brazil’s food and beverage...

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.


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.


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


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.


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,


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.


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


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.

http://www.agricultura.gov.br/

http://www.anvisa.gov.br/


- 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.

http://www.inmetro.gov.br/

http://www.procon.sp.gov.br/


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.


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.


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.


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


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.




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).


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.


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.


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


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

http://www.ecocert.com.br/

http://www.ibd.com.br/

http://www.imocontrol.com.br/

http://www.tecpar.br/cert/

http://www.mundoverde.com.br/

http://www.biocarioca.com.br/

http://www.bioeorganicos.com.br/

http://www.quintaldosorganicos.com.br/

http://www.vidasaudavelorganicos.com.br/

http://www.hortadavovo.com.br/

http://www.sabornatural.com.br/

http://www.ecobiosaude.com.br/

http://www.lojaorganica.com.br/

http://www.mundoverde.com.br/


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


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


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%



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


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%


99%

Breakfast cereal: 13%

Growth in value terms

(2009 – 2010)

Biscuits 7%


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


Indulgence

Convenience


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


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%


(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


Indulgence

Convenience


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%


(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


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.


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



(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


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.


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



(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


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.


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



(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


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-

http://www.google.com.br/imgres?q=tnt+energy&um=1&hl=pt-BR&sa=N&biw=1129&bih=491&tbm=isch&tbnid=MyNpfw4HunDvKM:&imgrefurl=http://www.tntenergydrink.com.br/produtos&docid=kpq_lMLbkO1-OM&imgurl=http://www.tntenergydrink.com.br/images/img_latapreta.png&w=230&h=328&ei=hQZ6T_rfLeHf0QH1zrmqDQ&zoom=1&iact=hc&vpx=260&vpy=57&dur=1535&hovh=262&hovw=184&tx=87&ty=148&sig=116432079619500219875&page=1&tbnh=117&tbnw=85&start=0&ndsp=12&ved=1t:429,r:7,s:0

http://www.google.com.br/imgres?q=tnt+energy&um=1&hl=pt-BR&sa=N&biw=1129&bih=491&tbm=isch&tbnid=MyNpfw4HunDvKM:&imgrefurl=http://www.tntenergydrink.com.br/produtos&docid=kpq_lMLbkO1-OM&imgurl=http://www.tntenergydrink.com.br/images/img_latapreta.png&w=230&h=328&ei=hQZ6T_rfLeHf0QH1zrmqDQ&zoom=1&iact=hc&vpx=260&vpy=57&dur=1535&hovh=262&hovw=184&tx=87&ty=148&sig=116432079619500219875&page=1&tbnh=117&tbnw=85&start=0&ndsp=12&ved=1t:429,r:7,s:0


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.


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


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


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


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


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.


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,

http://www.villagecepam.com.br/

http://www.cinalp.com.br/

http://www.predilecta.com.br/


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


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.


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


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.


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.


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


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



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


- 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




- 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



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.

http://www.allfood.com.br/

http://www.aurora.com.br/

http://www.calimp.com.br/

http://www.casaflora.com.br/

http://www.adegaexpand.com.br/

http://www.francosuissa.com.br/

http://www.gourmand.com.br/


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.


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


http://www.latinex.com.br/

http://www.lepaul.com.br/

http://www.stuttgart.com.br/


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


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


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

http://www.santaluzia.com.br/

http://www.supermercadosdalben.com.br/

http://www.emporiochiappetta.com.br/

http://www.emporiomoema.com.br/

http://www.emporiosantamaria.com.br/

http://www.emporiumsaopaulo.com.br/

http://www.hippo.com.br/

http://www.hortovitoria.com.br/

http://www.lapalma.com.br/

http://www.mambo.com.br/

http://www.martplus.com.br/

http://www.naturaldaterra.com.br/

http://www.grupooba.com.br/

http://www.paodeacucar.com.br/


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


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


http://www.paodeacucar.com.br/produto/79555/fondue-suico-de-queijo-gorgonzola-emmi-400g

