12 October 2011
Brazil Canned tuna and sardine supplier Coqueiro, which is owned by the PepsiCo Group, used part of USD 11 million (Euro 7.8 million) investment in 2011 to increase its production capacity by 30 percent, the company told IntraFish.
The aim is to tap into Brazil’s fast growing canned fish market which grew by 7.5 percent and generated USD 624 million (Euro 444.6 million) in 2010 Ana Beatriz Vassimon, director business of unit Coqueiro, said.
Sardines are a popular fish in Brazil, while tuna is growing in popularity as people’s purchasing power is increasing, Vassimon said.
“Sardines represent two thirds of the fish that is consumed in the country, directed mainly to low income consumers,†Vassimon told IntraFish. As for tuna, “since economic levels have been increasing recently in Brazil, consumers tend to also include tuna in their diets.â€
Coqueiro also plans to use its USD 11 million investment for environmental projects, sales promotions and modernizing its facilities, while promoting health campaigns and health information about fish. The ultimate aim is “to increase the consumption of tuna and sardines,†Vassimon said. Next is innovation. “This year’s investments aimed at supplying the growing demand, focusing mostly on production capacity. Next year, the main focus will be to innovate to attend consumers’ growing needs and new market niches.â€
Founded in 1937, Coqueiro dominates the Brazilian canned seafood market along with Gomes da Costa and Femepe Industria e Comercio de Pescados. The company’s two factories, located in Sao Goncalo (Rio de Janeiro) and in Itajai (Santa Catarina), produce more than 30,000 metric tons of finished tuna and sardine products annually.
Although Coquerio exports to some South American countries –such as Bolivia, Argentina, Uruguay and Paraguay- the “vast majority†of its production is sold in Brazil, “proof of the importance of the local market for the company,†Vassimon said.
Coqueiro became part of PepsiCo Brazil in 2000 when the drink giant merged with Quaker Group. The Itajai-based company stands out as a rather odd addition to the PepsiCo empire –to this day, it remains the only canned fish company within PepsiCo. This, coupled with rumors that companies such as Bumble Bee Foods may be looking for acquisition targets in the Brazilian canned fish market, makes Coqueiro look like an appealing potential target.
If so, Coqueiro would be following in the path of its two major rivals. In May 2011, Femepe –which owns the brands Alcyon, Pescador, Navegantes and Costa Brava- was acquired by the Brazilin food company Camilo Alimentos. The other main rival, Gomes da Costa, was acquired by Spain’s Calvo in 2004.
Vassimon’s description of Coqueiro, however, suggests that PepsiCo may see things differently. Despite being the odd one out, Coqueiro “plays a central role†within PepsiCo Brazil and is key to PepsiCo’s aim to triple its global nutrition revenues to USD 30 billion (Euro 21.4 billion) worldwide by 2015, Vassimon said, according to the IntraFish article.
The company –which supplies in part from more than “30 small fishermen†in Santa Catarina and Rio de Janeiro- is also committed to invest in and develop the local markets and communities where it operates, Vassimon said. “That commitment is especially relevant in the fish production chain, since most of the company’s partners and suppliers are small businesses that have a strong connection with the company. As the canned fish consumption increases in the country, the whole chain benefits. Therefore, PepsiCo has a standing commitment to the local fish market.â€
Gomes da Costa says it controls 47 percent of Brazil’s canned tuna market, and 40 percent of the canned sardines market. Coqueiro would not reveal its market share. Coqueiro’s staple products include tuna -solid, in pieces or grated- in oil, tuna salads with mayonnaise or beans and vegetables, tuna in sauces such as tomato sauces, stroganoff and with herbs, tuna pates and sardines with soyabea noil, tomato sauce and fine herbs.
