BRAZILIAN COMPANIES GO INTERNATIONAL ¤ 5,00

totum YEAR V number 24 OCT/NOV 2013 R$ 13,00

BRAZILIAN COMPANIES GO INTERNATIONAL The world on a In Asia, Europe, the US and even on the seas, Brazilian steakhouses are a global model

:: WINDOWS How to make the best of international trade fairs

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An-404x266-Ing.indd 1 19/09/12 14:17 HANDOUT 32 speCiaL RepoRt International trade fairs are an excellent — and still relatively Contents neglected — shortcut to business abroad denise tuRCo 8 antenna + Brazilian companies lack transparency + Brazil´s Tourism Offi ces reopen + Social network for expatriate researchers + Bus tickets through the Internet, even abroad + The Brazilian Team takes to the fi eld + Biological treatment for diabetic foot

+ Three questions for Alexis Pagliarini HANDOUT

going inteRnationaL • The Fundação 26Dom Cabral business school ranking shows the crisis has not held back global expansion daRio paLhaRes

aRtiCLe • Commercial exporting 48 CoveR 62companies can help small and mid-sized The Brazilian barbecue is fi rms sell abroad winning fans over the world 44 inteRview RoBeRto tiCouLat and even cruise ships are Obama´s energy secretary, Ernest serving up on a skewer Moniz, talks about cooperation smaLL But outstanding • Temasa, from DARIO PALHARES projects between Brazil and the US Santa Catarina state, pinned its hope NELY CAIxETA AND ArMANDO MENDES

64 HANDOUT on pine to win orders abroad antonio CaRLos santomauRo HANDOUT HANDOUT Insects that tackle pests win an award 68for the company from Piracicaba in São Paulo state antonio CaRLos santomauRo

eXeCutive tRaveL • Wines in Mendoza, 74the new- look Marseilles and adventurous restaurants in Santiago maRCo ReZende 70 sustainaBiLitY 78 eXpRess touRism in tRansit • Fábio Bevevino discusses Brazilian environmental service From , in , Sergio Thiesen 82 what he learned running a company in companies are winning markets in reveals why this city on the Pacific Argentina Latin America and further afield coast is the South American capital of ANTONIO CArLOS SANTOMAUrO Editorial

We help transform dreams into reality. Gerdau recycles enough steel to build From the Pampas one 36,000-story building a year. TOTUM to the world EXCELÊNCIA EDITORIAL

PIB BRAZILIAN COMPANIES GO INTERNATIONAL

A TWO-MONTHLY MAGAZINE FOCUSING ON Those of you who have already wined-and-dined foreigners in Brazil INTERNATIONAL BUSINESS AND ECONOMICS

know the impression that our steakhouses can cause — especially Asians, Publisher used to a completely different , light and frugal. It’s thus no surpri- Nely Caixeta • [email protected] se that the hearty Brazilian style of serving grilled on has Editors Armando Mendes, Dario Palhares and Marco Antonio slowly but surely conquered the world, in tandem with Brazil’s burgeoning Rezende

economic stature and international relevance. In this , we discuss Contributors to this edition the phenomenon of the global expansion of steakhouses. Antônio Carlos Santomauro, Denise Turco, Fábio Vinicius Bevevino, de Buenos Aires, Roberto Ticoulat, We’re no longer just talking about Brazilians expanding their local Sérgio Thiesen, de Lima, Suzana Camargo chains abroad or expatriates, pining for picanha (special rump steak) COVER: Picture: and maminha (porterhouse steak), replicating the gaucho-style barbecue Tiger/Latina

in their newly adopted countries. Now, foreigners themselves are leading Designer the invasion: hooked on the taste, the abundance and the environment Renato Dantas of festive gluttony, they are copying the Brazilian all-you-can-eat format Copydesk and Preparation in their home countries, which often includes a gaucho decoration and Mary Ferrarini Translation gaucho-style waiters (though not always with the greatest accuracy). This John Fitzpatrick and Kevin John Wall

surprising story (China alone has around 200 Brazilianesque steakhouses) ADVERTISING is this edition’s lead story, written by Dario Palhares (page 48 onwards). INTERNATIONAL AND BRAZIL (55-11) 3097.0849 Elsewhere, a special report shows how companies looking to conquer [email protected] Av. Brigadeiro Faria Lima, 1903, cj. 33 the world may use a traditional foreign trade tool, international fairs: these Jardim Paulistano - 01452-911 - São Paulo - SP mass markets of globalization are handy shortcuts for those who know how to use them – a path that many Brazilian companies are learning, as shown Gráfica Bandeirantes

by Denise Turco’s article. We also shine the light on Temasa, a medium-size Where to buy past copies: direct from the pubisher

Santa Catarina-based industry that exports 100% of its wooden furniture Administrative Consultant production and whose clientele features heavyweights such as Ikea and Luiz Fernando Canoa de Oliveira [email protected] Wal-Mart. EDITORIAL CORRESPONDENCE In September, we received a call from the press sector of the US embassy Av. Brigadeiro Faria Lima, 1903, cj. 33 CEP 01452-911 - São Paulo - SP in Brasília saying that the head of the US Energy department would be in [email protected] São Paulo over the next few days and may find time in his schedule to talk Signed articles do not necessarily represent the opinion of the editors. Totum reserves the right to edit to PIB. The interview resulting from this contact is shown on page 4. And or summarize letters.

also finishing with gastronomy, our Express Tourism section highlights the Legally responsible journalist wonders of Lima, our South American neighbor. In addition to sumptuous Nely Caixeta (MTb 11 409) PIB – Brazilian Companies go International pre-Colombian relics and colonial architecture, in recent years the capital is published by Totum Excelência Editorial Av. Brigadeiro Faria Lima, 1903, cj. 33 of Peru has become a global Mecca of good cuisine, as you will see in our CEP 01452-911 - São Paulo - SP guide. Bon voyage and bon appétit! (55-11) 3097.0849 - [email protected] Print run for this edition Portuguese – 20.000 Recycling is part of Gerdau’s daily culture. Every year, we transform more English – 5.000 Nely Caixeta than 15 million tons of scrap into quality steel. This value is the essence of our products and contributes to our planet’s sustainability. www.gerdau.com

6 revisTApib.cOm.br

27883-12 GERDAU AN REV.ENCONTRO_MEIO AMBIENTE_INGLES_20.2x26.6 CM.indd 1 11/18/13 11:45 AM 1 Red and 2 The number white: Sérgio of large groups Antonio de Camargo´s headquartered Carlos works sold for in São Paulo will Antenna Santomauro US$ 3.49 million triple by 2025 New corporate geography

The global corporation fortress that Bimbo were the leaders in cement and Going once, was once restricted to the United sales in the US, respectively. going twice... States, Japan and European Union, is The old “First World” is still home to about to be invaded by groups from around 75% of the companies with The shirt is emerging countries. And they are an annual turnover of one billion great.The only there to stay. A recent study by the dollars or more, according to the McKinsey Global Institute showed study. However, they should lose thing missing that 45% of the world´s 500 largest this majority on the board of this is the fifth companies will belong to the new select “club” in the long term. An rich arrivals, such as China, Russia, estimated 70% of the 7,000 new star.

Brazil, Mexico and India, by 2025. billionaire companies are expected Luiz Felipe Scolari, Coach of The corporate geographic borders to come from emerging countries Brazil's 5-time World Cup winning team at the launch began being redrawn at the turn of in the coming 12 years alone. of new soccer kit. the century when groups from the The good news for Brazilians is that former “Second and Third worlds” São Paulo should further expand (remember those terms?) held a its presence on this business map share of less than 5% in Fortune over the next few years. According magazine´s ranking of the 500 largest to a study by McKinsey, Pauliceia is companies. McKinsey pointed out currently home to the headquarters that just over 10 years later the Indian of 49 global corporations, a number group Tata was the largest private that should triple by 2025, growing industrial employer in the UK while at twice the pace of Beijing (currently the Mexican companies Cemex and home to 116 global corporations)

2 1 sOTHeby's/ HANDOUT

Brazilian contemporary art continues to fl ourish in the works of art up for sale, as Sotheby›s also offered works international market. On 20 November, two wooden renowned artists including Colombia’s Fernando Botero embossments by Sérgio de Camargo (born in Rio, (1932), Mexico’s rufi no Tamayo (1899-1991) and Chile’s 1930-1990) received the highest bids at an auction roberto Matta (1911-2002), who painted “Morphologie of Latin American works of art held by Sotheby›s in Psychologique” (1939), sold for US$995,000. New York. All told, Sérgio’s works were snapped up Camargo thus joins an elite group formed by Lygia for the princely sum of US$3.49mn: “Lot 21/52”, Clark (1920-1988) and Beatriz Milhazes (1960). In from 1964, was sold for US$2.165mn, while “lot August, Lygia’s “Superfície Modulada 4” painting 289”, from 1970, was bought for US$1.325mn. (1958) was sold for US$5.3mn to an American buyer, These amounts surprised the organizers, easily beating in what was then the biggest bid for a Brazilian work Sotheby’s initial estimates of US$400-600k (for lot of art. Beatriz held the previous record, in November 21/52) and US$700-900k (for lot 289). Sotheby’s was 2012, when her “Meu Limão” painting, from 2000, also surprised that “lot 289”, the only sculpture painted went for US$2.098mn. Lygia had previously held in red by Camargo, went for less than “lot 21/52”, painted the number 1 spot in May 2012, when her painting in the traditional color of white, Sérgio’s favorite. “Contra Relevo (Objeto N. 7)”, from 1959, sold for

His sculptures faced tough competition from other US$2.2mn at an auction held by Philips in New York. cAiO pimeNTA/spTUris

8 revisTApib.cOm.br revisTApib.cOm.br 9 Antenna 1 Champions of 4 River Douro: Portugal opens its doors fl avor: carbonated in the sights wine, açai juice of Brazilian and pizza investors

Brazilians´ image in Portugal is improving. This may be because Brazil team sits down to eat they form the third-largest contingent of foreigners interested in a Next stop: Portuguese government program that grants permanent resident status in return for investments. Foreigners pledge to inject capital Sure bet on Asia and can establish themselves in Portugal and may then extend Brazilian soccer star Neymar´s number 10 shirt will their activities to other member states of the European Union. the US go to the food processing company Swift, captain The program was created in October of last year and has already opened Thiago Silva´s number 3 shirt to Baggio Café from the door to 320 investors from 21 countries. Chinese and Russians Araras in São Paulo state and midfi eld player Oscar´s Click Bus is a company that lead the ranking by nationality. Brazilians are the third-largest group number 11 shirt to Maricota from São Paulo. These and has gone international with nine authorizations and have invested 9.4 million euros – mainly Forget Mercosur or Latin another seven companies have joined up with chefs at a very early stage in fi nancial assets and real estate, including vineyards in the Douro. America. When Hybel, a David Hertz and Katia Barbosa to form the Brazilian indeed. It has only been The Portuguese government´s initiative has attracted investments producer of hydraulic pumps Food team. The “team” has 11 “players” and two in existence for three of around 200 million euros to date. These resources are making and motors from Santa “reserves” and standardized packaging that is months yet has already a difference in an economy that showed the fi rst decline in Catarina state, made its fi rst numbered exactly like the national football strip. crossed the Equator and unemployment in the third quarter - slipping from 15.8% to 15.6% venture abroad in 2008, it The project required total investments of R$ is heading further. The - since 2008 when the fi nancial crisis hit the world economy. thought big and decided to 5.6 million and aims to boost food exports. The company is an online sales open an offi ce in Chicago aim is to take a fresh look at popular food and platform for intercity bus to serve the American drinks served in restaurants, bars and homes. tickets that was founded market. All the signs are Some examples are toasted coffee with cachaça 1 by two Brazilians, Marcos that the bet has worked (3), manioc brownies fi lled with cheese and Sterenkrantz and Eduardo out and the American guava sweet (11) and meat balls with a touch Medeiros. It has now offi ce´s business should of pizza margherita fl avor (10). The traditional arrived simultaneously grow by more than 40%. “winning” standby Brazilian dishes and drinks, in Germany and Mexico The company, which is like cachaça and picanha steaks, also feature. and has already its eyes in based in Criciúma, also The “team” made its debut in October at the world´s Asia. “We want to operate, exports to another 15 largest trade, the Anuga, held in preferably in countries countries on four continents.

Germany. It will also visit 10 other cities – such HANDOUT with an infrastructure Oceania is the only one as New York, London, Paris, Tokyo and Shanghai similar to Brazil´s with a that is still not on the list – and return to Brazil on the eve of the World Cup defi cient airport system, of importers. “Around 9% in 2014 for “exhibitions” in São Paulo, , few routes and only large of our business this year Brasília and Rio de Janeiro. centers served by fl ights,” will come from the foreign The Team was created by Enivrance, a company of said Sterenkrantz. market,” said export French origin which specializes in food design, and The venture took off after manager Fabiano Puccini. supported by Apex-Brasil. “The idea is to show the receiving an injection of The outlook for the new face of Brazil´s R$ 5 million from Rocket international market is food industry abroad,” Internet, a start-up encouraging. CEO Natália said Diego Ruzzarin, investment fund based in Boeira says large vehicle director of the local Berlin. The business plan manufacturers may still subsidiary of Enivrance. foresees the company´s give preference to global “The best way we presence in 14 countries suppliers of hydraulic found was to reinvent and daily sales of 2,000 equipment there is still classic Brazilian and 1,500 tickets in room for others. “There are dishes and drinks Mexico and Germany, many niches in which we with contemporary respectively, within nine can operate abroad such packaging and months. The current as mid-sized carmakers, local brands.” daily in Brazil is homebuilders and the HANDOUT around 800 tickets. industrial machinery 1 HANDOUT 1 and highway equipment

HANDOUT/TUrismO De pOrTUgAl sectors”, she said. 4

10 revisTApib.cOm.br revisTApib.cOm.br 11 Antenna Young and daring Home again

Radix Engenharia e Software has only been around for three years but has already made great strides. It has taken part in projects in Mexico, Angola, Nicaragua and Venezuela and opened its fi rst offi ce abroad in August – in Houston, Texas. The intention is to achieve annual revenues of US$ 5 million from 2016. “We aim to have a turnover of US$ 1 million in the United States in the fi rst 12 months alone,” said CEO Luiz Eduardo rubião. Two sales representatives are currently responsible for the operations in the American market. Their main visiting card is a portfolio of well-known multinational clients – such as Petrobras, Vale and Braskem. The company has 300 employees and expects to have revenues of R$ 50 million this year, 25% more than in 2012.

Lack of corporate transparency When Petrobras announced the discovery produced oil and gas – was sold to the China of enormous oil wells in the Santos Basin National Petroleum Corporation for US$ 2.6 Brazil´s elite companies are still light years away from (5.4), South Africa (4.1) and Russia (4.3). The Indians during the last decade, everything pointed billion last November. A few months earlier, progressive concepts of transparency, according to a had 20 representatives and led the survey with eight to Brazil becoming a member of the group of it sold half of its assets in Africa to a fund survey in which a select team of Brazilian groups had out of 10 posts in the top 10 of the ranking. Seven of global oil super powers. The view nowadays, managed by BTG Pactual for around US$ 1.5 the dubious distinction of appearing in the second these were subsidiaries of the Tata Group (see table). at least for the time being, is that this billion. BTG Pactual is now its partner in a joint last position in a ranking of corporate transparency The “Transparency in Corporate Relationship” study valuable discovery has actually made the venture to explore oil in six countries: Angola, within the BRIC countries. The list was created by covered 100 public and private groups in 16 countries, company – the main player in this market Benin, , Namibia, Nigeria and Tanzania. the German NGO Transparency International and highlighted by the group formed by Brazil, Russia, India, in Brazil – increasingly less international. Petrobras should have spun off around gave an average mark of 3.4 (from 0 to 10) to 13 China and South Africa. The analysis was based on To meet the heavy investments needed to 40 other foreign operations by the end of Brazilian companies, such as Petrobras, Camargo three criteria: anticorruption programs in contacts with explore the pre-salt reserves, the company 2015, equivalent to one third of its 120 Corrêa, Odebrecht, Votorantim and JBS. The best politicians and other companies; corporate information, triggered a rapid process to shrink its activities international subsidiaries. The company´s Brazilian company in the survey, that analyzed the including fi gures on equity stakes; and fi nancial reports abroad. This included running down its 2013/2017 business plan foresees it uses and customs of 100 companies from emerging on the various countries in which each group operates. operations in Colombia, Uruguay and the Gulf obtaining around US$ 9.9 billion from countries, was Marco Polo which came 30th with 4.8. It might bring Brazilians some consolation to of Mexico. Its operation in Peru – where it asset sales, particularly those abroad. The only country Brazil beat was China, which had know that all the emerging countries have much

an average mark of 2.0 and was represented by 33 to learn in this area as 75% of the companies HANDOUT/peTrObrAs companies. The fi rst three positions went to India analyzed received marks of less than 5.

