Claudio Zanão, president of ABIMAPI which is an important representative of biscuit, pasta, industrialized bread and cakes in Brazil, commented on pasta, biscuit, bread and cake industry in Brazil: “Brazilian companies value innovation both in the industrial park, and in products and management. We are globally updated in cutting-edge technologies, with continuous investments that allow us to launch products in the international vanguard. For industrialized breads and cakes categories, we see a strong growth with double digits annually and with plenty of space to be conquered in the future.”
ABIMAPI (Brazilian Manufacturers of Biscuits, Pasta and Industrialized Breads & Cakes) is an important representative of biscuits, pasta, industrialized breads and cakes in Brazil. Representing 87 percent of the companies dominating these industries; ABIMAPI has managed to be one of the largest trade associations in Brazil, strengthening increasingly the position of each category and the sector´s importance. Claudio Zanão, the President of the association, shared his views about current situation and future targets of mentioned industries with our Miller Magazine. Stating that the three categories represented by ABIMAPI moved a total of 9,259 billion dolars in 2014, Zanão says they see a strong growth with double digits annually and with plenty of space to be conquered. Having partnership with entities, government, media, researchers consolidating the sector looking to be even stronger in the national and international scene, ABIMAPI is also actively having part in sustainability and Coorporation Social Responsibility. You can find the details in our interview.
Mr. Zanão, your association Brazilian Manufacturers of Biscuits, Pasta and Industrialized Breads & Cakes is one of the largest associations of Brazil. Could you give us some information on your association and what are your activities in these industries?
The ABIMAPI, Brazilian Manufacturers Association of Biscuits, Pasta, Industrialized Breads & Cakes, is a non-profit organization that represents 87 Brazilian companies that hold about 75% of total National sector´s sales with 9,4 billion dollars (R$ 32 billion) a year, producing 3.4 million tons of food and generating more than 100,000 direct jobs. Only in the Brazilian domestic market, we respond by a third of the national wheat flour consumption.
We have partnerships with entities, government, media, researchers and opinion leaders, promoting exclusive and qualified information, consolidating the sector looking to be even stronger in the national and international scene. Our goal is also promote the spirit of association and the effective cooperation among the manufacturers of biscuits, pasta and industrialized breads & cakes around the country.
Could you give us some information about Brazilian bread, pasta and cake industry? What can you say about the manufactured product groups, technology usage level and production capacity?
The sector consists of traditional and secular industries that are contributing to the growth of the Brazilian economy and stand out as important agents’ generators of jobs. The industrial park of our manufacturers has the latest equipment and is one of the most modern in the world. Today, we are proud to know that Brazilian products are recognized worldwide for its quality and innovation.
How is the approach of the bread, pasta and biscuits companies towards the new technologies? Is there any increase in the recent technology investments?
Brazilian companies value the innovation not only in the industrial park, but also in products and management. As we said earlier, we are globally updated in cutting-edge technologies, with continuous investments that allow us to launch products in the international vanguard.
Do all of the bread, pasta and biscuits producers in Brazil realize their production completely for the domestic consumption? Are there any export activities of these in your country?
The export stimulus is one of ABIMAPI´s fronts. This activity is done through the Brazilian exports promotion project Happy Goods Baked in Brazil, an initiative developed in partnership with Apex-Brasil (the Brazilian Trade and Investments Promotion Agency) to support the sector’s exports of pasta, biscuits and industrialized breads & cakes. In reference to the international market, last year we exported the total of 82.2 million kilograms of product, equivalent to US$ 155 million.
What is the level of raw material in your country? How much of the raw material processed in your country, and how much of it imported? Which countries do you prefer for the imports?
Brazil consumes about 10 million tons of wheat per year. On average, the half of that volume is supplied by imports from partner countries of Mercosur (Common Market of South America), particularly Argentina. When there is no spare on Argentina´s production, Brazil refers to the United States and Canada.
Could you please give some information on the bread, pasta and biscuit consumption amount and consumption culture of Brazil? What are the preferences of your consumers in bakery product consumption?
Together, the three categories represented by ABIMAPI moved a total of 9,259 billion dollars (R$ 32.2 billion) in 2014, 11.5% growth compared to 2013. The sector remained stable in volume, with about 3.4 million tons of products sold, as well as in per capita consumption at around 17 kg per year.
The sales of biscuits manufacturers grew 10.56%, reaching the mark of 5,710 billion dollars (R$ 19.67 billion) in 2014. As the same as in other categories of our sector, the biscuits industry was stable in relation to the volume - remained at 1.7 million tons - and to the per capita consumption, with 8.4kg/year. This data reflects the Brazilian consumer behavior that reduced their frequency of shopping, but included high-added value products to their food basket such as cookies and special or gourmet sweets and snacks.
