Brief description of the Cookies & Crackers Sector in Brazil
Cookies & Crackers are segmented into filled cookies, Crackers and Water and Salt, Wafers, Maria and Maisena, Dry Sweet, Butter Cookies, Salt, Donut and others. Brazil is the fourth largest cookies and crackers seller in the world with 1,366 thousand tonnes commercialized in 2018, according to ABIMAPI and Euromonitor. According to AC Nielsen data for 2018, the Southeast region was responsible for the higher sales volume of Brazil, around 45.3%, as the region has the highest per capital income of Brazil, the consumption of these products is influenced by acquisition power of the families.
Until the beginning of the Real Plan (“Plano Real”), implemented in 1994, the sector was characterized as being predominantly by family businesses. The sector passed through a strong growth period, which led the large international brands to buy the smaller companies. In 2003, with the controllership of Adria passing to the Company, the Brazilian market leadership returned to a national Company. Currently, Marilan is in second place with 8.2% share, Nestlé occupies the third place with a 6.9% share, and so successively with Bauducco (6.8%), Pepsico (5.4%) and Mondelez (4.9%), while M Dias Branco leads the market with 34.0%, according to AC Nielsen’s data for 2018. The remaining market is fragmented among a large number of companies
Recent Performance of the Cookies & Crackers Sector in Brazil
The population’s social ascension is encouraging the cookies & crackers consumption, including the ones with higher value added. The cookies & crackers of the healthy category are also showing an expressive growth rates, evidencing an opportunity to expand the production.
The table below presents the cookies & crackers competitors’ market share for Brazil, Northeast and Southeast region in the indicated periods, in terms of volume sold and retail value:
| Cookies & Crackers Segment | |||
|---|---|---|---|
| Market Share in terms of volume sold | |||
| Brazil | Northeast | Southeast | |
| M. Dias Branco | 34.0% | 60.7% | 22.4% |
| Marilan | 8.2% | 5.0% | 10.8% |
| Nestlé | 6.9% | 2.9% | 9.2% |
| Bauducco | 6.8% | 3.1% | 9.4% |
| Pepsico | 5.4% | 1.6% | 6.6% |
| Mondelez | 4.9% | 1.7% | 6.6% |
| Bagley | 4.7% | 0.1% | 9.3% |
| Outros | 30.6% | 24.9% | 25.8% |
| Source: AC Nielsen (Retail + Cash & Carry:2018) | |||
| Cookies & Crackers Segment | |||
| Market Share in terms of retail value | |||
|---|---|---|---|
| Brazil | Northeast | Southeast | |
| M. Dias Branco | 30.1% | 55.1% | 22.5% |
| Nestlé | 8.7% | 4.6% | 10.3% |
| Bauducco | 8.7% | 5.4% | 10.6% |
| Mondelez | 8.4% | 4.3% | 10.0% |
| Marilan | 7.9% | 5.5% | 9.5% |
| Pepsico | 5.8% | 2.3% | 6.5% |
| Bagley | 4.8% | 0.2% | 8.4% |
| Outros | 25.6% | 22.6% | 22.2% |
| Source: AC Nielsen ( Retail + Cash & Carry:2018) |
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According to AC Nielsen data for the year 2018, the Southeast region is responsible for 45.3% of the cookies & crackers consumption in Brazil, the Northeast region for 33.8%, the South for 12.2%, the Midwest for 7.5% and the North for 1.1%.
Cookies and crackers consumption
The domestic market for cookies and crackers has presented a relatively flattish behavior. In 2018, a 0.8% retraction was recorded. Filled, dry/sweet and savory crackers were the segments with the highest drop, while donuts and cookies have shown advances.
The consumption of donuts grew 13.6% in volume in 2018. This growth have led the segment to gain two positions, becoming the 5th most relevant segment for the cookies and crackers market, beating Savory and Wafer types.
Maria/Maisena segment also delivered a positive performance, growing 0.8% in volume sold in the year. Of the five main segments, only Cookies and Maria/Maisena have increased the volume in the market of cookies and crackers as compared to the same period of 2017.
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