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Brazil biscuits market: 3% CAGR value growth between 2012-2017
Biscuits in Brazil - a new market research report on 2014-03-11 18:35:02
M Dias Branco SA led sales in the Brazil biscuits market in 2012, with a stable market share of 19%. The leading position of the company is a result of acquisitions of companies that enabled it to reach national coverage and cater to different consumer groups, due to the positioning of each brand. Its leading brands include Vitarella, Fortaleza, Richester and Adria. At the end of 2011, the company acquired Pelágio Participações, owner of the Estrela brand, for R$240 million. Pelágio Participações was a traditional biscuit company with a strong presence in the north and northeast of Brazil.

The biscuits category saw current value growth of 10%, which was faster than the CAGR of 8% registered during the 2007-2012 review period. This was due to two key factors – growing sales of value-added products, and price adjustments by manufacturers due to rises in the price of wheat, sugar, cocoa and fat.

The biscuits category is expected to grow at a 3% constant value CAGR over the 2012-2017 period, which will be superior to the 2% constant value CAGR registered during the review period. This growth will be driven by value-added biscuits, including fortified biscuits, higher fibre biscuits, biscuits enriched with vitamins and single portion packages. Cookies and chocolate coated biscuits are expected to produce the best performance in volume terms between 2012 and 2017.

Key Headlines

- Biscuit sales are stable in volume in 2012, but increase by 10% in current value terms, to reach R$13.5 billion
- PepsiCo intends to increase its share in biscuits through acquisitions
- Among the larger categories, filled biscuits registers the highest value growth category in 2012, of 12%
- Unit prices increase as value-added versions have increased their share within biscuits
- M Dias Branco and Nestlé Brasil hold the top positions within the category in 2012
- The biscuits category is expected to see a CAGR of 1% in volume and 3% in constant value between 2012 and 2017

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