Foreign investment in Brazil has grown in the past year, with French company Monin beginning construction on a factory in the country to cater to the growing consumer market. Despite rising costs and a difficult exchange rate, Monin’s CEO Alexandre Boyer is confident in the company’s long-term investment strategy, which includes investing R$ 350 million in the factory. Monin aims to capitalize on Brazil’s robust domestic consumption market while also expanding sales to neighboring countries. The company’s decision to open a commercial office in Brazil in 2017 and shift focus to signature products with higher margins has helped to increase sales. Monin offers more than 120 flavors to the national food service and has factories in other countries, including France, the United States, Malaysia, China, and Russia.
The Brazilian market has drawn foreign investors, and there is no lack of willingness from foreign capital to contribute to Brazil. B3 CEO Gilson Finkelsztain praised foreign interest in the Brazilian capital market, which is currently the best among emerging markets. The article also discusses Monin’s future plans to open factories in India and Africa.
Additional piece:
The decision by Monin to invest in Brazil highlights the country’s growing appeal to foreign investors. Brazil’s potential and increasing stability in recent years have led to more significant foreign investment, particularly in the technology, energy, and healthcare sectors. Recent reforms, including the pension reform and changes to labor laws, have made the country more business-friendly, and the government has made efforts to simplify the regulatory environment to reduce bureaucracy. Furthermore, a large domestic market and an educated workforce incentivize companies to establish a presence in Brazil.
Despite ongoing challenges, including corruption and political instability, Brazil offers significant opportunities for foreign investors. These include its vast natural resources and a skilled labor force. Of course, investing in any foreign country requires careful consideration of potential risks, such as currency fluctuations and regulatory changes. However, Monin’s decision to invest in Brazil shows that the country is a viable option, and with the right approach, companies can capitalize on Brazil’s growth potential.
As such, it is no surprise that Brazil’s energy sector has recently seen significant foreign investment. Brazil has vast and mostly untapped renewable energy potential, particularly in hydropower, wind, and solar. Additionally, Brazil has the seventh-largest electricity market worldwide and is the largest and most diversified economy in Latin America, making it an attractive investment destination for renewable energy and related technologies.
Overall, Monin’s investment in Brazil signals a growing trend of foreign investors looking to capitalize on the country’s potential. While challenges remain, the country’s vast resources, large domestic market, and improving business climate make it an attractive investment option. As the global economy shifts, Brazil may prove to be a reliable source of growth and opportunity for savvy investors.
Summary:
French company Monin is investing R$ 350 million in Brazil and constructing a factory in the country aimed at serving the growing consumer market. The investment strategy for Monin is long-term, aiming at capitalizing on Brazil’s potential for consumption among Brazilian consumers and to expand sales to neighboring countries. The domestic market is growing, the logistics costs are rising, and it makes sense to be closer to the main markets in the region. The increase in foreign investment in Brazil has given the country a boost in the technology, energy, and healthcare sectors, making it more business-friendly. Despite ongoing challenges and potential risks, Brazil offers significant opportunities for investors, particularly in renewable energy, due to its abundant resources, large domestic market, and improving business climate. Foreign capital investments in Brazil demonstrates the country’s growing appeal to international companies.
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Almost three years ago, the French company Monin made the decision to take a definitive step towards its operation in Brazil, with the installation of a factory in the country. The works started just this month and should end in the third quarter of 2024, in a total investment of R$ 350 million.
Despite not insignificant figures, it is noteworthy that Monin, a company that produces syrups and other aromatic solutions for bartenders, chefs and baristas, maintained its investment plan in the country, despite a higher cost of capital and a tougher scenario exchange rate around the world since the end of 2020.
“Our thinking is long term, we are not making a decision thinking of a one-year return. We had a well-calculated strategy and it makes sense for us, ”he explains to infomoney Alexandre Boyer, general director of Monin in Brazil, who also recalls that the contribution will be financed with capital, a tactic used by controller Olivier Monin in other countries.
Maintaining the growth strategy in Brazil, currently the fifth largest country in terms of company revenues with an expected revenue of R$ 200 million this year, has to do both with the potential for consumption among Brazilian consumers and with the Possibility of expanding sales to neighboring countries. .
“Brazil is a giant market for consumption, it is a town that likes to consume. We have endless possibilities here and it was our duty to be vigilant,” says Boyer. “We are at a time when the logistics cost is only increasing. It makes sense for us to be closer to our main markets”, he adds.
The sale of products, which was previously done through occasional imports, evolved into the opening of a commercial office for the group in 2017. The change in strategy for restaurants and bars, for more signature products and with higher margins, helped Monin to leverage your sales. Currently, the company offers more than 120 flavors to the national food service.
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Foreign investors have given preference to Brazil at a time when macroeconomic indicators point to a convergence towards a drop in short-term interest rates, in contrast to other global economies, which continue on their path of monetary tightening.
Recently, the infomoney it showed that there is no lack of willingness on the part of foreign capital to contribute capital to Brazil. B3 CEO Gilson Finkelsztain is excited by foreign interest by the Brazilian capital market –the best among the emerging markets at the moment–, same assessment made by the president of the EurochambersGraziano Mesana.
In addition to Brazil, under construction in the São Paulo city of Itu, Monin has seven other factories: two in France, two in the United States, one in Malaysia, one in China and another in Russia, which is closed due to the war. in Ukraine. There are around 150 countries served. For the next few years, plants are planned in India and Africa.
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‘Possibilidades infinitas’: por que a Monin investirá R$ 350 milhões no Brasil
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