
beers, priced 20% to 100% more than conventional beers, are
gaining market and today account with 5% of share. This seg-
ment includes beers produced locally and imported brands.
Brazil has also increasing sales of super premium beers, priced
more than double the price of conventional beers, accounting
with a share of 0,5% - those are imported ones and also beers
produced in small local breweries.
It is expected that the premium segment reaches 8% of share
and the super-premium 0.8% in 2014.
Wine
The wine industry in Brazil started in the 1800s and is largely
dominated by family-owned businesses, mostly in the South and
Southeast regions. Despite Brazil’s continental size, the country is
only the fifth producer of wine in the Southern Hemisphere. The
local wine industry has been showing consistent growth both on
the domestic and export markets.
Per capita consumption is still very low when compared to Euro-
pean countries and even neighbors such as Argentina and Chile.
Brazilians consume 1.85 liters of wine per capita per year, a very
low quantity when compared to countries such as France (45
liters), Switzerland (40 liters) and Chile (14 liters), according to the
Wine Institute.
Thanks to higher incomes and a favorable exchange rate, con-
sumption of imported wines is growing each year. Most imports
come from Argentina, Chile, Uruguay, France, Italy and Portugal.
Figure 33: Wine at local supermarket
Source: Veja, www.veja.com.br
5.6 Private Labels.
Present in Brazil since the 1970s, private label food products
(products sold in stores with the store’s own brand, produced by
third party manufacturers) have been shifting over the last few
years from commoditized foods such as rice, beans, flour and
coffee to more elaborated products, with higher investment in
innovation, quality and flavor. Sales of private labels on basic
foods are still quite high, but more added value products such as
biscuits, yoghurt, olive oil, etc., are growing faster in this segment.
Differently from European rates, which can be as high as 50%,
sales of private label food products on total sales of food in Brazil
are around 7%, with considerable room to grow. According to
industry sources, beverage on private label is the bigger chal-
lenge, in particular for alcoholic drinks: Brazilians are usually loyal
to beer brands as well as soft drinks and supermarket brands are
perceived as low quality.
Brazilian Food and Beverage Market Report 2012 | 31
All the large supermarket chains in Brazil, including cash & carry
stores, have their own brands in many different product categories.
Private label food and beverage correspond to 50% of sales of
total private label products.
Although usually perceived by the Brazilian consumer as low-
quality low-price, private label food products have been showing
consistent growth in sales on all social levels of the income pyra-
mid. Investment in research, package and quality improvement are
leading to better products, mostly locally produced. Imports of
private label, in particular by international supermarket chains,
such as Carrefour, Walmart, Makro and Grupo Pão de Açúcar
(Casino) are also gaining space in their shelves. Those products
present higher prices and usually are perceived as higher quality
by the consumers and can be as varied as Thai rice, fine biscuits,
jam, chocolates and sauces.
Many of the imported private label products compete directly with
local and imported brands but usually have a premium appeal and
higher prices. A chocolate by Casino (sold at Grupo Pão de Açú-
car’s stores) is priced double the price of a similar chocolate made
in Brazil.
Figure 34: Casino brand product sold in Brazil
Source: Pão de Açúcar, www.paodeacucar.com.br
Private label is thus migrating from cheaper and low-marketing
products to more elaborated and innovative products. One key
example is the brand Taeq, from Grupo Pão de Açúcar, which has
benefited from investments in flavor, quality, packages and innova-
tive ingredients. Most supermarket chains are also investing heavi-
ly in their lines of products with a healthy appeal, including vita-
mins, reduced sugar / fats and wholesome grains. The three larg-
est supermarket chains of Brazil, Walmart, Carrefour and Grupo
Pão de Açúcar have their health oriented private label brands.
Figure 35: Walmart line of healthy products
Source: Walmart Brasil, www.walmart.com.br
Figure 36: Private label for food and bev in Brazil: Key Facts
Market Size US$ 500 million
Number of private label brands
(food and beverage only)
15’000
Household Penetration 50% (food only)
Growth (2009 – 2010) 21% (total private
label, including food
and beverage)
Share of private label food products
on total supermarket food sales
7%
Pricing strategy 10% to 30% lower
prices than reference
products (except for
imported private label
products)
Trends - Health & well being
- Indulgence
- Products with simi-
lar or higher quality
than reference
brands
- Attractive and con-
venient packaging
Source: Osec via desk research
There are over 15’000 private label food and beverage products in
Brazil.
According to market studies conducted by Nielson, the largest
sales volume in private label food products are (in order of im-
portance): milk, vegetable oils, sugar, rice, biscuits, yoghurt, frozen
32 | Brazilian Food and Beverage Market Report 2012
meat, bread and cakes. Other relevant private label products seen
on the market are vegetable preserves, tomato sauce, condensed
milk, powdered beverages, ketchup and margarine.
For the supermarket chains, the private label usually brings higher
margins as the manufacturers usually do not pay the contract fees
mandatory for other suppliers and do not need to add marketing
and research investments to the basic product price, as usually the
private label is a “me too” product of a well-known brand.
Supermarket chains like Walmart, Carrefour and Grupo Pão de
Açúcar have invested heavily in their private label products. Pão
de Açúcar has invested almost R$ 20 million in private label devel-
opments and built a private label innovation laboratory; one of their
supermarkets has a sensorial analysis area for tests with consum-
ers of their products against reference brands.
Figure 37: Key players & brands in private label in Brazil
Players Main Food
Brands
Food products/ Facts
Carrefour
Carrefour
1’000 private label food prod-
ucts, including basic foods
and other products such as
olive oil, yoghurts, cereal bars,
frozen meals
Viver
More than 300 healthier prod-
ucts, such as light, diet, or-
ganic, functional and soy
based.
Grupo
Pão de
Açúcar
Qualitá
Rice, beans, coffee, eggs,
yoghurts, biscuits,
More than 800 products in
their 5 supermarkets
Taeq
Healthy and natural products
(more than 1’000 brands
aimed at life quality). Sales of
Taeq products grow at a rate
of 15% per year.
Club des
Sommeliers
Wines, mainly imported.
Casino
Premium products in catego-
ries such as biscuits, choco-
lates, jam, sauces, etc.
Makro Aro and M&K
Food and beverage products
in general (several categories)
Baldaracci
Seasonal products, such as
panettones, Easter Eggs
Walmart Bom Preço/
Great Value
Large assortment of foods
and beverages with discount-
ed prices
Sentir Bem Healthy products
Source: Osec from desk research
There are many food and beverage private label producers in
Brazil, some are specialized in this segment, others are well
known brands which also produce for supermarkets in order to
diversify its business / risks and reduce plant idle capacity.
Figure 38: Private label manufacturers
Players (Manufacturers) Customers Products
Emifor Alimentos
www.emifor.com.br
Carrefour,
Walmart
120 products
(chocolate powder,
cake mix, powder
juices, etc.)
Village Cepam
www.villagecepam.com.br
Carrefour,
Walmart,
Makro,
Grupo Pão
de Açúcar
and large
industries
such as
Nestlé
Biscuits, cakes,
Easter eggs, etc.
Cinalp
www.cinalp.com.br
Carrefour,
Makro,
Grupo Pão
de Açúcar,
etc.
Powdered choco-
late
Predilecta
www.predilecta.com.br
Sauces, jams,
powdered choco-
late, condiments,
etc.
Source: Osec from desk research
Researches conducted by GS&MD with consumers have shown
that still 45% of the Brazilian consumers value the brand when
buying a product in the case of foods. It’s one of the highest rates,
Brazilian Food and Beverage Market Report 2012 | 33
only behind medicines. More than 70% of consumers buy a private
label product due to its lower price and 46% usually buy when they
receive a free sample or a tasting at the point of sale. In the North-
east, the rejection rates to private label foods are much lower than
in São Paulo and the Brazilian South. Consumers are usually less
loyal to private label brands.
5.7 Foodservice / HoReCa.
Foodservice is defined as the sale of food and drinks for immedi-
ate consumption either on the premises from which they were
bought or in designated eating areas shared with other foodservice
operators (for example in shopping centers). It also includes take-
away transactions. The HoReCa channel accounts for hotels,
restaurants and catering and for the purpose of this report will be
considered within foodservice.
The industry is broken down into four segments:
Cafes & Restaurants (cafés, pubs, bars, full service res-
taurants, hotels and retail locations)
Fast-food (quick service restaurants, takeaways and lei-
sure locations such as cinemas)
Other (nightclubs, sales on transportation)
Cost (provided by employers, government, etc.)
The foodservice sector in Brazil has performed very well over the
last 10 years: showing two-digit growth and revenues of R$ 89
billion in 2011, a growth of 17% when compared to 2010. The
industry estimates over R$ 100 billion in revenues for 2014. The
segment Cafés & Restaurants is the largest of the Foodservice
industry in Brazil, accounting for 68.3% of the industry's total val-
ue.
Figure 39: Foodservice in Brazil: Key Facts
Market Size R$ 89 billion
Number of restaurants in Brazil Over 2 million
Expenditure with Foodservice
(eating out)
31% of total consumer
expenses on food
Growth (2010 – 2011) 17%
Pricing strategy There are many types of
outlets and each category
has a different pricing
strategy.
In terms of B2B, chained
restaurants that require
constant innovation by
their suppliers also tend to
pay a premium prize on
the products bought.
Large chains also pay
extra for increased food
safety and supply
guarantee.
Trends Indulgence
Convenience
Source: Osec from desk research
The impressive growth was boosted by a number of drivers:
a) Increase in purchasing power
b) Need for convenience – lower unemployment rates and
the increasing presence of women in the workplace in
particular in big centers
c) Growth in tourism and traveling within Brazil
d) Increasing number of shopping centers
Food experts expect a growth of 15% in 2012 and continuous two-
digit growth rates over the next few years, also motivated by the
two global sports events in 2014 and 2016 (World Cup and the
Olympic Games).
Growth in the foodservice is seen all over Brazil. In terms of vol-
umes and values, the city of São Paulo is the undisputed leader.
Brazil’s biggest city has 13’000 restaurants, 15’000 bars and over
3’000 bakeries. The average paulistano spends R$ 27 per day on
eating out. This is the highest value of Brazil. Statistics from IBGE
show that Brazilian families in urban areas spend on average 33%
of all their food-related expenses in the foodservice industry
(17.5% in rural areas).
Although foodservice grew in all categories, chained establish-
ments registered the most dynamic performance in terms of the
number of outlets and transactions. In general in big cities like São
Paulo and Rio de Janeiro, chained establishments (full service or
quick service restaurants) offers lower prices when compared to
other independent restaurants, and affordable by the consumers of
classes A, B and C. Many of the chained restaurants have an
aspirational appeal to the consumer of class C as well. Many of
the chained restaurants are located in shopping centers, a sector
that is also growing fast in Brazil, both in large and medium cities.
34 | Brazilian Food and Beverage Market Report 2012
A small number of companies dominate the Foodservice scenario
accounting for more than 50% of sales: McDonald’s (in Brazil, run
by Argentinian Arcos Dorados), Al Saraiva Empreendimentos
Imobiliários e Participações (Habib’s and Ragazzo), Brazil Fast
Food Corp (Bob’s and Pizza Hut), Restpar Alimentos (Giraffa’s),
International Meal Co (Viena, Frango Assado and Brunella) and
Subway. All those companies / brands have similar strategies:
affordable prices, combos, constant investment in new products
and innovations and aggressive marketing campaigns in televi-
sion. Those companies are present all over Brazil, mainly in cities
over 100’000 inhabitants.
Figure 40: Foodservice in Brazil: main players
Company/ Brand Name Number of
restaurants
Mc Donald’s (Arcos Dorados) 677
Subway 600
Bob’s (BFFC) 500
Habib’s / Ragazzo (Saraiva) 340
Giraffas 305
Burger King (3G Capital) 140
International Meal Co (Viena,
Frango Assado, Brunella)
98
Source: Osec from desk research
With pressure on chains like Mc Donald’s by authorities and on an
attempt to attract more consumers, the fast food chains are invest-
ing in healthier solutions and requiring efforts of their suppliers in
research and development. Innovation is also key in this industry,
and fast food restaurants usually launch new products every 6
months or less.
