Brazil’s presidential elec-
tions are slated to take
place this month, with in-
cumbent Dilma Rousseff
facing off against her
main two challengers in
Aécio Neves and Marina
Silva.
The first round of the
elections are set for Sun-
day, October 5, while a
probable runoff round
would be necessary if no
candidate wins 50 per-
cent of the vote. This like-
ly runoff would take
place later in the same
month, on October 26.
Polls show a very close
race between President
Rousseff and her primary
challenger, Ms. Silva.
Ms. Silva entered the
race late after the plane
crash and death of her
fellow party member
and running mate, Edu-
ardo Campos, in mid
August.
The contest promises to
remain close throughout
the closing stages of the
campaigns, with the
eyes of the country
fixed on the final de-
bates and closing argu-
ments before voters go
to the polls.
Some onlookers will be
relieved at the conclu-
sion of the election cy-
cle. Markets and inves-
tors are likely to calm
once the Brazilian elec-
torate finally decides on
which candidate will be
leading the country over
the next 4-year term.
Presidential elections set for October
Exchange Rate News
The Brazilian real (BRL) depreciated substantially against the dollar over the course of September. The currency is likely to stabilize after volatility sur-rounding the uncertainty of the presi-dential elections passes. At the close of September, the real remained under 2.45 BRL per USD.
SEPTEMBER 30TH
FOREX QUOTES:
USD-BRL 2.43
USD-GBP 0.616
USD-EUR 0.788
USD-JPY 109.43
USD-CNY 6.153
WINERIES SEE POTENTIAL IN BRAZILIAN MARKET
2
HYBRID VEHICLES GAIN TARIFF REDUCTION
2
ORYGEN LOOKS TO SAO PAULO FACTORY
3
AIRLINE INDUSTRY SHOWS LONG-TERM GROWTH
3
TAKEDA TO PLACE REGIONAL HQ IN BRAZIL
4
TRADE SHOWS FOR OCTO-
BER, NOVEMBER, DECEMBER
5
BRAZIL BUSINESS NEWS HEADLINES
6
Inside this issue:
October 2014 Volume 3, Issue 10
Brazil Buzz!
Business news and updates for opportunity seekers
Inteligencia Corporativa Ltda Rua Helena 280 Suites 703 & 704 Sao Paulo-SP—04552-050 Ph: +5511 -3044-4848 Mobile: +5511 –97207-2065 [email protected]
Source: Oanda
Brazil Office
More efficient models will
be granted lower tariff lev-
els.
While ethanol-powered ve-
hicles are commonplace in
Brazil, hybrid cars have not
become as ubiquitous local-
ly as they have in many de-
veloped countries.
The measure will open the
door to greater trade for
car companies previously
withholding most hybrid
models from the Brazil car
market.
Brazilian trade authorities
approved import tariff cuts
for hybrid cars entering Bra-
zil.
Under the new tax regime,
imported hybrid vehicles will
face a reduced tariff rate of
between 0 and 5 percent—
drastically lower than the
previous duty of 35 percent.
The import tariff, though low-
er overall, will be variable
and dependent on the effi-
ciency of the car in question.
Page 2
Brazil Buzz!
“THE VARIETY OF
LABELS [IN BRAZIL] IS
IMPRESSIVE, FROM ALL
OVER THE WORLD,
BUT MARKET
PENETRATION IS STILL
LOW. THE CONSUMER
DOESN’T KNOW
HOW TO CHOOSE,
AND CHOOSES BY
THE PRICE.”
- Jose Guilisasti, of
Emiliana
winemaker Emiliana predicts
strong growth from Brazilian
wine consumers in coming
years, with sales this year in
Brazil expected to outpace
2013 by 40 percent.
According to the company’s
director, middle class Brazili-
ans have a taste for what he
refers to as “culture,” and are
prime targets for slightly high-
er tier beverages like his firm’s
wine.
Any change toward more fa-
vorable conditions for import-
ers could quickly signal even
more rapid wine industry
growth. Firms in Chile and the
U.S. would be wise to watch
for any such shift.
Foreign wine producers recognize
continued opportunity in reaching
Brazilian consumers.
Brazil does not have a strong wine
industry, especially not that can
compete with well-established
producers like those in Chile, Ar-
gentina, Europe and the U.S.