http://www.paodeacucar.com.br/produto/11378/queijo-suico-appenzeller-pedaco-150g

http://www.paodeacucar.com.br/produto/37380/chocolate-suico-lindor-milk-lindt-100g

http://www.paodeacucar.com.br/produto/7550/biscoito-suico-vicenzi-mini-voglie-creme-de-cacau-225g

http://www.paodeacucar.com.br/produto/83121/biscoito-alemao-bahlsen-waffeltten-100g

http://www.paodeacucar.com.br/produto/50594/cerveja-alema-weihenstephaner-hefe-weissbier-garrafa-500ml

http://www.perini.com.br/

http://www.marche.com.br/

http://www.supermercadomodelo.com.br/

http://www.muffato.com.br/

http://www.supernosso.com.br/

http://www.superverdemar.com.br/

http://www.zaffari.com.br/

http://www.zonasul.com.br/






































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.


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.


- 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.


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!


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.


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.


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.


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.


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.


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.


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.


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.


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


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.


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


Periodicity: Annual

Website: www.expobebidas.com.br

EXPOVINIS BRASIL & OLIVE EXPERIENCE

Wine & Olive Oil Trade Fair


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


Periodicity: Annual

Website: www.expobrasilchocolate.com.br

FEILEITE

Dairy fair


Periodicity: Annual

Website: www.feileite.com.br

FIPAN

International Bakery, Confectionery and Independent Food Retail

Trade Fair


Periodicity: Annual

Website: www.fipan.com.br

FISPAL CAFÉ

International Coffee Trade Show


Periodicity: Annual

Website: www.fispalcafe.com.br

9. Appendix.

http://www.brasilbrau.com.br/

http://www.expobebidas.com.br/

http://www.exponor.com.br/expovinis

http://www.exponor.com.br/oliveexperience

http://www.vinotech.com.br/

http://www.abad.com.br/

http://www.expobrasilchocolate.com.br/

http://www.feileite.com.br/

http://www.fipan.com.br/

http://www.fispalcafe.com.br/


FRUIT & TECH

International Trade Fair for Fruits and Vegetables, Processing

Technology and Logistics



Website: www.fruitetech.com.br

SIAL BRAZIL

Food and Beverage Trade Show


Periodicity: Annual

Website: www.sialbrazil.com

TECNOSORVETES

International Ice Cream Technology Trade Show


Periodicity: Annual

Website: www.tecnosorvetes.com.br

9.1.3 Food Ingredients

FOOD INGREDIENTS SOUTH AMERICA

Food Ingredients Trade Show



Website: www.fi-events.com.br

HEALTH INGREDIENTS SOUTH AMERICA

Trade show on Healthy Ingredients


Periodicity: Annual

Website: www.hi-events.com.br/hi

9.1.4 Foodservice and HoReCa

EQUIPOTEL / EQUIPOTEL FOOD & DRINKS

Hospitality and Food Trade Show


Periodicity: Annual

Website: www.equipotel.com.br

FISPAL FOODSERVICE AND FISPAL HOTEL

International Foodservice and Food and Hospitality Trade Show


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


Periodicity: Annual

Website: www.avesui.com

TECNOCARNE

International Technology fair for the Meat Industry



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


Periodicity: Annual

Website: www.biobrazilfair.com.br / www.naturaltech.com.br

BIOFACH AMÉRICA LATINA

Organic Products Trade Fair



Website: www.biofach-americalatina.com.br

GANEPÃO

International Conference of Nutritional Oncology


Periodicity: Annual

Website: www.ganepao.com.br

http://www.fruitetech.com.br/

http://www.sialbrazil.com/

http://www.tecnosorvetes.com.br/

http://www.fi-events.com.br/

http://www.hi-events.com.br/hi

http://www.equipotel.com.br/

http://www.fispalfoodservice.com.br/

http://www.fispalhotel.com.br/

http://www.avesui.com/

http://www.tecnocarne.com.br/

http://www.biobrazilfair.com.br/

http://www.naturaltech.com.br/

http://www.biofach-americalatina.com.br/

http://www.ganepao.com.br/


VITAFOODS SOUTH AMERICA

Nutraceuticals, Functional Food and Drink Ingredients Trade Show


Periodicity: Annual

Website: www.vitafoodssouthamerica.com

9.1.7 Packaging and Technology

BRASIL PACK

Packaging trade fair


Periodicity: Annual

Website: www.semanainternacional.com.br

EXPO EMBALA

Packaging trade fair


Periodicity: Annual

Website: www.expoembala.com.br

FISPAL TECNOLOGIA

