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Brazil in Nairobi Which Aims to Create Awareness of Existing Trade and Investment Opportunities Between Brazil and Kenya, Uganda, Rwanda, Somalia and Burundi

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Brazil in Nairobi Which Aims to Create Awareness of Existing Trade and Investment Opportunities Between Brazil and Kenya, Uganda, Rwanda, Somalia and Burundi TRADE PROMOTION SECTION Quarterly Business Newsletter | Issue No. 22 | 1st Quarter 2020 This is a quarterly publication by the Embassy of Brazil in Nairobi which aims to create awareness of existing trade and investment opportunities between Brazil and Kenya, Uganda, Rwanda, Somalia and Burundi. Quarterly Business Newsletter | Issue No. 22 | 1st Quarter 2020 CONFECTIONERY SECTOR IN BRAZIL 3 Chocolate Confectionery 3 Chocolate Consumption 4 Sugar Confectionery 4 TRADE FAIRS 5 THE STATE OF ESPÍRITO SANTO 6 Economy of Espírito Santo 8 Tourist attractions in Espírito Santo 10 RECENT HIGHLIGHTS 11 BRAZIL’S DEMOGRAPHIC AND ECONOMIC DATA Surface area (Sq. Km) 8,510,820,623 km2 DEMOGRAPHIC DATA (WORLD BANK/IBGE) Total Population (Oct 2019- estimate) 210,981,325 Population growth rate (2018) 0.78% per annum Population density (2018) 24 inhabitants/km2 Urban population growth rate (2018) 1.09% per annum ECONOMIC DATA (IBGE DATA) GDP (2018 in US$) 1.885 Trillion Inflation target 2019 4.25% ± 1.5% Inflation (IPCA) December 2019 1.15% 12-month cumulative inflation (Dec 2019) 4.31% Trade Balance (BCB Data) Exports (Jan-Dec 2019) USD 224.0 billion Imports (Jan-Dec 2019) USD 177.3 billion Trade surplus (Jan-Dec 2019) USD 46.7 billion Total trade flow between Brazil USD 58.25 million and Kenya (2019) Financial and Capital Markets – (BCB Data) Base Lending Rate (Selic Rate – (Dec 2019) 4.59 %p.a Long-term lending rate (TJLP – (Dec 2019) 5.57 %p.a Stock Market Value (IBOVESPA) (DEC 2019) USD 1.256 trillion Number of companies listed in BOVESPA 325 Embassy of Brazil in Nairobi CONFECTIONERY SECTOR IN BRAZIL It is typical to see a chocolate store in almost every Chocolate Confectionary neighborhood in Brazil. The only other place in the world where there is this much chocolate is Brussels. Brazil has an incredibly deep and intense relationship with cacao and chocolate. Brazil is the world’s fifth-largest producer of cocoa and has long been a fundamental part of the worldwide chocolate supply chain. Brazil’s production was at 195 thousand tons in 2019 generating revenues of US$ 811.2m domestically and US$ 290.4m internationally. Main producing areas of chocolate in Brazil are from Bahia, Espirito Santo, the upper Amazon and lower Amazon, near the border of Bolivia, Peru, Ecuador, Colombia or Venezuela. There are about 50 thousand cocoa farmers in Brazil and 50% of them are located in the state of Bahia, which produces about 95% of Brazilian cocoa. The state of Espírito Santo produces 3.5% Brazil is among the six countries that lead the and the Amazon produces 1.5%. The sector volume of chocolate retail sales. The others include represents more than 4,000 direct and indirect jobs, the United States, Germany, Switzerland, Belgium, and is one of the links of a chain of more than 120 United Kingdom and France. Brazil chocolate thousand people, including farmers and chocolate market recorded revenues worth US$ 3.2billion industries. Brazilian confectionary revenues in 2018. The industry is concentrated especially in amounted to US $ 429.6 million from January to São Paulo, but there are also important producers October 2019, according to data available on the in Bahia, Espírito Santo, Paraná and Rio Grande do Federal Government Statistics Portal, ComexStat. Sul. Quarterly Business Newsletter | Issue No. 22 | 1st Quarter 2020 3 Embassy of Brazil in Nairobi Gourmet chocolate recently emerged in Brazil, but The consumption of chocolate per inhabitant still only represents 3% of the domestic production. in Brazil has grown a lot since the 1970s. At that This segment is expanding in the Brazilian chocolate time, the consumption was around 300g per year. market to meet export demands. Gourmet Nowadays the annual average is 2.5 kilograms chocolate uses more cocoa than normal chocolate per person annually. One of the reason for this making it taste bitter. The production of fine cocoa, increase is that Brazilian is increasingly identifying which is used in gourmet chocolate production, is chocolate as a food type. The highest consumption concentrated in the state of Bahia. of chocolate is in the southern states. Surveys indicate that the volume of chocolate consumption Brazil can supply the right chocolate for all kinds is strongly related to the income per capita of the of audiences, from the luxury market to the more population. popular kinds. Nevertheless, what sets Brazil apart is the fact that Brazilian producers have state-of- The purchase of chocolate is more concentrated in the-art technology. Increasingly, specialist and supermarkets, where people can find many flavors artisanal chocolate has been Brazil’s chosen target, and brands with lower prices. A box of bonbons allowing for high-quality production from cocoa are the most popular option for the lower income farming to squares, slabs and bars of finished earners while middle and high income earners chocolate. This