table of some some of table

Brazilian households. Brazilian 0% 9 0% 9 is found on the on found is million

45

of the the of SECTORS ANALYZED

ve continents (from production platforms to oces), it serves customers in more than 150 nations. 150 than more in customers serves it oces), to platforms production (from continents ve

Swift, Maturatta and Cabana Las Lilas. With this product variety and with a presence in 22 countries across the the across countries 22 in presence a with and variety product this With Lilas. Las Cabana and Maturatta Swift,

Brazilian diet and in other countries is JBS, which has a range of well-known , including Friboi, Seara, Seara, Friboi, including brands, well-known of range a has which JBS, is countries other in and diet Brazilian

country’s pizza market and 60% of the frozen pasta market. Another Brazilian company ever-present in the the in ever-present company Brazilian Another market. pasta frozen the of 60% and market pizza country’s

margarine and dairy products. It accounts for 20% of the world’s poultry trade. The company has 52.5% of the the of 52.5% has company The trade. poultry world’s the of 20% for accounts It products. dairy and margarine CONSUMER GOODS

of the 30 types of perishable items analyzed by the Nielsen Institute, such as pasta, frozen meat, meat, frozen pasta, as such Institute, Nielsen the by analyzed items food perishable of types 30 the of

RF – created from the merger of Sadia and Perdigão – is the leading at supermarket shelves: it is in 28 28 in is it shelves: supermarket at brand leading the is – Perdigão and Sadia of merger the from created – RF B

MARKET SHARE CONCENTRATION ALSO IN BRAZILIAN COMPANIES COMPANIES BRAZILIAN IN ALSO CONCENTRATION SHARE MARKET BANKS

CREAM…

BRANDS… ARISCO…

ONE ICE ICE KIBON ONE AMONG VARIOUS VARIOUS AMONG SAUCES, ONE ONE SAUCES,

WE CAN CHOOSE CHOOSE CAN WE LIST ADES BOXES, BOXES, ADES BOX, TWO KNORR TWO BOX,

SOCIETY IS THAT THAT IS SOCIETY

WASHING POWDER POWDER WASHING

BARS, THREE THREE BARS,

THE SHOPPING SHOPPING THE

VARIOUS BRANDS? VARIOUS

ABOUT OUR OUR ABOUT

JAR, ONE OMO OMO ONE JAR,

IS … IS

SIX SOAP SOAP DOVE SIX

JUST ONE THING! ONE JUST

DID YOU SAY SAY YOU DID

LET’S CHECK CHECK LET’S THE GOOD THING THING GOOD THE

ONE HELLMANNS HELLMANNS ONE

EVERYTHING EVERYTHING EVERYTHING IS IS EVERYTHING TELEPHONY

EVERYTHING IS ONE AND ONE IS EVERYTHING IS ONE AND ONE IS EVERYTHING

Humor:

55% = 49,1% =

of market share market of

Contact: [email protected] Contact:

must be mentioned. be must (SP) Paulo São – 01259-020 CEP Sumaré. – 169 Bruxelas, Rua

Repórter Brasil content can be copied and distributed, but the source. the but distributed, and copied be can content Brasil Repórter

Free distribution in 2014 in distribution Free

Friedrich Ebert Foundation Ebert Friedrich Support:

Marcel Matsunaka Marcel project: design Graphic

Gilberto Maringoni Gilberto drawings: and Strips

Roberto Rockmann Rockmann Roberto text: and IResearch

Marcel Gomes Gomes Marcel Coordination:

ig companies, big business: Good for whom? whom? for Good business: big companies, ig B

responsibility of Oxfam GB and its partners and in no way be taken to reect the views of the European Union European the of views the reect to taken be way no in and partners its and GB Oxfam of responsibility

advertising market in 2013, with R$4.5 billion invested. billion R$4.5 with 2013, in market advertising

This website has been produced with the assistance of the European Union. The contents of this website are the sole sole the are website this of contents The Union. European the of assistance the with produced been has website This

cream for the son. All the brands she purchased belong to Unilever, the largest investor in ’s Brazil’s in investor largest the Unilever, to belong purchased she brands the All son. the for cream

husband, and a toilet soap for her. She buys Closeup toothpaste, her daughter’s favorite, and Kibon ice ice Kibon and favorite, daughter’s her toothpaste, Closeup buys She her. for soap toilet Lux a and husband,

Rede Brasileira pela Integração dos Povos dos Integração pela Brasileira Rede buys Comfort for washing clothes. In the cosmetics sector she picks up a deodorant for her her for deodorant Rexona a up picks she sector cosmetics the In clothes. washing for Comfort buys

and Hellmann’s mayonnaise in the shopping cart. For house-cleaning, Omo and Brilhante soap. She also also She soap. Brilhante and Omo house-cleaning, For cart. shopping the in mayonnaise Hellmann’s and

