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Brazil The Pet Sector PIJAC Webinar November 2014

Brazil The Pet Sector - PIJAC Canada...E-mail: [email protected] Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

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Page 1: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Brazil

The Pet Sector

PIJAC Webinar

November 2014

Page 2: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

A World within a Country

Countries with nominal GDP over US$ 600 billion

Countries with population over 100

million

Countries with area over 2 million km²

Australia

Russia

USA

Brazil

China Japan

Bangladesh

Nigeria

Pakistan

Indonesia

Canada

France

Germany Italy

Spain

Mexico

South Korea Netherlands

India

U K

Turkey

Algeria

Argentina

Congo

Kazakhstan

Saudi Arabia

Sources: IMF(GDP), UN

Page 3: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

3 Sources:

Brazil - Banco Central do Brasil

Brazil

GDP: US$2.4 tri (2011)

GDP per capita: U$12,696

South America’s Powerhouse

Brazil represents 50%

of South America’s

total GDP

Page 4: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Brazil – Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics)

1) North Region 2) Northeast Region 3) Central-West Region 4) Southeast Region 5) South Region

Page 5: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

A Country of Contrasts

NORTHEAST

POP – 27,6%

PP – 18%

SOUTHEAST

POP – 42,6%

PP – 51,6% SOUTH

POP – 14,6%

PP – 18,4%

MID-WEST

POP – 7,1%

PP – 6,6%

NORTH

POP – 8,1%

PP – 5,4%

POP=Population

PP=Purchasing Power

Globo presentation to MBAs

Page 6: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Increasing Buying Power

Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular .

Page 7: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

C a n a d a

& B r a z i l

Page 8: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Brazil

Canada’s 10th

Largest Export

Market

Page 9: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

9

Top 10 Canadian Exports

Source: Statistics Canada

Page 10: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Top 10 Canadian Imports

Source: Statistics Canada

Page 11: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

11

Canada-Brazil Bilateral Investments 2011

CDI

C$ 9.8 billion

Sectors:

Agriculture, Mining,

Shopping Centres,

Telecommunications,

Software, Environmental

Ind. Automotive Parts

Brazil is the 12th largest

destination for Canadian

outward investment

FDI

C$ 18.6 billion

Sectors:

Mining,

Steel,

Beverages,

Cement,

Software

Canada is the 6th largest

destination for Brazilian

outward investment

Source: Statistics Canada

Page 12: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Pet Market

Page 13: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

• Ranks as the 2nd largest pet market in the world (after the U.S.A.)

• Has the 4th largest pet population in the world

• Growth of 8.2% in 2014

• Revenues of R$16.4 billion (approx US$5.3 billion)

• Monthly expenditure vary from US$50.00 to US$150

• Dog food expenses may represent from 4.5% to 11% and cat food 1.8

and 4.1 of families’ budget (C and D respectively)

• 50% of pet owners are estimated to still feed pets with leftovers.

• High tax structure, representing approx 50% of the price.

Pet Market Highlights

Page 14: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

• Production of petfood is expected to reach 2.4 million tons in 2014 (increase

of 4.5% over previous year)

• Half of the production comes form the states of Parana, São Paulo and Minas

Gerais.

• Dog food represent 91.1% of the total volume, the equivalent of 470 thousand

tons,

• São Paulo is the largest market in the country, with an estimated population of

14 million pets and 4.800 petshops.

• 225 thousand direct jobs

Industry

Source: Canadian Consulate Analysis

Page 15: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Strong competition from both local and foreign

Language

Logistics

Tax system (impact on landed cost)

Macroeconomic volatility (exchange rates, monetary)

Transportation and infra-structure (roads, ports, etc)

• Regulatory enviroment

Page 16: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Challenges for Doing Business

Source: World Economic Forum, Morgan Stanley LatAm Economics.

Page 17: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Challenges to Canadian Exporters

Strong competition from both local and foreign

Language

Logistics

Tax system (impact on landed cost)

Macroeconomic volatility (exchange rates, monetary)

Transportation and infra-structure (roads, ports, etc)

Regulatory enviroment

Page 18: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Opportunities

• Large country with an expanding population, rising salaries and a favored

market for foreign investment in the region, Brazil’s medium-term prospects

remain encouraging

• Increasing demand for value-added products

• Increasing exposure of Brazilians to foreign cultures and products

• Shophisticated and expanding retail sector

Page 19: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

Pocket guide to understand Brazilians

What Brazilians say: Yes (Sim) What foreigners hear: Yes

What Brazilians mean: Anything from yes through perhaps to no

What Brazilians say: Perhaps (Talvez) What foreigners hear: Perhaps

What Brazilians mean: No

What Brazilians say: No (Não) What foreigners hear (on the very rare occasion a Brazilian says it): No

What Brazilians mean: Absolutely never, not in a million years, this is the craziest thing I've ever been asked

What Brazilians say: I'm nearly there (Tô chegando) What foreigners hear: He's nearly here

What Brazilians mean: I've left

What Brazilians say: I'll show up later (Vou aparecer mais tarde) What foreigners hear: He'll be here later

What Brazilians mean: I won't be coming

What Brazilians say: Let's stay in touch, ok? (vamos combinar, ta?) What foreigners hear: He'd like to stay in

touch (though, puzzlingly, we don't seem to have swapped contact details)

What Brazilians mean: No more than a Briton means by: "Nice weather, isn't it?“

Page 20: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

What Brazilians say: A hug! A kiss! (Um abraço! Um beijo!)

What foreigners hear: I've clearly made quite an impression—we've just met but he/she really likes me!

What Brazilians mean: Take care, cheers, bye

What Brazilians say: You speak Portuguese really, really well! (Você fala português super-bem!)

What foreigners hear: How great! My grammar and accent must be coming on a lot better than I thought

What Brazilians mean: How great! A foreigner is trying to learn Portuguese! Admittedly, the grammar and accent

are so awful I can barely understand a word... but anyway! A foreigner is trying to learn Portuguese!

By Brazil-based journalists Andrew Downie and Dom Phillips, who contributed items, and Olivier Teboul, a Frenchman living in Belo

Horizonte whose list of "Brazilian curiosities" (in Portuguese) has generated a huge response from amused, and sometimes

bemused, locals.

Page 21: Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY TRADE AND INVESTMENT FORUM Author EMMETLS Created Date 11/27/2014 1:32:04 PM

21

Thank you!

Merci !

Obrigado!

Consulate General of Canada

Av. Das Nações Unidas, 12901

Torre Norte – 16º Andar

04578-000 São Paulo, SP

Brazil

Web site: www.brazil.gc.ca

E-mail: [email protected]