Apart from the chained restaurants listed above, fast food premium
chains are also gaining force and increasing presence in the larger
cities of Brazil – examples include the international brands Apple-
bee’s and Outback and other national chains. Due to the large
volumes and specific demands in terms of food safety and con-
stant innovation, the chained restaurants, both premium and fast
food, are usually supplied by large companies, such as Nestlé,
Bunge, McCain, Cargill, Brasil Foods (Sadia / Perdigão), AmBev,
Coca-Cola, etc.
Despite the strong presence of chained restaurants, the foodser-
vice channel in Brazil is very scattered. Many small towns do not
have a single chained restaurant and even in the metropolitan
areas the number of independent outlets remains very high. Brazil-
ians are not used to have a quick snack for lunch and usually
prefer a full meal – this explains the large number of kilo restau-
rants in Brazil. Those are popular buffet restaurants, offering a
number of self-service options and with a fixed price per kilo.
Figure 41: Kilo restaurant in Brazil
Source: IG: www.ig.com.br
Strong macroeconomic trends and investments from both domes-
tic and international operators are expected to support the perfor-
mance of the Brazilian foodservice market. Industry analysts ex-
pect more mergers and acquisitions over the coming years and the
continuous entrance of international chains will be also boosted by
the sports events to take place in 2014 and 2016 and the opening
of new shopping centers (more than 100 are expected for the next
3-5 years).
The foodservice growth does not only benefit the restaurants but
the whole industry due to the need of ingredients, equipment,
training, logistics, packaging, etc. One sector that was particularly
benefited was the kitchen appliances producers, which has regis-
tered an average of 15% annual growth over the last 3 years.
Experts estimate that the initial investment with kitchen equipment
when opening a new restaurant is 35% to 55% of the total spent.
Brazilian Food and Beverage Market Report 2012 | 35
5.8 Industry Trends.
As Brazilians are now able to consume more sophisticated food
and beverages than ever before, their demand for new and inno-
vative products generates a need for quick adaptations and in-
vestments by the industry.
Industry trends directly impact on ingredient and additives produc-
ers, packaging manufacturers, machinery and equipment for food
and beverage production.
5.8.1 Trends for additives
Additives are substances with or without nutritional value of their
own that are added to the food with the objective of preventing
changes, preserving, adding or enhancing the aroma, color or
taste, modifying or maintaining the physical state of the food.
Although contrasting, the health and wellness trend (low salt, low
fat, reduced or no sugar, etc.) and the indulgence trend (products
with a pleasure appeal) both benefit the additives producers. First
because consumers are looking for healthier products that taste
good. By reducing fats, sugar, salt, etc., the basic characteristics of
a product are changed, including aroma, thickness and flavor. The
industry has to include other additives to compensate the ingredi-
ents that are missing or reduced, including food enhancers, artifi-
cial or natural flavors, texturizing agents (emulsifiers, modified
starches, fibers, etc.), color enhancers, etc. The indulgence trend
works in the same way: to have a better flavor and texture, quite
often it is not enough just to use higher quality and natural ingredi-
ents, thus additives are needed.
In terms of flavors, it is expected that the natural flavors, usually
more expensive than the synthetic ones, will present higher growth
over the next few years, with some opportunities for bio-flavors
(natural flavor chemicals produced with the use of enzymes or by
fermentation, with the use of different microorganisms). Products
with more natural appeal and legislation issues are some of the
drivers for growth on natural flavors.
Color enhancers are also following the “more natural the better”
path, replacing the synthetic versions. Although there are clearly
many opportunities for natural color enhancers, there are technical
difficulties still to be overcome, as nowadays many synthetic colors
cannot be fully replaced by natural ones (blue is one example, with
some interesting fruit developments ongoing). Another interesting
opportunity in terms of color enhancers is the possibility to use
additives with additional substances that are good for health such
as antioxidants.
Texturizing solutions, in particular modified starches and emulsifi-
ers, will continue to show consistent growth due to the increase in
the consumption of processed foods. The natural appeal also will
play an important role for texturizers, with the reduction in the use
of chemicals, and use of enzymatic processes. Soy lecithin, a
largely used emulsifier, is a case that needs attention, due to the
possibility of containing transgenic material, not well accepted by
Brazilian consumers in general. It is expected that ANVISA will
look more carefully into this additive in the near future.
The use of vitamins, nutrients and other “good for health” sub-
stances will also show continuous growth according to experts.
Products with added vitamins, minerals, antioxidants, omega 3,
peptides, fiber, probiotics and similar substances are expected to
become more popular in Brazil. Vitamins and minerals, quite often
used in products such as infant and teenage foods, are already
being added to a whole range of staple foods in Brazil, from rice to
bread.
With the reduced sugar trend, the use of sweeteners will also
increase in beverage and food products, also leaning towards
natural sweeteners rather than artificial ones, focusing on better
taste (“taste likes sugar”) and less use of chemicals. This trend is
not only motivated by legislation but by the consumers them-
selves, who want to reduce the caloric content without losing the
pleasure of eating and drinking their favorite products.
Fat replacers are also gaining space in the industry, motivated by
both legislation and consumer demand. The use of fats with lower
saturation and zero trans (in particular vegetable fats) is growing
year by year, according to industry sources. In many products, like
snacks, the use of animal fats is practically abolished and the
industry has been studying options of lighter vegetable fats or use
of substitutes.
5.8.2 Trends for packaging
As in other countries, packaging plays a key role in the Brazilian
food and beverage industry. Studies show that 85% of the items
purchased in the supermarket are not planned – meaning that
impulse purchases represent most of the consumption of Brazili-
ans, and an attractive package will influence consumer decisions.
36 | Brazilian Food and Beverage Market Report 2012
Amongst the trends that will affect the packaging industry is the
use of smaller / single portion packs, due to the growing number of
smaller households and increasing presence of women in the
workplace – less time to cook meals for the family. This trend will
open opportunities for packaging designers and packaging pro-
ducers. Single portion will also gain force in alcoholic beverages,
including smaller wine bottles, which are becoming more popular
in Brazil.
With an increasing quantity of product launches per year in the
food and beverage industry, in addition to a growing competition
from imported goods, innovation in packaging formats, shapes and
materials, in for shelf differentiation and attractiveness will be also
a trend generating opportunities for designers and pack producers.
The use of special editions to test the market also shows steady
growth.
The increasing presence of women in the workplace added to the
fact that maids are becoming rarer (and more expensive) in Brazil,
drive the consumers towards easy to prepare foods, and packag-
ing plays a key role in this, in particular in the case of frozen or
microwavable shelf stable meals.
The appetite appeal required by the indulgence trend will drive
growth in the use of special inks, metallic, pearlescent, day-glow,
matt finish varnishes and paints and will demand investment in
new inks, printing technologies and varnish solutions.
The food and beverage industry, together with the packaging pro-
ducers are working on new lighter packs, using less raw material
and this trend will continue, driven by the need for cost reductions
and sustainability.
5.8.3 Trends for machinery and equipment
All new technologies and product developments will require adap-
tations of the existing machinery or completely new equipment for
producing food and beverage. Opportunities include machines that
avoid product manipulation, destroy bacteria and other organisms
without altering the product characteristics while keeping its nutri-
ents. Technologies such as ultrasound, ultraviolet radiation, infra-
red, microwaves, radiofrequency, high pressure, etc., are some of
the developments expected in the food and beverage industry.
Many small and medium food and beverage producers are now
starting to pay more attention to food safety due to increasing
competition with multinational players, consumer awareness and
legislation requirements, so providing the first equipments to those
companies may pose a good opportunity, having in mind, though
that smaller companies are usually cost oriented and may not look
for state-of-the-art equipment and machinery.
With the smaller packs trend, the industry will also need versatile
equipment that accepts different types of packs / lids for the same
products, optimizing time, space and set-ups in the plants.
Figure 42: Sadia manufacturing plant in Brazil
Source: Exame, www.exame.com.br
Brazilian Food and Beverage Market Report 2012 | 37
Figure 43: Trends for the food and beverage industry
Trend Driver Benefited segment Examples
Smaller packs - Lower income (C and D) for pricing
strategy
- Higher income (A and B) for conven-
ience
- Machinery producers
- Packaging producers
- Packaging designers
Single portion biscuits; smaller
milk cartons; single portion wine
bottles.
Low salt, low trans,
less sugar
- Legislation
- Consumer demand (obesity and
healthier lifestyle)
- Food enhancers
- Flavors
- Texturizing agents
Margarine with less saturated
fat; low sodium ready meals
Lighter packs (use of
less pack material) Cost reduction and environmental
concerns - Machinery producers
- Packaging producers
- Packaging designers
Water bottles with less plastic;
smaller lids; recyclable packs.
Focus on innovation Market – need to launch new products
and / or new packs on a regular basis - The whole industry, in partic-
ular packaging producers. New drink combinations (coco-
nut water with juice); meal kits.
Convenience All segments are affected, in particular
people from larger cities.
- Packaging
- Texturizing agents
- Easy to peel, easy to seal
- Products with better resistance
to temperature variation or that
do not need refrigeration
- Packaging that goes directly
into the microwave / oven
Quality / food safety - Legislation
- Consumer demand - The whole industry, in partic-
ular machinery and laboratory
equipment manufacturers.
- Machinery to avoid food ma-
nipulation (food safety); machin-
ery that kills bacteria keeping the
product nutrients.
- Equipment for faster and more
efficient laboratory analysis.
Indulgence and pleas-
ure - Customer demand: customers are not
willing to give up on pleasure to eat
healthier. Industry needs to change as
little as possible the product character-
istics (flavor, consistency, crunchiness,
etc.)
- Food enhancers
- Flavors
- Texturizing agents
- Packaging producers
- Packaging designers
- More attractive packs made
with more “noble” materials such
as glass, showing appetite ap-
peal on the label / pack.
- Food with a premium and
homemade appeal.
Foodservice Lifestyle in large cities, low unemploy-
ment rates, increase in income Industry as a whole, specially
ingredient and additives sup-
pliers and kitchen appliances
producers
- Texturizers to compensate
lower use of fat
- Kitchen appliances and equip-
ment such as industrial stoves
Source: Osec from desk research
38 | Brazilian Food and Beverage Market Report 2012
6.1 Route to Market.
To reach Brazilian consumers through supermarkets, specialty and
gourmet stores, it is recommended to have a local distributor /
importer, ideally with good contacts and ongoing business in the
different outlets.
Exporting directly to supermarkets may be possible, but it is not
usual, especially when dealing with small volumes. The leading
retailers are well aware of their importance and power in the food
distribution system and their advantageous position in comparison
to the suppliers. Tough negotiations including contractual fees
(including fees for promotional materials, logistics and other costs)
and forcing reduced margins by buying large quantities of products
are common place in the retail industry.
For imported goods, the scenario is different, with supermarket
chains buying smaller quantities with a great variety rather than
buying large volumes. But as the import operation involves costs
and time to deal with bureaucracy, if the quantity is not significant,
the retailer will prefer to buy from a third party, even knowing that
an extra cost will be included in the product price.
Importers / distributors are generally interested in adding well-
known brands and high-end products to their portfolio. In this
context, the Swiss appeal is always a good selling argument.
In terms of shelf life, it is easier to find distributors when the prod-
uct’s expiration date is over 6 months (avoids trouble with expired
products in stock).
6.2 Importers and Distributors.
There are a large number of food and beverage importers and
distributors in Brazil, mostly located in São Paulo city; Figure 45
lists some of the most important players. Many of the smaller food
and beverage importers / distributors do not have a website, even
when they represent important international brands in Brazil.
Figure 44: Food and beverage importers and distributors in Brazil
Food importer Headquarters Main products/ brands
Allfood
www.allfood.com.br
São Paulo, SP Azal, Villa Milena, Longovilo, Rafael Salgado (olive oil); Fragata (jam); Bauli
(cakes); Cara Nonna, Di Martino (pasta); Valor (chocolate); Cheese and wines from
several brands.