Partly for this reason, Chilean
Hybrid cars earn favorable tax status
Wineries see potential in Brazilian wine market
Source: Flickr Creative Commons, M 93
Source: Flickr Creative Commons, Sean MacEntee
Recently merged conglomerate
Orygen looks prepared to bet on
continued pharmaceutical growth
in Brazil, and is duly investing in
expansions of its production ca-
pacity in the country.
The firm was born of the consoli-
dation of Biolab and Eurofarma,
both Brazilian firms.
Orygen announced plans to invest
500 million reais in a factory in
Sao Carlos, in the interior of Sao
Paulo state.
The project will be financed by
Brazil’s main national development bank,
BNDES, and is expected to be operation-
al by 2017. Production of medications at
the facility, meanwhile, is slated for
2018.
The facility will also include partnerships
whereby Orygen will work in conjunction
with American firm Pfizer, pending au-
thorization from Brazilian regulators.
As the Brazil’s relatively young pharma-
ceutical sector continues to grow, foreign
producers still benefit from opportunity to
fill much-needed supplies, part of why
Brazil still has a trade deficit of 25 bil-
lion reais in medical equipment.
Orygen looks to biopharmaceuticals in new Sao Paulo factory
Brazilian airline industry registers steady long-term growth
August 2014 growth in inter-
national flights, however, was
even especially heightened ,
registering nearly 14 percent
more passengers than last
year.
Growth in the industry after
the conclusion of the World
Cup helped dissuade fears
that any gains made were
short-term, and that air traffic
could not sustainably continue
growing like it did leading up
to the tournament.
In the industry, Gol Airlines
represented almost 37 percent
of Brazil’s commercial aviation
market share, while its main
competitor TAM Airlines trans-
ported about 34 percent of
passengers so far this year.
The two airlines remain the
only two Brazil-based carriers
Data from Brazilian airline
industry and officials contin-
ue to show steady long-term
growth in the demand from
domestic passengers.
From January through Au-
gust of this year, the industry
showed 7 percent demand
growth over the same peri-
od last year.
Demand for domestic Brazil-
ian flights, when measured
in the industry’s Revenue
Passenger Kilometers, grew
for the 11th consecutive
month, and reached its high-
est point in the past 10
years.
Demand for international
routes over the same Janu-
ary to August time period
showed growth of just shy of
4 percent since last year.
Page 3
Volume 3, Issue 10
“THERE IS NOT YET A
BIOPHARMACEUTICAL
PRODUCTION IN THE
COUNTRY, AND THIS
AREA IS
TRANSFORMING
MEDICINE...BRAZIL
HAS A VERY
STRUCTURED PLAN IN
THIS AREA.”
- Orygen’s Andrew
Simpson
Source: Flickr Creative Commons, Denni Williams
traveling internationally, though Azul
is set to soon begin routes to select
U.S. cities.
Air travel continues to become more
accessible to more Brazilians as
standards of living rise, an indicator
of greater purchasing power overall,
which could translate into pent-up
demand in other areas as well.
English Language news sources for Brazilian news:
http://www1.folha.uol.com.br/internacional/en/ http://thebrazilianeconomy.com/
Takeda, Japan’s largest pharmaceutical firm,
announced its regional headquarters for Lat-
in America will be located in Brazil.
The move marks a move of confidence by
Takeda, which appears to be responding to
continued demand growth in the Brazilian
pharmaceuticals industry.
The firm already operates two factories in
the country, one in the southern state of Rio Grande
do Sul, and one in Jaguariuna, Sao Paulo.
The company has expanded its presence in Brazil
through acquisitions of local firms in recent years.
Overall, Brazil already constitutes an important
source of earnings for the firm. Brazil generates the
fourth-most revenue for Takeda by country, ac-
cording to company representatives.
