My next article Milking Brazil is already up at SSB. This one is on how Brazil has been flooded with foreign companies, all making money off Brazilians because of their status, etc. Read it now!…or wait 2 whole months until I post it here, lol.
(with Two Brothers in the background)
Ask any beach-going Brazilian that has been to Rio de Janeiro what images come to mind when they think of Rio and I’d bet Biscoito Globo is one of them. The famous doughnut-shaped powder biscuits are as common a sight as the sunbathers in Ipanema applauding the beautiful sunsets, silhouetted by Two Brothers hill. Speaking of brothers, three from São Paulo deserve some applause, too, as they are responsible for another pleasing sight, one that can be sweet, like catching some rays, or salty, like the sea itself.
The brothers’ success lies in the simplicity of their product. Let’s take a closer look:
The rest is history (or, at least the next part is)…
History
According to the Biscoito Globo site, it all started in 1953 when, after their parents separated, the three Ponce brothers went to live with their cousin who had a bakery in Ipiranga, in São Paulo. It was there that they learned to make powder biscuits with their cousin, which were sold on the streets of downtown São Paulo.
In 1954, taking advantage of a large religious conference in Rio de Janeiro, the brothers decided to sell their biscuits in the carioca capital. With their recipe for success, the Ponce brothers foresaw that, given the biscuits characteristics, Rio de Janeiro would be the ideal market for what they were selling.
The powder biscuit was given the name Globo in honor of the bakery contracted to make them in Botafogo. The year was 1955 and the biscuits were sold in the Globo bakery and in seven others, owned by the same people. Realizing the large demand for them, the Ponce brothers started to sell them to other bakery chains and in 1963, they formed a partnership with a Portuguese baker, an expert in breads.
Benefits
There are other positive aspects that accompany a bag of Biscoito Globo, such as the fact that it’s perfect for making one’s stomach believe it’s fuller than it is. After all, who wants to swim on a full stomach? Other associated benefits mean the customer receives something that is low in calories, low in fat, without neither coloring nor preservatives.
The biscuit vendors are called ‘ambulantes‘ and they can buy a package for 60 cents then turn around and sell it for an average price of R$1 on the beach. A pretty good deal where everyone walks away happy. Since the famous snacks don’t contain the aforementioned preservatives, they aren’t sold to the supermarkets, meaning the customers must seek out the individual vendors if they want to get their hands on the biscuits. On the beaches of Rio, that’s not a hard thing to do because the vendors are omnipresent, the packaging is unique (save for a few imitators), and the holler is the same…”Olha o Globo!”
Originally written for Street Smart Brazil.
“The Ministry of Communications stated today that the government is studying the possibility that the Mail and Telegraph Company (ECT) may become a fixed client of the bullet-train that will connect the cities of Rio de Janeiro, São Paulo and Campinas.
According to the ministry, the minister Paulo Bernardo already solicited the new president of Correios, Wagner Pinheiro, to start talks with the National Agency of Land Transport (ANTT) to discuss the project. The minister estimates that close to 80% of Correios’ service traffic is concentrated in the metropolitan areas of Rio and São Paulo. The expectation is that, with Correios having a dedicated wagon for correspondences and parcels, the State can take a large quantity of trucks off the Via Dutra.
The minister believes that the anticipated contract with Correios could guarantee investors that the bullet-train could start right off with a fixed client. The transport of small parcels had already been announced by ANTT as an alternative for entrepreneurs to obtain extra revenues, which do not include direct compensation by means of passenger transport tariffs and economic exploitation of the stations.
The bullet-train auction, also known as the High Velocity Train (TAV), will occur in April. The estimated investment needed is R$33.1 billion, with a maximum timeframe of five years for construction and 40 years for service exploitation.” – Valor Online
Over the weekend, I tried to buy a book from a Brazilian vendor on a Brazilian website and despite my credit card, debit card and Paypal account, I ran up against a wall. The problem didn’t even have to do with international shipping as I was hoping to surprise a friend by shipping the book within Brazil, even within the same city as the vendor.
When the site didn’t let me proceed with my purchase because I didn’t have a Brazilian credit card or bank account, I attempted to go around them by dealing directly with the vendor (via his email address). When he replied a few days later, his response was that he wasn’t familiar with Paypal, which actually operates in Brazil. In fact, the Paypal logo is surprisingly absent from many major Brazilian retail sites like Ponto Frio, Submarino, etc.
In this day and age, I just find it a bit strange that such barriers exist. I wanted to give my money to someone in a major city in exchange for a simple product but I couldn’t. Something needs to change…and while I’m at it, I’ve got qualms with the postal service, too. When the book thing didn’t pan out, I thought about quickly sending one lil’ card through the mail to Brazil. The price? US$30+! I mean, really? Surely, the USPS had a bag of letters already going to a major distribution point in the US, and from there, to Brazil. What’s one more letter? (Btw, the non-priority price? US$1.50)
Language schools make up some of the oldest chains on the Brazilian market. With consolidated networks operating in the country for more than 60 years and dozens of brands disputing the potential students, the sector could be heading towards a period of deacceleration. Everything seems to indicate the exact opposite, though, as the chains are seeing a new cycle of expansion, helped along by the new middle class, the success of the Brazilian economy and by the large sporting events that Brazil will soon be home to.