BRAZIL gIVES POOR IMPRESSION Ranking of the most transparent corporations from the emerging countries anti-corruption organizational international mark Benefi ts of global scale programs (%) transparency (%) reports (%) 1 Tata Communications (India) 92 88 34 7.1 2 Tata Global Beverages (India) 92 75 31 6.6 The growing international trend of Brazilian companies has brought changes in the procedures 3 Tata Steel (India) 92 75 30 6.6 and routine of their human resources departments. Three multinationals – a food company 4 Bharti Airtel (India) 85 75 34 6.4 and two construction fi rms – are negotiating with the Italian insurance company group 5 Petronas (Malaysia) 88 100 1 6.3 Generali to create single platforms to deal with benefi ts for their employees around the world. “American, European and Japanese multinationals have integrated their benefi ts programs for 30 Marcopolo 50 75 18 4.8 a number of years,” said Valter Hime, Generali´s director of personal insurance and benefi ts. 34 Petrobras 88 50 0 4.6 This is a logical move as corporate benefi ts cannot be united in all countries, due to local Reverse gear: 38 Gerdau 58 75 4 4.6 legislation. At the same time, internationally active companies can reduce their costs Petrobras through gains of scale by consolidating their negotiations and the subsequent administration platform 41 Brasil 77 56 0 4.4 on an international scale. “Negative results in one subsidiary can be diluted in the global leaves the Gulf 42 Embraer 54 75 3 4.4 operation. This is gradually becoming the most established policy,” Hime added. of Mexico Source: Transparency International

12 revisTApib.cOm.br revisTApib.cOm.br 13 Antenna 1 Wish in Tuscany: Ferraris available for clients

2 SPFW´s “baby”: Salão +B attracted buyers from Asia, Europe and the US HANDOUT 1 Bye, bye, Big Apple Fashion scene is all the rage Innovation is the key to productivity. it opens new possibilities to a more competitive country. Miami is a traditional destination São Paulo Fashion Week (SPFW), the biggest and brightest for Brazilians looking for fun in São Paulo fashion event, continues to impress and has now the United States and would spawned some mini-fashion events, such as Salão +B, organized seem to be the ideal location for by Abest (Brazilian Fashion Designers’ Association). In its a Brazilian events company to third edition, held in the period 29-31 October at the Brazilian set up its American offi ce. This is Museum of Sculpture (Mube), Salão +B presented the clothing what Wish did in September when creations and designs of 36 national brands (of which only 2 Innovation is the engine to business development and success. Innovation makes industry strong. Investments it moved its American operation took part at SPFW) and was attended by over 200 buyers. in research and development add value to Brazilian products, create more and better jobs and increase from New York to Florida. 10 of the buyers were international players, invited by Abest Wish specializes in events and and Apex-Brasil, including representatives of the ultra- business productivity. Innovation makes all the difference. Innovation makes a better Brazil. marketing projects. It is based in traditional Selfridges (a chain of high-end department São Paulo and also has an offi ce in stores whose fashion offering includes creations by leading Paris. This multinational structure designers such as Marc Jacobs and Diane Von Furstenberg), is valuable not only for carrying the US clothing boutiques Anthropologie and Calypso St. out events in Brazil originating Barth, and the Turkish clothing line Fash Boutique. abroad but also to serve Brazilian The Mube museum was also attended by representatives • An innovative industry creates more jobs. companies in other countries. of large hotel chains such as Atlantis International Resorts • Innovation is essential to achieve new markets and businesses. Oddly enough, despite the (Bahamas), Mexico’s Las Ventanas and Kerzner International • Innovation in products and processes promote the country’s growth. proximity of the World Cup in Resorts (present in several countries), all on the lookout 2014 and the Olympics in 2016, for fashion designs to sell at their hotel shops/stores. CNI WORKS TO IMPROVE BRAZILIAN COMPETITIVENESS. FOR A BETTER BRAZIL. it is the marketing side of its business that is currently growing 2 at a faster rate. “Everyone thinks Brazil is expensive and has little structure to receive business tourists,” said Natasha de Caiado e Castro, Wish vice-president. The company´s clients include brands like Samsung, Danone, L’Oreal, Nivea and GM, amongst others. picTUres: HANDOUT www.cni.org.br 14 revisTApib.cOm.br

An_Calhau_Inovaçao_202x266_Inglês.indd 1 11/12/13 6:46 PM Antenna 1 Expansion: SAP will invest Social network R$ 60 million Research without borders in its R&D for innovators center in Brazil

2 Ethanol in Labs Latin America, SAP´s research and development center in the air: Gol São Leopoldo (rio Grande do Sul state) is preparing for a new streaks ahead Brazilian researchers living leap ahead. The German IT giant has signed an agreement with abroad now have a social the Ministry of Science and Technology and Innovation (MCTI) network to keep in touch. A to invest R$ 60 million in expanding its laboratory that was ceremony was held in the famous opened in 2006. It is also committed to doubling its research Massachusetts Institute of headcount from the current 500 or so in the coming two years. Technology (MIT) in Cambridge The partnership is based on the Strategic IT Software at the beginning of October at and Services Program that was launched in August last which the Brazilian Industrial year. The main aim of the initiative is to attract the global Development Agency (ABDI) R&D centers of large corporations to Brazil. The federal launched the rede Diáspora government is not only offering investments of R$ 500 Brasil (www.diasporabrasil. million but exemption from the payroll tax of companies com.br). The initiative aims to in the sector. This will reduce production costs and make map business opportunities and products and services more competitive in terms of price. technology transfers, knowledge SAP also announced its support for the Science Without and know-how. “The Project is Borders program in September. This is run jointly by the directed mainly at the health MCIT and the Education Ministry and provides support for and IT and communication Brazilian researchers and students abroad. Fifty students areas,” said the technical from Brazil will carry out internships in SAP´s R&D centers in coordinator Eduardo Rezende. Germany, France, the United States and Canada by 2015. The ABDI virtual platform was immediately linked to fi ve virtual 1 innovation and technology 2 communities. Three are located in Boston, near Cambridge: Biofuels in the skies Brazil Today (http://pubboston. org/), MIT Brazil (http://web. mit.edu/misti/mit-brazil/) and PUBBoston (http://pubboston. Biofuels are beginning to conquer the skies in Brazil. Gol org/). The quintet is completed held the fi rst “green” commercial fl ight in October with a by BayBrazil (www.baybrazil. Boeing 737-800 on the São Paulo – Brasília route. The plane org) and Brazil Innovators fl ew the 1,200 kilometers burning a fuel mixture made up (www.brazilinnovators.com) of 75% kerosene and 25% cellulosic ethanol, produced that operate in another famous from sugar cane bagasse originating from plant waste. global technology center, The test was such a success that another 200 similar Silicon Valley in California. fl ights are scheduled for next year. This shows that the airline was serious when it became the fi rst Latin American fl yer in 2009 to join the Sustainable Aviation Fuel Users Group (Safug), created 12 months earlier. The Group now has 30 “partners”, one of which is Boeing, the giant American plane maker. Boeing signed a commitment in March last year with two other large plane manufacturers, Europe´s Airbus and Brazil´s Embraer, to encourage the development of aviation biofuels. The partnership with Embraer led to an action plan, drawn up in cooperation with the State University of Campinas (Unicamp) and the São Paulo State research Foundation (Fapesp). The program´s main objective from here on is to cut carbon dioxide emissions by 50% by 2050 from the 2005 levels. picTUres: HANDOUT

16 revisTApib.cOm.br revisTApib.cOm.br 17 CORREIOS. O PARCEIRO DE E-COMMERCE DA SUA EMPRESA.

Os Correios oferecem soluções completas de logística para suas vendas on-line, seja sua empresa pequena, média ou grande. Com o suporte dos Correios, seu negócio recebe acompanhamento durante todas as etapas do e-commerce: divulgação, venda, entrega e relacionamento. Tudo para você aproveitar as oportunidades correios.com.br/ecommercecorreios.com.br/ecommerce e fazer seu produto chegar em todo o Brasil com segurança e no prazo combinado. Correios, parceria e comprometimento com os resultados do seu negócio. Antenna 1 Iguaçu Falls: third most popular destination for foreigners

Embratur back in business 2 Green partnership: Accor and Brazil´s official tourism body, Embratur, has finally put Nordesta have planted the country back on the international front. The Brazilian 320,000 trees Tourist Offices network, that was out of action for three years due to problems over its bidding process, resumed business this month. Their routine of the offices will be the same: to promote relationship initiatives and obtain information to define strategies to attract foreign visitors. “The Tourist Offices deal directly with the tourism THE TOP TEN trade, i.e. operators and travel agents. This makes Foreign tourists´ them very important support tools in selling Brazil favorite Brazilian as a tourist destination,” said Leila Holdback, destinations Embratur´s international marketing director. 1 Rio de Janeiro Another piece of good news is that the network is 2 São Paulo expanding. There are currently 13 offices abroad, three 3 Foz do Iguaçu more than in the initial period of the project which ran 4 Salvador from 2004 to 2010. Seven are in Europe, three in the 5 Brasília United States, two in South America and one in Japan. 6 Búzios 7 Belo Horizonte 8 Florianópolis 9 Porto Alegre 10 Curitiba Source: Hotel Price Index (HPI) HANDOUT/Wikime d i a c o mm on s 1 Going international in the long term More engagement 2 and more trees Brazil has still a lot to learn from some of its BRIC government since 2011, through the “Brasil Maior” “partners” in terms of companies going international. program, an industrial policy that aims to raise This is the view of economist Newton Kenji Hamatsu who investments in fixed capital to 23% of GDP by 2014. claims that the Brazilian government is not doing enough However, the initiative is basically limited to granting The French hotel group Accor has paid tribute to to support this process. Hamatsu presented his views in taxes breaks and providing credit lines from the Brazil by planting hundreds of thousands of trees. Its a master´s thesis on how companies from Brazil, China National Economic and Social Development Bank Brazilian operation took part in the Plant for the Planet and India have carried out their recent international (BNDES). “The Brazilian Innovation Agency (Finep) program and exceeded its sustainability target well expansion programs. He defended his thesis at the State has also begun financing companies to go abroad ahead of schedule. The program encourages guests University of Campinas, Unicamp, in the first semester. but in a more restrictive way,” said Hamatsu. to reuse towels during their stays by offering to direct “We have come up with emergency solutions that Brazil´s efforts in the area still lag those of China. 50% of the savings in laundry bills to planting trees. last, perhaps, for five years while other countries think Beijing launched a China Going Global project 14 Of the chain´s 190 establishment in Brazil, 85% in terms of 30 or even 50 years,” he said. Hamatsu years ago that set targets and strategies to increase have already adopted the program. The ratio is 25 also called for official support to go further than just the presence of Chinese companies abroad. Meeting percentage points higher than the target set for 2015 providing loans. “The first step is to choose which this strategy and targets is facilitated by the fact at global level in around 3,500 hotels in 92 countries. sectors are really important and define the conditions that the state controls most of the multinational The program was developed in Brazil in partnership of support for each one. We can think of more specific companies in China. “Government participation in the with the Nordesta NGO and has led to 320,000 trees measures to back each segment afterwards.” process was less incisive in India. Its main role was to of 82 native species being planted in Serra da Canastra

This formula has been partly followed by the federal facilitate procedures to go international,” he added. in the center-south region of Minas Gerais state. HANDOUT

20 revistapib.com.br revistapib.com.br 21 Antenna 1 Pagliarini: 2 Long way 3 Made challenge of from home: in Brazil: Wine from Southern Brazil “selling” São wines from treatment Paulo to tourists Serra Gaúcha in for diabetic Pampering is the solution is winning over the world at the weekend a Polish store foot

São Paulo´s hotel sector is crossing its fi ngers. The current Some Brazilians turn up their noses at domestic season has not met the promise expected in the successful fi rst wine, purely out of prejudice. However, the red, Biotechnology two months of the year but the signs are that 2014 will easily white and sparkling wines from Serra Gaúcha have made in Brazil offset the recent disappointment. The main hotels already continued to gain new admirers abroad. Vinícola have above average reservations, thanks to a number of factors Aurora, for example, has won space on store shelves including the upcoming World Cup. “We are receiving around 30 in Belgium, Luxemburg and Germany, a traditional requests for estimates a day for events of all sizes,” said Alexis wine producer. The list was strengthened in 2012 A Brazilian invention Pagliarini, director of Marketing and Corporate relations at the with the inclusion of the UK, Poland and Denmark. promises to bring Sheraton São Paulo WTC Hotel and the WTC Events Center. The export portfolio includes more than 20 relief to diabetes 3 If the future market demand is going well, the sector is countries on fi ve continents. The main markets sufferers. Colzen is still trying to fi nd solutions to the structural diffi culty of are the US, Netherlands, Germany and Japan, a biological dressing fi lling the hotels on Saturdays and Sundays when guests, respectively. Export manager Rosana Pasini for the treatment HANDOUT mainly business travelers, return to their home bases. estimates that around 200,000 bottles will be of “diabetic foot” “We had very good occupation levels from Monday to exported this year, an increase of 40% over 2012. which affects Friday last year of around 90%. However, the ratio falls The company is based in Bento Gonçalves in rio Grande half of diabetics aged over 60. The to 75% when we include the weekends,” he added. do Sul state. This is the main center of the only region drug was developed by Silvestre Labs, The solution is to be creative. In Sheraton´s case, this in Brazil with an Original Denomination certifi cation for linked to the Rio holding Axis Biotec, was done by pampering guests. “We offer all sorts of wine. Aurora is pinning its hopes on a selective sales and will start being sold on the domestic things ranging from food for guests´ dogs to bikes to strategy. It takes part on international fairs and promotes market in November. It should arrive pillows in all sizes, shapes and even scented,” said tastings and events for sommeliers and other specialists in the Northern hemisphere soon. Pagliarini who answered three questions put by PIB. in a number of countries. It is also exploring the niche to “We have already obtained patents supply embassies, consulates and other offi cial bodies. for Colzen in the US and European How do you encourage visitors to stay “Aurora is the only Brazilian wine producer mentioned Union. We are currently negotiating in São Paulo at the weekend? in the catalogue of the Danish company Peter Justesen, an international distribution of the We made a recommendation to the municipal government an international distributor that specializes in direct product with three laboratories,” said tourist agency (SPTuris) to set up a committee with business with this government market niche. This opens Eduardo Cruz, CEO of Axis Biotec. representatives of all those interested in increasing activities at the doors to 160 countries for our products,” she said. The holding company has been on the the weekend. The challenge is to fi nd out how we can sell the market for 25 years and is extremely city as a weekend destination. At the same time, we also have 2 active in developing new drugs from a to captivate guests. One example: our takes guests to the technological base, including abroad. Its Municipal Market in Cantareira and shows them the produce international operations are concentrated on display. He then helps them choose the products that will be in the US where it is the controlling used as the ingredients to make their back at the hotel. shareholder of Rexaderm which holds international patents in the dermatological What “goodies” does the Sheraton WTc offer its guests? area. It also has stakes in Saneron – There are all sorts. If our guests arrive in the morning, we which fi nalizes research for the use of offer the transit lounge where they can have a shower, trunk cells in treating Alzheimer Disease freshen up, leave their bags and have access to a temporary – and Cell Praxis USA, which focuses on offi ce. Other hotels have transit lounges but we were the regenerative medicine and cellular therapy. fi rst to provide a fl eet of bikes for guests, for example. Axis is starting to work with monoclonal questions cells in Brazil through its subsidiary, Does the WTc help bring foreign business tourists to São Paulo? 3 Pharmapraxis and an agreement with for Alexis If someone from Canada, for example, wants to send a trade the Canadian company Plantform. mission to Brazil, we offer a match making service and fi nd Pagliarini The intention is to direct the drugs potential partners and clients for them. It´s a long process. straight to the cells on which they should act. The group´s turnover should rOsANA pAsiNi/viNÍcOlA AUrOrA rOsANA pAsiNi/viNÍcOlA

HANDOUT come to R$ 70 million this year. 1

22 revisTApib.cOm.br revisTApib.cOm.br 23 Antenna Fernanda: Vegan since Big guys fi ght it out Tackling crises in 17, chef makes Vegan cuisine represents, for some her choice in Vegan with unwary , a complete the virtual era the deprivation of culinary tastes and style and fl avor pleasures. Determined to do away The number of with this prejudice, the Brazilian chef multinationals from Fernanda Capobianco (see photo) emerging countries is Is the corporate world about to be has just launched, in the US, the “The growing steadily but struck by thunderstorms? Better get the Vegan Divas Cookbook”, featuring over the big names from fi refi ghters into action as soon as possible 70 recipes with zero animal protein. the rich countries as the Internet and social networks can Roast pumpkin with , are still dominant. give local problems with employees, smoked and black bean soup, Only fi ve companies suppliers, clients and authorities a global sweet potato pancakes, and espresso based in emerging dimension in the blink of an eye. This and lemon panna cota are just some countries fi gured warning is given by journalist, university of the tempting recipes, all low on among the 100 professor and consultant João José calories, featured in the cookbook. largest non-fi nancial Forni. He is the author of “Gestão de A fan of vegan since she was multinationals by crises e comunicação – O que gestores e

a teenager, Fernanda transformed her their asset value HANDOUT profi ssionais de comunicação precisam eating habits into a mouth-watering in 2011. The mining group Vale was the only saber para enfrentar crises corporativas,” business. Born in Rio but living in Brazilian group to appear in the list, located (“Managing communication crises – what New York for the past few years, in among two Chinese companies (Citic Group managers and communication professionals the Big Apple she founded a company and Hutchinson Whampoa), one Malaysian need to know to tackle corporate crises”). specialized in 100% healthy desserts, (Petronas) and one Mexican (Cemex). The fi gures The , which was published in August without giving up the taste: Vegan appear in the second edition of the book Inward by Editora Atlas, has a preface by the Divas, which now reveals all its secrets and Outward FDI Country Profi les (New York: journalist and former minister Miguel (or almost all of them) to PIB readers. VCC, 2013), launched by the Vale Columbia Jorge. It not only covers business issues They´re worth checking out because Center on Sustainable International Investment, from a conceptual and practical point of their creator, in addition to her talent, part of New York´s Columbia Law School. view but, more importantly, deals with devotes practically 100% of her time The chapter on Brazil highlights the fact that ways of preventing sudden crises arising. to cooking, since she is married to the a large amount of Brazilian multinational All this is backed up with analyses and renowned French chef François Payard. investments abroad pass through tax havens comments related to more than 50 or fi nancial centers before reaching their fi nal example of big cases that hit companies. destination. Caribbean tax havens like the Forni believes that more than 50% of the Cayman Islands, the British Virgin Islands crises that make the newspaper headlines and the Bahamas accounted for most of and appear on computer screens can be

HANDOUT this movement to 2008. However, some of detected well in advance. He believes these resources started to be channeled to they can be avoided Europe from 2009 on. Austria, in particular, if the company has became the largest temporary recipient of controlling bodies and Brazilian investments destined for Europe, instruments and, above along with Luxembourg and Hungary. all, is prepared to act. The book was organized and edited by Karl P. “Some examples are Sauvant, Padma Mallampally and Geraldine white collar crimes, fraud McAllister. It brings together the profi les of and rule breaking that foreign direct investment of 40 countries the supervisory bodies presented by the Vale Columbia Center in its have not detected,” he Columbia FDI Profi les series— whether as said. Forni is a former investors or recipients of foreign capital. It head of Banco do Brasil´s also contains the profi les that were originally communication area. published in the fi rst edition in 2011. The book can be downloaded electronically at the following HANDOUT address http://www.vcc.columbia.edu/books. ROGERIO VOLTAN

24 revisTApib.cOm.br revisTApib.cOm.br 25 Going international 1 e 2 Expanding through acquisitions: Metalfrio plants in Turkey and Mexico

1 2

lished in August, intend increasing Appetite keeps expanding their foreign presence while the FROM BRAZIL TO THE WORLD remaining 33% will maintain the Ranking of Brazilian multinationals - 2013 status quo. company/ OPErATING SeCtor(s) MULTINATION- Two out of three Brazilian multinationals intend speeding up expansion One of the most ambitious in grOup AL INDEX* the first group is Stefanini which projects abroad and the remaining third have no plans to retract provides information technology 1 JBS Meat 0.589 2 Gerdau Steel 0.542 Dario Palhares services and was third in the Funda- ção Dom Cabral ranking (see table 3 Stefanini Information Technology (IT) 0.496 on this page). The company was 4 Magnesita Refractories 0.457 he economic crisis that seen in the latest three issues of the The multinational index – cal- founded in 1987 and landed in Ar- shook the world five culated based on the gentina seven years later full of hope. 5 Marfrig Meat 0.433 years ago – hitting the weight of the assets, However, as domestic demand was 6 Metalfrio Commercial refrigerators 0.427 Northern Hemisphere Stefanini has US$ 150 revenues and head- very heated at that time, the proj- 7 Ibope Market research 0.364 in particular – failed million available for count outside Brazil ect to obtain new business abroad Tto dampen Brazilian multinational in relation to the com- needed to wait. “Our real interna- 8 Odebrecht Construction, engineering, 0.349 companies´ interest in their foreign new acquisitions by 2015 panies´ total numbers tional expansion began in 2000 in petrochemicals operations. After retreating in 2009, – has not stopped grow- the Americas. We now have opera- 9 Sabó Autoparts 0.333 when the effects of the financial ing over the last three tions in 30 countries on five conti- 10 Minerva Foods Meat 0.320 cataclysm were felt worldwide, this years: 16% in 2010, 17% nents and have four large business select group of around 50 corpora- Ranking of Brazilian Multination- in 2011 and 18% last year. Moreover, divisions: Europe, United States and * The index corresponds to the sum of the following coefficients: assets abroad/total assets, revenues abroad/total revenues/ tions which have their own opera- als which the Fundação Dom Cabral no company is thinking of pulling Asia, Latin America and Brazil,” said headcount abroad/ total headcount. tions abroad – resumed their bets business school has been drawing back. Two thirds (67%) of those in- CEO Marco Stefanini. Source: Fundação Dom Cabral.

on going international. This was up for the last seven years. terviewed in the latest report, pub- lfri o P ic tu res: HANDOUT M e ta Some of these markets were ac-