International Packaging, Processing and Logistics Trade Show for

the Food and Beverage Industries


Periodicity: Annual

Website: www.fispaltecnologia.com.br

9.1.8 Retail

APAS

Congress and Supermarket Business Fair


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

http://www.vitafoodssouthamerica.com/

http://www.semanainternacional.com.br/

http://www.expoembala.com.br/

http://www.fispaltecnologia.com.br/

http://www.feiraapas.com.br/

http://www.superrio.com.br/

http://www.enologia.org.br/

http://www.abinam.com.br/

http://www.abir.org.br/

http://www.abrabe.org.br/

http://www.ibravin.org.br/

http://www.sindicerv.com.br/

http://www.aabba.org.br/

http://www.abia.org.br/


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


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

http://www.abiam.com.br/

http://www.abicab.org.br/

http://www.abiad.org.br/

http://www.abima.com.br/

http://www.abmapro.org.br/

http://www.abiove.com.br/

http://www.abiove.com.br/

http://www.abima.com.br/

http://www.abiq.com.br/

http://www.anib.com.br/

http://www.abaga.com.br/

http://www.abrasel.com.br/

http://www.abimaq.org.br/

http://www.abimei.org.br/

http://www.brasilbio.com.br/

http://www.abre.org.br/

http://www.portalapas.org.br/


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


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

http://www.abrasnet.com.br/

http://www.ital.sp.gov.br/

http://www.sbcta.org.br/

http://www.bebidasnet.com.br/

http://www.revistalaticinios.com.br/

http://www.revistaalimentosebebidas.com.br/

http://www.padariamoderna.com.br/

http://www.revistaipc.com.br/

http://www.insumos.com.br/

http://www.revista-fi.com/

http://www.revistait.com.br/

http://www.higienealimentar.com.br/

http://www.foodservicenews.com.br/

http://www.nutrinews.ws/

http://www.embalagemetecnologia.com.br/

http://www.embanews.com/


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

http://www.sm.com.br/

http://www.supervarejo.com.br/


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%


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%


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%


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%


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%


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%


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%


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%


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


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


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


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


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.


06 Lebende Pflanzen und Waren des Blumenhandels


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


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


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


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


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


11 Müllereierzeugnisse; Malz; Stärke; Inulin; Kleber von Weizen


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


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


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


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


15 Tierische und pflanzliche Fette und Oele; Erzeugnisse ihrer Spaltung; zubereitete Speisefette;

Wachse tierischen oder pflanzlichen Ursprungs


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


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


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


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


19 Zubereitungen auf der Grundlage von Getreide, Mehl, Stärke oder Milch; Backwaren


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


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


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


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


23 Rückstände und Abfälle der Lebensmittelindustrie; zubereitete Tierfutter


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

Osec

Stampfenbachstrasse 85

CH-8006 Zürich

Telefon +41 44 365 51 51

Fax +41 44 365 52 21

[email protected]

Osec

Corso Elvezia 16

Casella postale 5399

CH-6901 Lugano

Telefono +41 91 911 51 35

Fax +41 91 911 51 39

[email protected]

Osec

Avenue d’Ouchy 47

Case postale 315

CH-1001 Lausanne

Téléphone +41 21 613 35 70

Fax +41 21 613 35 02

[email protected]

Copyright © Osec Mai 2012. Alle Rechte vorbehalten.

Unsere Hotline: 0844 811 812 www.osec.ch

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