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BRF: from Brazil to conquer the world with hi-tech food

The booth of BRF at Sial Paris.

A demanding and globalised consumer with very specific tastes who increasingly demands from the food industry “easy”, fast but also tasty products, customised and localised to his tastes but with an international touch, with health needs that can no longer be ignored, needs not so much new (since new products often do not have much new to say, as can be seen from the flop of most launches on the market) but innovative products. This is the demand: the supply, on the other hand, can now come from the global market, from the big manufacturers of countries once developing but now in the global arena. This is the consumer which BRF, a name we will probably hear much of in the future, is looking towards. The seventh producer of food worldwide, based in Brazil, specialising in frozen foods, mainly fish and chicken, mostly in the form of raw materials, has in fact decided to embark on conquering the global market. With a new strategy that focuses on innovation and commercialisation of high added-value products. In Europe, one of the areas where the company intends to develop, BRF aims to become among the top five producers of frozen meat and fish, transforming itself from a supplier of standard solutions to one of custom and branded solutions, with a strong focus on quality and innovation, as explained by Marcos Delorenzo, the new Marketing Manager for Europe and Eurasia. “Europe is in fact a mature market – adds General Manager West and South Europe, Cristophe Vasseur – with consumers who want convenience and eat take away or in fast-food chains. And it is a diversified market with, in the West, chains with very strong private labels and an Eastern part where the retail offer is fragmented and private labels are still weak. In short a diversified market, to which BRF intends to propose customised solutions for both BtoB and catering chains. The new internationalisation process will be based on three pillars: brand, distribution and local production. A strategy involving acquisitions of manufacturers and distributors on the international market, but also the construction of its own facilities and development of products and marketing campaigns tailored to the various local cultures and needs. The first structure of the “new deal” will be built in Abu Dhabi at the beginning of 2015, in an emerging market with great potential.

The new products come about in a 12,500 sqm centre
The company, included by “Forbes” among the 100 most innovative in the world, focuses on research and development thanks to the BRF Innovation Center (BIC) in Jundiaí, Brazil, a 12,500 square metre complex where meat, pasta and vegetable products, but also new types of packaging, are created and tested and where 180 researchers and technicians work. It has 40 brands in its portfolio (the most important being Sadia, Perdigao, Qualy, Batavo and Elegê), which sell meat (chicken and pork), pasta, margarines, frozen pizzas and vegetables. Production, on the other hand, takes place in 58 factories, of which 47 in Brazil, 9 in Argentina and two in Europe, in the Netherlands and the United Kingdom. The 22 sales offices manage customers in 110 countries. It is the seventh food company in the world and accounts for 20% of the global poultry market. In 2013 its turnover was 9.9 billion euros. Anna Muzio

Retail and wholesale sector calls for focus on skills, digital and labour reforms

Speaking at Tripartite Social Summit last week, EuroCommerce Director-General Christian Verschueren highlighted the fact that, “Over 29 million Europeans work in retail and wholesale, that’s one in every seven working Europeans.” However, despite being one of Europe’s biggest job providers, the sector faces challenges. For the sector to contribute to Europe’s economic recovery, we need three actions : making investments in digital infrastructure and skills, deepening and progressing the single market, and advancing further reforms of labour markets.

 Investing in skills
Retail and wholesale can provide job opportunities to those with limited qualifications who often find it difficult to find employment. Mr Verschueren stressed, “We need to be able to continue to invest both in the young people of today who are struggling to find jobs, as well as the older generations. We support the focus the Commission puts on mobilising funds for skills but these funding possibilities should be made easier, with less red tape for funding requests, so we can equip people with the right skills.”

Keeping up with the digital age
The digital age is creating new job opportunities, but these require new skills. So there is a greater need for investment in digital skills. Retail and wholesale companies are doing their share. Investments are needed as well in infrastructure (transport and digital networks). Thirdly, completion and deepening of the digital single market remains a priority. Finally, bringing legislative requirements and best practices close to retail and wholesale operators on the ground. “We have asked for a single, online, one-stop portal that would provide user-friendly information on legislative requirements in every Member State, as well as best practices,” explained Mr Verschueren, adding, “This could help traditional retailers and wholesalers to establish cross-borders or reinvent themselves in the digital age.”

