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Portugal 2015 and GLOBAL REPORT / JUNE 2015 Quality Media Press EUROPE SERIES PORTUGAL 2015 PHARMACY, FOOD & DRINK AND TEXTILES ARE VALUE-ADDED INDUSTRIES LEADING PORTUGAL´S SURPRISING EXPORT BOOM Photo: Andrade Gutierrez Andrade Photo: Gutierrez fDi Magazine is not responsible for the editorial content of this Report. While it has been printed and distributed along with fDi Magazine, the content has been produced by QMP alone “We saw a drop in our exports to Angola PORTUGAL’s this year as the country cut its imports becau- se of the situation regarding the price of oil,” FOODSTUFFS De Sousa says. “But Angola will solve these problems and come back.” SPREAD FAR Globalization by Portuguese companies became a way to offset the downturn in bu- AND WIDE siness in their home market which also led Photo: Cerealis Photo: to restructuring, new management strategies and other methods aimed at spurring growth, A benign and varied climate, rich soil and make an effort to export our products, with or in some cases, simple survival. a long seafaring tradition have all blessed most going to the Portuguese-speaking coun- “Portuguese companies had a very hard Portugal with the means to produce quality tries and Spain. And then we have the markets time of it over the past five years, especially fruit, vegetables, grains and fish, all of which of Portuguese immigrants and their descen- regarding financing difficulties,” the adminis- are becoming increasingly available to discer- dents, largely in other European countries.” trator says. “But it forced them to be more effi- ning consumers around the world attracted by Among the company’s products, pasta and cient and target their investments in a more the label: “Produce of Portugal”. breakfast cereals are the principal exports and intelligent way. Indeed, in recent years agriculture, agro- Cerealis is working to broaden its internatio- “It seems that we have come to the end industry and food processing have become nal presence through tie ups with existing of the tunnel and we can see light regarding one of Portugal’s fastest growing export foreign firms. the problems and now Portugal has the skills sectors, accounting for 3 percent of GDP and “Around three years ago we bought a stake it needs to be better. I am especially optimistic fuelling job creation while luring highly-qua- in a company in the Czech Republic along with about the agro-industrial sector which now lified professionals into all areas of farming, a local partner and a Spanish concern. It’s our has the ability to innovate and is more able to agribusiness, fishing and food technology. first step in seeing if we can leverage further serve overseas markets.” growth in nearby markets,” he says. One of the keys to globalizing a business Exciting Opportunities In recent years, many companies in like Cerealis, he claims, is to be accepted by The rapidly growing sector is helping pull Portugal have begun to seek out opportunities the big multinational retail chains, even if only Portugal out of its economic doldrums as do- in the country’s former colonies, like Angola, regionally by serving those customers in the mestic consumption of many food products where oil revenue has led to unprecedented domestic and neighbouring markets. increases following years of decline, and new economic growth and a booming consumer international markets explored and opened market hungry for goods like those produced British Recognition up by Portuguese companies create exciting by Cerealis. International sales have helped double new opportunities. The company exports some products to business at Panike, a Portuguese deep fro- One such company is Cerealis which mar- Angola, but as far as investing in its own pro- zen bakery and pastry company which will kets a range of pasta, pizzas, breakfast cereals, duction facilities there De Sousa says the time celebrate its 30th anniversary next year, ac- biscuits, prepared meals and flours for home is not quite right. “We did some market studies cording to CEO Henrique Soares. and industrial use under such brand names as in Angola from the point of view of a potential “We began looking at expansion abroad Milaneza, Nacional, Concordia, Harmonia, Big investor but we are not yet in a position to in 2007 when our annual billing was 13 mi- and Familiar Amiga, which have long been make a decision as we are currently focused llion euros and now we are at 25 million. Pa- household names in Portugal. on central Europe.” nike began in its campaign to crack foreign Quite an accomplishment for an enterpri- Angola, he argues, will someday reach a markets by attending trade fairs where we se which began as a simple flour mill in 1919. level of industrialisation when large, capital- made contacts with potential partners and “Our company almost always focused on intensive businesses