Aurora
www.aurora.com.br
São Paulo, SP Bahlsen and Jules Destrooper (biscuits), Campbell’s (soup),Blue Diamond Almonds
(nuts), Riso Gallo (rice), Haribo (sweets), Celestial Seasonings (tea), Lindt (choco-
late); Bonne Maman (jam); Tabasco (pepper sauce); Maille (mustard) and wines
and spirits.
Calimp
www.calimp.com.br
Santana de Parnaí-
ba, SP
Cheese from brands: Bergader, Alpex, Soignon, Stilton, Joseph Heller, Latteria
Soresina, Emmi; biscuits: Walkers,
Casa Flora
www.casaflora.com.br
São Paulo, SP Goldkenn and Jubileu (chocolate), Fromalp (fondue).
Expand
www.adegaexpand.com.br
São Paulo, SP Wines and other alcoholic beverages from all over the world.
Franco Suissa
www.francosuissa.com.br
São Paulo, SP Wines and other alcoholic beverages from all over the world, Hart Foods (rice);
Guylian (chocolate); etc.
Gourmand
www.gourmand.com.br
São Paulo, SP Swiss Delice- Midor, Pepperridge Farm and Omira (biscuits);
Halter (sweets); Baci, Penigotti, Droste, After Eight, Belgiam, Hamlet, Cupido,
Delizstcher, Weinrich, Camille Bloch, Nestlé Gold, Wonka, Jacquot and Villars
(chocolate); Marco Polo and Clipper (tea); Schluckwerder (marzipan sweets);
6. Food Distribution.
Brazilian Food and Beverage Market Report 2012 | 39
Schneekoppe (several products); Rauch (juice); Leighton Foods (snacks); Scandic
and Baxters (jam); Grain d’Or and Colman’s (mustard);
Latinex
www.latinex.com.br
Curitiba, PR Bertolli, World Foods, Ragu, Wish Bone (sauces); Lipton (tea); Smart Spice, Nomu
(herbs and condiments); Ceres (juice); Voortman, Merba (biscuits); Belgid’Or
(chocolates), etc.
Le Paul
www.lepaul.com.br
São Paulo, SP Baron, Cavalier, Feodora, Hachez, Hibbi, (chocolate); Carr’s, Chio, Coppenrath,
Granforno, Grisbì, Vicenzi (biscuits); Cavendish & Harvey, Heller & Strauss
(sweets); De Kroes, Intersnack, Snyder’s (snacks); Emco (cereals), Poco Loco
(sauces)
Sttutgart Artigos Finos
www.stuttgart.com.br
Blumenau, SC Tchibo (coffee); Krüger and Teekane (tea); Rabenhorst and Possman (juices);
German beers and wines (several brands); Storck, Niederegger, Frankonia, Heidel,
Sarotti, Mauxion, Karina, Tibi, Trumpf, Piasten, Royal Alps (chocolates); Jacobsens,
Lambertz, Brink, Weiss (biscuits); Pauli, Huober Brezel (snacks); Göbber (jam);
Winsenia (chocolate cream); Oebel (cake); Hela, Mondamin (sauces); etc.
Source: Osec from desk research
Importers tend to buy smaller quantities of new products to test the
market – it is advisable to consider the logistics costs to export
such small quantities at the beginning of operations.
Usually the distributor is not only in charge of sales but also deals
with marketing and food promotion, from adapting promotional
materials to the local language and culture to developing brand
new marketing pieces – this depends on the type of contract and
negotiation with the represented brand.
There are a number of distributors who import / sell products from
two or more competitors, and this is a normal practice in Brazil.
Exclusivity is an option which may be explored in negotiations, but
most food importers may not accept such terms or may require
further compensation.
Due to Brazil’s continental size and potential, deficient infrastruc-
ture and persisting trade barriers within the region, usually the food
importers / distributors focus only on the country and do not at-
tempt to export or explore other nearby countries; so if a Swiss
company is looking for a South American presence, it is recom-
mended to have distributors in each of the target countries rather
than trying to find one which covers the whole region.
With the increase in consumption of imported goods, it is expected
that many international brands, today operating via an importer,
decide to set ground in Brazil, opening a subsidiary or a small
sales office.
6.3 Retailers.
According to the Brazilian Supermarket Association (ABRAS), in
2010, the retail (supermarkets) revenues totaled R$ 201.6 billion
(a nominal growth of 14% and a real growth of 7.5%). The number
of stores grew by almost 4%, reaching more than 81 thousand
stores.
Figure 45: Retail in Brazil: Key Facts
Market size (2010) R$ 201.6 billion
Number of stores 81’128 (+3.6%)
Number of check outs 199’376 (+4.1%)
Growth (2009 – 2010) 14%
(7.5% real growth)
Share of private label food
products on total supermarket
food sales
7%
Pricing strategy Varies according to the
supermarket location and
brand.
Trends All trends in the industry
apply
Source: Osec via desk research
40 | Brazilian Food and Beverage Market Report 2012
Although Brazil still has a significant number of grocery stores, the
supermarket is the most relevant distribution channel (see Figure
46) for a heavily urbanized and motorized population.
Figure 46: Mass Grocery Retail - Sales by Format (R$ billion)
Source: www.businessmonitor.com/Brazil
The main players are developing different store formats and sizes
in order to serve all types of consumers. The most important retail-
ers are investing in smaller shops, which have shown better finan-
cial performance. Discount stores and cash & carries are other fast
growing formats. Companies like Assai (Grupo Pão de Açúcar)
and Makro are not only increasing their sales to small and medium
businesses but also catering for consumers (in particular from the
C class) willing to buy in large quantities to take advantage of
lower prices.
Overall, Brazilian retail has become more professional and com-
petitive – strategies of retailers included increasing their regional
power by acquiring local competitors, implementing prices reduc-
tions to the consumers, forcing cost cuts with the suppliers, opti-
mizing inventory management and investing in opening neighbor-
hood shops.
While it remains fairly scattered, the retail business has experi-
enced some consolidation – result of many acquisitions that took
place over the last 10 years. The top three supermarket chains in
Brazil now belong (totally or partially) to foreign groups, and ac-
count together for 47% of total revenue.
Figure 48: Leading supermarket chains in Brazil (market share %)
Source: ABRAS, www.abrasnet.com.br
As gourmet stores are becoming more popular, in particular in the
main cities, the traditional supermarket chains are also investing in
specific areas for imported and gourmet goods, in an effort to
attract consumers looking for premium products.
As shown in Chapter 4.6, another relevant trend is the private label
products, and all large retailers now have their own brands in
segments such as foods and cleaning products – the industry
estimates that private label products are already present in 50% of
Brazilian households.
In terms of main segments sold in retail, grocery items correspond
to 40% of food and beverage products, while 18% are perishable
items, 12% beverages and 3% bakery. Foreign items represent
approximately 4% of sales of the supermarket chains (considering
all products, not only food and beverage).
The five main supermarket chains in Brazil registered impressive
growth in revenues in 2010 and their positive results together with
the good economic environment will boost further investments.
According to ABRAS, investments by the supermarket companies
(not including the top 3 chains) amounted to R$ 2.85 billion in
2010, with 26% spent in acquisitions of other supermarkets, 16%
in refitting the existing shops, 31% for new stores, 5% in land
acquisition and 5% in equipment purchases. For 2011, invest-
ments reached almost R$ 4 billion, with 52% in the construction of
0
20
40
60
80
100
120
140
160
180
200
Conveniencestores
Discount stores
Hypermarkets
Supermarkets
18
14.4
11.1
1.7 1.2
53.6
Grupo Pão deAçúcar
Carrefour
Walmart
G Barbosa
Záffari
Others
Brazilian Food and Beverage Market Report 2012 | 41
new stores, 17% in refitting existing stores and 4% for equipment
purchases. Supermarkets in Brazil are also investing in technologies to in-
crease efficiency and reduce problems such as goods losses and
lack of products (inventory management) and avoid shoplifting,
bringing opportunities to suppliers of security and inventory sys-
tems.
Retailers usually obtain the highest margins of the whole chain, an
average of 37% of the price paid by the consumer.
Figure 48: Top five supermarket chains in Brazil
Company Brands Stores Share Gross revenue 2010
R$ million
Growth
2010
Cia Brasileira de
Distribuição (Casino)
Extra
Pão de Açúcar
Assaí
626 18% 36’144 37.83%
Carrefour Carrefour
Dia%
Atacadão
500 14.4% 29’000 13.18%
WalMart Walmart
Sam’s Club
Bom Preço
Big
Mercadorama
Maxxi
479 11.1% 22’334 13.22%
G Barbosa G Barbosa
Bretas
149 1.7% 3’501
(does not include Bretas new
acquisition)
40.54%
Zaffari Zaffari
Bourbon
24 1.2% 2’490 18.01%
Source: ABRAS, www.abrasnet.com.br
42 | Brazilian Food and Beverage Market Report 2012
6.4 Specialty / Gourmet Stores.
Most specialty and gourmet stores are based in Brazil’s larger
cities, in particular in the richer states of São Paulo, Minas Gerais
and Rio de Janeiro.
Figure 49: Emporium São Paulo shop
Source: apoplife.wordpress.com
The specialty and gourmet stores can be divided into smaller
stores (neighborhood shops), medium sized stores and gourmet
supermarkets. There are also higher-end supermarkets, which in
addition to the traditional and everyday products also focus on
premium and imported goods. It is important to note that all su-
permarket chains in Brazil have an “imported goods” section.
Retail experts explain that this is a strategy to captivate customers
and attract them to buy more expensive imported products without
comparing their price to that of the local ones.
In addition to those multiproduct shops, there is a large number of
smaller stores all over Brazil focused on items such as premium
chocolate, tea, coffee and alcoholic beverages. In some of the
main cities it is also easy to find gourmet shops specialized in
products from a particular country, such as Portugal, Italy, Spain,
Germany, Japan, Israel and Lebanon.
The multiproduct shops, as the ones on the Figure 50, usually
dedicate one large area to imported products, although in these
stores it is becoming more common to have the imported good
sharing the same shelf space with the locally produced ones, as
their customers are usually less price driven and more focused on
quality.
Imported products are also sold in premium bakery shops, in par-
ticular in the cities of São Paulo, Belo Horizonte and Rio de Janei-
ro. Those bakeries usually offer meals, premium products pro-
duced in house and imported goods, such as wines, chocolates,
olive oil, snacks and biscuits, usually purchased from food import-
ers or distributors.
Figure 50: Main Gourmet stores in Brazil (including supermarkets)
Store name/ Website Location Number
of stores
Casa Santa Luzia
www.santaluzia.com.br
São Paulo, SP 1
Dalben
www.supermercadosdalben.com.br
Campinas, SP 2
Empório Chiappetta
www.emporiochiappetta.com.br
São Paulo, SP 2
Empório Moema
www.emporiomoema.com.br
São Paulo, SP 1
Empório Santa Maria
www.emporiosantamaria.com.br
São Paulo, SP 1
Emporium São Paulo
www.emporiumsaopaulo.com.br
São Paulo, SP 6
Hippo
www.hippo.com.br
Florianópolis,
SC
2
Horto Mercado/ Extra Plus
www.hortovitoria.com.br
Vitória, ES 2
La Palma
www.lapalma.com.br
Brasília, DF 2
Mambo
www.mambo.com.br
São Paulo, SP 6
Mart Plus
www.martplus.com.br
Belo Horizon-
te, MG
7
Natural da Terra Hortifruti
www.naturaldaterra.com.br
São Paulo, SP 8
Oba Hortifruti
www.grupooba.com.br
Several shops
in São Paulo
state, Belo
Horizonte,
MG, Brasília,
DF
Over 30
shops
Pão de Açúcar (Casino)
www.paodeacucar.com.br
Brazil Over 150
shops
Brazilian Food and Beverage Market Report 2012 | 43
Perini
www.perini.com.br
Salvador, BA 8
St Marche
www.marche.com.br
São Paulo, SP 10
Supermercado Modelo
www.supermercadomodelo.com.br
Cuiabá, MT Over 10
shops
Super Muffato
www.muffato.com.br
State of Para-
ná and 1 shop
in São Paulo,
SP
Over 30
shops
Super Nosso
www.supernosso.com.br
Belo Horizon-
te, MG
Over 10
shops
Verdemar
www.superverdemar.com.br
Belo Horizon-
te, MG
6
Zaffari
www.zaffari.com.br
Rio Grande do
Sul and São
Paulo states
Over 20
shops
Zona Sul
www.zonasul.com.br
Rio de Janeiro
state
Over 30
shops
Source: Osec via desk research
6.5 Pricing.
The Brazilian food industry is well developed and highly competi-
tive, with the most important multinationals usually producing
locally. Ingredients and raw materials are also widely available in
the country, making the cost usually much lower than that of im-
ported goods.