The Brazilian pasta market earned 2,3 billion dollars (R$ 8 billion) in 2014, an increase of 10.35% compared to revenues of 2013. Despite the growth of fresh pasta in the last two years, in 2014 the increase of sales were leveraged mainly by the segments of noodles (12.3%) and dried pasta (9.6%), with total sales respectively of 735 million dollars (R$ 2.53 billion) and 1,410 billion dollars (R$ 4.85 billion). The growth in sales reflects the acceleration of the high costs of some ingredients, mainly wheat, in the pasta industry. The Brazil remains the world’s third largest producer and consumer of pasta, with 1.275 million tons in 2014, behind the United States and Italy, first in the rankings. The per capita consumption in 2014 remained at 6 kg/year.
The scenario for the Brazilian industrialized breads and cakes categories was also positive in 2014. The so-called “sliced bread” expanded 19% turnover compared to 2013, reaching 1,103 billion dollars (R$ 3.8 billion). In volume, the increase was 7.6%, reaching the mark of 358.3 thousand tons. The per capita consumption reached 2.3 kg/year. The comparisons of these same data with respect to 2012 show us the growth of 9.5% in sales and 32% in revenues.
Regarding the industrialized cakes, the segment progressed 14% in revenues last year compared to the previous, totaling 198,9 million dollars (R$ 685 million). The amount is 32% higher than three years ago. In terms of volume, the total sales in 2014 reached 31,300 tons with 8% of increase compared to 2013. While the biscuits and pasta have penetration of 99.6% in Brazilian homes, industrialized breads and cakes have respectively 76.2% and 50.7%.
What do you think about the future development of your country in terms of both the improvement of these industries (bread, pasta and biscuits) and consumption amounts and preferences of your country? What are your future expectations about your industry?
In 2014, the sector’s turnover increased because, in addition to prices replacement, there was a consumers search for higher-added value products. In the biscuits segment, for example, there has been a replacement movement from basic products to other more expensive, such as cookies. This has generated a rise in revenues, although the volume did not grow. As our industry offer processed foods mainly for consumption at home, we did not feel a large impact of the Brazilian economic slowdown in 2014. However, for this year of 2015, with the worsening of the scenario, the projection is that there will be a lower nominal growth between 5% and 6 %.
What do you think about your position when you compare your country to other America countries in terms of bread, pasta and biscuits? What do you aim in order to strengthen the position of your industry throughout the world in the future?
Brazil is the third biggest consumer market for biscuits, cookies and pasta in the world. When we think of Brazilian per capita consumption, this position is not useful to analyze the power of our sector globally due to the lower weekly frequency of shopping. By this reason, we work on that area with the diversification of cooking recipes for pasta and promoting special moments for the biscuits and cookies consumption. Specific actions, such as the celebration of International and National Pasta Day (25th October), have contributed to promote our products in Brazil. For industrialized breads and cakes categories, we see a strong growth with double digits annually and with plenty of space to be conquered.
Do you have any projects for your industry that are being realized right now or will be realized in the coming years?
ABIMAPI have important projects. One of them “Happy Goods Baked in Brasil” is a project developed with our collective brand structured as a partnership with Apex-Brasil (The Brazilian Trade and Investments Promotion Agency) encouraging the promotion and exports of Brazilian Bakery products worldwide as already described. Another project, “Dê a Mão para o Futuro” originally known in Portuguese (´Give a Hand to the Future´, in English), portrays the organization’s engagement in sustainability and Corporate Social Responsibility. The program is responsible for the environment´s removal of around 30% of solid residue produced in Brazil. In the last 18 months, 1,402 scavengers belonging to 36 unions gathered 38,636 tons of waste only in São Paulo which has the largest natural park of Brazil. ABIMAPI is engaged supporting the improvement of the national scenario regarding the proper urban solid waste destination. The participation of our members in this program contributes directly to reduce the volume of recyclable materials that would otherwise go to landfills incorrectly and supports the generation of employment and income programs that promote social inclusion, improving working conditions and quality´s life of many Brazilian collectors of recyclable materials.
What would you like to add?
In October 2014, ABIMAPI was born with the merger of two entities, ABIMA (Brazilian Manufacturers Association of Pasta and Industrialized Bread & Cake) and ANIB (Brazilian Association of Biscuit Industries). The union gave rise to one of the largest trade associations in Brazil, strengthening increasingly the position of each category and the sector´s importance.
Our mission is to contribute to sustainable growth of these categories, disseminating good practices of food security and production, encouraging the development of healthy products that meets the standards and legislations in force in Brazil and other countries, especially in Latin America, stimulating consumer awareness of our products and disseminating quality information of our industry, our members and their brands, ingredients, value chain, etc. We also want increase the per capita consumption, offering affordable products, targeting all types of public and different moments of consumption, which provide energy day by day.