São Paulo – The Brazilian Cocoa and Confectionery Manufacturers Association (Abicab) is taking seven companies to participate in the Sweets & Snacks Middle East fair, due from November 9th to 11th in Dubai, the United Arab Emirates. The Brazilian participation in the event is promoted in partnership with the Brazilian Export and Investment Promotion Agency (Apex-Brasil).
The companies Jazam, Montevérgine, Nugali, Peccin, Riclan, Simas and Vonpar will display their products at the event, which is exclusive to the confectionery and snacks industry. This is the second year Abicab will take Brazilian companies to the fair. Rodrigo Solano, the Export manager at Abicab, says the participation in 2013 was a test run with only three companies, but results were positive.
“In 2013, we closed US$ 1.6 million worth of deals, an average of US$ 533,000 per company. If we are as successful this year, we should see around US$ 3.5 million in deals,” the manager estimates.
Solano also says two of the companies attending the fair are already adapting their packages to feature all information in Arabic. For strategic reasons, he cannot reveal the companies’ names. The executive says some companies in the industry are seeking halal certification to attest that their products are made in accordance with Islamic law.
According to Solano, for a candy to be considered halal, its ingredients must be checked. “Jelly sweets, for instance, cannot contain pork bone marrow,” he explains.
For the past few years, Gulfood, the Middle East’s leading food industry fair, remained the premier showcase for confectionery products. However, a change in the event’s organization has caused confectionery companies to migrate to the Sweets & Snacks fair. According to Solano, this can have a positive impact on sales.
“Quality-wise, Sweets & Snacks is a bustling fair with above-average business potential,” he says. He points out that doing business in Arab countries is easier than in the US and Europe. “The Arab market is more open to partnerships and receptive to Brazilian products,” he ascertains.
Sweets for the Arabs
According to Abicab figures, from January through July this year, Brazil exported 63,400 tonnes of confectionery products, down 2.9% from the same period in 2013. Revenues were down 8.5% to US$ 161 million. “The problems in Venezuela and Argentina had a big impact on sales,” Solano explains.
Counter to the downtrend in exports, sales to the Middle East increased from January through July. “They are importing more from Brazil”, Solano rejoices, noting that the figures also include the region’s non-Arab countries.
Year-to-date through July, Brazil exported 2,900 tonnes of confectionery products to the Middle East, up 10.3% from the comparable year-ago period. Revenues reached US$ 6.1 million, up 12.3%. Solano says this result was driven by higher receptivity to Brazilian products and ease of doing business in the region, as it does not require high investment in marketing, for instance, unlike the United States.
According to the manager, the leading Arab confectionery markets are Yemen and Algeria. Drops are the leading export item to these countries.
*Translated by Rodrigo Mendonça
