Italian Firm Reaches Latin America

Posted - March 30, 2009

La Finestra’s Next Frontier: Latin America

By Adriana Michael, O.W.N.

It’s easy to think of Latin America as a source for wholesale organic ingredients, but few think of it as a market for high-end European organic foods. Yet improving economies are changing that perspective. As the standard of living rises, so do the occurrences of diabetes, allergies and obesity. Enter La Finestra sul Cielo, an Italian organic pioneer and leading food producer with a heavenly antidote: carefully processed foods that appeal to those who know that prosperity means little without good health.

Spearheading the overseas project to bring La Finestra sul Cielo (in English the name means “window to the sky”) to Latin America is Miguel Angel Montesinos, managing director of the sister company in Spain. Montesinos and his wife, Anna Flo started la Finestra sul Cielo España five years ago, after noticing that Spain did not carry any products such as those of La Finestra’s unique line. The couple took on the challenge of introducing the Italian line first to Valencia. Sales exceeded soon everyone’s expectations. This prompted Marco Merla, managing director at La Finestra’s head office in Italy and the Montesinos to expand operations across Spain. Currently, over 1,200 Finestra products can be found in 1,500 Spanish retail outlets, including organic supermarkets Eco Veritas and Natura Si, with annual sales reported at over 4 million Euro.

The contagious enthusiasm of Montesinos and his passion promoting organics has also opened doors for La Finestra’s line of macrobiotic foods in Portugal. With this market ably covered by Anna , Miguel sees Latin America as the next obvious region for expansion. A target many European organic companies have not considered in the near future.

For Spain, it’s a natural market,” Montesinos says. “If several companies from different sectors such as cars, computers, heavy machinery and consumer goods are doing well in Latin America, why not organic certified foods?”

First stop: Brazil.

In cooperation with distributor Jeffrey E. Sidi La Finestra sul Cielo Espana is now bringing their products to Brazil, first because it has a growing organic market. Second, the government is particularly supportive of the organic sector. La Finestra tested the market with their line of cereal beverages through Pao de Açucar, a local supermarket chain that has identified organic foods as a category of importance. It serves it with a more personal approach than other large conventional supermarket chains. Response to la Finestra’s products at Pao de Açucar has been positive. Careful not to compete with existing businesses in Brazil, however, Finestra will introduce only unique products such as their vegetable and cereal based drinks, spelt pasta and crackers, all milk, egg and sugar-free foods.

“Most of the local businesses concentrate on fresh produce, tropical and exotic fruits, soy and soy-based foods, rice and coffee,” says Sidi. “We will only import foods that don’t compete with local suppliers.” However, although soy-based drinks are already popular there, they are often full of sugar, coloring, preservatives and other undesirable substances that health-conscious consumers avoid. La Finestra’s soy drink line, on the other hand, stands out because of its highly nutritious and natural makeup.

So far, La Finestra sul Cielo Espana has introduced 80 products into Brazil, in spite of the relatively high retail price. Besides the cereal drinks, goods made with quinoa and amaranth have been well accepted “We work with very low margins” says Sidi. “But with over a thousand different products to choose from, we are able to remain profitable in spite of a strong Euro and currency fluctuations”. Montesinos and Sidi are optimistic. They believe one way to the Latin stomach is by introducing health practitioners to their product line.
“Consumers need coaching in the purchasing of organics,” says Sidi. Health practitioners can explain to their patients how gluten, sugar, egg and salt-free foods are important to a balanced diet, while also explaining the health benefits of cereals like kamut and quinoa.

Though a venture still in its infancy, La Finestra products can now be found in 150 Brazilian retail outlets after only one year. In 2009, the young and enthusiastic team targets 300 outlets in Sao Paulo and other main Brasilian cities.

Montesinos already put an eye in other markets to conquer: Colombia, Mexico and Chile. Both men agree that the key to opening up Latin markets is a combination of finding serious entrepreneurs passionate about organics who have a strong financial foundation and a commitment to see a project through, despite economic ups and downs. Looking through heaven’s window on what Montesinos has already accomplished for La Finestra in Spain, Portugal and now South America, success seems deliciously close.