niche slice of the market also allows consume the most chocolate and prefer buying it producers to experiment, making use of other in specialized stores. ingredients only found in Brazil. The consumption of chocolate has increased more Chocolate Consumption than the production; therefore, the country has Brazilians are chocolate lovers. According to ABICAB, reduced exports and increased imports in order to (Brazilian Association of the Chocolate Peanut and supply domestic demands. The main sources for Sweets Industry), 75% of the population consume Brazil are Peru, Chile, Argentina, South Korea and chocolate and 35% would choose chocolate over Japan. any other food or drink. Main Players The major brands like Mondélez, Garoto and The other main players in the market are Amma Nestlé have greater prominence in the market, Chocolate, Mendoá, Chor and Nugali, which are but specialized stores such as Cacau Show and all Brazilian chocolate producers that have seen Kopenhagen also have a considerable market significant growth over the last few years. Nugali’s share, mainly in the Southeast and in the capitals. chocolates won the Silver Medal in the prestigious The three largest companies that are responsible International Chocolate Awards, which recognizes for 76% of all sales in Brazil are: excellence in the business. The company in Santa • Mondélez: this company has 32% market Catarina state began introducing acai, Brazil share and produces some of the most nuts and other unique ingredients, which has traditional chocolates brands in Brazil increasingly piqued foreign interest in its products. such as Bis and Sonho de Valsa, under Other players include Hershey’s, Arcor, Mars and the brand Lacta. In addition to leading the Ferrero. market, it is also the number one in the sale of chocolate Easter eggs, which are the Sugar Confectionery favorite for children Abicab represents 93% of the candy market in • Garoto: has 22% market share and Brazil. Brazil is the sixth country with the largest produces popular chocolates such as retail sales of sugar confectionery and chewing gum, Batom and Serenata de Amor reaching a production volume of 278000 tons, in 2018. The volume exported was 88 thousand tons, • Nestlé: used to lead the market, but an increase of 13% compared to the previous year slipped to third place with results while imports reached 13,000 tons in 2018. Top compared to Garoto. Currently has 21% destinations include the United States, Paraguay, market share. Argentina, Mexico, Uruguay, and Canada. 4 Quarterly Business Newsletter | Issue No. 22 | 1st Quarter 2020 Embassy of Brazil in Nairobi The national average consumption is 1.4 kg natural colors and flavors are already being per inhabitant / year. According to a research developed and used by the sector. commissioned by Abicab, 55% of Brazilians Associação Brasileira da Indústria de Chocolates, consume candy & gums at least 3 to 5 times a week, Amendoim e Balas (ABICAB) mainly motivated by the taste and pleasure they offer. Mint and fruit flavors, caramels and toffees The Brazilian Cocoa, Chocolates, Peanuts, Candies are more appreciated. Gum pellets and candies and Byproducts Industry Association (ABICAB), are also very popular. represents the Brazilian confectionery and chocolates industry and works to support both Today, Brazilian companies are working on innovation and sustainable practices within the developing products that meet these new markets. sector. ABICAB manages the ‘Brasil Sweets and To this end, they are modernizing and improving Snacks’ exportation program, in partnership with production lines to achieve the minimum quality The Brazilian Trade and Investment Promotion required especially for healthiness. In this sense, Agency (Apex-Brasil) TRADE FAIRS Candy Show Date: 16 - 19 Apr 2020 Venue: Expo Center Norte, São Paulo, Brazil Candy Show brings together hall and candy shops, confectionery & snacks born from the need of Brazilian industry and provides them with the opportunity to display their range of products, releases and mainly expand their business. Fipan Date: 21 - 24 Jul 2020 Venue: Expo Center Norte, São Paulo, Brazil “International Bakery, Confectionery and Independent Food Retail Trade Fair” Fipan is Latin America’s largest Bakery & Confectionery trade fair and one of the key ones to be intended for food service operators. It focuses on Bakery, confectionery and other establishment operating in the food service, its outstanding characteristic is the significant business making during its production, being a leader in the visitation of owners, directors, and managers. ANUFOOD Brazil Date: 09 – 11 March 2020 Venue: São Paulo – SP, Brasil ANUFOOD Brazil – Exclusive Trade Show for the Food and Beverage Sector – Powered by Anuga – is the only event in Latin America totally dedicated to the companies of various segments of the food and beverage sector, as well as pioneering in enhancing the agribusiness sector and its natural products. Quarterly Business Newsletter | Issue No. 22 | 1st Quarter 2020 5 Embassy of Brazil in Nairobi THE STATE OF ESPÍRITO SANTO Espírito Santo Brazil Vitória Atlantic Ocean Espírito Santo, directly translated to “Holy Spirit” in English, is a Brazilian state situated in the southeast of Brazil.
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