General Brands strengthens line of ready-to-drink juices
Gazeta Mercantil - 05/28/2008
Just after concluding, last September, the acquisition of Beba Brasil, a ready-to-drink juice manufacturer - connected to the sugar and alcohol group Nova América - General Brands, producer of the brand "Camp", is preparing a strong expansion of the nectar-category juice market. The company is transferring all the equipment from the factory in the interior of São Paulo to its unit of production located in Guarulhos, in the Metropolitan Area of São Paulo, and it intends to close the year with a production of 20 million litters, compared to the 8 million litters from last year, according to Isael Pinto, President of General Brands. The income from the sale of ready-to-drink juices may become more important inside the company. Isael expects to close 2008 with an income of R$ 180 million (US$ 109.1 million), R$ 70 million (US$ 42.4 million) of which from the sale of juices. In 2007, the sales of the product amounted to nearly R$ 50 million (US$ 25.9 million). In addition to transferring the production to Guarulhos, General Brands will also invest R$ 10 million (US$ 6.1 million) in machinery, equipment and advertising in order to increase capacity and sales. With the production of 20 million litters, Isael said that the occupation of the plant was 60%, in other words, it would still have room to grow in the next years without having to increase the capacity. "We want to be among the major brands of the market", said the officer. The mission will not be easy. In case the Administrative Council for Economic Defense (CADE) approves the purchase of Del Valle by Coca-Cola, which already owns Minute Maid Mais (former Sucos Mais), the North American multinational may accumulate another 30% of the market. Besides, the sector - that had a turnover of nearly R$ 1.2 billion (US$ 621.8 million) in 2007, according to General Brands -, has companies with strong presence in the market, such as the Brasfanta group, through the Sufresh brand and the Schincariol group, which made large investments in the category in the end of last year, with the launch of the brand "Fruthos". According to the group's data, Fruthos has 6% of market share in São Paulo. According to data of the Brazilian Association of the Industries of Soft Drinks and Non-Alcoholic Beverages (Abir), the production of juices exceeds 380 million litters per year.