Imported goods are used by retailers to differentiate themselves,
develop new niches and conquer new high-end customers. As a
consequence, imported goods are considered luxury and aspira-
tional items. When crisis comes, these are usually switched to
local brands, with a lower cost.
Exporters must be aware that usually their prices in Brazil will not
be competitive with locally manufactured products, due to the
availability of cheap raw materials in Brazil and the high import
tariffs. Swiss products’ main competitors in Brazil will be imported
items from Europe and the USA. Products imported from MER-
COSUR member countries are also more competitive in terms of
price as they enjoy zero import duties for most categories.
Through a Store Check as offered by Osec, Swiss companies may
get an idea of retail prices practiced by their competitors. Products
at shelf can be as much as 5 times the retail price on their country
of origin. Nonetheless, Brazilian high-end consumers are willing to
pay a premium for certain products, and the market for luxury
products has grown consistently.
Figure 51: Examples of imported foods in Brazil
Product / Brand Price Image
Gorgonzola Cheese
Fondue EMMI 400g
R$ 28.99
Appenzeller Swiss
Cheese 150g
R$ 20.38
Lindt Chocolate Lindor
Milk 100g
R$ 14.61
Vicenzi Biscuit Mini Voglie
Cocoa Creme 225g
R$ 19.15
BAHLSEN Waffeletten
German Biscuit 100g
R$ 13.38
German beer Weienste-
phaners Hefe Weissbier
500ml
R$ 10.89
Source: Pão de Açúcar, www.paodeacucar.com.br
44 | Brazilian Food and Beverage Market Report 2012
7.1 Opportunities.
The Brazilian food and beverage industry has been showing con-
sistent growth over the years, in terms of production, consumption
and imports. With Brazilians being able to increase spending on
more elaborated foods, there are many opportunities for Swiss
exporters, especially considering that Swiss products already have
a premium appeal to Brazilians.
In terms of product opportunities, the fastest growing sectors for
the food industry in Brazil, according to experts, are:
Processed foods
Frozen meals
Snacks
Biscuits
Yoghurt
Ready sauces
Organic and functional food
Premium oils
Beverages
Ready to drink milk
Soy drinks
Wine
Premium beer
Energy and sports drinks
Premium waters
Ingredients and additives
Texturizers
Natural flavors and colorings
Sweeteners
Vitamins, minerals, fibers, omega 3
Machinery & equipment
Packaging machinery with high flexibility in
terms of pack sizes
Food safety aimed equipment: x-rays, ultra-
sound, electromagnetic, high pressure
Dryers
Automation solutions
Packaging solutions
Packaging designer aimed at convenience
Use of premium packaging materials
Resealable packs
Portion sized packs
Laboratory equipment
Easy to use food analysis equipment (for vis-
cosity, humidity, microbiology analysis, etc.)
Rapid microbiology analyzers
Brazil’s good economic performance and the large numbers of
people recently added to the middle class who are now able to
consume will continue to boost the food industry.
The trends mentioned in this report, indulgence, convenience,
health, etc., are also expected to keep driving the industry for the
next few years, benefiting players from different segments such as
packaging, machinery, laboratory equipment, ingredient and addi-
tive producers, etc.
For Swiss companies, the perspectives are positive, as imports of
foods are generally growing in Brazil for traditional Swiss products
such as cheese, chocolate, biscuits and wine. Swiss exporters,
though, did not perform that well in 2010-2011 in Brazil, as statis-
tics show that despite considerable growth in those categories,
Swiss imports were reduced, while other European countries such
as Germany and France increased their share.
Brazilians are becoming more aware of quality. Premium products,
both imported and locally produced, are gaining market, particular-
ly amongst classes A and B. The main opportunities for Swiss
companies are in niches where the higher quality is valued, such
as providing state-of-the-art machinery and equipment, ingredients
and additives with outstanding performance for specific applica-
tions, and food and beverages aimed at higher income consumers.
Brazil has a large food and beverage industrial base, from multina-
tionals to small food producers and Swiss companies can take
advantage of the need of innovation in this industry, offering new
technologies to provide safer and more reliable food, reduce pro-
duction times and increase flexibility in terms of sizes, shapes and
packs. Due to the strong competition, most large Brazilian food
producers are focused on innovation and intervals between prod-
uct launches have been shortened. To reduce the time between
7. Opportunities and Challenges.
Brazilian Food and Beverage Market Report 2012 | 45
idea and launch, it is common that the industry requires joint de-
velopments with the suppliers.
In terms of ingredients and additives, Swiss companies will have
opportunities in niches were premium and outstanding perfor-
mance is needed, and where the industry is willing to pay the
price. With the trends of health and indulgence, use of texturizers
and flavors is expected to grow, as well as the adding of vitamins
and minerals to products.
Organic and functional products are also niches were high growth
rates are seen. Most Brazilians, though, are still not aware of the
benefits of such products and legislation might pose a barrier, as
both organic and functional products have to go through a registra-
tion process by ANVISA / MAPA, which can take months.
The World Cup and the Olympic Games that will take place in
Brazil in 2014 and 2016, respectively, are also important drivers for
continuous growth of the food and beverage industry. Those
events are expected to have a positive impact on most sectors, but
particularly in the foodservice business, with growth in sales of
restaurants, hotels and catering in the host cities. This will drive
growth also in kitchen equipment and appliances, as it is expected
that new venues will open as well as existing ones will be modern-
ized.
7.2 Challenges.
Doing business in Brazil also brings challenges that your company
may face for the first time. The key to success is to know before-
hand your limits and the possible challenges and be prepared for
them, counting on the knowledge and expertise of professionals.
Figure 52: Challenges for Swiss companies
Challenges How to overcome
ANVISA / MAPA regulations: regulations for the Food and Bever-
age industry can be confusing and difficult to understand.
- Use the services of a regulatory expert specialized in the Brazili-
an food industry.
- Learn more about the legislation regarding your product.
High taxes / pricing: due to the high taxes, imported products can
be very expensive in Brazil.
- There is no way to avoid taxes, but remember that your competi-
tors are also paying them.
- Hire a good accountant in Brazil or make sure your partner works
with a good one.
- Double check with an expert the tariff code of your product in
Brazil to avoid paying too high import duties.
Logistics and regionalization: Brazil’s continental size and regional
particularities can be a barrier when launching a product
- Start in one regional market – do not set plans to distribute all
over Brazil until you feel the environment.
- Take into consideration on your expansion plans Brazil’s conti-
nental size and key aspects such as difference in climate, culture
and food preferences which can vary greatly from region to region.
Finding the right distributor / importer: your partner will be the face
of your company in Brazil, so it is key to find the right one.
- Ask Osec to run a Business Contact Check to identify your ideal
partner. Do not consider only one option and make sure all back-
ground checks are made. Do not rush the process.
- Use a Brazilian lawyer to draft the contract.
Language barrier: many Brazilians do not speak English, even in
the largest companies.
- When visiting Brazil, always make sure you will be able to com-
municate. If you are not sure, consider using an interpreter – Osec
can provide such services.
46 | Brazilian Food and Beverage Market Report 2012
- Make sure all promotional materials, packaging, etc. are in Brazil-
ian Portuguese.
Competition: Brazil is very competitive in the food and beverage
industry, counting with local production in almost all segments.
- Capitalize on the “Swissness” of your product.
Brazilian taste: Brazilian taste and preferences are different from
European and also Latin American tastes. This also changes ac-
cording to the Brazilian region.
- Focus on one region first and test the market. Use the expertise
of your distributor and if necessary conduct samplings and panels
with consumers to find out their opinion.
- In the case of B2B, be prepared to adapt your product to the
need of your customers, even if you already provide solutions to
them in other countries.
Source: Osec from desk research
Knowing that the challenges can be tackled, there are many op-
portunities for Swiss companies in the Brazilian food and beverage
market, and companies willing to take their time to understand the
market and its regulations and to plan their entrance in Brazil,
either directly via a subsidiary or through a local partner, will al-
most certainly be rewarded. Osec and the Swiss Business Hub are
looking forward to supporting Swiss companies on this path!
Brazilian Food and Beverage Market Report 2012 | 47
The success of your business in Brazil depends on a series of
actions and it is vital that your company does not skip essential
steps.
Taking a step-by-step approach, as enshrined in Osec’s methodol-
ogy, will save time, resources and will avoid problems with Brazili-
an authorities and will allow your company to select the right prod-
ucts and strategy for Brazil.
Based on our experience in assisting Swiss companies exporting
to Brazil, here are some key aspects your company should con-
sider when starting business with this country.
8.1 Readiness to export.
Is your company already exporting to other countries? Brazil is not an easy market, so if your company does not have
experience in exporting, it is highly recommended to focus first on
nearby countries with similar regulations.
Is your company willing to invest in product launch, traveling, trade
fairs, adaptation of labels and marketing materials, registration
process, market research and to find the ideal partner?
There are ways to save costs on your internationalization process,
but your company will still need to invest in this new market. Using
specialists from Brazil (who can assist you from there, avoiding
trips) and sharing costs with your Brazilian partner are some of the
ways to spend less on the initial costs.
Will your company focus on a small number of countries? Exporting to a new country is always a challenge, so it is recom-
mended that your company focus on one or only a few countries at
a time.
Is your company willing and able to make product adaptations if the
local market and / or legislation requires so? When learning more about the local market and regulatory aspects
you might find out that some product or package adaptations might
be necessary.
Do you have a strategy for export to Brazil? During the course of the project, your strategy may change, ac-
cording to the market research findings, for example. It is key,
though, that you have in mind a few initial aspects:
- which products you want to focus on
- what is your investment budget on this new market
- what kind of information you still need before you can take deci-
sions
- what is the ideal partner profile
Are you using Osec’s network in order to take the most of it in your
new markets? Osec and the Swiss Business Hubs with their network of experts
can assist you in exporting to Brazil and other countries with a
wide range of services that will fit exactly your needs.
8. Export Check List.
48 | Brazilian Food and Beverage Market Report 2012
8.2 Market Research.
How much do you know about Brazil? Research and collect as much information as possible about
Brazil – always from trusted sources.
Useful sources may be Osec and the Swiss Business Hubs and
their network of experts, the Chambers of Commerce, your
suppliers and customers already present in the market, trade
associations, etc.
Do you know if Brazil is the right market for your product? Even if you are an experienced exporter, you may need further
research in order to understand better how the Brazilian market
will receive your product.
Osec offers a menu of market research services that will provide
the basis for making a strategic decision.
Do you know the right place to launch your product?
Most companies launch products in Brazil initially in São Paulo,
but there are also opportunities in other Brazilian states.
Osec’s services can help you decide where to start.
Do you know your competitors, their products, strengths, weakness-
es and pricing strategy? For some sectors, competition in Brazil can be fierce. It is key to
understand who are your competitors, how they are operating in
Brazil, what are their prices, who are their customers, what are
their product sizes and packages, what is their market position,
etc.
A customized competition analysis is one of the services offered
by Osec and the Swiss Business Hub Brazil and will be tailor-
made to your company needs.
Is your product competitive in Brazil? After you find out your competitors’ prices, how do you know if
your own product is competitive?
It is recommend having a landed cost analysis, which will show
you, starting from your FOB price, how much your product will
cost in Brazil, after all taxes. This service can be rendered by a
local customs broker and will not only help you to understand
your price X your competitor’s but will be also prove useful in
your negotiation with a future local partner (for setting commis-
sion, margins, targets, etc.).