26 revistapib.com.br revistapib.com.br 27 Going international 1 Stefanini: 2 Lima: support operations in from University of 30 countries on California to set five continents international route

the United States,” he added. The head office in São Paulo is patient and does not interfere to any great extent in its foreign businesses for a long time. Caio said the idea was to learn the secrets of its new market in the Northern Hemisphere. It was only last year that an effort got underway to obtain greater syn- ergy among the four plants. The main goal is to reduce spare capac- ity without giving up the chance of good business opportunities. “We are currently only using 60% of our installed capacity but have plans for organic growth via acquisitions,” Caio said. Another company that is follow- ing the path of Stefanini and Metal- frio is WebRadar which looks set to be jostling for a leading position in the Fundação Dom Cabral ranking of multinationals shortly. This small IT service provider was founded in 2008, grew rapidly and became a

1 2 cessed through acquisitions. The operate, especially the US which is consolidating its operations abroad. (Mato Grosso do Sul state) but the after we invested abroad but we got investment started in 2010 and Ste- the biggest consumer of IT services, The company was founded 50 years new management started produc- it right in geographical terms,” said PREFERred DESTINATIONS fanini has assumed control of 10 with 20% of the global market,” he ago by engineer Joaquim Caio, the tion in Turkey, Russia and Mexico the CEO, Luiz Eduardo Moreira Countries with highest presence of companies abroad since then. These added. Stefanini´s long-term aim is biggest Brazilian multinational through acquisitions. The expansion Caio, son of the founder. Brazilian multinationals include Informática & Tecnologia in to spread its sales abroad even fur- with revenues of up to R$ 1 billion required investments of around US$ Metalfrio has annual installed 1 United States 41 Colombia, Top Sistemas in Uruguay (and sixth largest over- capacity of 360,000 and RCG Safingol in the US which all in the ranking). It refrigerators in Turkey 2 Argentina 35 specializes in recruiting and train- Metalfrio´s revenues first went abroad in Newcomer WebRadar (slightly lower than the 3 Chile 30 ing IT technicians and was bought more than tripled after the middle of the last can rely on the giant Intel Três Lagoas plant) and 4 Colombia 23 in July of this year. This strategy has decade shortly after it is the apple of Caio´s 4 Uruguay 23 allowed the company to quintuple going abroad was acquired by Atre- as a minority partner eye. Turkey is within its revenues and ensure a place sia Gestão de Recursos, two hours flying time of 5 Mexico 22 from 2011 in the list of the 10 most which also controls the countries which repre- 5 Peru 22 internationally active companies in Le Lis Blanc store chain sent one third of world 6 China 21 Brazil. However, Stefanini is still ther. “Around 60% of our revenues and builder Abyara, amongst others. 70 million, paid for with funding of GDP, it lies between two continents not satisfied and wants more. It has (estimated at US$ 1.2 billion for An internal revolution occurred and R$ 453 million when the company and is the gateway between the West 7 UK 19 US$ 150 million available to buy new 2013) currently come from Brazil the company, which previously had was listed on the BM&FBovespa in and the Middle East. It has a good 8 Paraguay 17 businesses in Brazil and abroad by but we intend inverting this propor- only one plant, ended up with four April 2007. “Our revenues shot up infrastructure, particularly in logis- 8 Venezuela 17 next year. tion by the end of the decade.” in a short period of time. from R$200 million before going in- tics, and labor along with a strong, “There is still a lot of room to Metalfrio, the world vice-leader Between 2005 and 2008, not ternational to somewhere between hardheaded vocation for trade. “It is 9 Portugal 16 grow, including via acquisitions in the commercial refrigerator sec- only did it transfer its Brazilian R$ 720 million and R$ 740 million. a good base for the European market 10 France 13

in most of the countries where we tor, is pinning its hopes mainly on plant from São Paulo to Três Lagoas P ic tu res: HANDOUT The financial crisis broke out just and is to Europe what Mexico is to Source: Fundação Dom Cabral.

28 revistapib.com.br revistapib.com.br 29 Going international Furlan: 126 trips and 7,000 km/day in four years

player on the international stage. volumes of data. This allows the cli- of Nextel in Argentina, Chile, Peru for data processing on two domestic The company is also relying on “We offer continuous information to ents to access their data remotely and Mexico and some of the Tele- fronts, the transport and energy sec- two other prestigious “godfathers” monitor the quality of clients´ spe- without needing to spend millions fônica group´s operations in South tors. He is already planning to open beside the Ucla. One is the Brazilian off a number of rivals to do so. “The cific services and demands. This is of Reais on their own servers. This America, such as Peru and Chile. the company´s first offices abroad – Innovation Agency (Finep) which proposal was very good as, besides vital data for clients in defining their gives the company a great differen- With only five years on the road, in the US in 2014 and in Europe at a provided a non-repayable grant at the capital injection, it allowed us to marketing strategies,” said the CEO tial and the business quickly drew WebRadar aims to obtain 60% of its later date. “The University of Cali- the end of the last decade that al- swap ideas with a heavyweight part- and founder Adriano Rocha Lima. attention abroad. Its baptism oc- revenues abroad this financial year fornia in Los Angeles (Ucla) Is help- lowed it to make a definitive change ner in the IT area. Intel promotes The company won the Finep In- curred in great style when it won an which it estimates at R$ 16 million. ing us draw up a business plan for of level. The other is Intel, the giant meetings and synergies among the novation Prize in 2013 and is the international competition for Nokia The goal is to reach 70% in 2015 the American and Canadian markets. American microprocessor manufac- various companies in which it has only firm in the sector to operate in in 2009. Its international client port- and remain at this level as Lima has It will be the definitive script for our turer which became a minority part- stakes and the technology market cloud computing in processing large folio currently includes subsidiaries great expectations for the prospects international expansion,” he said. ners in the business in 2012, beating abroad. It is priceless.”

gLOBE TROTTER

the deCision taken by Brazilian newly-installed president, Luiz Iná- in the fi rst case was the Mercosur in the Middle East, fashion shows in for industrial design in the world. ment. “We never managed to meet companies to go abroad is a recent cio Lula da Silva, and was given the free trade area (Argentina, Para- London´s Oxford Street and bikinis in Another achievement was a 16.2% the target of exporting US$ 2 billion one. The phenomenon fi rst surfaced mission of boosting exports which guay and Uruguay) where imports Moscow´s red Square. There in Information Technology in the middle of the last decade have risen by average annual rates of of Brazilian commodities and was also the Year of Brazil in services. Never mind, the sector when exports took off – jumping by 4.5% since 1993. He began traveling manufactured goods increased by France (2005) with a churras- exceeded this mark long time 246.4% between 2001 and 2010 – around the world “selling” products 332.68% between 2002 and 2007 co barbecue and caipirinha ago,” said the former minister, and the appetite shown by domestic and services “made in Brazil”. “I to US$ 14.3 billion. The portfolio of stand in the Elysee Palace, the who is currently a member of groups in acquiring companies and made 126 foreign trips between buyer countries in the footwear area, offi cial residence of the French the board of directors of BRF. plants abroad. For example, foreign 2003 and March 2007 when I left where Brazil was one of the world´s president. Another event was The work he carried out lead- direct investments by Brazilian the government. This was an average biggest exporters for decades, rose a show by Gilberto Gil in the ing the MDIC led to an invita- multinationals in 2006 came to US$ of 7,000 kilometers a day,” he said. by 23.72% in the same period – from Invalides Palace. “President tion to become a member of 28.2 billion and were only exceeded In his fi rst eight months in gov- 118 to 146 destinations. The sector´s Lula accompanied us a lot in the Global Ocean Commission at global level by Hong Kong, accord- ernment, exports reached a record foreign sales rose even further by this program, as he was always (GOC). This NGO was founded in ing to a study by the Fundação Dom level for the period of US$ 45.5 bil- 31.7% to US$ 1.9 billion in 2007. a great lobbyist for Brazilian February of this year and brings Cabral business school and Columbia lion, 22.9% higher than January and The membership of the exporters´ products.” Furlan dismisses together outstanding fi gures University in the US. August 2002. At the end of 2003, “club” also received a considerable criticisms made of the former on the international front such After a long hibernation, Brazil foreign sales and the trade balance boost. In 2007, 23,537 companies president for continuing to as José Maria Figueres, former turned its face to the world once came to US$ 73.2 billion and US$ sold goods abroad, 21.83% more “sell” large Brazilian companies president of Costa Rica, David again and increased its share of glob- 24.8 billion, beating the previous than in 2002. The Midwest, North- in speeches abroad. “Pure Miliband, former UK foreign sec- al trade from 2003. This was still a targets by 7.6% and 24%, and the east and Southeast had big rises envy,” he said. retary, and India´s Ratan Tata, modest affair as its share only rose previous year´s fi gures by 21.19% of 61.67%, 36.69% and 25.37%, This globe-trotter was a former chairman of the Tata from 0.9% to around 1.3% but, at and 87%. Another milestone was respectively. “We identifi ed potential hard act to follow when he Group. Its fi rst big challenge least, the “lost years” were a thing of achieved 14 months later, in Febru- exporters and took them to meet left the government in the will be to formulate governance the past. This re-entry to the global ary 2005, when Brazilian exports ac- potential markets for their products fi rst quarter of 2007. During rules for international waters economy was driven mainly by the cumulated over 12 months overtook abroad,” said Furlan. “To do so we his period as a minister, he which will be considered by the Ministry of Development, Industry the US$ 100 billion mark for the reorganized the Brazilian Trade ensured greater support for United Nations next year. “The and Foreign Trade (MDIC) during the fi rst time. “The target was met 22 and Investment Promotion Agency companies that wanted to go so-called high seas make up period when Luiz Fernando Furlan months ahead of the deadline,” said (ApexBrasil). Instead of trying to abroad with the beginning two two thirds of the oceans and

was in charge. He was the mentor Furlan. convince companies in Brazil, its years earlier of the Foreign HANDOUT around half the Earth´s surface. of Sadia´s highly successful inter- The foreign trade growth strategy priority mission was to take business Direct Investment operations We need to quickly establish national expansion strategy in the followed two main lines: sales of leaders on foreign trips.” by the BNDES. He also promoted increase in exports in 2006 over the international rules to manage them 1990s. Sadia later went on to merge new products to traditional markets The trips included events like Brazilian design by subsidizing the previous year to a record US$ 137 in a sustainable and effi cient way. with Perdigão and form BrF. Fur- and sales of traditional products to the Brazilian fashion weeks in Paris, contestants for the iF Award, the billion. Despite this, he still feels a The future of the planet depends on lan received an invitation from the new markets. One of the highlights Milan and Moscow, Brazilian Week most highly prestigious competition little frustrated over one disappoint- this," said Furlan.

30 revisTApib.cOm.br revisTApib.cOm.br 31 Special Report Canton Fair; gateway to China and the world Business showcase Participating in trade fairs is the right way for Brazilian companies to go international Denise Turco

he Canton Fair, a giant terial, bathroom accessories and multi-sector business domestic appliances and is one of fair held in the city of the few Brazilian businesses to ex- Guangzhou (or Canton) hibit at the Chinese fair. The Astra in China, is one of the sales director, Joaquim Coelho, said Tmost important events of its kind in the group was going to the Canton the world. It receives around 24,000 Fair not only to serve the Chinese exhibitors every year and over market but also to gain visibility at 200,000 visitors to its two versions, world level which would expand the held in spring and autumn, drawn chances of doing business with cli- by the prospect of deals of around ents from other continents. US$ 35 billion. Nevertheless, it is Coelho said Astra had sold a rare to find companies from Brazil large volume of electric showers there and on one occasion only two to an African country, without giv- appeared in the Brazilian pavilion. ing any further details, thanks to its Five exhibited in 2012 and only five participation in the fair in China.

have registered once again this year Exports to more than 30 countries HANDOUT for the 12 spaces available for the currently represent 8% of Astra´s autumn event in October and No- physical sales volume. Its foreign trade association, UFI, says 30,700 Therefore, industrial equipment, honor at the 2013 Frankfurt Book places to advance their businesses. vember. sales go mainly to Latin America, exhibitions are held annually world- for example, is immediately associ- Fair held in October when 168 This is the case with Francisca There are a number of reasons the United States, Africa and the wide and receive 2.8 million exhibi- ated with the Hannover Messe, the Brazilian publishers were among Vieira from João Pessoa in Paraíba behind this reluctance to take part, Middle East. tors and 260 million visitors. China biggest event of its kind in the world. more than 7,500 exhibitors from 111 state. She creates organic cotton the main one being the great lack Astra is one example of an ex- and Asia are increasing their par- The CeBit and Agritechnica fairs, countries present. The event drew clothes in natural colors and bet on of knowledge of the enormous porting company that uses the short ticipation in this market but Europe that also take place in Hannover, the finishing – carried Chinese market which is not only cut provided by large fairs to reach retains its traditional strength and is have the same status in the infor- “My brand is seen by out by craftspeople in remote in geographical terms but out to clients on the global market. still the benchmark. Paris and Milan mation technology and agricultural the Northeast – and also in language and culture. How- This kind of event gives companies host famous architecture and con- machinery and equipment sectors. buyers from the whole productive processes ever, Brazil´s reluctant companies the chance to launch products, ex- struction, food and furniture events Similarly, Cologne is the setting for world at a fair” in line with concepts do not know the opportunities they port their brand, get to know the but there is no doubt that Germany the Anuga, a large food fair, Dus- of sustainability to find are missing. International fairs are competition, update their technol- is the runaway leader. It has well- seldorf for Medica, directed at the success on foreign mar- great showcases for companies that ogy, carry out networking and cul- equipped pavilions, solid transport hospital and health area, Munich kets. Furthermore, it want to become global. This was tivate client relationships — all in a and hotel infrastructure and organi- has the Bauma for machinery and around 300,000 visitors. was a specialist fair that has turned the case with Astra from Jundiaí single place. zational know-how which has made equipment; and Frankfurt has be- Companies of very different siz- out to be her springboard. “If an in São Paulo state which manufac- This is a varied business world the large German cities the global come synonymous with and es and sector have learned to use the international buyer comes to Bra- tures toilet seats, hydraulic ma- with impressive figure. Its global icons of the events they host. . Brazil was the guest of power of these public global market zil, he is the only person who sees

32 revistapib.com.br revistapib.com.br 33 Special Report 1 Exponor 2 Astra at in Chile: the Canton Mining Fair: unusual machinery appearance

Start packing your bags Tips on planning a company´s participation in an international trade fair

Advance research events. If necessary, have a relay If you have never taken part in system to avoid jet lag among a fair as an exhibitor, visit the frequent fliers. event beforehand. Check out the competition that will be there Language and the return obtained by other It is essential to speak English at companies. least — even better if someone from the team speaks the local 1 2 Target public language. The same rule applies the plan, with the assembly of the Make sure you will meet your for the publicity material and site. stands. The company is a partner target public at the fair – senior my product and wants to pay a low would go to five fashion fairs to find Paulo. Bauducco is a large Brazilian of the Brazilian government in the executives or operational person- Communication price. However, the whole world a distributor. However, the opposite manufacturer of cookies and panet- Sial food fair held every two years nel, for example – to avoid being Adapt the message of the public- can see my brand at a fair and de- is the case at the Biofach and we tones, a kind of fruit cake eaten at in Paris and serves mid-sized com- disappointed by the results. ity material, leaflets and videos, mand increases a lot. I recommend found a number of distributors in Christmas, which has been taking panies as well as giants like JBS and bearing in mind the company´s manufacturers to show themselves just one place,” she said. She packed part in world events directed at the Brasil Foods. Clear Aims objectives and — very important abroad,” she said. her bags once again in October and sector for over a decade. “The costs However, the Brazilian pres- Go to the event with clearly — the culture of the country. It was essential for Francisca to headed off to the same version of the are not low but it is a necessary in- ence in international events is still defined objectives: research the find the best event that would put fair held in Japan where she already vestment for a brand that wants to advancing at a slow pace despite market, look for a distributor, Customs her in touch with her public. She has two distributors. She will take be international”. In line with view, this greater maturity. This may be launch a product, strengthen the Learn beforehand how to handle took her collections to the annual part in the German event once again the number of Brazilian companies due not only to factors such as ex- brand, etc... the local customs and situations; Biofach organic products fair held in 2014 and will also visit the US. She that have begun to exhibit them- change rate variations but also to the be punctual and respect the in Nuremberg, Germany, for the selves at international lack of incentives and preparation by Product and price country´s customs. first time in 2012. She managed to fairs has been grow- business leaders, fear of venturing Get to know the market in make some deals with a German Despite the recent ing lately. Although abroad, and little or no experience advance. Find out whether your Negotiating distributor, an ecological fashion advance, Brazil´s presence there are no official of international negotiations, as product is competitive and the When in contact with potential chain in Egypt and an American statistics, as there are well as the linguistic barrier. “We packaging is compatible with the clients, be clear about the oppor- buyer. After her debut, she returned is still small so many events around believe that Brazilians will check local standards. Make sure you tunity you are pursuing and what to Nuremberg this year and her little the world and in dif- out the trends and new develop- get the right price combination. you aim to do with the merchan- stand was packed with visitors, with ferent formats, those ments to bring to Brazil and also dise. at least 50 potential buyers stop- in the sector believe it import products,” said Andrezza Exhibiting ping by. One of the most important expects to boost foreign sales in 2014 is growing and also maturing, with Perri, the international coordina- Exhibiting your products at the Result breakthroughs was a partnership from their current 30% of turnover companies planning their participa- tor in Brazil of the Biofach organic stand makes a difference. See- Don´t expect to obtain orders at with a German company to develop to 50% through her company’s tion and exhibiting in a more profes- products fair and the Bauma fair ing it, touching it and testing it the event itself. Most interna- a women´s with colored presence in international fairs and sional way. “Companies now orga- for construction and metallurgy will enhance the interest of the tional trade fairs serve to make cotton that will be distributed to by taking advantage of the growing nize themselves for the fairs, know machinery (both from Germany). potential partner. Foresee the a first contact and establish the stores in Germany, Switzerland and consumer interest in environmen- clearly what they want and outline When companies decide to export, logistical difficulties and plan for commercial relationship from the Nordic countries. tally-friendly fashion items. a strategy. This was not the case most usually choose the collective them. then on. The result was so positive for Francisca is a small business- five years ago,” said Brena Bäumle, stands mounted by the Brazilian exports that Francisca changed her woman but what she says is also director of Bäumle Trade Fair Or- Trade and Investment Promotion Prepared team Presence promotion strategy. She decided valid for large companies. “The ganization and Administration. Her Agency (ApexBrasil) and by sector Send employees who are mo- Be present at the conclusion of to give up standard fashion events, most important benefit is to be at company was founded 35 years ago associations. However, a common tivated and prepared to serve the fair. Don´t swap the closing including those in Brazil, to con- fair and open new markets,” said in Curitiba, Parana state, and works mistake is the lack of a long-term the clients at the international event for an afternoon shopping. centrate entirely on those directed Edgar Matos, export director of the right from the strategy of choos- international expansion plan. “Let´s Sources: Andrezza Perri, ApexBrasil, Bäumle, BMS and China Trade

purely at organic products. “We food producer Bauducco from São ing the best fair to the execution of P ic tu res: HANDOUT say a company participates one year