Takeda to bring regional headquarters to Brazil
Page 4
Fabio Yamada Inteligencia Corporativa Ltda
Rua Helena 280 Suites 703 & 704
Sao Paulo-SP—04552-050 Ph: +5511 -3044-4848
Mobile: +5511-97207-2065 [email protected]
For information on how to participate in these or other trade shows in Brazil, contact [email protected]
October 1-4: CONSTRUIRRIO (construction materials) October 1-4: RIOPARTS (auto parts and repair) October 8-10: EXPO SAMU (emergency medical services and equipment) October 8-10: FIRE SHOW (fire fighting and prevention products) October 8-10: FISP (private security and alarms) October 13-16: FUTURECOM (telecoms and IT) October 21-24: LOGISTIQUE (international trade, transport and logistics) October 21-24: FIMMEPE MECANICA NORDESTE (metallurgy and mechanical engineering) October 28-30: SPORT INFRATECH E EXPO ESTADIO (sporting event infrastructure and equipment)
BRAZIL TRADE SHOWS AND EXPOS, OCTOBER 2014
BRAZIL TRADE SHOWS AND EXPOS, DECEMBER 2014
December 16-20: FENAIUC (fashion, accessories)
BRAZIL TRADE SHOWS AND EXPOS, NOVEMBER 2014
November 4-7: SC TRADE SHOW (shoes, bags and accessories) November 4-7: MECPLAST (plastics, rubber products, tools) November 4-7: MECMINAS (machinery, tools, industrial equipment) November 11-13: AGROCAMPO (agribusiness) November 11-13: FIMAI (environmental consulting, sustainability, waste management, recycling systems, etc.) November 11-14: FEIPPETRO (oil and gas) November 17-20: EXPOSIBRAM AMAZONIA (mining) November 27-29: HORTFRUTEC (agribusiness technology)
MAN to invest additional 550 mil-lion reais in Rio de Janeiro facility
MAN Latin America, which produces trucks in Brazil, announced it would maintain its investments already made, and complete the expansions at its Rio de Janeiro factory by reaching 1 billion reais in investments by the end of the year.
Monsanto subsidiary to set up broader operations in Brazil
A subsidiary of the U.S.-based agribusiness giant Monsanto will launch its precision agriculture platform this month in Brazil. The firm, known as Precision Planting, was acquired by Monsanto previously, and will aim to meet the specific needs of a burgeoning Brazilian agribusiness sector.
Belgian chocolate maker invests 60 million reais in Sao Paulo factory
Belgian chocolate producer Puratos will begin producing chocolate this month from its newly con-structed Sao Paulo facility, which constituted an investment of 60 million reais. The factory is ex-pected to produce 50,000 tons of cake mixes and other dessert products.
Shacman plans for investments in Minas Gerais factory
Chinese truck maker Shacman is already planning to invest further in Brazil, this time in Minas Ge-rais. The company has experienced setbacks in the rollout of its expected factory in Sao Paulo, but is looking forward with new plans to reap the benefits of the government’s auto incentives program.
Fiat factory to soon begin produc-tion in Brazil’s Northeast
Multinational automaker Fiat is in the closing stages of constructing a factory in the northeastern state of Pernambuco. The facility, which was built over the past three years through 7 billion reais in investments, is expected to be operational by the beginning of 2015.
Regulatory authority opens door to better financing for ethanol
A Brazilian regulatory authority opted to include rural sugarcane production in a program aimed at expanding agricultural storage capacity. The measure will benefit sugarcane production through fa-vorable lines of credit, and is expected to aid the country’s advances in ethanol production.
Volkswagen invests 50 million reais in modernizing research lab
German automaker Volkswagen announced it will complete the modernization and expansion of its R&D site in Sao Bernardo do Campo, inland from the city of Sao Paulo. The investments will total 50 million reais,
Beer association sees new tax re-gime as favorable for beverages
Brazil’s beer association of industries pointed to Brazil’s new tax regime as being favorable for the beverage industry. The group celebrated the tax changes, due to take effect in 2015, claiming they would bode well for growth in the industry.
Petrobras makes gas discovery off coast of Sergipe state
Oil giant Petrobras made a discovery of gas and light oil that extended from the Sergipe-Alagoas basin. The well lies about 60km off the northeastern coast of Brazil.
Belarina Foods invests 200 million reais in expansions
Foodmaker Belarina, based in Brazil, will direct 200 million reais in investment toward expanding production capacity in the cities of Curitiba (in the Brazilian south) and Cuiaba (in the Midwest). The investments will be spread over the coming three years.
Poyry reaches deal on mega project for cellulose plant
Finnish multinational Poyry reached a deal with CRPE Holding to provide basic engineering and project development for a new cellulose factory in the state of Mato Grosso do Sul.
Mondial invests toward producing tablets in Brazil
Electrical components producer Mondial invested 4 million reais in its factory in Manaus, in the Am-azon region of Brazil. The factory is expected to produce tablets and other electronics.
Brazil Business News Headlines
Culture Corner
Batida de Coco
50 ml of coconut milk
25 ml of cachaça
a splash of Nestlé or Parmalat Table Cream
2 ice cubes, crushed
Shake or blend and pour. Leitecondensado.com