Kraft Foods has started to produce its Milka chocolate brand in Argentina to replace imports of the product into the country from Brazil.

Milka is the second best-selling chocolate brand in Argentina, although, until now, the products on sale were being imported from Brazil and Europe.

“The brand is being manufactured in Kraft ‘s facility in Victoria in Buenos Aires province, to replace Brazilian imports, which represented 70% of the brand’s portfolio in Argentina”, Pedro López Matheu, Kraft corporate issues director for the South Cone region in South America, told just-food.

The company did not reveal the production capacity of the Victoria plant.

It manufactures chocolate bars of between 30 and 70 grams, which will arrive at the retail channel in a week or two at the most, confirmed Kraft Foods.

The Argentine government is currently developing an imports substitution scheme for which many foreign products are finding it hard to enter this market. However, Kraft insisted the decision to produce Milka locally is not related to the new policy but was part of an expansion plan it had developed for the last three years.