34 revistapib.com.br revistapib.com.br 35 Special Report 1 Brazilian 2 Stara in Pavilion at Hanover: food fair: sells in many various fl avors languages

but does not come back the next. of 2008. Many of them faced great This gives the international buyer difficulties in expanding exports a negative impression as it finds it when their home market started odd when the company disappears shrinking, Fülber said. rent clients are in Russia, Kazakh- and this affects its credibility on the Stara´s sales to Eastern Europe stan and Ukraine. The business has international market.” amounted to US$ 15 million last year also matured. Stara takes part in This is certainly not the case and should rise to US$ 20 million bids in the region and differentiates with Stara which produces agricul- in 2013. However, things were not itself from European rivals by work- tural machinery and equipment and always like that and the company ing with exclusive importers. “This is based in Não-Me-Toque in Rio lost big clients in the region during allows us to be more aggressive as Grande do Sul in southern Brazil. It the 2008 crisis. To recover market, the partnership is focused on the uses the Agritechnica agricultural it took advantage of meetings orga- region and the product,” Fülber said. technology fair held in Hannover, nized by ApexBrasil at an interna- As might be expected from such Germany, as a platform to display tional event held in Brazil in 2011 at a large agricultural producer, Brazil itself to the world. The company which buyers from these countries has a strong presence in food fairs has attended every event since 2001. 1 were present. The meetings were such as the Sial in France and the Since then, it has made deals in Rus- tries in South America and South Af- said the company´s export manager, technology fairs is its international followed by the Agritechnica fair Anuga in Cologne, Germany. Figures sia and Eastern Europe, the region rica. “Taking part in events abroad Márcio Fülber. Stara has 2,800 em- and market diversification strategy and brought such strong results that from the event organizers provided where it finds the best opportunities is essential if the company is to re- ployees and revenues of R$ 600 mil- to avoid what happened to Europe- the company managed to return to by Bäumle show that 82 Brazilian to sell its products, along with coun- main strong and not run great risks,” lion and its presence in agricultural an companies after the global crisis the region in strength. Its main cur- companies took part in collective

PAyINg ATTENTION TO THE cuSTOMS OF OTHERS

gaFFes and mistakes by rooky organic cosmetics producer Surya and comfort. “The BRF stand in the Ricardo Santana, business direc- salespeople in their fi rst contacts Brasil, recalls seeing Brazilian busi- United Arab Emirates had a carpet tor at ApexBrasil, highlights the 2 with foreign customs are folklore. nessmen at a fair in San Diego, in and crystal lamp,” Brena said. She importance that should be given to However, this is a very real risk the United States, handing out price recommends ditching black or dark trying to understand how to think as cultural differences can upset lists to big retailers like Walmart colors when doing business in China and act like the people on the other promising business opportunities. and CVS in Portuguese with the as the Chinese like lively colors such side. “Try and show that you have This is a factor that scares many amounts stated in Brazilian Reais. as red and yellow. The way of talking prepared for the event by studying Brazilian companies when they go Stara is painstaking in this area and and negotiating is also important. the customs of the country. Brazil- international. Joaquim Coelho, of invests in language courses within It is wrong, for example, to try and ians like physical contact, to hug and Astra, gives an example of the care the company. “Our team has people negotiate with a potential Chinese kiss but not everyone else does,” he that is needed. “We would never who speak English, Spanish, Roma- partner as if you have known it for said. Some common habits at Brazil- show a photo of a woman having a nian, German, russian...,” said Már- a long time. This kind of attitude ian trade fairs can appear strange shower to present the product in a cio Fülber, the export manager. “We could lead to losing a deal. “This in other countries, such as stands leafl et for the Arab market,” he said try to communicate in the mother contrasts the Brazilian immediacy with a party atmosphere, loud music in consideration of the Arab cultural tongue of the client we are doing with the long-term view the Chinese and lots of food and drink available. approach to the representation of business with.” take,” warned Aldenizio Bezerra of Events abroad are usually directed the human body. Astra avoids such The visual appearance of the MChina Trade “Brazilians often want purely at business and the visitor misunderstandings by providing stand also shows whether the com- to go to China to buy the greatest does not have time to waste. Brena more objective materials at trade pany is concerned — or not — with possible volume at a low price and Bäumle says that visitors to the Sial 2 fairs such as product catalogues. local habits, said Brena Bäumle of get fast delivery. However, what the French food fair do not spend much Europeans in these diffi cult times. expect from Brazilians but the focus Language is often where compa- Bäumle Trade Fair Organization and Chinese want fi rst of all is to get to time at a stand if they are not given They need to close orders, negotiate should be on the main point which is nies slip up. Some exhibitors forget Administration. Americans prefer know the Brazilian company and see important information and they are prices and want an objective ap- to have important information avail- to bring communication material simple, uncluttered stands whereas what kind of partner it could be in not interested in small talk. “The proach.” This does not mean giving able. Sympathy and personality are in the local language or, at least, the décor in Europe and Arab coun- the long term as relationships are executives who go to the Sial are un- up a friendly, welcoming approach welcome but they do not guarantee

in English. Clélia Angelon, of the tries should convey a sense of luxury extremely important for them.” picTUres: HANDOUT der great pressure, particularly the which is what many foreigners success.

36 revisTApib.cOm.br revisTApib.cOm.br 37 Special Report 1 Francisca 2 and 3 snacks 4 ApexBrasil Vieira´s at a typical stand: colored cotton Brazilian collective clothes… corner bar force

in imports visit the Canton event. However, Bezerra believes the Bra- zilian companies are little prepared to operate in Asia as exporters. “They are afraid of not knowing the market, not adapting, not knowing 3 1 2 who to approach, the price to set stands and 30 in individual stands have to invest to exhibit on its own. ApexBrasil taught Francisca deals that got underway during the ship to encourage Brazilian com- and the specification”. This fear is at the 2012 Sial which drew 5,890 APEX also works on the technical Vieira how to prepare for inter- fair are concluded. panies to take part in the Canton certainly understandable. China exhibitors from 100 countries. Bra- side in carrying out a prior study national events and also provided Nevertheless, as stated at the be- event by providing free space in a really is different and the cultural zil was ranked ninth in terms of ex- with commercial information, in- financial support of up to 80% of ginning of this article, neither the collective stand and an interpreter. barriers can lead to a loss of a com- hibitors and 12th in foreign visitors. dicating buying countries, the right the costs. She said these incentives institutional and financial support The companies only pay the freight mercial proximity. (Read more on To encourage and support domestic price level, market profile, distribu- made it cheaper to take part in an in- is whetting the appetite of Brazil- costs to send their display material. page 36.) However, careful prepara- companies in taking part in other tion channels and sector trends, ac- ternational event with the agency´s ian business leaders to go halfway Even then, there are few candidates. tion — combined with the support fairs, ApexBrasil provides financial cording to the ApexBrasil business backing than in a fair in Brazil. The across the world to an event as im- “Despite everything, we have an im- of experienced organizations — can subsidies and technical consultation director, Ricardo Santana. “We also average initial volume of business portant as the Canton Fair in China. mense difficulty in persuading com- help novice exporters not only de- services. It pays some of the costs promote meetings between sup- carried out at international fairs in The China Trade Group — which panies to exhibit,” said Aldenizio cipher the Chinese enigma but also of renting space and setting up the pliers and buyers during the fairs which ApexBrasil participated in operates in foreign trade, helping Bezerra, China Trade´s commercial avoid beginners´ mistakes in other stand, thereby significantly reduc- which helps increase business.” (See 2103 was R$ 8 million. This amount companies at trade fairs in Asia manager. Many Brazilian execu- places around the world, as we will ing the amount the company would article below.) can rise subsequently when many —and ApexBrasil work in partner- tives with experience and interest see in the following pages.

TEAM WORk MAkES THINgS EASIER 4 The support ApexBrasil pro- in South America, led by Colombia, also present in Exponor, a mining ler said BMS expanded its exports clients and is excellent vides for exporters to take part in and Africa. The Colombian market industry fair in Chile, and two global by 217% between 2007 and 2012 for relationship strategy,” trade fairs is one of the best known is strategically important due to its events held in Germany - K, a fair for while those companies that were not said Gabriela Tonini, the of its many activities. To do so, it purchasing potential for agricultural the plastic sector, and Agritechnica. supported by the program registered Abiec technical coordina- promotes partnerships with sector machinery, as much of the land that “What differentiates the Brazilian growth of only 1%. The group´s tor and manager of the associations that want to encourage was previously held by the FARC machinery sector is that we are not export sales jumped from US$ 338.5 project with ApexBrasil. their members to go international. rebel group is being handed back to as rigid as other exporting countries million to US$ 1.06 billion in the Abiec had a stand cover- The agency also has agreements the government. This land is expect- that manufacture machines which period. ing 690 m2 at this year´s with the food, beverage, agribusi- ed to be used for agriculture, said are diffi cult to adapt and customize,” Another institution that car- Anuga, held in October. ness, house and construction, Klaus Curt Müller, the BMS manager said Müller when talking about the ries out projects with ApexBrasil is It had a common insti- creative economy, machinery and and Abimaq´s executive director for potential and positive aspects of the the Brazilian Association of Meat tutional area to promote equipment, technology, health, and foreign trade. BMS and ApexBrasil sector in the foreign market. “We Exporting Companies (Abiec). The the sector and separate fashion sectors. For example, a part- recently opened an offi ce in the are not a world benchmark like Ger- sector has an export promotion spaces for each of the nership with the Brazilian Machinery Colombian capital, Bogota, which many but we have the technology project called Brazilian Beef which 13 companies that were and Equipment Industry Associa- is shared by 14 Brazilian companies and creativity to meet client needs.” also takes part in international trade present. This contrasts tion (Abimaq) that began in 2000 from the sector. The idea is to work BMS took part in 11 fairs in 2012, fairs. With an eye on the European with the past when the led to the creation of the Brazil as a post-sales center and facilitate with 87 companies present. It also market, there was a heavy turn- companies remained Machinery Solutions Program (BMS) the relationship with clients and participated in another nine events out by companies that formed the apart. “Having a collec- that brings together 137 companies, government. between January and July in 2013 project at the giant Anuga fair in tive stand allowed us to most of them mid-size. The partnership is also invest- and expects this fi gure to rise to 15 Germany which brings together rep- highlight the coordination The priority markets for the ing in the Agroexpo agricultural fair for the year as a whole. The results resentatives from the entire world and strength of the sec-

program — and also the fairs — are held in Bogota. However, BMS is have been extremely positive. Mül- picTUres: HANDOUT meat chain. “It is a place to meet tor,” Gabriela added.

38 revisTApib.cOm.br revisTApib.cOm.br 39 Special Report

Clélia: eyes on the conscientious Rights and consumer wrongs Following a global trend The approach is a little different for the organic cosmetic manufacturer Surya Brasil. Six lessons from experienced Its coloring and products lines for body care are created with consumers of natural prod- exhibitors at large ucts in mind. These have a common expec- international trade fairs tation although they live in different parts of the world: acquiring goods that respect the environment. To do so, the company´s aking part in an international products and packaging are similar for the fair requires time and attention 25 countries where they are sold, with only to detail. It does not just mean the language changing. Surya has featured in setting up a stand and exhibit- organic products events in the US, Germany, ing a product. On the other side Canada and England, with good results. In Tare the decision makers of potential business 2008, it made a sale worth 300,000 Euros partners. It is essential to arrive with an in- to the Casino retail chain at a fair in France. depth knowledge of the client needs and the The founder, Clélia Angelon, said it was an features of the market, after carrying out pre- important deal as it was difficult to supply paratory work including a business strategy, the French chain which made a series of de- marketing plan and team training. As well as mands. It also usually requires the supplier deciding on the timetable of events in which it to provide the first lot of merchandise for intends participating, the first-time exhibitor free to supply a store, a common practice should adapt promotion products and mate- among the large retail chains. rials, work that can take months right up to a full year. Medium and long-term planning and a professional view of the event are essential, as seen in some lessons learned by executives from companies which have already traveled

this road. Here is a summary of some of them: HANDOUT

Adapting to the local culture Showing the product

Bauducco — that makes panettone — takes pains to represent 5% of the group´s revenues. Bauducco goes to There is a commandment in the world of the fairs: formed up to see a bulldozer conversion kit taken there prepare a mix of products, printed materials and video the sector´s main fairs worldwide: ISM and Anuga, in show your product. This creates a logistical challenge by Wolf. The product was so successful with the Euro- that are suited to the language and culture of each country Germany; Sial, in France; Foodex, in Japan; Gulfoods, in for companies like Wolf, from Indaiatuba in São Paulo pean public that the company began the certification or region where it is exhibiting its products. The compa- the United Arab Emirates; and Fancy Food and ISM, in state, which manufactures rock drilling equipment and application process required by the European Union ny relies on its international area which was set up eight the US. It is also present in Cuba, Peru, Argentina, Chile was founded in 1974. The machinery is large and heavy to sell it in the region. The Bauma fair brought Wolf years ago and includes export managers, traders and in- and Bolivia, countries where it is important to maintain and expensive to freight. “When you do not have equip- its biggest result but the company is also taking part in ternational marketing professionals. “We also have a legal importers and clients of long standing. “We have a con- ment on show, you need to ensure that marketing has fairs in the US, Argentina, Chile, Peru, France and the area that looks after contracts and a R&D department solidated market in Latin America due to the geographi- a strong visual appeal but this often does not bring a Middle East. The focus is not to obtain orders on the which advises us in all aspects of every market,” said Ed- cal proximity and also because this was where we began satisfactory return,” said export analyst Robson Silva. spot but to launch products and publicize the brand. gar Matos, export director. Foreign sales to 50 countries taking our brand international,” said Matos. At the latest Bauma construction machinery and met- Foreign sales accounted for 10% of revenues, a percent- allurgy fair held in Munich, Germany, a line of visitors age the company wants to expand.

40 revistapib.com.br revistapib.com.br 41 Special Report 1 Francisca: not enough sales in Getting the merchandise right Brazil Joaquim Coelho, the Astra Group sales director, believes it is essential Getting to know the client 2 Astra´s to do a lot of research on the consumer market of the country to ensure the Coelho: Francisca Vieira follows the tips she receives right merchandise is exhibited at the event. “Sometimes a company is at a fair between from ApexBrasil through the Brazilian Fashion for more elaborate products but takes along more simple items. This means Dubai and Industry Export Program — Texbrasil — in terms that you end up being out of the loop,” he says. However, there are times Africa of the quality of the item and the right price for when the exhibitor needs to meet two types of public at the same time. This external markets. For a ready-made collection, is what happened to Astra during The Big 5 housing and construction trade 3 Lippel she hires a fashion producer to create the prod- fair held in Dubai in the United Arab Emirates. The event receives visitors stand: uct catalogue that will be taken to the events. She from local companies — which have a very high purchasing power market technical preparation also gained a lot of practical knowledge from her — as well as African companies that serve a low-income consumer. Astra experiences. She said that some years earlier she was aware of this and balanced out its offer of products to the two kinds of had not known the profile of the foreign client potential buyers. Preparing the staff that will be on the front line with the and took around 200 items to the fairs but only public is also essential. Astra uses two experienced employees at the Canton sold 30. “I took what I sold in Brazil which was Fair who speak English and Spanish and know other languages. a mistake.” Nowadays she knows that she has to study the target country — preferably personally, as this is not something you can find in Google — 2 in order not to waste time and effort. “In Germa- ny, the consumer likes more basic items and there is no point in taking small sizes - only medium 3 and upwards,” she said. “Spaniards like clothes with props and accessories.” Identifying niches Lippel — a metal company from Agrolândia (Santa Cata- rina state) that specializes in the production of machines for biomass processing — prepares for events in a highly specific and technical way. First of all, it finds out whether the coun- try hosting the fair has biomass 1 available and the kind. Only then can it decide on the right products. “We also analyze the companies with the potential to become future clients,” said the international trade man- ager, Gustavo Sperandio Fer- nandes. The company creates promotional materials in for- eign languages to ensure the information is clear to visitors. It invests around US $ 30,000 annually in international fairs in Latin America and Africa and has a team that is experienced in these events. P ic tu res: HANDOUT

42 revistapib.com.br revistapib.com.br 43 Interview Ernest Moniz Combining forces Barak Obama´s energy secretary believes Brazil and the United States can and should cooperate more to develop renewable sources of energy Nely Caixeta and Armando Mendes

nnovation in biofuels, en- ting up their subsidiaries here with be some business opportunities for ergy efficiency and cli- Brazilian partners. We also have Brazilian and American companies mate changes are some of trade back and forth. We met with but the focus is strongly on generat- the areas in which Brazil Unica (sugar cane trade association) ing economic opportunities in these and the United States are and were told that our free trade in countries. Iinvesting to increase their coop- biofuels was an excellent model for eration. These are the priorities of other areas. We also have programs President Lula and President Bush physicist Ernest J. Moniz who has in developing next generation so- proposed an initiative some years been President Barack Obama´s en- called “drop-in” biofuels. ago to allow countries in Central ergy secretary since May of this year. America and Africa to grow sugar Moniz, the grandson of Portuguese What is a “drop-in” biofuel? cane and produce ethanol. Is this the immigrants, graduated in physics The idea of a drop-in biofuel is that program you are referring to? and is a professor at the Massachu- changes no longer need to be made It is basically that. It has been reju- setts Institute of Technology. He to the engine. Even with ethanol, venated in our discussions but the was in Brazil ahead of the visit Pres- some modifications to the engine focal area is now in Central America, ident Dilma Rousseff was scheduled are required as there are differ- Caribbean nations and Senegal. By to make to Washington but which ences in the fuelling infrastructure. the way, I also met with Brito Cruz was later postponed. Moniz met It is basically like gasoline and can the head of Fapesp (the São Paulo scientists, business representatives Research Foundation) this morning. and authorities during his trip. We One of the areas he raised is our joint present the edited highlights of an American companies in wish to increase work in terms of interview he gave PIB at the home California are setting basic research in bioenergy. Where of the American consul in São Paulo, we started from is that we have the with a follow-up question made via up subsidiaries hydrocarbon focus, a tremendous e-mail after President Rousseff´s here with Brazilian focus around bioenergy collabora- visit to the US was put off. tion. The third area which is gaining partners more attention is energy efficiency What is happening in terms of biofuel and Fapesp also said this was an collaboration between Brazil and the area where it would like to open up US? be used directly so you just “drop new opportunities. We already have The next generation of biofuels is in” the fuel. Another very strong work going on. The Department of the main focus. This is really only collaboration is on a joint research Energy has 17 national laboratories, beginning but we hope it will grow on developing aviation biofuels. A of which the Lawrence Berkley Na- dramatically in the coming years. third area we are actively discuss- tional Laboratory is, in many ways, However, we already have lots of ing – where Brazil is in the lead – is our lead laboratory for energy effi- work going on between compa- the idea of working together, as the ciency work, in buildings, industries, nies in both countries. The second world´s major biofuel producers etc. Researchers are working to help generation work is very strongly and users, to take our experience set up a testing center, based on our bi-national. American companies and help poor countries start us- experience at the University of San-

HANDOUT in California, for example, are set- ing their biomass. This could bring ta Catarina in developing standards

