Year II Number 5 Sep/Oct 2008 totum After decades of stagnation, the region is now a booming Time for market for Brazilian companies Latin America To make the future is to value people and the place where they live. Banco do Brasil is celebrating its 200th anniversary in 2008. Throughout all these years, we were always aware that taking care of the planet´s environment is the first step for making a better future. No wonder Banco do Brasil was the first Brazilian company to publish its own Business Agenda 21. Banco do Brasil. 200 years making the future. www.bb.com.br To make the future is to value people and the place where they live. Banco do Brasil is celebrating its 200th anniversary in 2008. Throughout all these years, we were always aware that taking care of the planet´s environment is the first step for making a better future. No wonder Banco do Brasil was the first Brazilian company to publish its own Business Agenda 21. Banco do Brasil. 200 years making the future. www.bb.com.br Content Y ILL O’RE ID V A D 46 review P ncia Ê G / A el B T Ue U DO cas N LU HA 20 70 pa VES O ANTENNA What’s the secret of Jacu Coffee? /BM&F B /BM&F 10 T Liége Fuentes U 62 DO N A H ON THE ROAD 18 Magnesita buys LWB of Germany Clayton Netz SPECIAL 20 The American reaction to InBev’s take over of Anheuser-Busch Tania Menai, in St. Louis ADVERTISING 24 Brazilian professionals take international honors Arnaldo Comin, in Cannes INTERVIEW 28 Miguel Jorge Nely Caixeta and Armando Mendes OPINION 44 Highlights of PIB’s first year Maria Tereza Leme Fleury and Afonso Fleury 4 P I B COVER STORY Springtime in 32 Latin America The region shrugs off decades of stagnation to become a favored destination for Brazilian investment Armando Mendes, in Bogota T U DO N HA SPECIAL REPORT TECHNOLOGY 46 Brazilians outnumber locals in this little Irish village 65 Brazilian bovine genetic material Adriana Setti, in Gort goes international Vicente Vilardaga, in Uberaba Foreigners transform Brazil into 50 a center for global development SMALL BUSINESS Antonio Carlos Santomauro 68 S ebrae prepares internationalization Flávio de Carvalho Serpa STRATEGY The political risks of internationalization TRANSPORT 54 Randon sets its sights on the US and China Bruno K. Reis 70 Arlete Lorini, in Caxias do Sul NEW MARKETS SERVICE 57 Aeromot takes its airplanes to China 74 How to beat French bureaucracy Arlete Lorini Andrea Flores, in Paris IMAGE GLOBE-TROTTER 58 How to build a global reputation 76 Abu Dhabi looks to renewable energy Christine Puleo Andressa Rovani LEGISLATION EXPRESS TOURISM 61 E uropean sanitary barriers will be expensive 80 Asian exotica in the capital of Vietnam Andrea Flores, in Paris João de Mendonça Lima Neto, in Hanoi FINANCE IN TRANSIT 62 The globalization of BM&F Bovespa 82 The curious customs of Honduras Juliana Garçon Marcelo Lins P I B 5 Editorial TOTUM EXCELÊNCIA EDITORIAL Clayton Netz Nely Caixeta PIB BRAZILIAN COMPANIES A Successful Year GO INTERNATIONAL A TWO-MONTHLY MAGAZINE FOCUSING ON INTERNATIONAL BUSINESS AND ECONOMICS, FROM TOTUM This edition of PIB has a very special significance for Editors Clayton Netz • [email protected] its editors and collaborators. Our fifth edition marks Nely Caixeta • [email protected] one year since we launched the magazine to provide a Executive Editor showcase for the new Brazilian economy, which João Paulo Nucci • [email protected] Contributors to this edition seems to become more and more international with every passing day. Afonso Fleury, Andressa Rovani, Antonio Carlos Santomauro, Armando Mendes, Arnaldo Comin, Bruno Over the last 12 months we have received countless messages from K. Reis, Christine Puleo, Flávio de Carvalho Serpa, Glaucy Vulcano, Juliana Garçon, Marcelo Lins, Maria Tereza Leme readers in Brazil and abroad, showing that we’re on the right track with Fleury and Vicente Vilardaga. Barcelona: Adriana Setti. Belo Horizonte: José Maria Furtado. Curitiba: Liége Fuentes. our decision to fill the need for a publication that reflects the dynamism Florianópolis: Maurício Oliveira. Hanói: João de Mendonça Lima Neto. Nova York: Tania Menai. Paris: Andréa Flores. of Brazil’s presence around the world. Pequim: Mariana Canedo. Porto Alegre: Arlete Lorini. Design To mark the first anniversary of PIB, which is published simultane- Maurício Fogaça and Karina Gentile • Página Mestra ously in Portuguese and English, we have prepared a special edition. Cover Paulo Caruso Our cover design is the work of top Brazilian car- ILlUSTRAtions toonist Paulo Caruso, inspired by one of Saul Stein- Enio Longo andMarcelo Calenda Photo Editor berg’s most famous covers for New Yorker. And our Glaucy Vulcano Copydesk and Preparation lead story focuses on the economic awakening of Márcia Melo Latin America, showing how it is attracting count- Translation Brian Nicholson, Christine Puleo and John Fitzpatrick less Brazilian companies