Ingredients suppler AAK sees great potential in the Brazilian market and plans to construct a new factory in Jundiai, São Paulo.
The company will invest SEK 400m ($62m) in the new plant across two years, with the factory due to be operational by late 2015.
Seizing on Brazilian chocolate growth
“There is a large potential for AAK in the Brazilian market,” said AAK president and CEO Arne Frank. “It is the world´s 7th largest economy and a number of our global customers already have significant presence.”
Market research firm Mintel has forecast that value sales of chocolate confectionery in Brazil will reach BRL 7.8bn ($4bn) by 2015, up 24% from 2011.
Current Brazil operation
The company said it already had an established chocolate & confectionery ingredients business in Brazil, supplied by its factory in Montevideo, Uruguay.
“However, pursuing our global growth strategy, AAK needs to be present with production capability also in Brazil,” said Frank. The new factory will grow AAK’s Brazilian volumes 100,000 MT to 120,000 MT.
Edmond Borit, managing director of AAK South America, said: “The new factory will expand our product portfolio of Food Ingredients and Chocolate & Confectionery products in Brazil and particularly strengthen our ability of supplying Bakery and Dairy solutions as well as further develop our Chocolate & Confectionery business.”
The factory will also include an Innovation Center, allowing customers to work with AAK’s innovation team on new products.