44 revistapib.com.br revistapib.com.br 45 Interview Ernest Moniz

for the energy efficiency of buildings for a fuel cell or to capture carbon this to a broader set of environmen- still being used a lot for electricity drive down the costs of renewables. it for 78 cents a watt so that´s clos- and windows, that can do a lot of dioxide more cheaply. We are still tal research studies for climate and in many countries that don’t have I would argue it gives us a little ing. LED lighting uses 20-25% of the this work and would provide a good in the early stages of being able to we are very happy to support this. natural gas. That is a waste. Oil is more time. However, we must use energy of an incandescent light, like opportunity for collaboration. We manufacture materials targeted to This is another area where greater not particularly good for electric- the time. If we don’t use this time one of those wasteful lights in this are also working to set up a kind of specific energy technologies. collaboration seems to be of mutual ity compared with other options to aggressively pursue the improve- room. ( I’m going to tell the consul common approach to understanding interest. We really have a tremen- whereas it is very special for trans- ment of renewables then we will be he’s got to change these lights!) The industrial energy efficiency based Who are the Brazilian partners? dous number of overlapping inter- portation. Obviously biofuels would in the same position we are today problem is that the cost has come once again on the experience that One of the focal points for that is ests at the science and technology eventually compete against oil but in five or 10 years´ time. In terms of down dramatically but it is still ex- we have. The idea is to generate a still under discussion is the Na- level and are pursuing them jointly. I don´t think they are competitive the agenda, I would say that we in pensive. To replace that light bulb data base so that you can tell where tional Center for Energy and Ma- in that sense. I think it is actually a the United States have three really today costs about US$ 20, instead the big opportunities are and what terials (CNPEM) at Campinas. It is Has the postponement of President benefit as they are complementary. important things to do in the near of probably 75 cents for the present the research needs are. In terms of very interested in nanotechnology Rousseff’s visit to the United States term to stay on a carbon lowering bulb. However, the LED will last direct energy collaboration, those for energy and some other applica- affected the plans for greater col- Some people feel that as access to trajectory. One, we must emphasize 25 times longer and it will only use are three huge areas: hydrocarbons, tions. Another place of great poten- laboration in energy between the US fossil fuel becomes easier, there will efficiency where there are so many 20%-25% of the energy to make the bioenergy and energy efficiency. tial interest is the ITA (Aeronautics and Brazil in any way? be less incentive to develop renew- opportunities in the near term. Two, same amount of light. A light bulb Technology Institute) in São Jose The US-Brazil relationship is very able energy sources. Do you, as an en- we should continue with the substi- is misnamed. It is really a heat bulb In Brasilia, you also spoke about ap- dos Campos. My background is as important to the United States, and ergy expert, believe we should invest tution of natural gas for coal unless as very little of the energy goes into plying nanotechnology to renewable a professor at the Massachusetts the energy cooperation between more in renewable technologies and coal is capturing the carbon dioxide light. It is mainly going into heat energy. What does this involve? Institute of Technology and it was the two nations, including under less in new ways of using fossil fuels? and sequestering it. And three, we which is why you burn your hand if That is another area where we have the MIT that basically established the Strategic Energy Dialogue, of- You are certainly correct. That is have to innovate like hell to get the you try to change it while it is on. If an ongoing Memorandum of Under- the ITA in the 1950s. The ITA is fers mutual benefits as both coun- an argument that is used. I’m go- costs down on renewables so that by you take the 25,000 hour life cycle standing (MoU). It is led on our side a very distinguished engineering tries seek to find sustainable and ing to answer that in the context of the end of this decade they are in a of the LED replacement, you will by the National Renewable Energy school. Embraer is very closely con- cost-effective solutions to shared the United States and you can ex- very good position. save about US$ 130 using one bulb Laboratory (NREL) near Denver, energy and climate challenges. We trapolate it as you wish to the rest over the other. In other words, these Colorado. It is our lead laboratory look forward to building on this re- of the world. The reason I say that costs are coming down. We’ve got for Renewable Technology devel- A joint experiment lationship and working towards a is because 50% of our electricity in We are gaining to keep innovating. There are lots opment and this MoU is on the ap- in the Amazon promising future. the United States was produced by time but need to and lots of ways in which these plication of nanoscience and nano- in 2014 will assess coal until recently. I prefer to de- innovate to lower technologies are coming about. Go- technology to energy development, What about the pre-salt reserves in scribe natural gas as a bridge to a ing back to your original question, especially renewable technologies. the risks of Brazil? Everybody was expecting that low carbon future. If you asked me the cost of it is great that in the US, at least, I Almost by definition, it means climate changes Brazil would become a big producer whether natural gas was part of the renewable energy am buying time. I am reducing CO2 the development of new materi- of oil. If shale gas succeeds, will the problem or part of the solution for emissions with natural gas and also als which are nanoengineered for pre-salt reserves be less important? climate change my answer would be getting these technologies right to specific energy applications. This nected to it and the ITA now wants I don’t think so. If one has natural that it is part of the solution today the edge of being competitive on the would include, for example, ad- to go into energy as well. There are gas available, as we do in the United and for some time because it is dis- So what´s the position now? marketplace. vanced photovoltaics — solar tech- lots of possibilities here and we are States, what happens is that natural placing coal, which is more carbon We expect to publish a short paper nology, panels. Today’s technology quite excited about them. Another gas and oil serve very different mar- intensive. But, in the longer term – by the Department of Energy soon What about educating people to con- is almost entirely based on silicon area which is an excellent chance kets. Natural gas serves electricity decades – as we require lower and with this data. If you look at what is sume less energy? and the question is whether there for collaboration is addressing the production, with very efficient so- lower CO2 emissions, natural gas happening, you see that the cost of I trust the outcome of this interview are other technologies that can have risks of climate change. We will called natural gas combined cycle will become part of the problem wind power has really come down is that you will be educating a whole a much higher efficiency. Another have big experiments next year in turbines. Natural gas can serve home unless you capture the carbon di- and, consequently, its deployment bunch of people! example of nanoengineering and a collaboration called GOAmazon heating in the United States and in oxide from coal and natural gas and is going up dramatically. We have energy could be on developing ma- [Green Ocean Amazon]. the south of Brazil and be a major in- put it in the ground. So, that is part something like 70,000 megawatts of People who visit the United States terials that can stand much higher dustrial feedstock and source of heat. of the question. In the meantime, wind power in the United States and often think Americans waste a lot of temperatures, maybe for turbine Go Amazon? In very rough terms, you would say while it is part of the solution, is it it recently became the highest new energy. Buildings are too cold in sum- blades. If you can do that and op- It will be making both terrestrial one third for electricity, one third squeezing out renewables? I argue capacity additions to our electric- mer and too hot in winter... erate the system at higher tem- and airborne measurements to un- for heat, and one third for industry. that, once again, it is part of the so- ity center. Two, look at solar power. I would agree with that but if you peratures, you get a more efficient derstand the rainforest dynamics. Oil supports transportation and in- lution because we still have a lot of The Holy Grail for the cost of the come to my house you will find it system. Another example would The Brazilian government has ini- dustry as it is essentially not used in work to do in terms of researching, solar panel, a module, has been 50 very cold in the winter and very be nanoengineering of membranes tiated discussions about expanding the electricity sector although oil is developing and demonstration, to cents per watt. Today you can buy warm in the summer!

46 revistapib.com.br revistapib.com.br 47 Cover Brasa y Leña: largest European chain has 26 steakhouses

sanitary agreements with China, so the heavyweight partner worked out a solution: it authorized the en- The strength of try of Brazilian beef into China, ex- clusively for the restaurant. Another green light, further down the road, authorized the supply of chicken and pork cuts by Sadia. Even with- out featuring eccentricities in the menu (dog and snake meat), the restaurant, run by Brazilians, had to adapt to Chinese taste buds – some All-you-can-eat steakhouses, run by foreigners, of which would certainly be con- meat sidered a heresy in Rio Grande do are growing abroad Sul. “We served authentic gaucho DARIO PALHARES chimarrão, but we noticed that the Chinese mashed the mate with the metal straw and filter before allow- rgentina, Australia, Bovinu’s, with 13 restaurants in São ing for the infusion process”, recalls New Zealand, Can- Paulo and Rio Grande do Sul (only Furlan. “So I proposed diluting the ada and Uruguay, 3 with the all-you-can-eat system), quantity of the herb in the gourds. sorry...Brazilian beef and the ex-Brazilian chain Fogo de The result: chimarrão became green may trail some of Chão, with 9 (see table on page 50). ”, says Furlan laughing. Athe largest producers, maybe even Most of them (from Dallas to Beijing Brasil´s journey came all of them, but it rules the roost – Barcelona, Milan and Shanghai) Tiger/ Lat i na HANDOUT to an end in the mid-2000s, as the alongside the US – when it comes to follow the same pattern used here: building home to the restaurant serving freshly cut (rare or medium large salad buffets, table service import barriers in some markets the hamburger meat comes from”, visitor, the company´s executives in- was demolished in preparation for rare) meat around the world. With with meat skewers, discs that serve – especially in the US and Europe says Luiz Fernando Furlan, Brazil´s vited him for lunch at a local steak- the 2008 Olympic Games. But its the emergence of the all-you-can- (see article on page 60). ex-Trade Minister and a Board all-you-can-eat system eat system in the 1960s (see box on Almost always, national member at BRF. “What consumers left an indelible mark. page 54), gaucho-style steakhouses, “International steakhouses beef producers are only really care about are the emotion Chinese minister proposed Today, estimates point betting on abundance and variety, present at foreign steak- added to the service, to the gastro- to around 200 steak- have multiplied throughout Brazil, are an expression of the houses via subsidiar- nomical experience.” a partnership in a Beijing houses in China. One crossed borders and seen their DNA Brazilian way of life” ies, like the JBS-Friboi Furlan speaks from a position of steakhouse to Sadia of the most successful replicated on a global scale. The re- group, which controls authority. As well as being a gaucho is Latina, with 7 restau- sult? Today there aren’t just numer- Swift (US) and has op- (i.e. from Rio Grande do Sul), for the rants in Shanghai and ous steakhouses spread across five erations in Argentina last 20 years he has been one of the 2 (recently opened) in continents, but instead chains con- as “traffic lights” for customers to di- and Australia. But nothing takes the pioneers of Brazilian meat around house. “He was so impressed that Wuxi, 125km away. Latina was cre- trolled by businessmen of different rect waiter traffic (green light means shine of this original invention. the world. At the time Board chair- he decided to take the idea home ated by Japanese businessman Jun nationalities, some of which easily “I want more”; red means “not now”) “All-you-can-eat steakhouses man of Sadia, which would later with him and proposed a partner- Taichi (36), son of an electronics surpass the largest chains in the and, sometimes, waiters supposedly abroad are showrooms of a truly merge with Perdigão to form BRF, ship: 50% for us, 50% for the Chi- technician who, at the end of the original Brazilian homeland – such dressed as legitimate gauchos from Brazilian concept, displaying the he received an unexpected proposal nese government. In July 1994, the 1980s, opened a Japanese restaurant as Texas de Brazil (US) and Bra- the Pampas. The crucial difference Brazilian way of life. Customers from China´s Agricultural Minister, Beijing Brasil steakhouse opened in in Rio de Janeiro. Outraged (and im- sayleña (Spain), which combined is in the special rump steaks, flank don’t really care if the meat comes Liu Jiang, who was visiting Brazil. the Chinese capital”, recalls Furlan. poverished) by the freeze on finan- have more than twice the number steaks, beef ribs, etc, which are from Brazil, just like anyone going After showing their Sadia plant in When the “joint venture” was cial assets caused by the so-called of steakhouses of the Brazilian giant rarely of Brazilian origin, due to to a McDonald’s doesn’t care where Concórdia (Santa Catarina) to their created, Brazil still didn’t have any Collor Plan, in March 1990 Jun´s

48 revistapib.com.br revistapib.com.br 49 Cover

deL-Fuego 5 in England By LAND AND SEA www.del-fuego.co.uk gauCho FLame CaBana BRaZiL father told the family to pack their some Brazilian-style steakhouse chains 3 in the US 3 in England www.chamagaucha.com www.cabana-brasil.com bags and head back to Japan, where spread across the world he set up...a steakhouse. Jun liked tuCanos BRaZiLian gRiLL the idea and in 1998, in partner- RodÍZio pReto 9 in the US ship with his father, ventured into www.tucanos.com 6 in London BaRBaCoa http://rodiziopreto.co.uk/ 3 in Japan, 1 in Italy Shanghai where he set up the first and 7 in Brazil restaurant. “Over time, Jun´s father www.barbacoa.com.br RodÍZio RiCo moved away from the business and 5 in England was replaced by Angela Chem, an 15 in the US www.rodiziorico.com influential Chinese businesswoman gauCho BRaZiLian www.rodiziogrill.com who is now a majority stockholder”, BaRBeCue teXas de BRaZiL says Sergio Madalozzo, partner of 2 in Canada 26 in the US and Brazilian Gate (an importer of Bra- www.brazilianbbq.ca 3 in the Caribbean zilian products, based in China), www.texasdebrazil.com 4 in England and 2 in Scotland gRupo Latina http://tropeiro.co.uk/ 7 in Shanghai which recently acquired 10% of La- and 2 in Wuxi tina shares. The first task of the newcomers was to reformulate the restaurants´ visual aspect. The first facelift was Chima at the two new restaurants in Wuxi. A Brazilian architect gave a mod- espetus ChuRRasCaRia 4 in the US http://chima.cc/site/ 2 in California ern, light, sophisticated look to the www.espetus.com facade and interior, with no soccer shirts – the deco hallmark (for now) Fogo de ChÃo of Shanghai steakhouses. As well as piCanha samBa 21 in the US and 9 in Brazil the visual aspect, Brazilian Gate also www.fogodechao.com 2 in California 1 in Vietnam and www.picanharestaurant.com 1 in Cambodia took care of the drinks, installing a www.sambasaigon.com bar with Brazilian beverages (also BRasiLeiRÍssimo www.samba-asia.com called Brazilian Gate) at one of the 3 in Mexico City http://brasileirissimo.com.mx/ chain´s oldest restaurants. “In fact, it is a small showroom of the products we offer at our own bar, opened in FiRe oF BRaZiL 2012. We serve cachaça, caipirinha, 2 in the US, 1 in Dado Bier and Amazon (from Belém, El Salvador and RodÍZio CaRnivoRe Pará) beers, Germânica draft beer 1 in Panama 2 in South Africa 3 in Singapore (from Vinhedo, São Paulo), snacks www.fi reofbrazil.com www.rodizio.co.za www.carnivore.com.sg and Brazilian desserts”, says Ma- BRasa Y LeÑa dalozzo, who is already planning to 26 in Spain www.brasaylena.com open bigger ventures. “We will open show BRasiL a second bar before year-end and 2 3 in Venezuela more next year at our new partners´ http://showdecarnesbrasil.com noRwegian CRuise Line - nCL ChuRRasCo Lapa steakhouses.” 10 steakhouses on cruise liners 3 in Australia 2 in Australia The strategy of installing small www.ncl.com www.churrasco.com.au www.lapa.net.au bars at the steakhouses of Angela paRaguai Fogo de ChÃo* 21 steakhouses and Jun should be a lucrative one RoYaL CaRiBBean 4 in Portugal for Madalozzo and his partners (his controlled by Brazilians www.fogodechao.pt 2 steakhouses on cruise liners son Thiago and fellow gauchos An- www.royalcaribbean.com tônio João Freire and Tânia Caleffi). * The Portuguese chain has no corporate ties with the US chain Latina is looking to take things to

50 revisTApib.cOm.br revisTApib.cOm.br 51 Cover 1 “Traffic 2 Clean look: 3 Partners at the lights”: discs new Latina table: Taichi (1st ready at restaurant right), Angela (3rd) Moderno in Wuxi and Tânia (4th) in XXXXXXXXXXX

1 2 3

the next level. With expected 2013 With nine restaurants the chain was sought Lucianne do Carmo. Barbacoa has three meats. In the short/ revenues of US$11 millions, it plans out 20 years ago by the Run by Brazilians, the three medium term, the to open 11 steakhouses by 2016 in China, Latina plans to Humax Group, a Japa- steakhouses (two in shopping malls steakhouses in Japan, one menu should migrate in Qingdao, Chengdu, Shenzhen, double its chain by 2016 nese conglomerate in and one on the streets of Tokyo) in Italy and wants more to other European loca- Chongqing, Nanqing, Shanghai and gastronomy, cinema, consumed investments of some tions. “We´re currently the capital Beijing, with invest- events and games. This US$2.5mn each and employ, on av- analyzing restaurants ments of US$5 millions in the next led to a partnership erage, 40 workers. Customer traffic in Rome and London”, 2 years alone. This capital injection cuts mainly come from the Austra- that, over time, adopted the fran- is intense: each month, over 30,000 house on Via Della Abadesse, in the reveals Lucianne. is more than justified by the suc- lian JBS-Friboi, although our local chise as a motto. The first Barbacoa customers taste Japanese, Austra- center of sophisticated Milan, one In Spain, Brasa y Leña rules the cess of the venture, which served supplier is increasing orders from restaurant in the East was opened in lian and US meats at each restaurant. of Europe´s fashion, gastronomy and roost. The chain emerged in 2008, 380,000 last year and plans Argentina. We only import cupim Tokyo, in June 1994, a month before “The cuts are the same offered here”, design capitals. The restaurant, with i.e. when the world was plunged in to serve 450,000 in 2013 with the (hump of the Brahma steer) from Beijing Brasil. “In 2007, we opened says Lucianne. around 30 employees, is Barbacoa´s the worst economic crisis since the help of the two Wuxi steakhouses. Brazil.” 2 more: 1 in Tokyo, in April, and 1 in After establishing a presence in only non-Brazilian restaurant serv- Great Depression of the 1920-30s. “The Chinese actually like the salad A leading name in Brazil, Barba- Osaka, in December. And by Decem- Japan, Barbacoa embarked on a solo ing “made in Brazil” meat, which The disaster caused major problems and starter buffets more than the coa (founded in 1990) is also present ber we will have another steakhouse venture in Italy. Three years ago, it contests consumers´ preference in Spain, which still has an unem-

meats”, says Madalozzo. “The meat in Asia. With 7 restaurants in Brazil, in Tokyo”, says operational director P ic tu res: HANDOUT opened an all-you-can-eat steak- with Australian and Uruguayan ployment rate of 27% of its economi-

52 revistapib.com.br revistapib.com.br 53 Cover Epic: fi rst-ever cruiser line steakhouse chain

cally active population. But that (9.95 Euros, from Monday to Friday; didn’t prevent CEO Pedro López 13.90 Euros on weekends and pub- Mena from opening 13 steakhouses, lic holidays) and Gold, with up to 20 13 franchises and plans to open four varieties (12.90 and 15.90 Euros). “I more by year-end. discovered the all-you-can-eat grill This success, against the tide in Brazil and saw that the model field. Before starting, they receive of the Spanish recession, reflects was poorly explored in Spain. Good training in restaurants. Under the a well-planned strategy, ensuring restaurants were expensive and supervision of the managers, they a good return for an initial invest- the other, cheaper ones didn’t offer learn the tricks of each area: inven- ment of 10 million Euros. When quality. So I immediately tried to ex- tory control, conserving and prepar- he decides to explore a new region, plore this niche”, says Pedro. ing meats, table service, etc. Smiles Pedro López Mena (33, with a de- The successful venture benefited and a nice manner are also pluses. gree in industrial engineering) pri- from the support of his family. More “We want our staff to convey cordial- oritizes shopping malls with movie precisely, the Distribuciones Cárni- ity and niceness, rare ‘commodities´ theaters, wide corridors and ample cas Coello distributor, controlled in many Spanish restaurants today”, space, which attract more shoppers, by the López Mena clan, of which he notes, after a stint working at always in the nearby areas of ex- Brasa y Leña became a subsidiary. a London cafeteria (shortly after panding urban centers. “People go As well as offering discounts from graduating) made him appreciate to shopping malls to walk around, father to son (quite literally), the the value of customer service. spend the day and we offer them distributor, with a 40-year track After strong growth, the business an excellent quality/quantity/price record in the meat business, guar- is now in consolidation phase. And tradeoff”, says the CEO. antees rapid inventory restocking the CEO is even dreaming of cross- Beverages and desserts aside, the at all steakhouses. “This enabled us ing Spanish borders and opening amounts charged by Brasa y Leña to offer first-rate meat cuts at good other restaurants in Europe. But are much friendlier than in São Pau- prices”, says Pedro. only after the global economic cri- lo, Rio and Brasília. Consumers have The employees (300) are largely sis abates, which doesn’t seem im-

two menus: Silver, with up to 10 cuts HANDOUT Brazilians with experience in the minent. “In one month we opened

