Geovana Pagel*
São Paulo – Brazilian chocolate industry Garoto has exclusive distributors in each one of the 22 Arab countries. Since they began a more aggressive work for the advertising of their candies in the region, in 2003, exports by the company to the Middle East and North Africa have grown 142%.
From January to August 2005, Garoto exported 5,500 tonnes of chocolate for the Arab market. Saudi Arabia, Yemen, Egypt and Libya are the main importers in the region. "This year we had an excellent season for Ramadan," explained Alain Wehbe, the Garoto trader for the markets in Africa and the Middle East.
According to Wehbe, the main orders for bonbons, batons and chocolate bars are made specially for the Muslim holy month, when the Islamic community fasts during the day and feasts at night.
According o him, due to the great appreciation of the Brazilian real against the United States dollar, the company was obliged to sell without profit so as to honour the contracts closed at the beginning of the year. "As we normally work on a 12 month program, we will only be able to renegotiate the contracts in January 2006," he explained. "We have just returned from the Anuga food fair, in Germany, and all companies were in the same situation. Nobody is happy with the fluctuation of the dollar," explained Wehbe.
So as to guarantee an increase in the export volume to the Arab nations, Garoto has developed a large marketing project, including demonstrations, sampling of products and promotions and raffles at Arab supermarkets. "If the dollar is recovered (appreciates), the project will be put in place at the beginning of 2006," he guaranteed.
Domestic and Foreign Market
With strong presence on the domestic chocolate market, Garoto also operates in the sectors of chocolate drinks and sweets. On the foreign market, the company repeats the performance identified in Brazil, supported mainly by an ample international network of distributors who take Garoto products to over 50 countries.
The company industrial park is established in the city of Vila Velha, a city neighbouring Vitória, the capital of the southeastern Brazilian state of Espírito Santo. It is a complex with two industrial units that cover an area of 68,000 square metres of built area, in an available area of 200,000 square metres. The factories have a capacity for production of 140,000 tonnes of chocolate a year, in three shifts.
Investment
In the last five years, Garoto invested R$ 75 million (approximately US$ 33.3 million, in current figures) in the modernization and expansion of their industrial park. Of this total, US$ 25 million were turned to the construction of one of the largest vertical storage centres in Latin America, the Espírito Santo Distribution Centre (CDES).
In recent years, the company has also invested in an increase of chocolate production, mainly in the bonbon line, and in the development of new products. One of the most recent novelties is the Serenata de Amor Light. The bonbon has 25% less calories.
Investment was also made in the operation of the Pilot Plant, with the purchase of exclusive equipment for testing new products. The measure provides greater economy in the production process, as it considerably reduces production line stops for testing.
Contact
www.garoto.com.br
*Translated by Mark Ament
