Blog: It's not just multinationals eyeing emerging market dairy demand
Dean Best | 4 April 2013
Demand for dairy in Brazil is growing quickly
In the last six months, just-food has interviewed several heavy-hitters in the dairy industry about their plans for emerging markets, how they will exploit growing demand in regions like Asia and Latin America. But the Western giants will face strong domestic competition.
We've chatted to senior executives from the likes of FrieslandCampina, The Irish Dairy Board, Arla Foods and Fonterra about their plans for developing economies where demand for dairy products is soaring.
However, the growth in emerging markets has led to some formidable homegrown companies. Yesterday, we published our latest BRICs and beyond piece, which featured Brazilian dairy group Vigor.
The company was formed last year when Brazilian meat giant JBS spun off and listed Vigor. We spoke to Vigor CEO Gilberto Xandó about the company's ambitions to further build its business in Brazil.
In February, Vigor snapped up 50% of Brazilian peer Itambé. The deal means Vigor is the third-largest dairy processor in Brazil, Xandó says. Euromonitor data suggests adding up the 2012 sales of Vigor and Itambé would see it at number four - behind Nestle, Danone and Brasil Foods.
Nevertheless, Vigor is already seeing the benefits of a focus on value-added dairy products in Brazil, a market it sees as having a lot of potential for products like yoghurt. And, Xandó insists, Vigor wants one day to be "the largest dairy company in the country".
For those multinationals eyeing the emerging markets with glee, remember: you are likely to encounter some serious and significant domestic competition.
Acosta Sales & Marketing, the US agency that works on in-store executions with US FMCG giants, has been snapped up by Carlyle. But was the multiple the private-equity firm is said to have paid too pri...
Almost a year after buying Dole Food Co.'s international packaged food and Asian fresh businesses, Japanese trading house Itochu Corp. has looked again to the wider agrifood sector to diversify its bu...
There has been an increase in M&A among companies in the food sector in recent months - and management consultants at EY expect to the trend to continue....
Nelson Peltz is not letting go. The US billionaire investor is continuing in his quest to get PepsiCo to split in two - and has reportedly suggested a proxy battle with the company could be on the hor...
- On the money: Unilever shifting into growth spots
- On the money: Danone denies strategy overhaul
- Why whole sector should take heed of meat scrutiny
- The just-food interview: Premier Foods CEO Darby
- On the money: Hershey confident in NPD pipeline
- Chobani bid for fresh UK appeal rejected
- Kellogg to close US snack plant
- Danone takes Mars yoghurts into more markets
- Danone UK ad banned over unauthorised claims
- Tyson sells Mexico, Brazil ops to JBS