Reforming the labour market
Employment conditions in some Member States still prevent businesses from hiring for growth. “Member States must invest in labour market reform or risk losing the progress made on strengthening the economy and improving employment prospects,” argued Mr Verschueren.

Bottled water and Tea lead global drinks growth

chart2-zenith

More global drinks insights have been released by leading food and drink industry consultancy Zenith International, following its relaunch of the globaldrinks.com online database earlier this week, this time highlighting the growth of bottled water and tea, between them contributing 55% of overall beverage market growth in the past 5 years.

Tea is by far the largest of the 24 drinks categories in the 72 country globaldrinks.com database and saw consumption growth of 62 billion litres between 2008 and 2013. Bottled water, the second largest market by volume, increased sales by an even higher 83 billion litres over the 5 years. Milk gained the third biggest volume growth of 20 billion litres, followed by coffee on 16 billion litres.

Five other categories all achieved growth of between 10 and 12 billion litres – still drinks with a low fruit content, carbonated soft drinks, beer, fruit drinks with a fruit content between 5% and 25% and iced tea.

Spirits were the last of the top ten volume growth categories, which is a very strong performance, given their far higher value.

“When you look in more detail at how the category rankings have altered in the last five years, two changes jump out,” commented Zenith Chairman Richard Hall.

“The first is that carbonates have slipped behind milk, which has now risen to third place.  The second is that coffee has overtaken beer. “The other observation to highlight is a huge increase in the variety of choice available to consumers today, with many more flavours and blends as well as packs and sweeteners, outlets and delivery options,” he concluded.

Marco Pedroni (Coop): 2015 the turnaround year for consumptions

copertina-rapporto2014“Despite the recent disturbing news concerning summer consumer spending data, we believe that it is wrong to imagine a never-ending recession – affirms Marco Pedroni, Chairman of Coop Italia in commenting the presentation of the 2014 Coop Report data -. On the contrary, we believe that 2015 can be the year of the reversal of this very negative trend, as long as steps are taken to support domestic demand with measures in favour of the weaker classes, with structural investments to modernise the country, with policies to reactivate credit to businesses. In the medium term, the revival of a policy of reforms is crucial, starting with deregulations and anti-monopolistic measures that generate positive effects on the spending power of households (medicines, energy, financial services).

Finally, the Ancc-Coop report highlights that the number one problem of the country is the generation gap. Over the past 10 years, the incomes of couples under 35 years of age have decreased by 17%, while those of the over 65’s have increased by 41%. It’s no surprise, therefore, that 2014 has been the year with the fewest births in Italy. But without children there is no recovery of expectations, there is no increase in consumer spending, there is no future. In the ‘one thousand days’ programme it is essential to focus on a new policy to support new families and the birth rate: this is the shock we need”.

“The distribution sector – continued Pedroni – is under significant pressure, deriving from the decrease in consumer spending and greater competition. In Italy, the sector still has a low concentration compared to the major European countries; greater concentration will be inevitable in the coming years, with growth in efficiency and average size of the main players.

We, the leading Italian distributor of consumer goods, believe that the main response, even before quantitative growth, must be qualitative growth, profoundly innovating the way of doing business. We are working on major changes, shifting value from promotions on the shelf to those that let the consumer choose without being forced (the “you choose” mechanism); simplifying relations with industry and contractual conditions, aligning them with those in place in the rest of Europe; planning significant growth of private label products with the objective of rapidly exceeding a share of 30%. A strategy with affordability at its core, which is a primary duty of the Coop, but always associated with safety and quality for consumers; households who spend less as a result of our action. For Coop, 2014 is a year of preparation and, in part, bringing forward this important turning point which we believe will do not only us but the entire sector good”.

 

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