Market Potential for Groceries products A Casa Flora Casa Flora has 300 employees and is among the top 3 importers of wine and top 5 food importers in Brazil. The company targets the middle and up market. We have met Mr Adilson Carvalhal Junior, the owner of Casa Flora, one of the top 5 big importers of foodstuffs in Brazil. Casa Flora imports Wines, Whisky, Beer and Foodstuffs. Quality is very important for him and he is ready to try products from Mauritius, provided they are competitive. The comments of Mr Adilson are summarized below: Main sourcing Italy, France, Spain, Greece, China, Turkey. Imports from Latin American countries incur 30% less tax than South Africa because Brazil enjoys preferential tariffs from markets regional trade agreements. Mr Adilson said that according to the Brazilian Institute of Wine, 48% of the population are frequent wine drinkers with 5.2 litres per head and can reach 9 litres in 2025. In fact, Brazil is the second largest wine consumer in Latin America, with 326 Alcohol million litres in 2006, after Argentina. He might consider importing Mauritian beer in market the future. Wine is currently being imported from Chili, Argentina, Portugal, France and South Africa. The fruit paste from Mauritius will not have a big potential in Brazil according to Mr Carvalhal although they taste good. Brazilians prefer fresh fruits to fruit paste. Fruit Fruit Paste pastes available on the market come from Turkey. Canned They are currently importing canned litchis from China and Casa Flora may consider Litchis sourcing from Mauritius if such processed product can be exported to Brazil. B Casa Santa Luiza Casa Santa Luzia supermarket opened some 60 years ago, offering imported and domestic products and located in Jardins, Sao Paulo. It is a very upmarket exotic foodstuffs supermarket with a loyal customer base. The owner Mr Jorge Da Conceicao has proposed his support in helping Mauritius to penetrate Brazil. Casa Santa Luiza imports fresh dates from Turkey and Israel, Figs/Apricots from Turkey, canned food from Greece and Tuna from Ecuador/Portugal It imports canned litchis from Rowland, USA. It imports 60% Wine from Europe mainly Portugal, France, Italy, Spain, and 40% from Chile, Argentina, California, Germany, Australia and New Zealand. C Columbia Trading Columbia Trading is the 2nd largest general wholesaler in Brazil spanning food/non foods, refrigerated cargo with a Group turnover of US$1 billion in 2010. In business for nearly 40 years, Columbia Trading was founded in 1975 with the aim of complementing the service platform offered by Columbia Group. Initially under the name Ibermat, was in 2004 the milestone of a new phase of the company that has undergone organizational restructuring, capital investment and opening branches in São Paulo and Santa Catarina. In 2006 the company established itself in the industry as one of the largest trading companies. It is a partnership between SA and Grupo Columbia RFS. With 165 years’ experience in trading operations of agricultural commodities of its founders, the Columbia Trading has a business division devoted entirely to the purchase and sale of food. Formed by a team of experts who manages a network of suppliers and buyers in over 20 countries, offers a mix of high quality products and certified origin, which is in line with international standards of purity, hygiene and safety. With offices located in the city of São Paulo, Brazil, a leader in providing food, Columbia Trading is a supplier of high reputation for excellence in the purchase, sale and distribution of food to Brazil and other Latin American countries. The company completes the platform of logistics services Group, and offers storage and distribution of high quality and reasonable prices to customers nationwide. With a business division dedicated to assisting industry and retail Fashion, Columbia Trading imports and distributes a range of products from clothing and accessories, with the high quality standards required course for a business chain so specialized. Products marketed by Columbia Trading Meat Chicken Peanuts Beans Milk powder Canned Meat, Sardines and Tuna Columbia Trading imports for some 200 small companies which do not have the import licence and the company has a special licence whereby it gets 5% discount from the government on the ICMS tax (12%). Columbia Trading then passes on 3% of the ICMS discount to the small companies, which represents a good financial incentive than if they were importing directly. Given that cost of living is quite high in Brazil, the government is encouraging traders to practise more competitive price and has thus come up with the ICMS discount scheme medium to big size traders like Columbia Trading. According to Columbia Trading, as at date around 20 companies have this special scheme. Columbia import on behalf of Daslu – the large very upmarket Dept store and many other companies in different sectors. Companies exporting from Mauritius have two main options: if the Importer is a large company it is likely it would have the relevant import license. Secondly, if the Importer is a small company it is likely it would use a Trading company such as Columbia.