SIG Combibloc breaks into South American juice market

By Guy Montague-Jones

- Last updated on GMT

Related tags Sig combibloc South america United states

SIG Combibloc has signed its first deal with a juice drink maker in South America as the carton pack manufacturer looks to grow its presence in the region.

Grupo Schincariol, the Brazilian soft drinks firm, has begun to pack its Fruthos and Skinka juice products in 1l combiblocMidi aseptic cartons. The company has also invested in the SIG Combibloc CFA 810 filling machine to pack the cartons.

Regional priorities

For SIG Combibloc the deal with Schincariol follows on from a strategy of expansion in emerging markets that began in Asia and has most recently led to a €90m investment in a new packaging plant in Brazil. Construction of the site in the southern state of Parana is underway and production is due to begin in the second half of 2011.

Norman Gierow, global market segment manager NCSD, told “During the 1990s, SIG Combibloc focused its strategic activities in Asia. This was followed by strong activities and investments in the Middle East.

“With the decision to establish a packaging plant in Brazil, SIG Combibloc is pursuing its strategy to generate international growth outside Europe. Brazil provides very promising growth opportunities.”

This growth potential is built on high levels of economic growth in the country – GDP is expected to grow 5.5 per cent in 2010.

SIG Combibloc said it expects Brazil and South America generally to make big contributions to global growth in aseptic carton demand over the coming years.

Growth predictions

Gierow said that from now until 2012 South America is expected to account for 30 per cent of global demand for milk in aseptic cartons and 40 per cent of world demand for carton packed soft drinks.

In other terms, market research firm Canadean predicts that total demand for carton packed products in South America will rise from 8bn litres in 2008 to 9bn litres this year and 10bn litres by 2012.

SIG Combibloc has only just entered the aseptic carton market for juice, which accounts for about 15 per cent of beverage carton consumption in Brazil. But it has established more of a foothold in the liquid dairy market, which accounts for the other 85 per cent of demand.

Gierow said: “Today, dairies that are active throughout the country, such as Itambé and BRFoods, are also customers of SIG Combibloc Brazil, along with regional market leaders such as Cemil, Frimesa, Govida, Complem and Piá.”

Related topics Processing & packaging Juice drinks

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