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AAK Insight Magazine nr 2 2016

Growth markets – a closer look South America: A region of great challenges and opportunities 6   In a globalized world, trends such as convenience, on the go-products, health and wellness, and indulgence are making their ways into growth markets as well, although in a much more tentative way.   “South American consumers have started to ask for value- added products with extra benefits, alternative product brands, and, of course, attractive prices”, says Niall Sands. Exciting opportunities for AAK AAK has already today a leading position in the South American market when it comes to Chocolate & Confectionery but the opening of the plant in Jundiaí, with an initial production capacity of 100,000 MT per year, provides exciting opportunities for the Sales and Customer Innovation teams to diversify the existing business into new end-use markets, geographies and channels.   “Our teams have been working frantically over the last couple of months in order to create awareness, asses global and regional customers’ key needs and challenges, as well as generating an extensive opportunity pipeline”, says Rossana Cabral, Market Development Manager at AAK Brazil.   According to the market research company Euromonitor, the South American market for packaged foods is a significant one with approximately USD 150 billion of retail sales, driven by categories dairy, bakery, confectionery, sauces and condiments, and biscuits and snack bars. Brazil and Argentina are by far the biggest markets, followed by Chile and Peru.   “Given the breadth of the AAK portfolio from a technology and applications perspective, this key market offers us a great opportunity to grow our business using our unique co-development approach with which we collaborate with Local currency devaluation, high inflation and increasing unemployment are all part of the political and economic reality present in the major markets of South America today. It is in this reality that AAK traces its Go to Marketstrategy, evaluating the many market opportunities and following the main consumer trends. But what does the market landscape in South America look like and what potential does it carry? Insight asked representatives of AAK Brazil to find out. Companies that stand out in adverse times are those who know their consumers very well, who can communicate benefits, develop new uses and applications, and deliver with excellence. AAK would like to think of itself in such a way, which is why it has chosen to invest heavily in South America. Two years ago, the company decided to construct a new speciality and semi-speciality edible oils factory in Jundiaí, Brazil in order to increase its global footprint and bring the company even closer to some of its key customers.   “With this expanded presence in South America, we aim to increase our market share significantly in the focus markets within the next three years”, says Niall Sands, Sales Director at AAK Brazil. “This will be achieved with new capabilities and a strong positioning in specific segments as outlined in our Go to Market-strategy.”


AAK Insight Magazine nr 2 2016
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