Minas Supermarket Finds Creative Way to Cut Costs

The supermarket chain, Valente, in Minas Gerais found a way to cut fuel costs amidst an economic crisis that has gripped the country.

The supermarket chain, which has three locations, adopted the plan of using trailers connected to motorbikes two years ago. The company has not only seen a reduction in fuel costs, but also in the maintenance of its fleet.

The company owns 9 trailers and motorbikes, which are used to deliver to clients. Each bike can travel 22 kilometers on one liter of gasoline and can carry up to 450 kg of goods.

Delivery services are becoming increasingly popular in Brazil where congestion and urban sprawl are major issues.

Read more at Supermercado Moderno (in Portuguese) Delivery Service Reduces Costs

Food Delivery Grows in Popularity

Food delivery apps have become more and more popular as congestion wrecks havoc in major Brazilian cities. A recent survey conducted by one of the most popular of these apps, iFood, together with market research firm, IBOPE, found that 56% of respondents ordered takeout food at least once a week. 14% ordered more than twice a week, 18% ordered delivery twice a week, while 24% ordered just once a week.

The study interviewed 1,800 respondents across many Brazilian cities.

The most popular time for delivery was for dinner on the weekend (67%), dinner during the week (46%) and on lunch the weekends (20%). Men are more likely to order via delivery than women.

Social class B is most likely to request delivery (67%) followed by class C (17%) and class A (14%).

Delivery is, not surprisingly, the most popular in the densely populated Southeast region, home to Sao Paulo and Rio de Janeiro. This region represented 49% of deliveries, while the Northeast had 22%, Midwest and North 15% and South 14%.

Families are by far the most common delivery clients. In fact, only 8% of delivery customers are single individuals.

The use of the Internet and Smartphones is becoming more and more popular for those making delivery orders. The study found that 38% of orders are done via these mediums, while 62% come from traditional technologies.

64% of respondents using the Internet or smartphones did so, because they said it was easy to make the order, while 55% cited easy access to menu and 51% stated to not talk to attendants.

Read more at Supermercado Modern (in Portuguese) More than Half of Respondents Use Delivery Services

Unemployment Reaches 11.2% in Period Ending in May

This Monday (June 27), the Brazilian Institute of Geography and Statistics, IBGE, published results that showed that the rate of unemployment at the end of the trimester in May ended at 11.2%. This is up from 10.2% in February. At the same time last year, the unemployment rate was at 8.1%.

The unemployment rate is only expected to start dropping in 2017.

The population of "economically non-active" individuals grew 10.3% to 11.4 million people. In real numbers, the growth equaled 1.1 million people being added to this category in relation to the trimester between December 2015 and February 2016. The growth was 40.3% or 3,3 million people in comparison to the same time period the year before.

The average wages (R$1,982 per month) stayed stable compared to the previous trimester, but fell 2.7% in comparison to the same time the year before (R$2,037 per month).

For more visit Supermercado Moderno (in Portuguese) Unemployment Rises Again in Brazil

Keurig Mysterously Quiet in Brazilian Market

For much of its history, Brazil has been known as one of the major producers of coffee in the world. Brazilians are also big consumers of the perky beverage. As such, several companies including Nestle (Nespresso and Nescafe) and Três Corações have become major sellers of at home coffee machines and coffee capsules. These machines and capsules can be found regularly at supermarkets across the company. Both companies also invest heavily in TV and other advertising to entice consumers.

One name that is strangely absent is Keurig. What's so strange is that Keurig has Coca-Cola as a 10% owner. Given Coca-Cola's brand recognition and distribution power, why hasn't the company tried to make inroads in a country of over 200 million. The company will surely face strong competition, but since when has that scared away Coca-Cola companies in the past?

A quick online search found Keurig machines and capsules only on online shops and not at major retailers. From the company's website, Brazil was not one of the drop down options of country's where the company operates.

Foreign Ownership of Air Companies on Hold

Interim president, Michel Temer, has decided to hold off on deciding whether or not foreigners can own 100% of air companies in the country.

Currently, foreign companies can only own up to 20% of air companies in Brazil. Examples of foreign companies with ownership of Brazilian air companies include Delta and Air France owning shares of Gol and HNA of China and United Airlines possessing shares of Azul.


China has already invested in a highway linking Guyana and Brazil. See our piece on that Chinese to Invest in Brazilian Roadways

Read more from Folha de Sao Paulo Interim President Temer Reconsiders Decision Regarding Air Companies and Foreign Ownership

Heineken Closes Factory in Bahia

Dutch brewer, Heineken, announced June 15 that it will be closing its factory in Feira de Santana. In addition to Heineken, the company produces Brazilian brands Kaiser and Bavaria. Kaiser was produced in bottles, while Bavaria was produced in cans at the factory.

According to the Union of Workers of the Beer and Other Drinks Industry (SINDIBEB), 126 employees were let go.

In an official statement, Heineken claimed the decision was based on viability studies and the necessity to take the operation of the company to another standard of excellence.

The company's breweries in Ceara and Sao Paulo will now meet the needs in Bahia, Goias and Amazonas that were previously served by the factory in Feira de Santana.

For more visit Correio Feirense (in Portuguese) Heineken Closes Shop in Bahia

Liquid Soap Sales Up 7% in 2015

Today, Brazilian retail is facing a lot of setbacks; low consumer confidence, rampant inflation and high unemployment. Even so, liquid soap sales grew 7.4% in volume in 2015 compared to 2014, according to Nielsen. This growth comes at the same time that sales of bar soaps dropped 1.6%.

The biggest winner in the growth of liquid soap sales were cheaper brands, which saw an increase of 11.3%.

According to Unilever, scented liquid soaps account for 56.4% in volume of liquid soap sales. Next, are anti-bacterial liquid soaps, which represented 25.4% of the market.

The main market for liquid soap are social classes A and B, which purchased 44% of the market in volume.

To read more check out this link from Supermercado Moderno (in Portuguese) Liquid Soap Sales Increase in 2015