A housewife goes shopping in the supermarket. For the kitchen, she puts Knorr sauce, Maizena, Ades juice juice Ades Maizena, sauce, Knorr puts she kitchen, the For supermarket. the in shopping goes housewife A

UNILEVER’S POWER UNILEVER’S

(www.reporterbrasil.org.br).

organizations. Further information on this work is available on the Repórter Brasil webpage webpage Brasil Repórter the on available is work this on information Further organizations.

courses or even in debate rounds held by social movements, unions and other civil society society civil other and unions movements, social by held rounds debate in even or courses

The aim is to provide a quali ed discussion and oer the public material that can be used in training training in used be can that material public the oer and discussion quali ed a provide to is aim The

Gamble – which is also owner of Oral-B products, for the teeth. the for products, Oral-B of owner also is which – Gamble

packet of Pampers nappies, they are buying three brands from the portfolio of American giant Procter & & Procter giant American of portfolio the from brands three buying are they nappies, Pampers of packet

banks –, it includes the most recent data available and criticism on the issue. the on criticism and available data recent most the includes it –, banks

personal hygiene sector of a commercial store and pick up a Gilette razor, a packet of Tampax tampons and a a and tampons Tampax of packet a razor, Gilette a up pick and store commercial a of sector hygiene personal

concentration within three sectors of the Brazilian economy – consumer goods, telephony and and telephony goods, consumer – economy Brazilian the of sectors three within concentration

are left to ght for the remaining market share. An example of this concentration? When consumers go to the the to go consumers When concentration? this of example An share. market remaining the for ght to left are

Friedrich Ebert Foundation (FES). The result of research done for the purpose of measuring market market measuring of purpose the for done research of result The (FES). Foundation Ebert Friedrich

countries with the highest level of market concentration in the world. About 500 smaller, regional companies companies regional smaller, 500 About world. the in concentration market of level highest the with countries

This is the warning of this small publication, issued by 'Repórter Brasil' with the support of the the of support the with Brasil' 'Repórter by issued publication, small this of warning the is This

and Coca-Cola – have a share of between 60% and 70% of a family’s purchases and make Brazil one of the the of one Brazil make and purchases family’s a of 70% and 60% between of share a have – Coca-Cola and

brands purchased by Brazilians. Ten large companies – among them Unilever, Nestlé, Procter & Gamble, Kraft Kraft Gamble, & Procter Nestlé, Unilever, them among – companies large Ten Brazilians. by purchased brands

of citizens who purchase goods and services. and goods purchase who citizens of

Perhaps those who go to the supermarket are not aware that just a few huge transnationals are behind most most behind are transnationals huge few a just that aware not are supermarket the to go who those Perhaps

this process, many times encouraged by the use of public resources, can jeopardize the basic rights rights basic the jeopardize can resources, public of use the by encouraged times many process, this

sectors of the Brazilian economy has characterized recent economic growth. The problem is that that is problem The growth. economic recent characterized has economy Brazilian the of sectors

COMPANY CONCENTRATION IN SUPERMARKET SHELVES SUPERMARKET IN CONCENTRATION COMPANY The trend toward concentration and internationalization of important production chains and and chains production important of internationalization and concentration toward trend The

BIG COMPANIES,

BIG BUSINESS

Brazilian capitalism can mean worse service quality and higher costs. higher and quality service worse mean can capitalism Brazilian

shop at the supermarket or have to sign a contract with a cell phone operator or a bank, these trends in in trends these bank, a or operator phone cell a with contract a sign to have or supermarket the at shop have the power to de ne prices and boost shareholder returns, many of them foreign. But for consumers who who consumers for But foreign. them of many returns, shareholder boost and prices de ne to power the have

Companies operating in Brazil are increasingly larger and internationalized. Through market control, they they control, market Through internationalized. and larger increasingly are Brazil in operating Companies GOOD FOR WHOM? BIG COMPANIES, BIG BUSINESS: GOOD FOR WHOM? FOR GOOD BUSINESS: BIG COMPANIES, BIG BIG COMPANIES, BIG BUSINESS GOOD FOR WHOM?

THE BEVERAGE MARKET VERY FEW OPTIONS IN TELEPHONY

Vivo, Tim, Claro and Oi concentrate nearly 100% of the cell phone market, 76% of land lines, 60% of the What do Coca-Cola soft drink, Powerade energy drink, Del Vale juice, Crystal bottled water and Matte Leão cable television, and 75% of the broadband market. And this concentration has been increasing. tea have in common? They are brands from Coca-Cola, which in the soft drink industry alone accounts for nearly 60% of the domestic market. According to ANATEL, the four largest Brazilian companies in this industry had: 91,86% 99,56% in 2003 in 2013

MARKET SHARE QUESTIONS AND ANSWERS ARE THE ADVANCES CELL PHONES HAVE MADE STILL MODEST?