Osec offers this service counting on the assistance of local ex-
perts.
Brazilian Food and Beverage Market Report 2012 | 49
8.3 Trade fairs.
Do you know the most important Brazilian food and beverage trade
fairs? Most Brazilian trade fairs take place in the city of São Paulo. The
majority (please refer to the Appendix at the end of this report)
publish the exhibitors’ list on their website.
Checking if your competitors are exhibiting and the size of their
booth (when a map is available) will give you a good hint if your
company should or not be present. Also check if other Swiss com-
panies are exhibiting – maybe you can ask them for their inputs on
the fair.
Having a booth on a trade fair is a high investment, and ideally you
should visit the trade fairs prior to exhibiting to check if it is worth it.
Sometimes, due to costs or time, this is not possible, so you may
hire local assistance for that.
Osec and its network partners can assist you with obtaining further
information on trade fairs, including visiting the trade fairs for you
and reporting the main findings.
Do you know how to save costs on trade fairs? There are a number of ways your company can save costs and
time when exhibiting at a trade fair:
- consider using the services of a local trade fair expert, such as
the Swiss-Brazilian Chamber of Commerce, which has the experi-
ence and the necessary contacts.
- if you know other Swiss companies who will be at the fair, why
not contact them to share a booth?
- in case you have already a local partner, you can try to negotiate
sharing the trade fair costs. Just remember that your partner might
be exhibiting other products as well. If this is arranged and you will
not visit the fair, you should ask your partner for photos, details on
the visitors as well as all expenses receipts.
50 | Brazilian Food and Beverage Market Report 2012
8.4 Regulatory – Your Product in Brazil.
Hire a food expert Brazilian legislation on Food and Beverage can be tricky and
sometimes confusing. Hiring a regulatory affairs specialist with
expertise on food and beverage will save you time and problems
with the local authorities.
The Swiss Business Hub Brazil can recommend regulatory spe-
cialists from its network.
Does the product have a PIQ?
Are the ingredients of your product and packaging material allowed? The Product Identity and Quality Standard (PIQ), published by
ANVISA, is one the key pieces of legislation you need to look for.
Most food and beverage products have a PIQ and it helps to
understand important aspects such as product definition, allowed
and prohibited additives, specific label requirements, etc.
You will also need to check other ingredients of your product,
since additives, transgenic ingredients, organics and also packag-
ing materials have specific legislation.
PIQs and other regulations are only published in Portuguese, so
you will need to count on a Regulatory Affairs specialist with
expertise on food and beverage to assist you.
Does your product need prior registration with ANVISA or
MAPA? Prior registration may be necessary, depending on the product.
Plant inspections and a number of certifications and documents
may be also required.
The registration process can take more than one year and your
company will need a local partner / importer / subsidiary to start
the process.
Register your trademark Trademark registration can also take more than one year, so it is
recommended to start the process as soon as you decide to start
business with Brazil.
It is recommended to use a specialized trademark registration
office / patent law office to conduct the process.
You may rely on the Swiss Business Hub for indications of spe-
cialized offices.
Brazilian Food and Beverage Market Report 2012 | 51
Do you know your product NCM?
Do you need an import license prior to shipment? The MERCOSUR product customs code (NCM), formed by the
first 6-digits of the Harmonized System may be different from the
one you use in Switzerland. Check with a Brazilian customs bro-
ker and with your local partner the most appropriate code, as this
affects taxes and import licensing.
With the NCM code, you will be able to check if the product needs
an import license prior to shipment.
8.5 Finding a Distributor / Importer.
Do you know what kind of partner you are looking for? Name the must have, the nice to have and the don’ts of your
ideal partner. This profile may change during search, but it is a
starting point.
Some aspects to think about:
- level of experience or expertise
- language skills
- clients and market served
- need for exclusivity
- size (company or one-man-show)
- need for warehouse for keeping inventory
- type of import license
- geographic coverage
- type of partner: distributor, importer or representative
Do you already know candidates for a partnership? Maybe your company has already done business with Brazil,
visited the country a few times or was even contacted by Brazili-
an companies and has a few names of potential local partners.
It is highly recommended to check the candidates, be they com-
panies or persons. Checking their background, experience,
creditworthiness and comparing their expertise and reputation
can avoid future problems.
Osec, through its local experts, can provide partner verification
services for your company.
Identify a number of potential partners – do not consider only one
option.
The selection of your local business partner is probably the
single most important step in your export project. This should not
be left to luck. A thorough partner search is highly recommend-
ed.
52 | Brazilian Food and Beverage Market Report 2012
Osec and the Swiss Business Hub Brazil have assisted hun-
dreds of Swiss SME in the selection process, through business
contact checks. This service extends from the compilation of a
checked long list of company addresses to the analysis of which
candidates best meet your criteria. The result is a short list of
potential partners.
Have you considered a partnership with a local manufacturer with
complementary products or acquiring a local competitor? Even if you have your pre-set distribution model, you may con-
sider alternatives, including acquiring a local competitor, with
expertise and a customer base already established.
Osec and the Swiss Business Hub Brazil may indicate M&A
experts from their network to you.
Meeting the candidates Study your partner candidates’ profiles in advance and make
sure you have enough time to meet them. It is not unlikely, if the
conversation goes well, that they might invite you for another
meeting or dinner, so leave some open spaces on your schedule
for such occasions.
Make sure you will be able to communicate with them. Many
Brazilians are not fluent in English, so you might need an inter-
preter. Do not consider English fluency an insurmountable barri-
er.
Osec and the Swiss Business Hub Brazil offer services to help
you preparing your schedule, including all trip arrangements and
interpretation.
Put an effort on promoting your company / product When meeting the potential partners, have in mind that you
might need to persuade them to work with you. Present your
company and products well to leave a good impression.
Careful when bringing samples of your product (food / beverage)
– it is recommended to check if those are allowed to be brought
in your luggage.
Define with your partner the marketing budget, sales forecast, client
goals and period for reviews. If you found the right partner you need to start negotiating a few
aspects regarding sales goals, product registration, costs shar-
ing, development of promotional materials, marketing budget,
financial resources remittance (amount and periodicity), product
launching plan, trade fairs, need for additional staff, training
program in Switzerland or Brazil, etc.
Take advantage of your partner’s expertise and past experienc-
es.
Brazilian Food and Beverage Market Report 2012 | 53
Establishing a contract
It is recommended that the first contract is signed for a shorter
period of time (e.g. one year). It must contain your representa-
tive’s / distributor’s obligations and goals, exclusivity clauses (if
agreed), financial agreements on commissions, etc. A confiden-
tially clause is also recommended.
The contract should be elaborated / analyzed by a lawyer, con-
sidering both Swiss and Brazilian laws. It is likely that your
standard contract is not applicable or valid in Brazil.
For lawyers recommendations, contact the Swiss Business Hub.
8.6 Regulatory: Adapting to the Local Legislation.
Translate the labels, specifications, certificates, promotional materi-
als, product catalogue and website (if necessary). Make sure those materials will be translated into Brazilian Portu-
guese. Count with a translator but ask your distributor to double
check the work done and correct specific technical terms if nec-
essary.
Remember that any imported product will need to have at least
an adhesive sticker with all mandatory information in Portu-
guese.
For labels and package information, use the assistance of a
regulatory affairs specialist with expertise on food and beverage.
You must follow the applicable Brazilian laws (see Chapter 3)
and be careful with including information or claims not allowed
by law.
Once you have the final text for your label, you must decide
whether it will be added to the product in Switzerland or in Brazil
by your importer / representative. It is mandatory, though, that
the label is in Portuguese before commercialization.
Osec and the Swiss Business Hub can recommend translators
and regulatory affairs experts.
Are the preparation and storage instructions clear? For products that are not ready to consume, you must include
the preparation instructions in Portuguese on the label.
Although you do not need to write a long text, consumers will
appreciate a clear explanation, and this will also prevent them
from contacting your importer / distributor to clarify their doubts.
54 | Brazilian Food and Beverage Market Report 2012
8.7 Logistics and Imports.
How is your product going to be shipped to Brazil? Have you con-
sidered the lead time? Depending on the type of transportation and the customs clear-
ance time, goods can take more than a month to arrive at the
final destination.
Customs strikes and delays are not uncommon and your product
may also require further inspection, so you should consider
some extra time and plan accordingly to avoid surprises.
Having the documentation clear and containing the correct in-
formation will avoid delays.
Is your product going to be launched in regions with higher tempera-
tures that may require refrigeration? Is your partner aware of this?
The north of Brazil has high temperatures all year round, so if
you plan to ship your food / beverage products to those regions,
you should consider refrigerated transportation, if there is a risk
of heat causing problems to your product.
Your partner must be aware of this, and also inform the custom-
ers on the transportation requirements to hotter regions.
Necessary certificates Make sure you have all necessary certificates according to Bra-
zilian regulations shipped with the export documents. The certifi-
cates will vary according to ANVISA and MAPA’ s product re-
quirements.
If you ship directly to your customer, also check if they have any
specific requirement in terms of documentation and certificates.
8.8 Product Launch.
Are you going to launch the product on a trade fair or event? If you are planning a special launch event with your partner,
make sure that:
- products / samples will arrive on time (consider extra lead time
due to customs)
- you picked a date considering local holidays and hired the
venue in advance
The Swiss Business Hub Brazil may provide services to assist
you in the organization of your product launch.
Brazilian Food and Beverage Market Report 2012 | 55
Do you have all materials in Brazilian Portuguese? All product and promotional materials should be in Brazilian
Portuguese: catalogues, mailing lists, brochures, technical man-
uals, specifications, analysis certificates, website, etc.
Are your partner and their team well trained and prepared for
launch? Your local partner’s staff is your company’s door opener and
face in Brazil - they need to be prepared and know your product
well.
Do you have a clear pricing strategy? Have you thought about
warranty and exchange policies and negotiated this with your
partner?
When launching the product, your clients will expect to know
about prices, terms and conditions. Make sure you have dis-
cussed and arranged your pricing strategy, warranty, exchange
policies, etc. with your local partner.
Does your importer have stocks for launch? Launching a product and not being able to sell immediately due
to customs delays, for example, will be frustrating to your cus-
tomer and damage your image. Make sure the products arrive
before launch.
Have you thought about advertising on specialized publications? Consider this possibility with your local partner, but check first
about the target readers of the publication and the expected
results.
Have you scheduled a program for continuous training? You should train your partner before launch, but it is important
that you follow up and organize additional training sessions
periodically.
Visit some clients with your partner when possible, so you have
a feeling of their needs and doubts.
Finally, a few points to bear in mind when dealing with Brazilians:
Brazilians are usually not punctual. Being late for a meal or a
meeting is usually acceptable. If you plan a product launch event,
understand that most people will arrive at least 30 minutes after
the announced start. This, of course, varies according to the re-
gion, background of the people (usually Brazilians with European
background tend to be more punctual). Traffic can play an im-
portant role in big cities such as São Paulo and Rio de Janeiro, so
avoiding organizing meetings on peak times and days is always a
good start.
Brazilians tend to straighten interpersonal relations quite quickly. It
is not uncommon to see them shift a business relationship into a
friendship. Do not be surprised if the person you are dealing with
for the first time invites you over for a dinner in his house or asks
personal questions.
The negotiation rhythm is usually slow, with pauses to discuss
other subjects. Brazilians value informality (except on cases where
formality is required, such as lawyers) and are generally sponta-
neous and impulsive. Be prepared to be interrupted frequently, and
understand that non-verbal communication is an important aspect
of the Brazilians’ personality. Hugging and kissing (the number of
56 | Brazilian Food and Beverage Market Report 2012
kisses depending on the region) are also common when meeting
people, even in a business environment.
Usually Brazilians call each other, even on formal situations, by the
first name. If you are dealing with a more senior person (in age or
position), you may use the word Sr. (Sir) or Sra. (Madam) accom-
panied by the first name: Sra. Maria, for example unless the other
part asks you not to do so.
