The World Cup will boost sales of peanut-based snacks in Brazil by as much as 30% in Q2, according to Brazil's leading peanut-based candy and snacks producer Dori Alimentos.
“With the World Cup and the Festas Juninas [June Festivals], Dori estimates that peanut-based sales will rise by 25-30% in April-June,” the company told ConfectioneryNews.
Dori Alimentos prepared extensively for the ongoing World Cup, well aware that a good performance for the national team could be a welcome boost for its own balance sheet.
Added capacity for peanut candies
The firm added capacity for roasted peanuts and candied beads in April, in anticipation of soaring demand for peanut-based snacks.
“Japanese-type peanuts are responsible for the best part of production in the new manufacturing system of Unit 40, which is located in the industrial district of Marília, in the interior of São Paulo state. The total investment in stages 1 and 2 amounted to BRL25m ($11.27m), which was mostly financed with loans from Brazil’s Special Agency for Industrial Financing (FINAME) and the Brazilian National Bank for Economic and Social Development (BNDES),” the company disclosed in an emailed statement.
The Brazilian government’s agency for innovation, or FINEP, also participated directly with a long-term loan of approximately BRL13m ($5.87m). The peanut-based business segment at Dori Alimentos will receive the greatest share of FINEP’s investments.
The new installations increased the Dori’s production of peanut-based snacks from 800 to 2,100 metric tons per month, with most of the new capacity being used to conquer new markets.
In May, Dori told this site that it planned to build a US distribution center to grow its North American export business.
With the World Cup in full swing, the company also announced that it would transition to a new visual identity for the company’s portfolio, promising consumers an “arsenal of novelties” this year. “Starting in the second half of 2014, consumers will encounter new brands, new packaging options, new flavors and more happiness, colors and sensations. The company will update its peanut-based lines that are responsible for a sizeable part of the company’s revenue,” said Dori on June 27.
Dori Alimentos is a noteworthy player in Brazil’s candy and snacks industries. It has annual revenues of BRL520m ($234.69m) and employs 2,348 workers.