There are 275.5 million cell phones all over the country, of which 77% are owned by prepaid service customers, with an average credit of five Reais 10% (Brazilian currency) per month. In other words, most mobile phone users in Brazil do not speak much and very rarely use mobile internet.

SLOW BROADBAND?

The average internet connection speed in Brazil is 2.5 Mbps, putting it in 70% the ranking 83rd out of 133 countries, according to a ranking made by Akamai, an internet company in the U.S. The world average is 3.8 Mbps.

10% ARE PHONE AND INTERNET RATES IN BRAZIL EXPENSIVE? WOULD YOU CARE Yes, they are. They are among the most expensive in the world. According FOR SOME CHOCOLATE? to a study by the UN International Telecommunications Union, the cost of Mondeléz, Nestlé internet services for the poorer population is 20 times higher than what it and Garoto have a represents for the richer. market share of 80% 80% TRIED TO MAKE A CALL BUT YOU HAD NO SIGNAL? Does concentration bring benefits? Even after 16 years of privatization, the Brazilian telecommunications sector is the most expensive in the world for cellular telephony and the 62nd in infrastructure, access and use THE TOP 5 BRAZILIAN BANKS of services (below Azerbaijan, Kazakhstan and Macedonia).

Itaú Unibanco, Bradesco, Banco do Brasil, Caixa and Santander. These ve banks concentrate a large part of the money allocated to savings and investment funds in Brazil. In 1995, 68% of deposits were in the ve major CONCENTRATION IN THE MOBILE TELEPHONY MARKET groups; in 2012, this gure jumped to 83%. “The high degree of concentration brings a high degree of Does concentration benefit consumers? By holding potential systemic risk. Problems or bankruptcy of one of the three largest banks can destabilize the entire 2014 ranking of network operators with most complaints at PROCON-SP* a great market power, companies can make nancial system,” a new IMF study says. GENERAL POSITION TOTAL ADDRESSED agreements among them for their benefit alone. In 1º Vivo/Telefônica 23.918 85,62% In 2012, individuals and legal entities kept 2º América Móvil** 17.968 85,95% addition, consumers lose their bargaining power, by 5º SKY 7.387 86,39% depending on four companies, and this market can 7º TIM 5.405 83,31% become even more restricted: If Telefônica gains R$ 1,7 TRILLION of bank deposits, (100%) 10º Oi 3.386 67,28% control of TIM in Brazil, as the press has been saying, 21º Nextel 1.407 90,12% concentration would further increase, since the new 83% of which, that is, 39º GVT 668 73,76% group would control more than 50% of the cell *Until July 25 **owner of Claro, Net and Embratel Source: Teleco phone market in Brazil. R$ 1,4 TRILLION (83%) are in these ve banks. , BRAZIL S RANKING OF NETWORK CONCENTRATION IN BANKING INDUSTRY AND ITS COSTS OPERATOR MARKET SHARE Banks are getting bigger and bigger in Brazil. Because they are bigger and bigger, people have less freedom to choose a smaller bank by themselves, and this has impact on the day-to-day life: Competition among them for customers is smaller, loans at low rates are harder to get, and there is not much room left for bargaining when it comes to getting lower service prices. In addition, bank concentration brings about fragility in the banking system: 2º 3º Telecom Italia The bankruptcy of a large financial institution must be prevented by the government due to the size of the damage América Móvil 26,91%* 4º that might ensue. Taxpayer money can many times be used to save these financial institutions. 24.95%* 74,203** 68.776** Portugal Telecom 1º 18,53%* Telefônica 51,081** 28,78%* PROFITS RISE WITH CONCENTRATION 79,357** Market Share* The bigger banks get, the more money they make. According to data from the Regional Economic Council of the Number of cell phones (in thousands)** Federal District, profits by the five major banks in Brazil increased 354% between 2003 and 2011, while the inflation measured by the IPCA (the official index) was 55%. Taking into consideration the entire banking system, the profit growth in the period was 250%. Humor: Humor: BANKS, CONCENTRATION AND EXPLOITATION TELEPHONY: FEW COMPANIES, BIG PROBLEMS

AT THE INTEREST WHAT I AM IN WHICH BANK? THE SAME THING BANK. IN ALL OF THEM. RATES? IN ALL. JUST TAKE ARE BROKE. SANTANDER? YOU AND IT IS CARD? A LOOK AT THE MY CELL THEY HAVE FEW VERY POOR DOING BRADESCO? RATES? BRANDS HERE. MINE IS OI. I PURCHASED A TIM. THIS IS VIVO. THERE? NOT JUST PHONE IS DIFFERENCES AND SERVICE AND WHERE ITAÚ? FINANCING? ME. CLARO. SKY-HIGH ARE YOU? MANY SIMILARITIES BILLS!

LOTS OF CAN’T OTHER YOU PEOPLE ARE HERE TOO. SEE?