THE ORIgINS OF THE RODÍZIO (ALL-yOu-cAN-EAT)

now pResent at famous restaurants “He started to develop the gaucho cities started incorporating success of his creation. I looked after the trucks”, he recalls. largest cities. in both hemispheres and even on method in the 1950s, at get-togeth- Matias´ idea. Cruzeiro and Vitória Another famous name is Jandir “The owner always served meat “Later, we sold the São Paulo res- cruise liners, the all-you-can-eat ers of the Center of Gaucho Tradi- (Taquara) and Passoquinha (São Caumo (75), from Nova Bréscia from the menu, on trays and always taurants and focused on Rio, where steakhouse has humble roots. The tions here in Sapiranga. The reason Leopoldo) were the fi rst to adhere (rio Grande do Sul). After 8 years cold. So I thought to myself: ‘Why we have four steakhouses”, he system was presented fi rst hand was simple: he didn’t want people to the espeto corrido, says ex-waiter heading up a fl eet of trucks, he de- not bring the cuts directly from the recalls. It was there, in Rio, where in the 1960s to truckers travel- to eat cold meat”, says Adilvo Conte, Pedro Paulo Reinheimer, who spent cided to abandon the highways and fi re?’ That´s where it all started.” he has lived for the last 40 years, ing across Southern Brazil. And its partner of the restaurant. “Since 9 years at the steakhouse. partner up with his uncle, and fellow Caumo may not be the ´father´ that he saw his system (developed roots remain alive and kicking, on the proposal was obviously well “The service, simple and with- gaucho Albino Ongaratto, at the of the espeto corrido, but he was by him for the Blumenaunese the banks of highway RS 239: the received, Matias opened the steak- out much variety, always began Churrascaria Blumenauense steak- one of the main reasons for its dis- restaurant) earn a new name. “The Churrascaria Matias steakhouse, house in 1963.” with sausage and ended with roast house on the BR116 highway, 10km semination in Brazil and abroad. He term ‘rodízio’ arose in Rio, after in Sapiranga (rio Grande do Sul), Word of mouth ensured it wasn’t chicken”, he recalls . “In between, from Curitiba. There, in January “exported” the concept to another some Rio steakhouses, such as Por- 65km from Porto Alegre, which too long before the novelty reached the restaurant offered pork ribs 1969 he implemented a longstand- four restaurants (three in Paraná cão, started serving other skewer launched the “running skewer” (or the ears of those living in neighbor- with fl our (still adored in the region), ing idea, the espeto corrido, which and one in Além Paraíba, in Zona options – even if I´m not espeto corrido, as it is known in Rio ing cities, including Porto Alegre. pork loin, prime ribs, vazio and rump he swears is his creation. da Mata Mineira). His “educative” mistaken. But in the south, the term Grande do Sul) 50 years ago, by Tourists and truckers thus started steak”. reinheimer is sorry Matias “The idea came to me in a res- project peaked with the emergence, used is still espeto corrido.” an initiative of its founder, Edwino eating at the steakhouse tables. didn’t live long enough (he passed taurant in Caxias do Sul, in front of in the 1970s, of the Estrela do Sul Guilherme Mates (Matias). Then, steakhouses from other away in the mid-1970s) to see the the workshop where my brother and chain, with steakhouses in Brazil´s 2

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1 2 3 3 steakhouses in Spain. That´s im- Salah, who was also familiar with is nothing new. It follows the same incomparable meat flavor.” 1990s and was consolidated in 1997, the purchase of 35% of its shares by possible now, but when the economy the business. “A few months later, model used in Brazil, with one small This appraisal, much to the cha- with the arrival in Dallas, a move GP Investments, founded by Brazil- recovers we will expand and grow we opened our first all-you-can-eat difference: waiters serve portions of grin of Brazilian beef companies, is that demanded investments of ian billionaire Jorge Paulo Lemann, our clientele”, he says. steakhouse in Addison (near to Dal- mashed potato, something Ameri- confirmed by Fogo de Chão, a na- US$1.5 million. There, Fogo de Chão the company had enough clout to Despite momentarily taking its las)”, says Evandro, who is now cu- cans love. The meats are all native, tional and international reference. became, in a short time, one of the open, in the same year, 2 new res- foot off the accelerator pedal, Brasa linary director. with one exception…sheep meat In the opinion of ex-waiter Jandir favorite restaurants of ex-president taurants on US soil: in Beverly Hills y Leña (with 26 steakhouses and an- With 29 restaurants, including from Australia. Caregnato says this Dalberto, director of operations in George H. W. Bush (1989-1993). The (California) and in Washington. The other 4 on the way) left its Brazilian two in the Caribbean, the company is for practical reasons (since US Brazil for the last 8 years, US meat public looked to follow the example international chain now outsized peers in its wake in only five years. is preparing to open another seven sheep are too big), whilst promptly cuts are even superior to Argentine of their ex-president. “In Dallas, as the Brazilian chain (weakened by In the global ranking, its only direct in the US in the next few months. rejecting the idea of buying meat and Uruguayan meats, so adored by in most of our restaurants, 99% of the closing of the last restaurant in rivals at the top of the podium are from Brazil if import tourists at the parrilla restaurants Porto Alegre) by 6 to 3, the US steakhouses Texas de Brazil embargos are lifted. of Buenos Aires and Montevideo. a gap that would never and Fogo de Chão (which switched “Queen” of Spain, Brasa This veto is directly “There´s no comparison. The stan- The giant Texas de Brazil close. Of the 18 steak- “nationality” last year) – these two y Leña already dreams of related to the uses and dards and efficiency of our suppli- is preparing 20-30 houses opened since players mainly explain the growth customs of beef produc- ers in the US, Swift and Cargill, are 2006, Brazil would only of the all-you-can-eat concept in a exploring Europe ers from both nations. exceptional”, he affirms. openings by 2015 get 5. territory dominated by corpulent US cattle is confined for The chain, which has 21 restau- The process of steakhouse chains (the local equiv- several months before rants in the US, took its first steps “Americanization” alent of our barbecue restaurants) slaughter and basically in 1979, when the brothers Arri peaked in May 2012, such as Outback (1,000 restaurants These numbers could almost double fed with cereals rich on oil content, and Jair Coser acquired a decadent consumers are locals. Only Miami when GP Investments, which had worldwide) and Ruth’s Chris (120 by 2015. The flight plan is to open making for a more “glazed” meat. In steakhouse in (Porto and Orlando receive more foreign- bought the remaining 65% stake restaurants in 7 countries). 20-30 restaurants by 2015, focusing Brazil, where the extensive method Alegre). Under new management, ers, including Brazilians”, says Dal- in August 2011, transferred control Texas de Brazil emerged in 1998, on the North region. “We have al- reigns, the diet is much more rudi- the company kept its name, pros- berto. of Fogo de Chão to the private eq- after the gaucho Evandro Caregnato ready signed several lease contracts. mentary, consisting of grass-feeding. pered and, shortly after, already had This strong acceptance triggered (24), studying Business Manage- The itinerary includes Chicago, with “How you feed the animal is key”, 3 steakhouses in Rio Grande do Sul. a radical change in internal planning: ment at the University of Caxias do 2 steakhouses, Manhattan and Al- says Evandro. “That´s how it is in 2 were sold to finance the move to the US became priority number 1 in Sul, met Salah Izzedin, an Ameri- bany”, says Evandro, who also isn’t Spain, where pata negra pigs (used São Paulo, in 1986, where the busi- the company´s growth strategy. Be- 1 Pioneer: 2 López 3 Fogo de can who was traveling around Bra- ruling out other international for- to make the world´s most revered ness set up shop, opening new res- tween 2000 and 2002, the world´s Barbacoa Mena: chain Chão in the zil. Evandro already had steakhouse ays. “We are studying Mexico and jamón) only eat acorns. And that´s taurants and gaining prestige. largest consumer market received arrived anchored on US: only experience, thanks to a family ven- the Middle East.” also the system in the US, where cat- The move into North America three new restaurants (in Houston, in Japan the family US meats

ture, and was taken to the US by The US all-you-can-eat system tle eat corn and soy, guaranteeing an P ic tu res: HANDOUT was mapped out at the start of the Atlanta and Chicago). In 2005, with in 1994 business

56 revistapib.com.br revistapib.com.br 57 Cover

1 2 uity fund Thomas H. Lee Partners two countries. But deals will only lyzing all-you-can-eat steakhouses we are accustomed to”, swears Es- reserved for Moderno, an example South Atlantic, attract 1.5mn pas- (based in Boston) for US$400 mil- in some Brazilian capi- tela Farina, director of Firstar, a rep- sengers a year, mainly lions. And while the fund jumped on tals, New York, Chicago resentative of NCL in Brazil. Americans, Canadians to a winning horse, it still achieved Bought by a fund in and also Miami (home In an episode worthy of the Guin- Electrical system replaces and Europeans. And, impressive numbers in the first year to its HQ). The aim: ness Book, the device gave rise to given the strong ac- heading up the business: consoli- the US, Fogo de Chão to assess the pros and Moderno, the world´s first chain of grill in steakhouses of ceptance of maritime dated revenues (Brazil + US) totaled plans to go public cons of installing gau- floating steakhouses. Its baptism of Norwegian´s ships steakhouses, it is fair US$205 millions, up 17.41% on 2011. cho-style steakhouses fire, or rather, electricity, was stun- to say that the success Strong growth is standard busi- on its ships. But after ning: it took place on the Norwe- of gaucho-style steak- ness at the fund. The targets for this approving the proposal, gian cruise liner Epic, NCL´s jewel houses abroad is only year include growing revenues 15% be struck after one ambitious step, there was one meaty obstacle: for in the crown, unveiled in June 2010. that will be followed by fellow ship just starting. “The new ships of NCL more than in 2012 and opening four scheduled for 2-3 years down the security reasons, grill flames were With capacity for 4,100 passengers, Norwegian Gateway, set to be un- (Epic and Breakaway) offer 28 op- restaurants: two are already open line: raising funds via an IPO. “The strictly prohibited. the 19-decker ship was voted the veiled in January 2014. And ships tions of restaurants and the others (in San Diego, California; and Rose- idea is to go public on the NYSE”, The solution was presented by world´s best cruise liner in 2011 by already in operation have undergone offer 16. In some, you have to make mont, Illinois) and the other two (in says the executive. “Then we will the Italian company Elangrill: an US magazine Travel Weekly. “The “implant surgery”. So far, of the 12 a reservation, as with the Moderno, New York and São Paulo) will start be truly ready for this venture.” electrical system that reaches high skewered meats were the main gas- ships operating, only two still aren’t whose restaurants are always full”, operating by December. “Our plan And, who would have thought, temperatures, much higher than a tronomic novelty of Epic. And they equipped with the Moderno system. signals the director of Tristar. for 2012-17 foresees 4-5 new restau- the examples of Fogo de Chão and conventional grill. And the rest is were a massive hit”, says Estela. The initiative of NCL should fur- rants a year, with 1-2 in Brazil”, says Texas de Brazil are now crossing the the same: the cuts are roasted on Approved with flying colors, the ther stoke the fire of inland steak- Dalberto. seas and oceans of the world. Five skewers, just like in the best steak- project earned its spot on the fleet. houses (Brazilian or not) since it 1 Texas de 2 Moderno: Other international markets are years ago, Norwegian Cruise Line houses. “Although it doesn’t use coal, Launched in May 2013, the Nor- paves the way to conquer legions Brazil: 29 NCL´s latest also on the agenda. The group is cur- (NCL), one of the giants in the tour- this process leaves the meat with an wegian Breakaway cruise liner al- of new fans of the roasted pampas restaurants in gastronomic

rently analyzing entries into another ist cruiser line business, started ana- identical taste to the barbecue meat P ic tu res: HANDOUT ready left the shipyard with a space meat. NCL liners, that don’t sail the the Americas bet

58 revistapib.com.br revistapib.com.br 59 Cover Strong demand: sales should exceed US$1.6bn

biggest, most populated continent. The main target is, of , China, Booming where Brazilian beef has suffered restrictions since the outbreak of mad cow´s disease in 2012. “It is the market with the most potential for the years ahead”, he notes. In exploring the Eldorado of the exports East, national producers plan to add value to their exports, mainly fo- Brazilian beef continues capturing global markets cused (75%) on fresh meat. The de- cision reflects research by a market- and should post record revenues this year ing consultancy firm that detected good acceptance, in China and other countries, for cuts. Two trump cards of ABIEC are cupim,

s with the gaucho- sanctions in 12 markets (including HANDOUT/A BIEC adored by the Chinese and, of course, style steakhouses, China, Japan, South Korea, Taiwan, rump steak (picanha), Brazil´s prime Brazilian beef has Saudi Arabia, South Africa and Be- cut. “10 years ago, rump steak had an been conquering lorussia) due to the discovery of the year on four continents, always or- depend on a public consultation by bodia, Burma and Thailand, and incipient market in Portugal. Now the world, though it agent causing mad cow disease in ganized by Barbacoa, which has four the government, via its Agricultural other countries from the world´s it´s gone worldwide”, says the head. Astill faces barriers in key markets an animal in Paraná in December restaurants abroad. “Thanks to that Department, to interested parties — mainly the US and the European 2012. “We are very optimistic. This effort, we have tripled our external (local producers and buyers). Of Union. Absent or with restricted ac- year´s exports should exceed US$6 presence. In 2002 we exported to 62 note, the efforts of the Brazilian THE CRISIS IS OVER cess to the world´s two largest con- billion”, says Antônio Jorge Ca- countries, now we are exporting to government will be assessed by the Brazilian beef exports* sumer markets, Brazilian beef has mardelli, head of the Brazilian Meat 190”, highlights the executive. World Animal Health Organization been successfully exploring other Export Association (ABIEC). And the eating festivities contin- to declare Brazil free of hoof-and- REVENUE VOLUME AVERAGE PRICE parts of the globe. Domestic beef ue. At the start of Octo- mouth disease. (USSBN) (TONS) (US$/TON) production more than tripled its Sector tripled external ber, visitors from Anuga, “The US work with import quo- 2003 1,598 855.428,6 1.868,64 exports in 2003-12, when it beat the the world´s largest food tas, but taxing excess volumes isn’t 2004 2,535 1.184.295,4 2.141,04 2008 revenue record, in the period presence: from 62 fair, tasted rump streak, an obstacle”, says Camardelli. “If ev- prior to the global financial crisis countries in 2002 to 190 flank steak and cupim, erything works out, our exports will 2005 3,074 1.358.678,5 2.262,73 (see table). Responsible for 17% of among other cuts, at the rise 10-20k tons a year. And a green 2006 3,857 1.504.496,8 2.564,19 global trade, Brazil only trails India, Koelmesse expo center light from the US will open the 2007 4,459 1.618.667,5 2.754,93 which has put its Hindu traditions in Cologne (Germany). doors to Mexico, Canada, Central 2008 5,402 1.384.273,9 3.902,87 to one side and is slaughtering more At the end of the month, America and the Caribbean (which and more oxen and cows (animals The beyond-borders foray of the delegation headed to Las Vegas all follow US controls).” 2009 4,144 1.243.744,3 3.332,45 previously considered sacred) and slaughtering houses and meatpack- to win over the stomachs, hearts The Brazilian meat sector is also 2010 4,814 1.230.106,2 3.913,89 buffalos (another member of the ers gained scale at the start of the and minds of Americans, who are looking to Asia, since the European 2011 5,377 1.097.413,7 4.900,00 bovine family). century. Armed with skewers, AB- currently studying the removal of Union (still besieged with serious But this competition isn’t a prob- IEC and Apex-Brasil partnered up embargos on Brazilian fresh beef problems caused by the interna- 2012 5,842 1.255.528,5 4.653,70 lem, as India doesn’t operate in the to promote steakhouses around the exports. tional crisis) has been obstructing 2013** 4,790 1.084.606,0 4.416,00 same markets. In fact, Brazilian world in order to introduce Brazil- Access to the US (number 1 glob- Brazilian meat imports since the end * Data include fresh, processed and salted meat, as well as offal and giblets producers are preparing to cele- ian meat to potential buyers. Since al meat importer alongside Russia, of the 2000s. Together with Apex, ** Jan-Sep brate a new record, despite facing 2001, they have held 5-6 banquets a with some 1mn tons per year) will ABIEC is already prospecting Cam- Source: Brazilian Association of Meat Export Industries (ABIEC)

60 revistapib.com.br revistapib.com.br 61 Article

aspect, to give one example. At the same time, the efforts to The real opening of take part in this commercial game of chess will be a new and stimulating learning process for domestic com- panies, particularly when faced with international competition at home. Companies will have to go interna- tional and the best way to ensure good results is to form partnerships ports with commercial exporters and im- Small and mid-sized companies interested in porters. They will finally gain the knowledge that is so important for foreign trade have an ally in commercial importers the modernization of our companies. and exporters One example of these new competi- tive challenges is the arrival on the Roberto Ticoulat* HANDOUT Brazilian market of coffee capsules. Even those Brazilian companies that he aim of this article is sumers, we created large amounts However, we have made consider- houses are more suited to markets ers. I would stick my neck out and do not compete on the international not to criticize the vari- of foreign reserves. able advances in extending access with the capacity to handle large claim that these costs would often market need to be prepared for the ous policies adopted by However, the government was to international trade to a segment volumes of exports and imports. be more expensive in many cases appearance of this kind of consump- our government but incapable of handling these reserves that is, shall we say, the weakest in Good examples are exports of farm than the amount raised in dollars or tion which is now present on every instead to try and en- properly mainly because of the this chain. I am referring to micro, and mineral commodities along other convertible currencies – with corner, in homes and offices. They Tcourage the future presidential and backdrop of high domestic interest small and medium-sized enterpris- with imports of general industrial a heavy burden of regulatory docu- must have the conditions to confront state governorship candidates to rates. It responded too late by ap- es which can find that their export input and input for fertilizers in the ments and authorizations on top of these new technologies which have implement new economic policies, efforts and presence on case of agriculture. that. Commercial companies formed arisen in other parts of the world particularly for foreign trade. This the world market have The commercial exporters op- and even defend their would allow Brazil to start grow- Brazil has never had been simply barred by erate in the opposite way from the domestic market. ing again and confront the chal- policies to expand its the heavy hand of bu- trading houses, such as the export- Commercial exporters CECIEx not only or- lenges knocking at the economy´s reaucracy. The biggest ing houses of the small and mid- know the rules of the ganizes business meet- door. Anyone who works in foreign presence in foreign trade allies the micro, small sized producing companies on the ings with companies trade knows that Brazil has never and medium-sized domestic market. These companies international markets that want to become had a policy for the area focused on companies have in en- have no experience of international part of the international increasing the country´s share of the tering the world market markets, nor do they have the will- market but also carries vast global market. We have always plying taxes on financial operations are the commercial importers and ingness or resources to set up ex- out international mis- adopted policies to cover balance as a means of arbitrating the differ- exporters which can help them deal pensive export departments and the Brazilian Council of Commercial sions and helps familiarize mid- of payment deficits, a predictable ences between domestic interest with the legal complexity and win train staff. Commercial companies´ Importing and Exporting Compa- sized and small companies with the nuisance resulting from few or in- rates and those in other countries. customers overseas. operations are driven by facilitating nies (CECIEx) in June 2012. This demands of increasingly globalized efficient efforts at creating products By doing so, it gave foreign specu- This entrepreneurial force cur- and simplifying export mechanisms. organization employs specialists markets. Its greatest mission is to Made in Brazil. lators an extraordinary opportunity, rently has around 15,000 commer- For example, they map and know in various markets and sectors who represent the demands and points Forecasts show that if Brazil artificially strengthening the Real cial firms ready to attend different large importers in different markets know in detail how to formalize con- of view of the producers and pro- were to increase its share of world and damaging the country´s growth. sectors and products and deserves and understand what goods will be tracts correctly and the golden rules mote initiatives that eliminate the trade from its current measly 1.2% This appreciation had an enormous to be better understood and sup- the winners abroad. This is all done for getting along on particular mar- obstacles to Brazilian companies to a still mediocre 2%, our econo- impact on controlling inflation but ported by all business players. At the without burdening the companies kets, such as those with a religious going international. my could grow by around 10% — a ended up condemning the whole end of the day, it is they who have with heavy internal costs. real jump in quantity and, above industrial chain to low growth. won over more and more buyers Imagine the fixed costs compa- all, quality. When Brazil´s agricul- Much still remains to be done of Brazilian products in previously nies face in creating departments * tural sector recently responded to on various fronts to reverse the uncharted markets on all continents, to serve the international market. Roberto Ticoulat is chairman of the Brazilian Council of Commercial Importing the challenges of providing food as lack of incentives to those who such as Asia and the Middle East. We have reinforced this point at and Exporting Companies (CECIEx), a businessman and agricultural producer. a result of the arrival of more con- want to enter the global market. The fact is that the large trading events and meetings with export-

