Chilean food group Empresas Carozzi hopes a focus on quality will drive growth from its Agrozzi business in international markets from Asia to Europe.
The regional food company operates in various categories in Latin America, with products from pasta and rice to cookies and desserts sold on brands including Carozzi, Rizzo, Pomarola and Carica. On the international stage, however, the firm is focused on growing its Agrozzi tomato and fruit product business, sales manager Carlos Miranda told just-food.
Speaking at this year’s SIAL exhibition in Paris, Miranda said the group is witnessing rapid sales growth from its tomato purée and sauces business in Europe, where it benefits from “opposite growing seasons” to European manufacturers.
While the overall European market is not in growth, Agrozzi has been able to pick up fresh customers in the region and is expanding its presence in various European countries.
Asian markets such as Korea and Japan are also key growth areas. In particular, high quality is important for Japanese customers, Miranda said.
Miranda said Empresas Carozzi’s relationship with its farmer suppliers allows it to exert full control over quality levels. Agrozzi enters into direct contracts with small to medium sized farmers in Chile. The company provides the crops and pesticides and agrees to take 100% of the growers crop through long-term deals. “We can control everything to ensue the quality of raw materials. How much of what pesticides are used. This is important for quality products such as baby food. We also offer our technical assistance.”
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The deals also gives Agrozzi the flexibility to adjust production levels to reflect global crop prices, he continues. “There was a strong apple harvest in Poland this year, so we can adjust production levels to reflect depressed procing in that category,” he explained.
While Agrozzi is driving the growth of its tomato-based products in Asia and Europe, the group is also targeting expansion in South and North America for its fruit-based products. “In North America we are not seeing growth in tomato products but in juices,” Miranda observes.