Coronavirus causes a market realignment and sector priorities in the country
Brazil’s confectionery industries are implementing solidarity efforts to support people affected by the coronavirus pandemic in the country. Among the measures adopted are the donation of products, such as Easter eggs, and money to purchase medical equipment, in addition to ensuring employment for workers. The companies have also been taking steps to ensure the supply of chocolates, candies and snacks to the domestic market and exports in this period of crisis.
“The industry’s priority is the safety and health of the population. During this period companies must put the human values of their organizations into practice, and many members are adopting solidarity measures that benefit collective growth”, says Ubiracy Fonsêca, president of ABICAB (Brazilian Chocolates, Peanuts and Candies Manufacturers Association).
The chocolate manufacturer Cacau Show donated BRL 1 million for the purchase of respirators by the government of the State of São Paulo and joined the group of large companies to contribute to the acquisition of essential equipment for care of people with coronavirus. From a business point of view, the company focused on home deliveries to maintain a sales curve during this period.
Another chocolate manufacturer, Brasil Cacau joined hospitals in São Paulo, where the company’s headquarters are located, to encourage blood donations and support health professionals. To do so, the company offered chocolate Easter eggs to the first two thousand people who donated blood at Santa Casa, one of the public hospitals in São Paulo. It also donated 8,000 Easter eggs to health workers at Hospital das Clínicas, in São Paulo.
On March 26, Nestlé do Brasil decided to suspend the dismissal of its employees, maintaining full payment of salaries. The company also reported that it works with retail partners to prevent the distribution chain from being affected by Covid-19.
And Hershey’s do Brasil followed the company’s global guidance and removed all its advertisements that show human interaction with physical contact from circulation, to support institutional campaigns of isolation and social distancing.
The sector is also undergoing a realignment to ensure supply and expand trading options to minimize the impact of reduced consumption. Determinations of social isolation made by state governors and mayors in the country began on March 24 in states that represent significant markets for the confectionery industry, including in Rio and São Paulo. These measures have halted a series of initiatives, events and launches scheduled by companies for Easter, high season for the sale of Easter eggs and chocolates.
The industry’s priority is the safety and health of the population, but this must be done to avoid any supply problem, according to ABICAB’s president’s assessment.
“Important retail channels for the date have been maintained, companies are permanently working with points of sale to ensure the organization and availability of products, in addition to strengthening internet and delivery services as alternatives to consumers”, says Fonsêca. “In unprecedented crisis situations like this, the creativity of companies committed to the market, shareholders, employees and consumers grow”, he adds.
ABOUT ABICAB – The Brazilian Chocolate, Peanut and Candies Manufacturers Association (ABICAB) was founded in 1957 and represents the national confectionery industry in public and private spheres in Brazil. The national confectionery industry represents R$ 26,4 billion in retail value and employs more than 42,000 workers. The Association, which currently represents 93% of the chocolate market, 92% of the candy and confections market and 62% of the peanut market, has aims to develop, protect and promote the confectionery associated industry, stimulating actions to foster internal and external market in these sectors, as well as responsible consumption of products. https://www.brasilsns.org.br
ABOUT APEX-BRASIL – The Brazilian Trade and Investment Promotion Agency
(Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy. Apex-Brasil organizes several initiatives aiming to promote Brazilian exports abroad. The Agency´s efforts comprise trade and prospective missions, business rounds, support for the participation of Brazilian companies in major international trade fairs, arrangement of technical visits of foreign buyers and opinion makers to learn about the Brazilian productive structure, and other select activities designed to strengthen the country’s branding abroad. Apex-Brasil also plays a leading role in attracting foreign direct investment (FDI) to Brazil, by working to identify business opportunities, promoting strategic events and lending support to foreign investors willing to allocate resources in Brazil. www.apexbrasil.com.br/en/home