In the coming days, Brazilian consumers will find Vigor’s new fresh pasta on supermarket shelves such as ravioli, cappelletti, pizza and turnover dough
September 10 2009 (FoodBizdaily) - In the coming days, Brazilian consumers will find Vigor’s new fresh pasta on supermarket shelves such as ravioli, cappelletti, pizza and turnover dough. Other varieties will be released later this year that include hamburger, meatball, cheese bread and condensed milk, among others.
The strategy was decided after consumer researches indicated that the Vigor brand can be expanded to other categories besides milk based products like ready-to-eat meals and meat. Also, many retailers have expressed their interest to Bertin in seeing an alternative brand to the recent merges that took place in the Brazilian food market.
"The Vigor brand is already a strong brand in the market. It became synonymous with dairy products and butter. Now we'll make it a wide-ranging food brand. It will be an alternative to the food market fair competition" said Fernando Falco, executive director of Bertin’s Dairy Division.
According to the executive, the company considered starting the strategy with the launching of the fresh pasta line because "We saw an open market with recent company mergers of the sector and also the exit of the Frescarini brand. We sped up our plans to fill that gap". The company plans to win between 10% to 15% market share in two to three years.
For the success of the launches the company also invested in broadcasting and marketing. "With the media campaign alone, which does not include product sampling at points of sales, investments this year for new products totaled R$10 million," says Mark Scaldelai, Marketing Director of Bertin.
The Vigor brand line that currently has 78 items will gain about 50 new products by the end of 2010. One of its competitive advantages is logistics. After the merger between Grupo Bertin and Vigor, consolidated at the end of 2008, there was a synergy regarding the distribution channel, which currently includes more than 35 thousand points of sale throughout Brazil.
Dairy Division grows during second quarter of the year.
The growth strategy of the Vigor brand is under Bertin’s Dairy Division responsibility. During the second quarter of 2009, the Dairy Division reported a net income 19.6% higher than the same period of 2008. This result is due to increased sales volume, which was 16.5%, and a 2.7% increase in average prices, due to focusing more on value-added products, in the Food Service segment and due to greater company presence in the retail market of the country’s northeast region.
"The good performance of the Dairy Division, whose main business is consumer products, the plans for Vigor grow stronger and be approved within the company," explains Falco. In 2008, Bertin had gross sales of R$7.5 billion; the Dairy Division represented 14% of this amount. For 2010, the forecast is that Bertin make between R$9.3 and R$10 billion, when the Dairy Division shall represent 20% of that value.
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Bertin S/A
Address: Av. Brigadeiro Faria Lima 2.012 5º andar -Conjuntos 53/54 Sao Paulo 01469-900 Brazil
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About Bertin S/A
Bertin S/A is a holding owned by domestic capital. Headquartered in Sao Paulo State, Bertin S/A operates 28 units in Brazil and employs 35.000 collaborators. With strong brands, it has been catering to both, the domestic market and to customers in over 80 countries. Bertin S/A brings its most important specialty to tables around the world; beef with differentiated taste and tenderness which combines ingredients such as tradition, credibility and food safety. In the market for 30 years, Bertin Group is a holding fully owned by domestic capital. Headquartered in the state of Sao Paulo, Bertin Group operates 28 productive units throughout Brazil and employs 35.000 collaborators. Being the owner of strong brands, the corporation has been catering to both, the domestic market and to customers in over 80 countries. Present in the most refined dishes, Bertin brings its most important specialty to tables around the world: beef with differentiated taste and tenderness which, among other secrets, combines ingredients such as tradition, credibility and food safety.