as they take the plunge into internationalization. ADVERTISING Tutti Benvenuti • [email protected] For too long the ugly duckling of the world Advertising Sales Director economy, the region is now a new motor for global INTERNATIONAL AND BRAZIL (55-11) 3097.0849 growth. Last year regional GDP grew over 5%, mark- [email protected] Av. Brigadeiro Faria Lima, 1903 cj. 33 ing the sixth straight year of growth and the longest Jardim Paulistano - 01452-911 - São Paulo - SP PRINTING expansion cycle of the last 40 years. And never has PROL Editora Gráfica Brazil invested so much in its neighbors. Just in DISTRIBUTION IN BRAZIL The original New Support: Edicase - www.edicase.com.br Argentina, the stock of Brazilian FDI now stands at Exclusive distributor: Fernando Chinaglia Yorker cover: Mailing: Postal House US$7 billion, and the Brazilian government has ap- Rua Benta Pereira, 431 - São Paulo - SP inspiration 02451-000 - www.postalhouse.com.br proved a further US$6.5 billion of credit to finance Portugal Malta Distribuição highway construction and other infrastructure work to link the region’s Av. Paulista, 2001 cj. 815 - 01311-300 - countries more closely. You’ll find all the details in our eight-page special São Paulo (SP) - www.maltainternacional.com.br report and the interview with Miguel Jorge, Brazil’s Minister of Develop- Administrative Consultant Luiz Fernando Canoa de Oliveira ment, Industry and Foreign Trade, who was one of the participants in the [email protected] EDITORIAL SUPPORT Round Table that marked the launch of PIB a year ago. Cléia Gomes • [email protected] Three other highlights in this edition: collaborator Arnaldo Comin EDITORIAL CORRESPONDENCE Av. Brigadeiro Faria Lima, 1903, cj. 33 reports from Cannes on how Brazil’s new generation of advertising CEP 05426-100 - São Paulo - SP [email protected] whiz-kids are winning international acclaim; Tânia Menai, a Brazilian Signed articles do not necessarily represent the opinion of the editors. Totum reserves journalist living in New York, makes her PIB debut with a story from the right to edit or summarize letters. St. Louis, venturing inside the headquarters of Anheuser-Busch and Jornalista responsável: Nely Caixeta (MTb 11 409) describing the rage at the American company’s take-over by Belgian- PIB – Brazilian Companies go International Brazilian brewing giant InBev; and Barcelona resident Adriana Setti is published by Totum Excelência Editorial Av. Brigadeiro Faria Lima, 1903, cj. 33 flies to Ireland to investigate the phenomenon of the little village of Gort, CEP 05426-100 - São Paulo - SP (55-11) 3097.0849 - [email protected] where Brazilian immigrants are fast becoming a majority. Print run for this edition Portuguese – 17,000 • English – 8,000 Enjoy! Print run audited by PricewaterhouseCoopers THE EDITORS 6 P I B Letters and e-mails R$ 10,00 Year II Number 4 Jun/Jul 2008 Brazil will certainly play an important role in the global economy in a couple ¤ 3,50 of years. In this context, the market was lacking a reliable source of infor- totum mation about Brazilian products and services in the international market- place. PIB magazine has come to fill this gap. The well researched articles FRANCHISING are written with a simplicity that amazes me. The challenge ALBERT FISHLOW is to apply Congratulations to those who had the initiative to publish such a jewel. “Brazil needs an open Brazilian economy if it wants to experience in CHANG KUO I joint the technological foreign markets Sales Department vanguard ” Intercontinental Transportation Brazil LOOKING OUTWARD ROCK IN RIO Specialized São Paulo (SP) Festival takes services are winning root in Europe ; customers in the I work at ProChile and had the opportunity of reading the first editions of next step global arena China ? your magazine. I really enjoyed the subjects you covered and the way the articles were written. They encourage the reader to think and to make a critical analysis. Congratulations! MARIA LIGIA SAAD São Paulo (SP) globais I read PIB magazine with enthusiasm and admiration. It was certainly a great José Carlos Grubisich, president of Braskem, with a toy car made initiative by Totum Excelência Editorial to publish a magazine with such a of recyclable ethanol- based green plastic modern and informative concept. PIB also stands apart from the others by virtue of the importance that it gives to exportation by the services sector. ON THE RICARDO Boucault FLORES INNOVATION TRAIL Teresópolis (RJ) Brazilian fl air for producing and developing technology sparks THIS IS AÇAÍ! admiration and points to new paths for business Congratulations for PIB magazine. Such publications help keep us always up A reda fruit market from in the the Amazon United States fi nds to date about the global economy and make it easier to draw up new legisla- tion that can help the business sector and, as a consequence, society as a whole.