Most Brazilians do not speak English and the use of interpreters
may be needed in important meetings. Learning some phrases in
Portuguese will score good points with your client or counterparts.
Do not forget:
Take your time. An export project should not be rushed
into. It is better to take time to understand the market and
check if it is worth entering rather than to find out later
that Brazil was not the market for you.
Invest in finding the right partner. Finding the perfect
partner is not an easy task, so we recommend that you
use the services of experts in matchmaking. Bear in mind
your ideal profile, but also be flexible where appropriate.
Take as long as needed to identify the right partner as he
will be the door opener and the face of your company in
Brazil.
Understand that Brazil is now on the spotlight and this af-
fects the Brazilian food importers and distributors, who
are being contacted by companies from all over the
world. This means you may need to make additional ef-
forts to persuade a good candidate to work with your
company. Prepare your presentations carefully, show
how good your company / product is and have a good of-
fer in hand if your ideal candidate is not interested.
Remember: information is the basis for an export suc-
cess story.
Be organized: during the course of the export project and
product launch, you will come across a large number of
data, information and contacts, which may be valuable in
the future. Store them properly.
Brazilian Food and Beverage Market Report 2012 | 57
9.1 Trade Shows.
The trade shows listed below are the most representative of the
respective categories, there are also many other regional trade
shows and fairs in other locations of Brazil.
Figure 53: FIPAN (bakery) trade show in Brazil
Source: Sindipan, www.sindipan.org.br
If you require more information on any of the trade shows, details
on how to exhibit, please contact Osec and the Swiss Business
Hub Brazil.
9.1.1 Beverages
BRASIL BRAU
International Exhibition of Beer Technology
Location: São Paulo, SP
Periodicity: Biannual
Website: www.brasilbrau.com.br
EXPO BEBIDAS & SERVIÇOS
Beverages and Services Trade Fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.expobebidas.com.br
EXPOVINIS BRASIL & OLIVE EXPERIENCE
Wine & Olive Oil Trade Fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.exponor.com.br/expovinis and
www.exponor.com.br/oliveexperience
VINOTECH & ENVASE BRASIL
Trade show on Wine Technology & Beverage Packaging
Location: Bento Gonçalves, RS
Periodicity: Annual
Website: www.vinotech.com.br
9.1.2 Foods
ABAD & SWEET BRAZIL
Convention of the Cash and Carry / Candies and confectionary
Trade Fair
Location: Each year on a different city
Periodicity: Annual
Website: www.abad.com.br
EXPO BRASIL CHOCOLATE
Chocolate Trade Fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.expobrasilchocolate.com.br
FEILEITE
Dairy fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.feileite.com.br
FIPAN
International Bakery, Confectionery and Independent Food Retail
Trade Fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.fipan.com.br
FISPAL CAFÉ
International Coffee Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.fispalcafe.com.br
9. Appendix.
58 | Brazilian Food and Beverage Market Report 2012
FRUIT & TECH
International Trade Fair for Fruits and Vegetables, Processing
Technology and Logistics
Location: São Paulo, SP
Periodicity: Biannual
Website: www.fruitetech.com.br
SIAL BRAZIL
Food and Beverage Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.sialbrazil.com
TECNOSORVETES
International Ice Cream Technology Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.tecnosorvetes.com.br
9.1.3 Food Ingredients
FOOD INGREDIENTS SOUTH AMERICA
Food Ingredients Trade Show
Location: São Paulo, SP
Periodicity: Biannual
Website: www.fi-events.com.br
HEALTH INGREDIENTS SOUTH AMERICA
Trade show on Healthy Ingredients
Location: São Paulo, SP
Periodicity: Annual
Website: www.hi-events.com.br/hi
9.1.4 Foodservice and HoReCa
EQUIPOTEL / EQUIPOTEL FOOD & DRINKS
Hospitality and Food Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.equipotel.com.br
FISPAL FOODSERVICE AND FISPAL HOTEL
International Foodservice and Food and Hospitality Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.fispalfoodservice.com.br and
www.fispalhotel.com.br
9.1.5 Meat and Poultry
AVESUI LATIN AMERICA
Latin American Trade Fair for the Poultry and Swine Industry
Location: São Paulo, SP
Periodicity: Annual
Website: www.avesui.com
TECNOCARNE
International Technology fair for the Meat Industry
Location: São Paulo, SP
Periodicity: Biannual
Website: www.tecnocarne.com.br
9.1.6 Natural and Organic Products
BIO BRASIL / NATURAL TECH
International Fair of Natural and Organic Products, Food and
Health
Location: São Paulo, SP
Periodicity: Annual
Website: www.biobrazilfair.com.br / www.naturaltech.com.br
BIOFACH AMÉRICA LATINA
Organic Products Trade Fair
Location: São Paulo, SP
Periodicity: Biannual
Website: www.biofach-americalatina.com.br
GANEPÃO
International Conference of Nutritional Oncology
Location: São Paulo, SP
Periodicity: Annual
Website: www.ganepao.com.br
Brazilian Food and Beverage Market Report 2012 | 59
VITAFOODS SOUTH AMERICA
Nutraceuticals, Functional Food and Drink Ingredients Trade Show
Location: São Paulo, SP
Periodicity: Annual
Website: www.vitafoodssouthamerica.com
9.1.7 Packaging and Technology
BRASIL PACK
Packaging trade fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.semanainternacional.com.br
EXPO EMBALA
Packaging trade fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.expoembala.com.br
FISPAL TECNOLOGIA
International Packaging, Processing and Logistics Trade Show for
the Food and Beverage Industries
Location: São Paulo, SP
Periodicity: Annual
Website: www.fispaltecnologia.com.br
9.1.8 Retail
APAS
Congress and Supermarket Business Fair
Location: São Paulo, SP
Periodicity: Annual
Website: www.feiraapas.com.br
SUPER RIO EXPOFOOD
Food Retail and Food Technology Trade Show
Location: Rio de Janeiro, RJ
Periodicity: Annual
Website: www.superrio.com.br
9.2 Trade Associations
9.2.1 Beverages
ABE – Associação Brasileira de Enologia
Brazilian Enology Association
Website: www.enologia.org.br
ABINAM – Associação Brasileira das Indústrias de Água Mineral
Brazilian Mineral Water Industry Association
Website: www.abinam.com.br
ABIR – Associação Brasileira Associação Brasileira das Indústrias
de Refrigerantes e de Bebidas Não Alcoólicas
Brazilian Non-Alcoholic Beverages Industry Association
Website: www.abir.org.br
ABRABE – Associação Brasileira de Bebidas
Brazilian Beverages Association
Website: www.abrabe.org.br
IBRAVIN – Instituto Brasileiro do Vinho
Brazilian Wine Institute
Website: www.ibravin.org.br
SINDISERV – Sindicato Nacional da Indústria da Cerveja
National Brewing Industry Union
Website: www.sindicerv.com.br
9.2.2 Food
AABBA – Associação Brasileira de Exportadores e Importadores
de Alimentos e Bebidas
Brazilian Food and Beverage Exporters and Importers Association
Website: www.aabba.org.br
ABIA – Associação Brasileira das Indústrias da Alimentação
Brazilian Food Industry Association
Website: www.abia.org.br
60 | Brazilian Food and Beverage Market Report 2012
ABIAM – Associação Brasileira da Indústria e Comércio de
Ingredientes e Aditivos para Alimentos
Brazilian Association of Industry and Trade for Food Ingredients
and Additives
Website: www.abiam.com.br
ABICAB – Associação Brasileira da Indústria de Chocolates,
Cacau, Amendoim, Balas e Derivados
Brazilian Association of Chocolates, Cocoa, Candies and Related
Goods Industry
Website: www.abicab.org.br
ABIAD – Associação Brasileira da Indústria de Alimentos para Fins
Especiais e Congêneres
Brazilian Association of The Dietary Food
Website: www.abiad.org.br
ABIMA – Associação Brasileira das Indústrias de Massas
Alimentícias
Brazilian Pasta Producers Association
Website: www.abima.com.br
ABMAPRO – Associação Brasileira de Marcas Próprias
Brazilian Private Label Association
Website: www.abmapro.org.br
ABIOVE – Associação Brasileira das Indústrias de Óleos Vegetais
Brazilian Association of Vegetable Oil Industries
Website: www.abiove.com.br
ABIP – Associação Brasileira da Indústria de Panificação e
Confeitaria
Brazilian Bakery and Confectionery Industry Association
Website: www.abima.com.br
ABIQ – Associação Brasileira das Indústrias de Queijo
Brazilian Cheese Industry Association
Website: www.abiq.com.br
ANIB – Associação Nacional das Indústrias de Biscoitos
National Biscuit Manufacturers Association
Website: www.anib.com.br
9.2.3 Foodservice and HoReCa
ABAGA – Associação Brasileira de Alta Gastronomia
Brazilian Association of the High Gastronomy
Website: www.abaga.com.br
ABRASEL – Associação Brasileira de Bares e Restaurantes
Brazilian Bar and Restaurants Association
Website: www.abrasel.com.br
9.2.4 Machinery
ABIMAQ – Associação Brasileira da Indústria de Máquinas e
Equipamentos
Brazilian Machinery and Equipment Association
Website: www.abimaq.org.br
ABIMEI – Associação Brasileira dos Importadores de Máquinas e
Equipamentos Industriais
Brazilian Machinery and Industrial Equipment Importers
Website: www.abimei.org.br
9.2.5 Natural and Organic Products
BrasilBio – Associação Brasileira de Orgânicos
Brazilian Organics Association
Website: www.brasilbio.com.br
9.2.6 Packaging
ABRE – Associação Brasileira de Embalagem
Brazilian Packaging Association
Website: www.abre.org.br
9.2.7 Retail
APAS – Associação Paulista de Supermercados - APAS
São Paulo State Association of Supermarket
Website: www.portalapas.org.br
Brazilian Food and Beverage Market Report 2012 | 61
ABRAS - Associação Brasileira dos Supermercados
Brazilian Supermarket Association
Website: www.abrasnet.com.br
9.2.8 Technology Institutes
ITAL – Instituto de Tecnologia de Alimentos
Food Technology Institute
Website: www.ital.sp.gov.br
SBCTA – Sociedade Brasileira da Ciência e Tecnologia de
Alimentos
Brazilian Society on Food Science and Technology
Website: www.sbcta.org.br
9.3 Publications
9.3.1 Beverages
BEBIDAS NET
Website: www.bebidasnet.com.br
Website aimed at the beverage business
9.3.2 Foods
REVISTA LATICÍNIOS
Website: www.revistalaticinios.com.br
Focused on Dairy Products
REVISTA ALIMENTOS & BEBIDAS
Website: www.revistaalimentosebebidas.com.br
Publication aimed at manufacturers of foods and beverages
REVISTA PADARIA MODERNA
Website: www.padariamoderna.com.br
Publication focused on bakery business
REVISTA IP&C
Website: www.revistaipc.com.br
Publication focused on bakery business
9.3.3 Food Ingredients
REVISTA ADITIVOS & INGREDIENTES
Website: www.insumos.com.br
Focused on Additives and Ingredients
REVISTA FI
Website: www.revista-fi.com
Focused on Food Ingredients
REVISTA INGREDIENTES E TECNOLOGIA
Website: www.revistait.com.br
Focused on Ingredients and Technology
9.3.4 Food Safety
REVISTA HIGIENE ALIMENTAR
Website: www.higienealimentar.com.br
Focused on Food Safety
9.3.5 Foodservice and HoReCa
REVISTA FOODSERVICE NEWS
Website: www.foodservicenews.com.br
Focused on Foodservice
REVISTA NUTRINEWS
Website: www.nutrinews.ws
Focused on Foodservice
9.3.6 Packaging
REVISTA EMBALAGEM E TECNOLOGIA
Website: www.embalagemetecnologia.com.br
Publication aimed at manufacturers of food and beverages and
packaging
REVISTA ENGARRAFADOR MODERNO
Website: www.engarrafadormoderno.com.br
Publication aimed the beverage business
REVISTA EMBANEWS
Website: www.embanews.com
62 | Brazilian Food and Beverage Market Report 2012
Publication aimed at the packaging business
9.3.7 Retail
REVISTA SUPERMERCADO MODERNO
Website: www.sm.com.br
Publication focused on the supermarket and retail business
REVISTA SUPER VAREJO
Website: www.supervarejo.com.br
Publication focused on the supermarket and retail business
9.4 List of Abbreviations
ABNT Brazilian Association of Technical Norms
ANVISA National Agency of Sanitary Surveillance
AWB Airway Bill
B/L Bill of Lading
CDC Consumer’s Defense Code
CIF Cost and Freight (Incoterm)
CODEX FAO / WHO Food Standard
DI Import declaration
DPDC Department of Consumer Protection and Defense
FOB Free on Board (Incoterm)
