AAK plans $62m factory in Brazil’s booming chocolate market

By Oliver Nieburg contact

- Last updated on GMT

Brazil's chocolate market forecast to grow 24% in value sales by 2015 compared to 2011 levels, according to Mintel
Brazil's chocolate market forecast to grow 24% in value sales by 2015 compared to 2011 levels, according to Mintel
Ingredients supplier 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.

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