Cadburys income and profit grow in Brazil
Valor Econômico - 01/31/2008
Todd Stitzer, Cadbury Adams' World President was in Brazil for three days this week, accompanied by four other vice-presidents of the company. They came to see first hand the work done in South America, whose headquarters are in Brazil and that, since the end of last year, has been managed by the Brazilian Marcos Grasso. The region, which includes ten countries (and does not include Mexico), had revenues of 300 million pounds in 2007 (R$ 1.058 billion). "South America reported the greatest growth and the best margins of the company", said Stitzer in exclusive interview to Valor. The Brazilian subsidiary has doubled its size in the last four years, reaching a revenue of 160 million pounds (R$ 564.3 million). The number, revealed by Stitzer, has always been kept as a major secret by the Brazilian subsidiary. The executive has Brazil's numbers at the tip of his tongue, after having been bombed by a series of presentations since his arrival. According to him, in 2003 the profit margin of the Brazilian branch was 3% and it reached impressive 20% last year. With the scission of the beverage division (the Dr Pepper and 7 Up brands), Stitzer was totally focused on sweets and Brazil, which was previously penalized for not having the soft drinks branch, gains even more importance in the new world context. Globally, the emerging countries have never been so strategic for the company as now. Together with India, Brazil stands out among the Bric's. The Brazilian operation had as many revenues as China and Russia together and is 10% below India. Nowadays, the block of the emerging countries already corresponds to 30% of the world business and, in 2006, the last data available, was responsible for 40% of the company's growth. This year US$ 20 million will be invested to expand the chewing gums line in Bauru. Last year, the company spent R$ 62 million (US$ 35.2 million) in the four main brands (Trident, Hall's, Chicletes and Buballo) and, for 2008, the goal is to increase that investment by 26%.