The double-digit growth of the organic sector continues to attract food multinationals, who wish to increase market share. Following the purchase of Canadian vitamin maker Atrium Innovations in September 2017, and the announced purchase of Ecuadorian natural and organic plant-based foods Terrafertil this month, Nestle SA told Reuters it plans to launch its first organic food line in Brazil shortly. The world's largest food company also acquired 68% of Blue Bottle Coffee and Sweet Earth vegetarian foods in September and Chameleon Cold-Brew coffee in November last year.
According to Carine Malher, the Brazil executive manager for dairy and cereals, Nestle is planning to sell 1 million boxes of organic oatmeal and oat bran products in the country this year. Each box of oatmeal and bran with a suggested price of 6.99 Reais (US$2.16), would see the company earning over US$2 million of sales in the first year.
The company's previously unannounced venture into Brazil's organic foods segment is not remarkable in global terms but is undoubtedly an indication of an overall significant move into organics and growth by Nestle.
The giant food company is considering acquisitions that would increase their presence in the country's nascent organic foods market. Malher noted that the company was actively developing organic products in various "distinct units" in Brazil. There are plans to launch organic milk offerings in the first quarter of 2019, and already has an internal start-up in Brazil developing organic-based snacks.
Malher also reported to Reuters that "We have the oats, we have the organic milk, and we have more business units working on other products, so there is a commitment to more organic offerings." She confirmed that Nestle already has a distribution contract for the new organic line with the supermarket chain Pao de Acucar, owned by GPA, one of Brazil's two major food retailers, and plans to sell through other outlets.
GPA, controlled by France's Casino Guichard Perrachon SA, confirmed the contract but declined to comment.