62 revistapib.com.br revistapib.com.br 63 Small but outstanding You don´t need to be big to go international Leonir and Lire opened the business on the eve of the Collor Plan that confiscated people´s savings Leading the way abroad

Temasa bet on raw materials that were underestimated by its rivals and now exports 100% of its production Antonio Carlos Santomauro

xporting is what really These include names like Walmart, matters for Temasa. The Ikea, Liedl, Lagerine, Homebase, company, which makes Argos and Morrison. “We are always self-assembly wooden alert to the trends and have a proj- furniture and is based ects area that works with clients in Ein Caçador in Santa Catarina state, a highly integrated way,” said the exports100% of its production to founding director Leonir Tesser. the world´s biggest economies: the The figures, percentages and the United States, China, Japan, Ger- portfolio of buyers are impressive. many, France, the UK, Spain etc. This is particularly notable as the Despite the crisis that is still affect- company began its operations on a ing the US, and Europe in particular, day that was not remotely promising - March 15, 1990. On that date, the then Brazilian Company produces furniture president, Fernando

to order for giants like Collor, announced that HANDOUT the government was Walmart and Ikea confiscating people´s ten guarantees,” recalled Lire Tes- had little access to a native timber eign market was more prepared to the company took a new direction financial assets as part ser who became a co-founder of the called imbuia which was widely accept pine,” said Leonir who later and started to concentrate entirely of his plan to tackle the company when she had only been used by its competitors in the mid- noticed, to his relief and satisfaction, on furniture production. The en- country´s economic married to Leonir for five months. western area of the state. The raw that they had made the right deci- try into this segment was forced on business is doing very well, thank problems. “He helped out in the evenings and material was subject to environmen- sion simply because they had had no Temasa, just like the switch from im- you. Revenues jumped by 37.7% in “We only had one employee at weekends until 1991 when he gave tal restrictions and suppliers almost other choice. “When we started to buia to pine, and once again Leonir 2012 to US$ 19 million and should first and I even helped him with up his job to dedicate himself to our always reserved it for large clients. sell abroad in the mid-90s, the use of managed to turn water into wine. expand by 16% this year. specific carpentry jobs. I worked enterprise.” The solution was to turn to native wood was banned in Brazil.” “Doors and windows required lon- Orders include dressers, trunks, full time. We had no money but, as The initial difficulties played a pine, obtained from reforestation The “baptism” into exports oc- ger planks which were always the racks and shelves, amongst other we were well known in the region, decisive part in Temasa´s choice to projects. Pine was disparaged by curred in 1993 as a result of a Mexi- most in demand and were not as items, which reach the end con- the sawmills supplied us with the opt for the foreign market. Its small the company´s rivals due to its low can distributor that was looking for easily available to a company that sumer through some of the main raw materials. They let us pay later production plant, that originally density but it ended up opening the building material suppliers in the had little bargaining power at that international furniture retailers. and did not even require any writ- produced doors and window frames, world´s doors for Temasa. “The for- Caçador region. Shortly afterwards, time,” he said. “I saw the opportu-

64 revistapib.com.br revistapib.com.br 65 Small but outstanding 1 Guarantee: 2 Foreign 2 Up-to-date 4 Lire in an You don´t need to be big to go international furniture presence: stand machinery: company Ikea store: produced from at the Furniture obtained loans certifications "domestic" pine China trade fair from the BNDES paid off

nity to use the salvaged wood – i.e. also to a relationship channel that duction, passing through the col- In August, the company received Things could become easier for smaller parts – and began working has brought them many clients, lecting, sawmilling and drying of the Outstanding Foreign Trade the segment, including Temasa, as only with furniture.” including the first French buyer: the raw materials,” Leonir said. Award from the Brazil Foreign a result of the recent appreciation Economic and Social Development The furniture crossed the Atlan- international trade fairs in the fur- It has also gained valuable points Trade Association (AEB) and the of the dollar against the Brazilian Bank (BNDES). The company is tic for the first time in 1995. The first niture sector. “In September, for by obtaining environmental certifi- Ministry of Development, Industry Real. On the other hand, although continuing to expand strongly and order came from Societé Motoise example, we were present with a cations that are prized by European and Foreign Trade (MDIC). The the stronger dollar favors exports, it steadily without any mishaps. The du Bois, a French distributor with stand at the Furniture China event buyers. The highlights are the two Tesser couple´s business is buck- hits imports of input and equipment transition from micro to small com- which Temasa still works to this day. in Shanghai which drew more than seals from the Forest Stewardship ing the trend of Brazil´s furniture used in the sector. “We import ma- pany status (annual revenues of R$ Shortly afterwards, orders came 85,000 visitors. Prior to this, we also Council (FSC): Forestry Manage- industry and heading in the oppo- chines, hardware, glues, paint and 2.4 million, according to the BNDES from large retail chains and led the took part in similar events in Eng- ment (FM), which has the greatest site direction – even though it has MDF boards,” said Lire. “The fact is criteria) took eight years and it pro- couple to opt exclusively for exports land, Spain, France, Germany and prestige in the area, and the Chain never taken part in government that the currency variations make gressed to medium-sized status (R$

1 2 3 4 that very year. Temasa´s products Indonesia, amongst other countries.” of Custody seal (CoC). The list also programs to boost exports, such as long-term planning very difficult.” 16 million) in 2004. have been sold abroad bearing the One of the company´s greatest includes diplomas from the Busi- those of the Brazilian Trade and In- However, a company that was Leonir claims he has no dead- buyers´ brand since then. The com- advantages in the competitive mar- ness Social Compliance Initiative vestment Promotion Agency (Apex- still in the cradle at the time of the line for the next step to raise the pany is not interested in creating its ket to supply the large foreign retail- (BSCI), specifically for the Euro- Brasil). While its exports have been Collor Plan and has survived the family-owned concern to large own brands. “Don´t interfere with a ers is that it has its own forests. Its pean Union, and some clients, such growing at double-digit rates, the exchange rate volatility does not company status (over R$ 90 million winning team,” Leonir said. production line is supplied by two as IWAY (Ikea), Smeta (Homebase sector registered a fall of 1.1% in lose any sleep over issues like this. in revenues). This is not his prior- Leonir and his wife not only pay subsidiaries, Temasa Florestal and and Argos) and Morrison from the foreign sales in the first quarter of It now has around 450 employ- ity. “We will keep working and let attention to their sales representa- Copas Verdes, which have 3,500 eponymous chain. “Sustainability is this year which came to US$ 331.7 ees and an up-to-date production things develop naturally, never for- tives in the United States, Germany, hectares of pine plantations. “We essential to operate in the interna- million. “The main challenges are plant – modernized with resources getting that it is more important to France and even Brazil (responsible are 100% verticalized: from plant- tional furniture market nowadays,” to provide quality and price,” Leonir from the Investment Revitalization maintain a solid company than just

for the South American market) but ing the wood to the furniture pro- Lire stressed. P ic tu res: HANDOUT added. credit line from Brazil´s National keep growing.”

66 revistapib.com.br revistapib.com.br 67 Small but outstanding 1 Living weapons: 2 APEX business YOU DON´T NEED TO BE BIG TO GO INTERNATIONAL wasp eggs are base for start- packed in cartons ups in California Could do Better

Innovation fl utters its wings Brazil is a land of contrasts according to the French National Economic and Social Development Bank sociologist Roger Bastide (1898-1974). This also (BNDES). Insects have been around for about 450 million years so applies to business, as shown in the latest edition of The outstanding Brazilian performance is in the they do not exactly spring to mind as a source of innovation. the G20 Entrepreneurship Barometer, developed by the Coordinated Support area, which highlights not only However, believe it or not, this exotic, ancient “raw material” EY consultancy, formerly Ernst & Young. Brazil appears government backing for entrepreneurs but also support was responsible for the Brazilian company BUG´s success in in 17th place among the world´s 20 largest economies from universities, research centers and incubators. winning one of the Technology Prizes awarded by the World in terms of Taxation and Regulation, ahead only of Brazil registered 5.87 points (on a scale from zero to 10) Economic Forum (WEF) in September. The prize was given to Italy, India and Argentina. and was only outrun by two other emerging countries, 36 companies regarded as the most innovative in the world. However, this “black mark” is offset by good rankings russia and Mexico. The assessment was directly linked BUG is based in Piracicaba (São Paulo state) and develops in other areas (see following table). Brazil comes to an offi cial program called Inovar (“Innovate”) “biological agents” – mainly wasps and moths – that are ninth in the ranking of Access to Funding for domestic by Finep which was hailed by EY. “Inovar has been parasites on pests that destroy plants, such as sugar cane, companies, thanks to initiatives by the Brazilian fundamental in the growth of a risk capital ecosystem soybeans, corn, cotton, beans and tomatoes. As a result, Innovation Agency (known locally as Finep) and the in Brazil since it was launched,” it said. they play a role in pest control that is usually carried out by chemical products. gLOBAL BuLLETIN Their creators´ work is growing, being seen and gaining Assessment of the conditions provided by G20 governments to entrepreneurs plaudits. Not only was BUG the fi rst Latin American company Coordinated Access to Education and Entrepreneurial Taxation and to appear on the WEF list – a feat only achieved previously support funding training culture regulation by American companies like Google and Twitter – but it was also featured by the American magazine Fast Company 1 Russia 6.23 1 US 7.12 1 France 6.58 1 US 7.67 1 Saudi Arabia 6.4 last year as one of the world´s 50 most creative companies. 2 Mexico 5.89 2 UK 6.86 2 Australia 6.53 2 South Korea 7.53 2 Canada 6.34 Furthermore, it received the World Technology Award, 3 Brazil 5.87 3 China 6.75 3 US 6.50 3 Canada 7.45 3 South Korea 6.34 sponsored by media giants like CNN, Time, Fortune and 4 Indonesia 5.84 4 Canada 6.62 4 South Korea 6.40 4 Japan 7.28 4 UK 6.19 Science, in 2012. BUG was founded in 2001, has 60 staff and exports 5 India 5.76 5 Australia 6.48 5 UE 6.25 5 Australia 7.18 5 South Africa 6.10 insect eggs to Canada, Switzerland, Belgium, Spain, 6 China 5.75 6 South Africa 5.95 6 UK 5.98 6 UK 7.00 6 Japan 6.07 Portugal, Italy and Germany, amongst other countries. 7 Turkey 5.66 7 Japan 5.81 7 Germany 5.89 7 Germany 6.88 7 Germany 5.84 “The WEF prize not only represents a valuable 8 South Africa 5.65 8 South Korea 5.75 8 Argentina 5.75 8 UE 6.07 8 Australia 5.75 recognition of the importance of biological control for the global agricultural sector but consolidates our work 9 Argentina 5.64 9 Brazil 5.67 9 Canada 5.65 9 France 5.68 9 Russia 5.65 in Brazil and opens more doors abroad,” said CEO Diogo 10 Germany 5.53 10 Indonesia 5.53 10 Brazil 5.48 12 Brazil 4.88 17 Brazil 4.83 Carvalho. Source: The EY G20 Entrepreneurship Barometer 2013

1 Outpost set up in Silicon Valley More guarantees for small companies Apex-Brasil has chosen California´s Silicon Valley, the Mecca for digital technology development, as the site of a support base it is setting up for Small and medium-sized enterprises will shortly be able to obtain a helping hand from the Attorney General´s budding Brazilian IT companies that are interested in going international. Offi ce of the National Treasury. It is analyzing the details of a project that would allow the federal government to Companies that are part of the government´s Start-Up Brasil program can issue certifi cates insuring export loans for periods of less than two years. use the offi ce which is located in San Francisco in the same co-working The government already guarantees loans for the post shipment of exports of any size but only for periods of area as RocketSpace, a business accelerator that helped launch the Spo- more than two years. Smaller companies have to take out expensive bank guarantees for shorter periods. tify music service. The post-shipment certifi cates - guarantees against default by importers - should be ready this year, according to The outpost can host up to 10 people (two per company) who can take rodrigo Cota, the under-secretary for the National Treasury´s Export Credit and Guaranties. Certifi cates for pre- advantage of the infrastructure for periods ranging from one week to shipment insurance - linked to working capital loans for exports - will be launched in the fi rst quarter of 2014. three months. At least 20 small companies are set to benefi t from the op- portunity this year. 2 picTUres: HANDOUT

68 revisTApib.cOm.br revisTApib.cOm.br 69 Sustainability Mission in India: Plant analyzed synergy between people and forests

Engenharia Ambiental, which was founded 27 years ago in São Paulo, has just received its baptism abroad. It is concluding a decontamination an incubator project at the Center of job in Uruguay to clean up former Innovation, Entrepreneurship and gas station sites. The work required Technology (Cietec) which includes an analysis of seven land plots which partners like the University of São revealed environmental damage in Paulo (USP), the local branch of the three of the sites. agency to help small and mid-sized “We are completing the decon- enterprises (Sebrae), the Institute tamination process in two areas and of Energy and Nuclear Research are ready to finalize the third,” said (IPEN) and the Institute of Tech- projects manager, Aline Bernice, nological Research (IPT). Rede Re- who added proudly that the project síduo only began walking on its own also included the voluntary transfer feet two years ago. It specializes in of know how: “We gave a presenta- networks that connect generators, tion to the Uruguayan environmen- recyclers and transporters of harm- tal regulatory body last year on the ful material for reuse via the Inter- procedures for the environmental net. The solution is being used in management of the contaminated other sectors besides construction, areas and the surface and under- such as supermarket chains and ground water resources used in the pharmaceutical industry. “We are pioneers in carrying out this kind of service Servmar, from São Paulo, in Panama,” said elec- tronic engineer Isac transferred technology Moises Wajc, a partner/ to Uruguay´s government owner in the company. Brazilian exper-

HANDOUT tise in environmental products and services is only has 2% of the global turnover Brazil.” starting to make itself felt not just in of the sector and still imports more Rede Resíduo, which is also Latin America, where it is in a domi- than it exports. However, it has been based in São Paulo, is a young com- nant position, but much further making efforts to change this situ- pany but has already acquired more afield. This is the case with China Green Offensive ation. “The markets in developing international experience than the where Plant Inteligência Ambien- countries, like Brazil, are growing veteran outfit Servmar. It made tal is currently negotiating deals to Brazilian companies, which lead the Latin American environmental products at faster rates. Business expanded its first cross border operation in add sustainability concepts to local by 420% between 1993 and 2010 a project for the Camargo Corrêa construction companies. The initia- and services sector, are already heading for other markets compared with 150% for devel- construction group in Argentina tive is being developed in partner- oped countries,” said Cássio Rabello, in 2012 and is now embarking on a ship with the International Green Antonio Carlos Santomauro projects specialist at the ABDI. new challenge in Central America. Economy Association (IGEA) which The diagnosis also applies to In September, it took charge of the is based in Beijing. razil hosts a colossal market for environmental products basic services like sanitation and Latin America where Brazilian remote management of waste in five Plant Inteligência Ambiental collection of natural re- and services which has an annual sewage and more modern segments, companies are the undisputed lead- large projects being carried out by is located in Piracicaba (São Paulo sources and is a leading turnover of around US$ 1 trillion, such as the production of water fil- ers and account for around 50% of Construtora Norberto Odebrecht state) and has already accumulat- player in any discussion according to a survey by the Brazil- ters and catalytic convertors, the environmentally-linked products in Panama. The package includes ed valuable experience abroad. In related to sustainability ian Industrial Development Asso- monitoring and management of the and services. The list of candidates worksites on roads, metro and sani- 2010, it drew up reports on climate Bon the planet. However, this status ciation (ABDI). Companies in this environment, ecotourism and bio- with earnings foreign currency is tation systems. change in countries in the Congo does not extend to its position on the sector operate in areas including technology, amongst others. Brazil set to continue to grow. Servmar The company arose in 2007 from Basin at the request of the United

70 revistapib.com.br revistapib.com.br 71 Sustainability 1 Águas da Floresta: 2 From garbage to Coca-Cola Project luxury Item: laminated handed over to products by Lamiecco Bill Clinton based on PET

Nations Educational, Scientific and within the Senai but Brazil´s strict claimed Sérgio Leão, sustainability Cultural Organization (Unesco). environmental laws are also obvi- director at Construtora Norberto chance that the US government is Two years earlier it had assessed for- ously valuable points which led us Odebrecht. “It also has a very strong looking at the Brazilian invention. est areas in India and their synergy to receive the invitation from the range of service providers which “We presented the technology to with neighboring communities for Peruvian authorities,” said Luis can attend any needs.” the US Defense Department in Sep- a program sponsored by the Euro- Breda Mascarenhas, manager of the Brazil´s environmentalists´ ex- tember. The American military are pean Aeronautic Defence and Space institution´s Strategic Core. ceptional work also wins points thinking of using our generators to Company (EADS), the controller of Moreover, these rules will be- abroad for their creativity. One out- treat drinking water and sterilize Airbus, the largest manufacturer of come even more rigorous from standing example is Brazil Ozônio surgical equipment in places where commercial aircraft in the world. Its next year when the Solid Wastes which created an appliance a decade it has troops,” said Samy Menasce, curriculum also includes the Forest Act (12.305/10) comes into force. the company CEO. Waters project which focuses on the It bans open cast garbage disposal Like Rede Re- protection of water sources in the and sets standards for the dispos- US military eyes síduo, Brazil Ozônio Atlantic rainforest. This project was al of product packaging, amongst emerged from the Ci- undertaken for the Brazilian subsid- 1 other requirements. Not only will Brazil Ozônio etec incubator. Once iary of Coca-Cola. It is a conserva- this is because it has reliable higher Service (Senai) which is also mak- this boost environmental business generators the umbilical cord was tion plan that was developed in the education courses and research ac- ing its presence felt on the competi- but will ensure that Brazil and its broken, the company second half of the last decade and tivities available in this area. “We tive international environmental specialized companies will gain started to find clients was so successful that it was chosen have universities that are in great services market. Its unit from Ba- greater prestige, according to Julio in the food, tobacco by the head office as the company´s demand by foreign students – par- hia state is currently working on the Tocalino Neto, chairman of the In- ago that could create the gas that and mining sectors. It also started contribution to the Clinton Global ticularly from Latin America – and structuring of an Environmental ternational Industrial and Sustain- gave it its name. Ozone is a powerful a sponsorship with the National Initiative, an NGO founded by the institutions like the INPE (National Technologies Center in Lima which ability Environmental Fair (Fimai) antimicrobial agent – as confirmed Economic and Social Development former American president Bill Institute of Space Research) and the will be run by its Peruvian counter- “Thanks to its progressive legis- by the American Food and Drug Ad- Bank (BNDES) in an ambitious proj- Clinton. INPA (National Institute of Amazon part. The initiative received fund- lation and well developed research ministration (FDA), amongst others ect to decontaminate the mud left Plant´s founding director, Research) which operate to a great ing of US$ 2.5 million from the Ger- and inspection and regulatory – that has a large number of “green” over from a former uranium mine agronomist Warwick Manfrinato, extent through international part- man Cooperation Agency, GIZ, and structure, Brazil is now ready to uses, such as the decontamination in Poços de Caldas (Minas Gerais believes Brazil has plenty of condi- nerships,” he said. came off the drawing board in 2010. make a contribution to the growth of waters, the treatment of indus- state). Its machines are also used tions to export environmental know It also receives the backing of the “We have recognized experience in of the use of the fundamentals trial waste and sanitizing food and in Peru to treat waste and sanitize how and technologies. He believes National Industrial Apprenticeship environmentally-related subjected of environmental sustainability,” packaging. However, it is not by food in production lines. “We are in advanced negotiations with three fertilizer companies in Australia,” PET ALL OVER THE HOuSE the CEO added. Menasce is 100% committed to shoes, tee shirts and clothes made products a month. sil program run by the Brazilian the green cause. He held the rights from recycled PET are already a fea- The company has been operat- Trade and Investment promotion to use the Greenpeace brand in Bra- ture of many Brazilian wardrobes. ing for fi ve years and makes regular Agency, Apex-Brasil. zil for a number of years and used However, few people know that exports to Argentina. It has just CEO Alexandre Figueiró is it to develop a number of products, the fi ber extracted from discarded nominated a representative for optimistic and believes this such as organic foods, biodegrad- soft drinks bottles has been used Mexico and occasionally negotiates intensive prospecting for busi- able cards and notebooks made in the fi ttings that contain their with clients in other Latin American ness abroad will be facilitated by with recycled paper. The genera- daily wear. The plastic is versatile countries, such as Colombia. Its in- the growing appeal of sustain- tors produced by his Brazil Ozônio and is also used in the production ternational sales to date – still less able products on the interna- have attained the highest level of of “green” coating for the furniture than 1% of total revenues – stem tional front. “There is particularly efficiency in his cause. “Above all sector which is Lamiecco´s driv- mainly from contacts established strong interest in the United else, our technology is completely ing force. The company is based in at furniture sector trade fairs held States and Europe where there ecological. It uses oxygen as a raw Montauri (rio Grande do Sul state), in Brazil. However, Lamiecco has are more restrictions on the use material, captures it from the atmo- 215 kilometers from Porto Alegre, begun to pay greater attention be- of PVC, a plastic that is still used sphere and transforms it into ozone. and has installed capacity of one yond its own borders. For example, a lot in covering furniture,” he Its waste is the ozone itself which million square meters of laminated it recently joined the Orchestra Bra- noted. is quickly transformed into oxygen,” picTUres: HANDOUT 2 he explained.