GDP Gross Domestic Product
HS Harmonized System
IBGE Brazilian Institute of Geography and Statistics
ICMS Tax on Circulation of Goods and Services
II Import Duty
INMETRO National Institute of Metrology, Standardization and
Industrial Quality
INPI National Institute of Industrial Property
IPI Tax on Industrialized Goods
LI Import License
MAPA Ministry of Agriculture, Livestock and Food Supply
MDIC Ministry of Development, Industry and Foreign Trade
MERCOSUR Common Market of the South
MJ Ministry of Justice
MS Ministry of Health
NCM Common MERCOSUR Nomenclature
PIQ Product Identity and Quality Standard
PROCON Consumer Protection and Defense Foundation
SECEX Brazilian International Trade Secretariat
SME Small and medium enterprise
SISCOMEX Brazilian automated foreign trade system
SISORG Brazilian organics conformity evaluation system
SPS Sanitary and Phytosanitary Agreement
WTO World Trade Organization
Brazilian Food and Beverage Market Report 2012 | 63
9.5 Import Duties.
As import duties may change, it is recommended checking them with a customs broker. Other taxes are also applicable on imported
goods in Brazil,
HS Code HS Description Import Duty
0201 Meat of bovine animals, fresh or chilled 10%
0201.30.00 Boneless 12%
0202 Meat of bovine animals, frozen 10%
0202.30.00 Boneless 12%
0203 Meat of swine, fresh, chilled or frozen 10%
0204 Meat of sheep or goats, fresh, chilled or frozen 10%
0205 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen 10%
0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen 10%
0207 Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen 10%
0208 Other meat and edible meat offal, fresh, chilled or frozen 10%
0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled or frozen 6%
0210 Meat and edible meat offal, salted, in brine, dried or smoked, edible flours and meals of meat or meat offal 10%
0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04 10%
0302.50.00 Cod, excluding livers and roes 0%
0303 Fish, frozen, excluding fish fillets and other fish meat of heading 03.04 10%
0303.52.00 Cod 0%
0304 Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen 10%
0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and
pellets of fish, fit for human consumption
10%
0305.30.10 Cod (fillets) 0%
0305.49.10 Cod (other) 0%
0305.51.00 Cod (dried) 0%
0305.61.00 Cod (salted) 0%
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, crustaceans, in shell cooked by
steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crusta-
ceans, fit for human consumption
10%
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, aquatic invertebrates other than crus-
taceans and molluscs, in shell cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in
brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption
10%
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter 12%
0401.10.10 UHT Milk 14%
0401.20.10 UHT Milk 14%
0401.30.21 UHT 14%
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter 28%
64 | Brazilian Food and Beverage Market Report 2012
0402.21.30 Cream 16%
0402.29.30 Cream 16%
0402.91.00 Other not containing added sugar or other sweetening matter 14%
0403 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not con-
centrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa
16%
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter, products consisting of natural
milk constituents, whether or not concentrated or containing added sugar or other sweetening matter, not elsewhere speci-
fied or included
28%
0404.90.00 Other 14%
0405 Butter and other fats and oils from milk, dairy spreads 16%
0406 Cheese and curd 16%
0406.10.10 Mozzarella 28%
0406.90.10 Other cheese, of a moisture content, by weight, of less than 36% (hard cheese) 28%
0406.90.10 Other cheese, of a moisture content, by weight, of 36% or more but less than 46% (semi hard cheese) 28%
0407 Birds’ eggs, in shell, fresh, preserved or cooked 0%
0407.00.90 Other 8%
0408 Birds’ eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, molded, frozen or otherwise
preserved, whether or not concentrated or containing added sugar or other sweetening matter
10%
0409 Natural honey 16%
0410 Edible products of natural origin, not elsewhere specified or included 14%
0701 Potatoes, fresh or chilled 10%
0701.10.00 Seed 0%
0702 Tomatoes, fresh or chilled 10%
0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled 10%
Various Seeds 0%
0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled 10%
0705 Lettuce and chicory, fresh or chilled 10%
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled 10%
0707 Cucumbers and gherkins, fresh or chilled 10%
0708 Leguminous vegetables, shelled or unshelled, fresh or chilled 10%
0709 Other vegetables, fresh or chilled 10%
0709.90.11 Seed 0%
0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen 10%
0711 Fruit and nuts, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preserva-
tive solutions), but unsuitable in that state for immediate consumption
10%
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared 10%
0713 Dried leguminous vegetables, shelled, whether or not skinned or split 10%
Various Seed 0%
0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin
content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith
10%
Brazilian Food and Beverage Market Report 2012 | 65
0801 Coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled 10%
0802 Other nuts, fresh or dried, whether or not shelled or peeled 10%
0802.2 Hazelnuts or filberts (Corylus spp.) 6%
0803 Bananas, including plantains, fresh or dried 10%
0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried 10%
0805 Citrus fruit, fresh or dried 10%
0806 Grapes, fresh or dried 10%
0807 Melons (including watermelons) and papaws (papayas), fresh 10%
0808 Apples, pears and quinces, fresh 10%
0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh 10%
0810 Other fruit, fresh 10%
0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other
sweetening matter
10%
0812 Fruits and nuts, provisionally preserved (for example: by sulphur dioxide gas, in brine, in sulphur water or in other pre-
servative solutions), but unsuitable in that state for immediate consumption
10%
0813 Fruit, dried, other than that of headings 0801 to 0806; mixtures of nuts or dried fruits of this Chapter 10%
0814 Peel of citrus fruit or melons (including watermelons), fresh, frozen, dried or provisionally preserved in brine, in sulphur
water or in other preservative solutions
10%
0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any propor-
tion
10%
0902 Tea, whether or not flavoured 10%
0903 Maté 10%
0904 Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or the genus Pimenta 10%
0905 Vanilla 10%
0906 Cinnamon and cinnamon-tree flowers 10%
0907 Cloves (whole fruit, cloves and stems) 10%
0908 Nutmeg, mace and cardamoms 10%
0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries 10%
0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices 10%
1001 Wheat and meslin 10%
Various Seed 0%
1002 Rye 10%
1002.00.10 Seed 0%
1003 Barley 10%
1003.00.10 Seed 0%
1004 Oats 10%
1004.00.10 Seed 0%
1005 Maize (corn) 10%
1005.10.00 Seed 0%
1006 Rice 10%
66 | Brazilian Food and Beverage Market Report 2012
1006.10.10 Seed 0%
1006.30.11 Parboiled: polished or glazed 12%
1006.30.21 Not parboiled: polished or glazed 12%
1007 Grain sorghum 8%
1007.00.10 Seed 0%
1008 Buckwheat, millet and canary seed; other cereals 8%
Various Seed 0%
1101 Wheat or meslin flour 12%
1102 Cereal flours other than of wheat or meslin 10%
1103 Cereal groats, meal and pellets 10%
1104 Cereal grains otherwise worked (for example: hulled, rolled, flaked, pearled, sliced or kibbled), except rice of heading
10.06; germ of cereals, whole, rolled, flaked or ground
10%
1105 Flour, meal, powder, flakes, granules and pellets of potatoes 12%
1106 Flour, meal and powder of the dried leguminous vegetables of heading 0713, of sago or of roots or tubers of heading 0714
or of the products of Chapter 8
10%
1107 Malt, whether or not roasted 14%
1108 Starches; inulin 10%
1109 Wheat gluten, whether or not dried 10%
1201 Soya beans, whether or not broken 8%
1201.00.10 For sowing 0%
1202 Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken 8%
1202.20.10 For sowing 0%
1203 Copra 8%
1204 Linseed, whether or not broken 8%
1204.00.10 For sowing 0%
1205 Rape or colza seeds, whether or not broken 8%
Various For sowing 0%
1206 Sunflower seeds, whether or not broken 8%
1206.00.10 For sowing 0%
1207 Other oil seeds and oleaginous fruits, whether or not broken 8%
Various For sowing 0%
1208 Flours and meals of oil seeds or oleaginous fruits, other than those of mustard 10%
1209 Seeds, fruit and spores, of a kind used for sowing 0%
1210 Hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin 8%
1211 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery,
in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not
cut, crushed or powdered
8%
1212 Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or
dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of
the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included
8%
Brazilian Food and Beverage Market Report 2012 | 67
1212.20.00 Seaweeds and other algae 6%
1213 Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets 8%
1214 Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches and similar forage
products, whether or not in the form of pellets
8%
1301 Lac; natural gums, resins, gum-resins and oleoresins (for example: balsam) 4%
1301.90.90 Other 8%
1302 Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners,
whether or not modified, derived from vegetable products
8%
1302.19.30 Of ginkco biloba, dried 2%
1302.19.40 Of valepotriates (valerian extracts) 2%
1302.19.50 Of ginseng 2%
1302.19.60 Silymarin group 14%
1302.19.91 Of pyrethrum or of the roots of plants containing rotenone 2%
1302.31.00 Agar-agar 10%
1302.39.10 Carrageenan 10%
1501 Pig fat (including lard) and poultry fat, other than that of heading 0209 or 1503 8%
1502 Fats of bovine animals, sheep or goats, other than those of heading 15.03 6%
1503 Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared 8%
1504 Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified 10%
1504.10.11 Cod-liver oil: crude oil 4%
1505 Wool grease and fatty substances derived therefrom (including lanolin) 8%
1505.00.90 Other 6%
1506 Other animal fats and oils and their fractions, whether or not refined, but not chemically modified 6%
1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified 12%
1507.10.00 Crude oil, whether or not degummed 10%
1508 Groundnut oil and its fractions, whether or not refined, but not chemically modified 12%
1508.10.00 Crude oil 10%
1509 Olive oil and its fractions, whether or not refined, but not chemically modified 10%
1510 Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including
blends of these oils or fractions with oils or fractions of heading 15.09
10%
1511 Palm oil and its fractions, whether or not refined, but not chemically modified 10%
1512 Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified 10%
1512.19.11 Sunflower-seed oil: Refined, in containers holding 5 litres or less 12%
1513 Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified 10%
1514 Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified 10%
1515 Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically
modified
10%
1516 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, re-esterified or
elaidinized, whether or not refined, but not further prepared
10%
1517 Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this 12%
68 | Brazilian Food and Beverage Market Report 2012
Chapter, other than edible fats or oils or their fractions of heading 15.16
1518 Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat
in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or prepara-
tions of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or
included
10%
1520 Glycerol, crude; glycerol waters and glycerol lyes 8%
1520.00.20 Glycerol waters and glycerol lyes 10%
1521 Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or col-
oured
10%
1601 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products 16%
