Gulf retailers are in São Paulo to buy

Delegates from four Middle East supermarket chains will be at the Apas fair this week for matchmaking and talks with suppliers. This Monday, they attended a meeting with Brazilian sectorial organizations.

Executives from four Middle East supermarkets are currently in São Paulo to seek out new deals with Brazilian suppliers. They will engage in matchmaking with local companies at the fair of the Supermarket Association of the State of São Paulo (Apas) and speak with exhibitors. This Monday (4th), the executives convened with directors from sectorial organizations at the offices of the Arab Brazilian Chamber of Commerce.

Hassan Al Kaff, the head of Merchandise-Market for Saudy Hypermarkets Company, which represents France’s Carrefour brand in Saudi Arabia, says his company buys products from Brazil via Saudi distributors. His intention in coming to Brazil is to start buying directly from local suppliers.

“We purchase Brazilian products from agents and distributors in our country, particularly poultry, but other types of groceries as well. We are here to see what other products we can add. We are interested in biscuits, jellies and honey. These are products I believe we can add [to the ones we already import],” Al Kaff said. In Saudi Arabia, Carrefour owns 12 hypermarkets and four supermarkets.

Rakesh Jha, the general manager for Sales with Al Maya Distribution, the distribution arm of the United Arab Emirates’s Al Maya Group, explains that his company already buys products from Brazil for its local stores, but not to distribute to the other countries the chain is active in.

“We are mostly interested in pastries, as well as beef, poultry and pork. I work in distribution, so I am looking for products to distribute not only in the UAE, but also in Oman, Bahrain, Qatar and Kuwait. We are looking for products for those five countries,” he said. Muslims do not eat pork, but the product is on sale in some Gulf countries to cater to the expatriate population.Ibrahim Issa, the manager of the Supermarket Division for Kuwait’s Sultan Center, explains that his company has done business with Brazil for two years now, and that he is in the country to expand his business with local suppliers.

“I am here to expand and explore new opportunities, especially in beef and poultry. This is our main goal now,” he said. He also commented on the repercussion of the Brazilian Week, a promotional action held in one of the chain’s outlets in June last year.

“The object was to introduce those products to our domestic market. Many of them [the consumers] were already familiar with the brands. For instance, guaraná [Antarctica] was one of the main items in the market. Candy also sold well because there were new products. Every three months, we place new orders from Brazil, and we are planning a new Brazilian Week next year,” he revealed.

Local office

Narayanan Raman, the director of Distribution for Lulu Group International, also attended the meeting with sectorial organizations this Monday. Lulu has had an office in São Paulo for six months, and according to the executive, the goal is to facilitate the purchase of Brazilian products.

“They show great promise on the Middle Eastern market,” he said regarding Brazilian foodstuffs. Besides foods, the brand plans on buying other items from Brazil. “We are also interested in leather items, garments, shoes, cosmetics and cleaning products,” he said.

Luiz Pereira, an administrative assistant and the only Brazilian working for Lulu in Brazil, said the retail chain is primarily interested in beef, poultry, eggs and sugar. He said the Emirati conglomerate is active in 27 other countries, and Brazil should be the only one in Latin America that they have an office in.

Organizations

The Arab buyers’ trip to Brazil is part of a Buyer Project organized by the Brazilian Export and Investment Promotion Agency (Apex-Brasil). They were welcomed to the Arab Chamber by CEO Michel Alaby.

At this Monday’s meeting, the retailers met with personnel from the Brazilian Beef Exporters Association (Abiec), the Brazilian Animal Protein Association (ABPA), the Brazilian Chocolate, Cocoa Peanut, Candy and Related Products Industry Association (Abicab) and the Brazilian Association of Food and Beverage Exporters and Importers (ABBA).

During the meeting, the organizations presented numbers and data from their industries, and the importers were able to clarify doubts regarding Brazilian products and export regulations, among other issues.

One of the main topics on the agenda was the Saudi ban on Brazilian beef, in place since December 2012. In April, delegates from the Saudi Food and Drug Authority (SFDA) travelled to Brazil to discuss the matter.

A new visit is slated for the 24th this month, and according to Abiec CEO Fernando Sampaio, who was at the meeting, the Brazilian industry expects beef sales to Saudi Arabia to resume in June this year.

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