72 revisTApib.cOm.br revisTApib.cOm.br 73 destinations 1 1 How can you go to 2 How can you go to 3 Marseilles: Mendoza and not Mendoza and not France isn´t visit the Winery? stay at the Hyatt? just Paris. Globe-Trotter Marco Mendoza, direct Rezende iF You want to fl y from Brazil to Mendoza, Executive travel the capital of Argentina´s wine region, you need to catch a connecting fl ight in Buenos Aires or Santiago. (Mendoza is 1,200 km from the Argentinean capital and 350 km from the Chilean capital.) However, an initiative by the local government has led to the creation of direct fl ights between Mendoza and São Paulo, a move that should further boost the growing fl ow of Brazilian visitors. Many of those who work in tourism and business-related activities speak excellent Portuguese or “portun- hol” - a mixture of Portuguese and Spanish often used when Brazilians and other Latin Americans communicate - and the city has irresistible attractions. The best hotel, the 5 star Park Hyatt, located in the central Plaza Independencia, has rooms at daily rates of US$ 125. One of the best trips is to the large vineyards like Catena Zapata. Some of them, such as the Zuccardi, have top class restaurants (lunch only) and provide courses on cooking, coordinating wines and olive oil tastings. the LaRge Winery store next to the Park Hyatt is located in a refi ned former man- sion, with the rooms organized by the different strains of grape. There is also a kind of tabernacle presenting the best of Argentina´s fantastic wine production.

woRdoFmouth Cities life as it has become the European Capital of Culture in 2013. True or false? New lease of life France´s most important port has also undergone a rebirth, a sCientiFiC study by Cornell University in the US is thanks to spectacular works and excellent architecture. These helping to identify genuine and fake reviews on sites like maRseiLLes, FRanCe´s second city include the Museum of European and Mediterranean Civiliza- Trip Advisor. The researchers use algorithms to iden- and business center after Paris tions and the Villa Méditerranée, dedicated to the cultural and tify certain patterns in the reviews. Two tips: opinions and the surrounding region, had a economic interchange among countries in the Mediterranean ordered by hotels or restaurants which pay writers US$ longstanding reputation for sleaze, basin. The skyscraper, designed by Zara Hadid for CMA-CGM, 5 to US$ 10 for their “opinion” were usually written in involving corruption, crime, illegal one of the largest logistics groups in the world, is another high- less than a minute. As these fake reviews are written to immigration etc. However, the light. Marseilles is the headquarters for companies like Pernod a deadline, they are grouped over a short period of time city has taken on a new lease of and Sodexo, among other French groups which do business in so make sure to check the dates! The New York Times Brazil. “It is worth a visit,” says the Michelin Guide. published a long article on this subject which is available at: http://www.nytimes.com/2011/08/20/technology/fi nding- picTUres: HANDOUT fake-reviews-online.html?_r=0

74 revisTApib.cOm.br revisTApib.cOm.br 75 Globe-Trotter :: EXECUTIVE TRAVEL 1 Boragó, 2 Air France links 3 Airbnb: near in Santiago: Brasilia to Paris Central Park, FLYing 1 aiRpoRts think global, and is bringing feeling of a eat local the Airbus A380 private house Arriba, Iberia! Ecuador´s new airport

the tRaditionaL Spanish airline is facing eCuadoR has 15 million inhabitants, is wiFi diffi culties even though it is merged with 3% of Brazil´s size and the smallest of the British Airways. It has fallen from fi rst Andean countries. However, its economy What is your password? to third position in Spain (as low cost is performing well and has grown by al- Air Europe and Vueling overtook it) and most 5% a year over the last decade, way theRe aRe lots of apps showing nearby wire- Food had to make drastic cuts in routes and above the average of its neighbors. In less hotspots but none can beat JiWire which is personnel. (However, it still maintains its an odd twist, it has adopted the Ameri- free! It has identifi ed 650,000 Internet wireless Not just weekly 20 fl ights from rio and São Paulo can dollar as its national currency. Oil points (most of which are free) in 144 countries. empanadas to Madrid.) It has responded with a new exports are responsible for 40% of GDP. Tip: download the content on your mobile and brand shown on crew´s livery and a rede- Large Brazilian companies which oper- access the information even offl ine so you do not “savage, RustiC, in- sign of its plane colors which are lighter ate there and are doing good business spend the data package you have bought for the novative”. That is how and clearer although the red and yellow include Ambev, Petrobrás, Vicunha Têxtil trip trying to fi nd hotspots. Free Internet is great chef rodolfo Gusmán of the Spanish fl ag have been kept. and all the big construction groups, such and even lets you phone (free) via Skype and defi nes the cooking in as Odebrecht, Camargo Correa, OAS and similar apps. his restaurant, Boragó, Andrade Gutierrez. There are no direct the trendiest spot in FLYing 2 fl ights from Brazil to the business capital, Santiago at the mo- Guayaquil. However, if you fl y to Quito aCCommodation ment. Gusmán, who is On the wings of (three weekly direct fl ights from São a biochemist by pro- Paulo´s Guarulhos Airport) you can use fession, has adopted Air France the brand new Aeropuerto Internacional In my apartment? indigenous techniques Mariscal Sucre airport that was opened (with the style of the peopLe FRom Brasilia who enjoy the a few weeks ago. It lies 25 km from the the apaRtment and private house rental site www. new ) highest per capita income in Brazil will center and has the longest runway in the airbnb.com has launched a Portuguese version, and uses only Chilean soon be able to spend some of it in Paris, Americas (4,100 m) along with com- www.airbnb.com.br. The site is the biggest of its kind ingredients, including thanks to a direct Air France fl ight. A fortable, well lit buildings. The former and presents places to rent in dozens of countries. HANDOUT fi sh from Easter Island, Boeing 777 will link Juscelino Kubitschek airport in the center of Quito was closed It is an alternative for those who do not like the idea mushrooms and herbs International Airport and Charles de and is being transformed into a park of paying for hotels and having to eat three meals from the foothills of Gaulle Airport in Paris on a daily basis with cultural and urban equipment and a day outside. For example, a good fully-equipped the and native from March. Air France will also make services and is set to be a new landmark apartment with two rooms and two bathrooms fruits. The sampling another breakthrough in 2014 with the in the capital. The new airport kept the close to New York´s Central Park can be rented for menu has eight dishes introduction of the giant double-decker old Mariscal Sucre name after a popular half the price of a 5 star hotel. and bears the chef´s Airbus A380 on the São Paulo-Paris plebiscite. hallmark. However, route. individual dishes can be ordered, includ- ing curanto agua de lluvia de la patagonia, (photo). This is a tasty typical Patagonian of meat and , cooked on hot stones in a kind of envelope of aromatic leaves which is buried in a pit and covered with 20 centimeters of earth. www.borago.cl HANDOUT DreAmsTime 1 2 3

76 revisTApib.cOm.br revisTApib.cOm.br 77 1 Lima by night: San Isidro district Globe-Trotter F er nando L ópez 2 Gardens Express Tourism on the coast: flowers everywhere

G i han T u bbe h 2 3 Larcomar: open air Lima shopping by Sergio Thiesen 4 Galeria Índigo: Peruvian Sergio Thiesen from southern Bra- handicrafts zil has been living in the Peruvian capital since 2010. He is a chemi- 5 Miraflores: cal engineer and Latin American cliffs and director for the petrochemical the Malecón company Braskem which is part of coastal stretch the Odebrecht group. Lima was an

enchanting discovery for Sergio and Ca rl o s I b a rr 3 6 Ceviche his wife Márcia. The Peruvians are : from proud to show visitors the squares La Mar and gardens of their capital which is restaurant located on the Pacific Ocean and is always filled with flowers although it almost never rains. Brazilians are made very welcome by Lima people, according to Sergio. The interna- tional fame Peruvian gastronomy has acquired is deserved and one can eat marvelously there, he says, as you can see for yourself in this itinerary.

1 G i han T u bbe h 4 If you only have a few hours... HANDOUT

A good starting point to feel the city´s pulse is to walk and a ceviche — the drink and dish that are the symbols along the Malecón, a long coastal avenue in the Mira- of Peru — in the Vivaldino restaurant. It is even better to flores district. Let´s start in front of the Larcomar shop- have it outside to enjoy the sea view. ping mall. (We´ll leave the city´s architectural attractions aside for the moment and discuss them on the return trip.) However, if you are a gourmet — and have enough time The visitor can walk for several kilometers, admiring the — I suggest taking a taxi and trying the ceviche at La sea view and the well cared for squares on the ocean side, Mar, a restaurant run by chef Gastón Acurio, the great situated on top of the cliffs. Tourists and many Peruvians name of . Taxis in Lima are cheap but use the avenue as a place to meet and to do daily exer- you need to negotiate the price beforehand. In this case, cises. The area is completely safe. 20 nuevos soles will be enough for this ride in the same district. Two suggestions for those who want some sou- Continue to the Plaza del Amor, a city landmark, and go venirs: the Mercado Inka in the calle Petit Thouars, also into the shopping center mall on the way back. Larco- in Miraflores, where you will find all kinds of local handi-

a mar is open and located on top of a cliff, with impressive crafts, and the Galeria Índigo store in the neighboring San views. (A tip: you will get a 20% discount in some stores Isidro district (El Bosque, 260) which contains the works D an iel S ilv FLICKR if you show your passport.) I recommend a pisco sour of famous Peruvian artists. 5 6

78 revistapib.com.br 79 Globe-Trotter: Express Tourism 1 Astrid & Gastón: Chef Acurio´s main restaurant

2. ... Dessert from Astrid & Gastón... If you have a whole day... If you have a whole 3 … and starter weekend... at the Central: I suggest making a city tour on the open-deck buses of the innovative cuisine Mirabus Company which is located on the bottom floor of ...it is worth getting to know the important the Larcomar shopping center. It takes an excellent route Museo Larco archeological collection (av. 4 Museo through the main city points and arrives in the historic cen- Bolivar 1515) that gives an overview of 4,000 Larco: Pre- Columbian art ter which has been declared a Cultural Heritage. You will see years of Pre-Columbian history. After seeing the beautiful Plaza de Armas, the city´s main public place the collection of items from Peru’s former cul- 5 San Francisco and the Cathedral, the Government Palace and the baroque HANDOUT tures, brought together by the founder Rafael 1 church: colonial San Francisco Monastery which was built in the 17th century Larco, you can have a coffee in the museum´s a baroque style and is known for the impressive catacombs which house hu- garden which blooms with flowers. HANDOUT

man bones. D an iel S ilv Now is the time to talk more seriously about The bus trip lasts around three hours and returns to the Lar- Peruvian food. Restaurants and chefs from comar shopping center. Take advantage on the way back and Peru are now making their presence felt stop at Barranco which is less than 10 minutes by taxi from Mi- throughout the world. And quite rightly! raflores and is Lima´s bohemian district. Don´t forget to cross They treat their fish, meat, vegetables and with pas- the Puente de los Suspiros (Bridge of Sighs) with its legend that sion, whether their own or brought from the many cultures that anyone who can cross its 44 meters length in one breath will have created the country. Let´s start with a great introduction have their wish granted! A store in the district worth getting to to Lima´s dinner table; the tasting menu of Astrid & Gastón, know is Dédalo in calle Saenz Peña which is regarded as one of 2 another restaurant by Gastón Acurio. This is an unforgettable the most attractive handicraft shops in the city. sequence of 12 dishes served over three hours. If you prefer a HANDOUT more conventional (and shorter) , ask for the Tres Ceviches It is also interesting to go to Barranco at night when there is starter (essential) or Por La Causa Limeña, (the causa is a firm great movement in the streets and the large number of bars, mashed potato usually covered with ). The main dish, restaurants and nightclubs, frequented by people from Lima Cabrito Lechal, leg of lamb glazed with its sauce and served and visitors.. Have a look at the B Arts Boutique Hotel (calle with gnocchi, or also Lomo Saltado Tradición, with filet mignon San Martin 301) which was opened recently in a restored (lomo, in Spanish) , tomato, soybean sauce, ají (pepper) house dating from the beginning of the 20th century with a and . very special atmosphere. A daytime walk worth making is to the MAC – Museo de Arte Contemporáneo, which is located However, it is not only in Acurio that you can find Peruvian within a public park, and the Lucia de La Puente gallery, the gastronomy. I could easily recommend a dozen great places in most important for contemporary art in Peru. 4 3 Lima. For lunch, I recommend Pescados Capitales (av. La Mar 5 1337), specializing in fish and seafood. Generally speaking, you Other museums display Peruvian Pre-Columbian art. My first can easily order excellent typical meals in Lima restaurants. tip is the Museo Oro del Peru, in Calle Alonso de Molina, 1100, Besides the ceviches, these include ají de gallina (a cream made in Surco, which has relics in gold and precious metals from all with shredded chicken meat and bread), with mussels or the ancient Peruvian civilizations. It is a must visit. If ancestral duck, papas a la huancaína (a cold potato salad with Peruvian cultures appeal, you should also visit the Huaca Pucllana (calle yellow pepper sauce and fresh cheese) and chaufa rice (a dish of General Borgoño, cuadra 8), a large preserved ceremonial rice with meat and eggs introduced by Chinese immigrants). antique site — probably from 500 BC —right in the middle of Miraflores. If you go there at the end of the afternoon, take For dessert, don´t go home without trying suspiro limeño, tres advantage and have dinner in the veranda of the restaurant leches, cherimoya mousse, mazamorra morada and lúcuma pie. which has a view to the Huaca, a combination of courtyards And if you are in the city in September, the place to visit is the and squares around a pyramid which is 23 meters high and lit Feira Mistura fair, a big gastronomic event where you can try up at night. You can also get to know a place where I like to all sorts of food in kiosks and listen to lectures on gastronomy. eat at night: the Central Restaurante (calle Santa Isabel 376), Finally, a recommendation for lovers of antiques: wander around run by the young and highly praised chef Virgílio Martínez. It is stores in the La Paz and Larco avenues where the prices are

also in Miraflores. Ca rl o s I b a rr much cheaper than in some other countries

80 revistapib.com.br revistapib.com.br 81 Globe-Trotter In transit

Fábio: diving into the Argentinean Buenos Aires, soul my kind of town i t i s n o w B r a z i l’s t u r n . fÁbiO viNÍciUs beveviNO*

PERSONAL COLLECTION

About 18 months ago, I accepted you have to pay overtime and that´s smaller scale of the Argentinean the mission of taking charge of the it as the labor unions don´t accept economy – makes it more com- subsidiary of a Brazilian autoparts any alteration in the fixed work- plex for globally active companies manufacturer in Argentina. As I ing hours. The unions´ strength to set competitive prices. Those had previously made some stays in also means you need a much more companies present in the two larg- Buenos Aires and Córdoba, for work streamlined human resources area est “partners” of the Mercosul free or leisure, I felt that all I needed to than in Brazil. Besides spending trade area, i.e. Brazil and Argentina, do to adapt to the Argentinean way a lot of time with the unions, the certainly have a great advantage in of life was become fluent in Span- HR department has to keep the resolving this problem. The solu- ish. However, it did not take long to mid-level technicians motivated tion is to define a mix of products realize that there are more myster- as they earn more than their Bra- for each country according to the ies and differences between the two zilian counterparts. Since they are following prescription: high volume countries than you might suppose. also in great demand on the market, and lower cost for Brazilian items The European approach to en- they won´t just accept anything for and the opposite for the Argentin- B e o n e o f t h e f i r s t t o ta k e a d va n ta g e . a d v e r t i s e i n PiB m a g a z i n e . joying life and not working yourself money, as I have already said about ean menu. to death – the opposite of our work- those without a job. On a personal level, I am happy aholic style that has been influenced Another challenge is the need with life in Buenos Aires. The city by the Americans – is the first thing to verticalize the production lines. has broad avenues, is tree lined that draws attention. The Argentin- When the federal government de- and has a number of parks that are If you want to expand the frontiers of your business or even form partnerships and joint-ventures with Brazilian eans finish their shift and... see you cided to improve the state of the a permanent invitation to go for a companies, this is the right place to find information, learn about the latest globalized developments in Brazil, tomorrow! They do not like to work trade balance, it imposed restric- run, walk or motorbike ride. The discover trends and publicize your company. late in the evening and even the un- tions on imports even when the pur- people are great. As my Harley- employed will not just accept any- chases were directed at domestic Davidson still has Brazilian license PIB takes your brand and message to highly qualified readers all over the world - executives from large thing. Although our Argentinean production of the goods. This is why plates, I am always being greeted corporations, business leaders, well-known academics, opinion-formers and outstanding personalities in the neighbors have copied a number of Master Trim, a subsidiary and sup- in the streets. Drivers beep as they financial market, politics and the economy. Brazilian “inventions”, I have never plier of Toyota, recently announced pass and people chat away when- seen anyone distributing pamphlets an investment of US$ 10 million to ever I park. They invariably speak The magazine appears in Portuguese and English and is distributed in embassies, universities and the most important international trade fairs. at traffic lights or guys with card- replace foreign orders of injected very warmly of Brazil. I am hoping board arrows hanging round their plastics and car seats. The industry that the Brazilian and Argentinean necks pointing to new housing de- minister, Débora Giorgi described teams don´t come up against each velopments, as is common in Brazil. the move as exemplary. other in the World Cup in 2014. I BRAZILIAN COMPANIES GO INTERNATIONAL There are customs that force This regulation – linked to the like this country very much. companies to prioritize produc- BRAZILIAN COMPANIES GO INTERNATIONAL

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