1602 Other prepared or preserved meat, meat offal or blood 16%
1603 Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates 16%
1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs 16%
1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved 16%
1701 Cane or beet sugar and chemically pure sucrose, in solid form 16%
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing
added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel
16%
1703 Molasses resulting from the extraction or refining of sugar 16%
1704 Sugar confectionery (including white chocolate), not containing cocoa 20%
1801 Cocoa beans, whole or broken, raw or roasted 10%
1802 Cocoa shells, husks, skins and other cocoa waste 10%
1803 Cocoa paste, whether or not defatted 18%
1804 Cocoa butter, fat and oil 12%
1805 Cocoa powder, not containing added sugar or other sweetening matter 14%
1806 Chocolate and other food preparations containing cocoa 20%
1806.10.00 Cocoa powder, containing added sugar or other sweetening matter 18%
1806.20.00 Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk
form in containers or immediate packings, of a content exceeding 2 kg
18%
1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than
40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of
goods of headings 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a
totally defatted basis, not elsewhere specified or included
18%
1901.10.10 Modified milk 16%
1901.20.00 Mixes and doughs for the preparation of bakers’ wares of heading 19.05 14%
1901.90.10 Malt extracts 14%
1901.90.20 Dulce de leche 16%
1901.90.90 Other 16%
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, maca-
roni, noodles, lasagna, gnocchi, ravioli, cannelloni; couscous, whether or not prepared
16%
1903 Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms 16%
Brazilian Food and Beverage Market Report 2012 | 69
1904 Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example: corn flakes); cereals (other
than maize (corn)) in grain form or in the form of flakes or other worked grains (except flour, groats and meal), pre-cooked
or otherwise prepared, not elsewhere specified or included
16%
1905 Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty ca-
chets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products
18%
2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid 14%
2002 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid 14%
2003 Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid 14%
2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading
20.06
14%
2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading
20.06
14%
2006 Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glacé or crystallized) 14%
2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing
added sugar or other sweetening matter
14%
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or
other sweetening matter or spirit, not elsewhere specified or included
14%
2009 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not
containing added sugar or other sweetening matter
14%
2101 Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis
of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates
thereof
16%
2101.30.00 Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates 14%
2102 Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading 30.02); prepared
baking powders
14%
2103 Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mus-
tard
16%
2103.10.10 Soya sauce: In immediate containers holding not more than 1 kg 18%
2103.20.10 Tomato ketchup and other tomato sauces: In immediate containers holding not more than 1 kg 18%
2103.30.21 Prepared mustard: In immediate containers holding not more than 1 kg 18%
2103.90.11 Mayonnaise: In immediate containers holding not more than 1 kg 18%
2103.90.21 Mixed condiments and mixed seasonings: In immediate containers holding not more than 1 kg 18%
2103.90.91 Other: In immediate containers holding not more than 1 kg 18%
2104 Soups and broths and preparations therefor; homogenized composite food preparations 16%
2104.10.11 Preparations for soups and broths: In immediate containers holding not more than 1 kg 18%
2104.10.21 Soups and broths: In immediate containers holding not more than 1 kg 18%
2105 Ice cream and other edible ice, whether or not containing cocoa 16%
2105.00.90 In immediate containers holding not more than 2 kg 18%
2106 Food preparations not elsewhere specified or included 16%
2106.10.00 Protein concentrates and textured protein substances 14%
2106.90.10 Preparations of a kind used in the manufacture of beverages 14%
70 | Brazilian Food and Beverage Market Report 2012
2106.90.21 Powders for table creams, jellies, ice creams, or similar preparations, whether or not containing
added sugar or other sweetening matter: For the manufacture of table creams, in immediate containers holding not
more than 1 kg
18%
2106.90.40 Mixtures with a basis of sodium ascorbate and glucose for the preparation of preserved meat 14%
2201 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening
matter nor flavoured; ice and snow
20%
2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and
other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09
20%
2203 Beer made from malt 20%
2204 Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09 20%
2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 20%
2206 Other fermented beverages (for example: cider, perry, mead); mixtures of fermented beverages and mixtures of fermented
beverages and non-alcoholic beverages, not elsewhere specified or included
20%
2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, dena-
tured, of any strength
20%
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and other spirituous
beverages
20%
2209 Vinegar and substitutes for vinegar obtained from acetic acid 20%
Brazilian Food and Beverage Market Report 2012 | 71
01 Lebende Tiere
Richtung Länder CHF % kg %
IMPORT Total 83'446'176 100.00 4'729'059 100.00
EXPORT Total 15'005'488 100.00 2'991'294 100.00
02 Fleisch und geniessbare Schlachtnebenerzeugnisse
Richtung Länder CHF % kg %
IMPORT Total 694'055'278 100.00 105'583'684 100.00
Brasilien 71'632'688 10.32 21'256'709 20.13
EXPORT Total 79'731'187 100.00 26'106'738 100.00
03 Fische und Krebstiere, Weichtiere und andere wirbellose Wassertiere
Richtung Länder CHF % kg %
IMPORT Total 475'814'073 100.00 45'382'939 100.00
Brasilien 178'392 0.04 8'700 0.02
EXPORT Total 5'338'896 100.00 226'397 100.00
04 Milch und Molkereierzeugnisse; Vogeleier; natürlicher Honig; geniessbare Waren tierischen
Ursprungs, anderweit weder genannt noch inbegriffen
Richtung Länder CHF % kg %
IMPORT Total 545'551'502 100.00 144'713'070 100.00
Brasilien 150'110 0.03 41'052 0.03
EXPORT Total 674'560'168 100.00 160'819'043 100.00
Brasilien 430'508 0.06 37'028 0.02
05 Andere Waren tierischen Ursprungs, anderweit weder genannt noch inbegriffen
Richtung Länder CHF % kg %
IMPORT Total 72'112'637 100.00 16'881'308 100.00
Brasilien 2'656'725 3.68 302'390 1.79
EXPORT Total 29'745'987 100.00 77'775'136 100.00
Brasilien 138'534 0.47 2'001 0.00
10. Trade statistics 2011.
72 | Brazilian Food and Beverage Market Report 2012
06 Lebende Pflanzen und Waren des Blumenhandels
Richtung Länder CHF % kg %
IMPORT Total 563'944'002 100.00 176'366'418 100.00
Brasilien 2'007 0.00 91 0.00
EXPORT Total 4'514'528 100.00 834'131 100.00
07 Gemüse, Pflanzen, Wurzeln und Knollen, zu Ernährungszwecken
Richtung Länder CHF % kg %
IMPORT Total 557'252'215 100.00 281'560'677 100.00
Brasilien 70'435 0.01 35'802 0.01
EXPORT Total 4'177'413 100.00 1'475'651 100.00
08 Geniessbare Früchte; Schalen von Zitrusfrüchten oder von Melonen
Richtung Länder CHF % kg %
IMPORT Total 957'264'148 100.00 493'696'004 100.00
Brasilien 12'827'545 1.34 4'838'825 0.98
EXPORT Total 10'298'598 100.00 7'192'850 100.00
09 Kaffee, Tee, Mate und Gewürze
Richtung Länder CHF % kg %
IMPORT Total 861'546'397 100.00 152'457'352 100.00
Brasilien 204'617'544 23.75 41'479'336 27.21
EXPORT Total 1'565'610'567 100.00 46'092'702 100.00
Brasilien 30'992'633 1.98 382'210 0.83
10 Getreide
Richtung Länder CHF % kg %
IMPORT Total 358'363'166 100.00 873'583'868 100.00
Brasilien 22'696'030 6.33 58'407'786 6.69
EXPORT Total 3'438'816 100.00 2'158'797 100.00
Brazilian Food and Beverage Market Report 2012 | 73
11 Müllereierzeugnisse; Malz; Stärke; Inulin; Kleber von Weizen
Richtung Länder CHF % kg %
IMPORT Total 85'438'897 100.00 130'497'513 100.00
Brasilien 28'720 0.03 11'833 0.01
EXPORT Total 10'693'974 100.00 7'083'856 100.00
12 Oelsaaten und ölhaltige Früchte; verschiedene Samen und Früchte; Pflanzen zum Gewerbe-
oder Heilgebrauch; Stroh und Futter
Richtung Länder CHF % kg %
IMPORT Total 249'664'188 100.00 589'410'543 100.00
Brasilien 458'753 0.18 868'940 0.15
EXPORT Total 16'400'489 100.00 7'431'578 100.00
Brasilien 13'930 0.08 404 0.01
13 Gummis, Harze und andere Pflanzensäfte und Pflanzenauszüge
Richtung Länder CHF % kg %
IMPORT Total 69'073'792 100.00 7'911'372 100.00
Brasilien 178'388 0.26 16'445 0.21
EXPORT Total 108'684'992 100.00 7'143'527 100.00
Brasilien 135'815 0.12 606 0.01
14 Flechtstoffe und andere Waren pflanzlichen Ursprungs, anderweit weder genannt noch inbe-griffen
Richtung Länder CHF % kg %
IMPORT Total 7'588'652 100.00 4'258'983 100.00
Brasilien 1'220 0.02 150 0.00
EXPORT Total 813'196 100.00 1'744'190 100.00
74 | Brazilian Food and Beverage Market Report 2012
15 Tierische und pflanzliche Fette und Oele; Erzeugnisse ihrer Spaltung; zubereitete Speisefette;
Wachse tierischen oder pflanzlichen Ursprungs
Richtung Länder CHF % kg %
IMPORT Total 355'200'871 100.00 156'421'220 100.00
Brasilien 151'720 0.04 74'027 0.05
EXPORT Total 82'278'764 100.00 17'350'716 100.00
Brasilien 1'552'313 1.89 57'441 0.33
16 Zubereitungen von Fleisch, Fischen, Krebstieren, Weichtieren oder anderen wirbellosen
Wassertieren
Richtung Länder CHF % kg %
IMPORT Total 346'581'114 100.00 40'175'703 100.00
Brasilien 6'439'296 1.86 955'924 2.38
EXPORT Total 8'372'449 100.00 596'942 100.00
17 Zucker und Zuckerwaren
Richtung Länder CHF % kg %
IMPORT Total 254'884'865 100.00 207'043'504 100.00
Brasilien 274'987 0.11 160'653 0.08
EXPORT Total 156'662'417 100.00 30'247'963 100.00
Brasilien 998'919 0.64 161'757 0.53
18 Kakao und Zubereitungen aus Kakao
Richtung Länder CHF % kg %
IMPORT Total 512'994'446 100.00 108'611'958 100.00
Brasilien 149'099 0.03 23'134 0.02
EXPORT Total 804'986'983 100.00 113'695'318 100.00
Brasilien 13'668'363 1.70 1'871'012 1.65
Brazilian Food and Beverage Market Report 2012 | 75
19 Zubereitungen auf der Grundlage von Getreide, Mehl, Stärke oder Milch; Backwaren
Richtung Länder CHF % kg %
IMPORT Total 673'103'991 100.00 190'306'871 100.00
Brasilien 49'472 0.01 8'071 0.00
EXPORT Total 650'648'152 100.00 161'433'910 100.00
Brasilien 264'547 0.04 13'559 0.01
20 Zubereitungen von Gemüse, Früchten oder anderen Pflanzenteilen
Richtung Länder CHF % kg %
IMPORT Total 455'680'817 100.00 218'649'786 100.00
Brasilien 31'930'815 7.01 18'458'042 8.44
EXPORT Total 96'889'347 100.00 29'868'194 100.00
Brasilien 192'963 0.20 14'828 0.05
21 Verschiedene Lebensmittelzubereitungen
Richtung Länder CHF % kg %
IMPORT Total 743'137'629 100.00 129'803'892 100.00
Brasilien 14'474'358 1.95 3'575'753 2.75
EXPORT Total 1'085'122'376 100.00 127'241'080 100.00
Brasilien 9'786'185 0.90 804'566 0.63
22 Getränke, alkoholhaltige Flüssigkeiten und Essig
Richtung Länder CHF % kg %
IMPORT Total 1'703'273'627 100.00 954'035'616 100.00
Brasilien 18'065'881 1.06 17'474'200 1.83
EXPORT Total 1'513'311'317 100.00 2'023'951'916 100.00
Brasilien 7'628'949 0.50 4'819'617 0.24
76 | Brazilian Food and Beverage Market Report 2012
23 Rückstände und Abfälle der Lebensmittelindustrie; zubereitete Tierfutter
Richtung Länder CHF % kg %
IMPORT Total 423'954'609 100.00 563'704'452 100.00
Brasilien 73'527'150 17.34 154'865'209 27.47
EXPORT Total 190'410'548 100.00 90'816'329 100.00
Brasilien 261'835 0.14 16'460 0.02
Quelle: Eidgenössische Zollverwaltung
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Fax +41 44 365 52 21
Osec
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Osec
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