Brazil sweet on Arabic markets

Middle Eastern countries imported 4.4 thousand tons of confectionery from Brazil in 2013, but there's still big potential for growth, says ABICAB

Currently the Middle East represents just over 3% of Brazilian confectionery exports, but potential far exceeds that, according to Brazil's industry trade association.

ABICAB, the Brazilian Cocoa and Confectionery Manufacturers Association, says the launch of an Arabic version of its website and translations on packaging as well as a boosted presence at Arabic industry events will be key in realizing this potential.

As part of a joint effort from the Arab-Brazilian Chamber of Commerce and ABICAB, 19 out of the 75 companies exhibiting at this week’s trade show Gulfood in Dubai are Brazilian - at least 50% more Brazilian players compared to last year.

Brazilian exports across markets were down by 3% in 2013, but ABICAB export manager, Rodrigo Solano, has said he is optimistic about future forecasts.  

Translating potential

“Middle Eastern countries imported 4.4 thousand tons from Brazil in 2013, which represents a growth of 4.2% over the previous year. The region represents slightly more than 3% of Brazilian Exports, but potential is far beyond that,” Solano told ConfectioneryNews.

At the end of last year the association launched an Arabic version of its website, it said since then visitors from Arabic-speaking nations ranked relatively low individually but when combined fell just behind Germany, its top ranking country for visitors.

Local tastes

He said that within this broad market there were local tastes to consider. “The Arab world is vast with different types of consumers. In the Gulf regions, for instance, there is a preference for known brands and premium products while in some North African countries this reality would be different.” 

Brazilian candy firm, Florestal Alimentos, began exporting to Arabic countries last year and is currently in the process of building on its presence there. It has sought halal certification and this week will also attend the trade event Gulfood for the first time. The company said it plans to increase its exports by 20% by 2014.

Cleber Joner Harth, a trader at the company, said: “The halal certificate brings greater reliability to our products. The religious aspect is very important in the Arab countries, and this way they’ll know the product was prepared for them, giving you an edge over competitors.”

He said African-Arabic countries currently present the greatest potential, pinpointing Algeria and Egypt in particular.

Commodity quibbles

Part of ABICAB’s strategy for boosting exports to this area is to emphasize the sweetness of Brazilian cane sugar. “Brazilian sugar has unique properties. One of them is that cane sugar is sweeter than others,” ABICAB’s Solano said.

“When it comes to ‘better for you’ products, Brazil has around 300 unexplored fruits just like Açaí berry containing healthy properties. I would say that Brazil has what the world and the Arab market need,” he added.

However, a report released this week by research firm Datagro said unfavorable weather conditions would see the sugar cane crop from Brazil’s main growing regiondrop in 2014-15. Bloomberg reported that the area will process 580 million metric tons of cane and make 32.5 million tons of sugar this season, compared to 596 million tons and 34.3 million tons of sugar last season.

Solano said that this did not pose great cause for concern. “Commodities are always in their ups and downs. I don’t expect long term impacts in our industry."

World Cup spotlight

Arab-Brazilian Chamber of Commerce, Michel Alaby, told us that his organization had invited several Arabic confectionery companies to take part in business round tables during the Brazil’s Football World Cup, as part of a project with the Arabic arm of Apex – the Brazilian trade and investment promotion agency. He said they expect the move to bring in more than R$1.1bn ($469m) in new business after running a pilot last year during the FIFA Confederations Cup.

Talking at this week’s industry event Gulfood, Allan Wehbe, export manager for the Brazilian chocolate manufacturing company Peccin, said: “Brazil is in the media spotlight right now, it is hosting the World Cup, and people are interested.” 

Related News

Brazilian government introduces bill following fears that illegal logging poses threat to cabruca system of planting cocoa trees under the canopy of native trees.

Back to the future: Brazilian federal bill re-discovers sustainable cabruca cocoa bean production

São Paulo bans sale of Easter eggs with toys

São Paulo bans sale of Easter eggs with toys

New number two: Asia Pacific to snatch silver from North America

Move over! Asia Pacific to top North America in 2014 confectionery sales

Hot property: UAE emerging as one of biggest chocolate growth markets globally, says TechSci Research. Photo credit Milos Milosevic.

UAE set for torrent of new entrants as chocolate market excels

Brazilian companies try luck overseas as domestic economy slows

Brazilian confectioners turn to exports amid economic downturn

Maltesers MaltEaster

PepsiCo, Mars, Mondelēz and Fonterra throw spotlight on Middle East

Industry body ABICAB sets up specialist board for premium chocolate as sector sales grow 20% per year

Premium chocolate samba in Brazil

Brazil's chocolate market forecast to grow 24% in value sales by 2015 compared to 2011 levels, according to Mintel

AAK plans $62m factory in Brazil’s booming chocolate market

Mondelez enters $45m-a-year marketing deal in Brazil

Mondelez enters $45m-a-year marketing deal in Brazil

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.