Panettone industry increases production to grow 20%
DCI
Despite the concern of the manufacturers of panettones with high in the price of sugar of nearly 80% in the year, industries like Village, second brand of panettones of the country, and Pandurata Alimentos, a group that owns the Bauducco, Visconti and Tommy brands, expects to end the 2009 sales with an increase between 10% and 20% in relation to the previous year.
In order to support that growth, Pandurata invested R$ 60 million (US$ 34.9 million) this Christmas and used more than half of the amount invested in 2009 in a new production line that increases the capacity by 45%. The new line is the biggest one in the world and produces 210 thousand panettones a day, according to the company. R$ 20 million (US$ 11.6 million) were invested in marketing. With these investments, the group projects growing 20% this Christmas. The annual average earnings of the company amounts to R$ 1.4 billion (US$ 813.9 million), involving, as well, the distribution of Ovomaltine and Hershey operation in Brazil. The Bauducco brand alone represents 67% of the sales volume of the category. In the case of Village, the company bets on a 15% growth compared to the last quarter of 2008.
Who also intends to gain space in the market share in the panettone line in 2009 is Cacau Show, which has invested more than R$ 6 million (US$ 3.5 million) - twice the value invested last year. The company has already had an increase of more than 65% in volume, compared to the previous year, getting to 2,500 tons. For this Christmas, the brand created more than ten new products and it foresees growth of 70% for this year with the sales of the period.
Yoki Alimentos, successor of Kitano S.A., also takes advantage of the festive season to grow 8% during this period, betting on launchings. In 2008, the company had activities of R$ 550 million (US$ 300.5 million) during the year. The Vice President of Yoki, Gabriel J. Cherubini, explains this is the second most important period of the year for the company, only behind the June Festivities (festivities that honor Saint Anthony, John the Baptist and Saint Peter). "Christmas and new year's currently represent 20% of our business", he says. For next year, the company foresees enlargements in the plants to meet a greater demand.