will have a better chance it took off from there,” he recalls. the domestic market and did very well through of prospering. However, the country’s reliance Along with Portuguese-speaking coun- internal growth and acquisitions,” explains on hydrocarbon exports and current oil price tries like Brazil, Angola and Mozambique, the Cerealis general manager Rui Amorim de Sousa. problems does not bode well for these types company now enjoys healthy sales in Spain, “But around 15 years ago we began to of projects at the moment. Belgium, France and the United Kingdom GLOBAL REPORT 2015 / PORTUGAL 2 HENRIQUE SOARES The CEO says that this year has started “Initially we were just growers but we off well and has grown so far around 23 decided to build our own warehouse so percent, a figure similar to all of 2014. Busi- we could store the crop and supply our ness with large-scale clients has increased customers throughout most of the year mostly in Spain, but Brazil is also a bright instead of just at harvest time,” he says. spot along with the domestic market as “In 2006, we expanded the facilities to Portugal turns the corner economically. handle 4,000 tons.” CEO OF With these prospects in mind, Panike is More product, more revenue. In 2004, PANIKE adding new production lines to fuel growth Kiwi Greensun had a turnover of 1.2 million through 2018 with the only obstacle on the euros, a figure which almost quadrupled last “PANIKE’S BIGGEST OVERSEAS horizon the problem of being able to find year. “The only limit to our growth is our MARKET IS THE UK, WITH OVER and hire qualified personnel. cold storage capacity,” Araujo says. 50% OF OUR FOREIGN SALES” “Human resources can be a difficult issue The company’s main market is right for us and other manufacturers in Portugal,” next in Spain, accounting for 70 percent of where it supplies a popular chain of Portu- he explains. “We have to carry out constant sales, while it also ships fruit to the United guese-style barbecue chicken restaurants. training programmes and improve the quali- Kingdom, Switzerland, Luxembourg and “Our biggest overseas market, accoun- ty of the people we have.” even Brazil, where the company made a ting for more then 50 percent of foreign “But I’m optimistic”, Soares adds, “becau- brief attempt to produce kiwis. sales, is definitely the United Kingdom. The se one has to be.” “We were there for several years testing company has also supplied fast food restau- orchards and we saw that there was definite rants in Portugal with distinctive buns for Market Advantage potential, especially as Brazil could produce new lines of traditionally-themed sandwi- Along with pasta and bakery, once exo- kiwis during our off season in Portugal”, the ches and several multinational pizza deli- tic fruits are now becoming popular in re- managing partner says. “But the economic very chains.” Mr Soares proudly explains. gions of the world where they were largely crisis put our plans on standby.” Panike’s standing among international unknown and where consumer demand is But growth is almost assured at Kiwi clients received a boost in 2010 when it was growing as more and more people turn to Greensun’s Portuguese operations as the awarded an A grade by the British Retail Con- healthier lifestyles. land is perfect for growing the two varieties sortium, the first Portuguese frozen bakery One of those is kiwi fruit, which as its the company specialises in: the Earligreen product firm to earn such a qualification. name suggests, originated in New Zealand and Hayward kiwis. “This shows Portuguese companies can and now graces supermarket displays and “We will continue to grow. We have our be competitive internationally as long as greengrocer shelves around the world. own production and we’ve planted new our technology is at the same level as our Portugal came late to the kiwi orchards which will mature. Also, we have rivals, we have sound management and game but the founders of one firm, Kiwi partnerships with a dozen other producers the most up-to-date processing practices,” Greensun, began experimenting several de- to whom we give technical support in ex- Soares says. cades ago with just a few trees in the north change for marketing their fruit Panike’s product range includes savoury of the country and now grow and ship thou- “Currently, Portugal produces 20,000 and sweet puff pastries, croissants, neapoli- sands of tons a year. tons of kiwi a year and this could double in tans, chicken pies, mini-pizzas, pizza bases, “My father started with a handful of the coming years,” Araujo says. “So we have muffins, traditional Portuguese custard tarts, trees in 1980 and it slowly expanded from to take advantage of markets that value donuts, cakes and a full range of regular and there until I got involved full time in kiwi in quality because ours is higher.
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