One of the indicators of the sectoral growth potential is the increase in educational spending by Brazilians. According to data from Provar (Retail Administration Program) and the FIA (Administration Institute Foundation), the new middle-class is spending more of their income on education (from the previous 8-10% to 15-17% currently).” – Exame
My Take
There’s no doubt that more people will be signing up for language courses over the next several years but having administered a SKILL school for a short time, I can say that a lot of what the students learn seems to go to waste. Consider all the small towns that have a local chain and how much actual contact they have with native speakers of, let’s say, English. It’s pretty much down to in-class time with the teacher, who is likely not a native speaker. Language schools, if where I worked was any indication, care about attracting students and being able to say they have a teacher for such and such language, the more, the better. I witnessed very little focus (mostly none at all) on the actual teaching methods and/or ability of the teachers.
One of the other issues is that in the race to offer more than the competition, no thought is given to the fact that lesser used languages are often taken by less serious students who usually have the money to blow on courses for fun. Of the serious students, few are there because of a true interest in the language they are learning as most just want to have their CVs say they speak whatever language it is that, in reality, they know more or less. I won’t go as far as saying stricter criteria should be applied to potential students before they are allowed to take a course (though, I’d apply such tactics if I had a school) but it’s still kind of sad to see money and time being spent on something as interesting and eye-opening as learning a new language when it won’t be taken seriously. But hey, if you have an extra R$100K, language schools seem to be a good bet, according to another article by Exame.
“Sara Lee Corp. is buying Brazilian coffee company Cafe Damasco for nearly $60 million as it continues to focus on its more-profitable coffee and meat businesses. The purchase of Cafe Damasco gives Sara Lee a stronger presence in Brazil, particularly in the south where the coffee company has a strong market position, Frank van Oers, CEO of Sara Lee’s international beverage and bakery business, said in a statement.
Sara Lee already has the Pilao and Caboclo coffee brands in the central regions of Sao Paulo and Rio de Janeiro. Its other Brazilian coffee brands include Cafe do Ponto, Moka, and Seleto.” – Business Week
The best part of waking up is that corporate aroma in your cup
Época magazine back in August made a very detailed list of the 100 best companies to work for in Brazil. Once you choose the company you want, a profile pops up (like the one below) giving you a bunch of information on that business.
Quite an interesting 15-minute talk by Ronaldo Lemos on the digital music revolution in Brazil.
For more on the subject, I happened to catch a longer speech of his titled “Free Culture in Brazil” back in April.
I hope Corona makes inroads. It’s the default beer of choice for just about everyone I know. It’s not like they’d have to change their advertising…
“Grupo Modelo SAB, Mexico’s largest beermaker, may begin in about a year exports of Corona to Brazil, Latin America’s biggest beer market that’s dominated by Modelo’s partner, Anheuser-Busch InBev NV. Modelo is seeking an “established channel” to sell Corona in Brazil, where there are few imports and the company has tried three times to penetrate, said Jose Pares, Modelo’s chief sales and marketing officer.
“We’re doing the analysis, and the idea is in the short term to enter Brazil,” Pares said in an interview on Nov. 5.
Brazil is the third-largest beer market behind China and the U.S., with a growth rate that exceeded both in 2009, Modelo Chief Executive Officer Carlos Fernandez said in a Nov. 5 presentation at the company’s new factory near the border city of Piedras Negras, Mexico. Brazil’s beer market has the second- highest operating margin behind the U.S., he said.
In earlier attempts, Modelo grappled with taxes, tariffs and other obstacles, Pares said. The brand has good acceptance and is imported informally by consumers, he said.
“Now, we see a more favorable environment for the possible development of our market there,” he said without specifying. “That’s why we’re doing an analysis of an established channel through which to develop the brand.”
InBev became owner of a non-controlling 50 percent stake in Modelo after the $52 billion purchase of Anheuser-Busch Cos. in 2008. Modelo tried to block AB InBev from becoming its partner in a failed arbitration proceeding. AB InBev’s local unit, Cia de Bebidas das Americas, has a 71 percent share of the Brazilian beer market, the company said in an e-mail.
Modelo, which is based in Mexico City, exports six of its 13 brands, including Modelo Especial, Negra Modelo and Pacifico, to 167 countries and is the largest importer into the U.S.” – Bloomberg
“Cristina Madeira, from Brasília, is just one of dozens of recent mothers that opted to buy baby accessories for her children outside of Brazil:
- I bought it abroad because the quality of the products is better and the prices, a lot less. I bought a stroller, clothes and a child seat for the car. Everything that I brought for Rafael, who is about to turn 1 year old, is good for another year.
Cristina spent R$5,000 on shopping. In Brazil, just the stroller would have cost her R$2,500.
- There’s something really wrong when it’s worth it for someone to take a 9-hour flight to go shopping in the wealthiest country in the world just to save money. To have a stronger currency, the country needs to go through hard reforms and invest in infrastructure – asserts the president of the Brazilian Association of the Textile Industry (Abit), Fernando Pimentel, whose sector has sufferred in light of import competition, but is readjusting.
Brazilians are subject to a US$500 quota in purchases when they go through customs. But many consider it worth paying the 50% tax on anything extra.
Tourism operators have already identified the new niche and they plan to create shopping routes dedicated to young mothers with their packages to the U.S. CVC, for example, one year ago launched a package called “Shopping in Buenos Aires” and just started to include their Las Vegas route with a tour of outlets with which they’ve made arrangements to assure good discounts are given to their clients.
To please consumers, companies are going to have to decrease their profit margins. Specialists say that it is starting to change the culture in Brazil when companies realize they can have a margin of 100%, while in countries such as the U.S., companies have margins of only 5% to 10%. ” – O Globo (in PT)
