1. ADM 729 – Brand Management
Bazzar Challenge #4
Adrien Bourzat
December / 2010

2. Index
I.
Introduction............................................................................................................................ 1
II.
Management of restaurant and food businesses ............................................................ 1
III.
Global Strategy ..................................................................................................................... 3
A.
Entry into the US Market ..................................................................................................... 4
B.
Entry into Mercosul Market ................................................................................................. 6
IV.
Conclusion ........................................................................................................................... 10
V.
Exhibits................................................................................................................................. 11
A.
Exhibit 1 – Top Word Associations with Bazaar According to the Word
Associations Network .................................................................................................................... 11
B.
Exhibit 2 – Average Retail Prices of Beverages (Off-Trade) ....................................... 11
C.
Exhibit 3 – Average Retail Prices of Packaged Coffee ................................................ 11
D.
Exhibit 4 – Average Retail Prices of Packaged Foods ................................................. 12
E.
Exhibit 5 – Market Size of Beverages (Off-Trade) ........................................................ 12
F.
Exhibit 6 – Market Size of Packaged Coffee ................................................................. 13
G.
Exhibit 7 – Retail Market Size of Packaged Foods ....................................................... 13
H.
Exhibit 8 – Bazzar current and proposed operational model ...................................... 14
I.
Exhibit 9 – Proposed Bazzar Growth Strategy .............................................................. 14
J.
Exhibit 10 – Paraguay demographics ............................................................................. 15
K.
Exhibit 11 – Paraguay Food Budget Shares.................................................................. 15
L.
Exhibit 12 – Chileans and Food ....................................................................................... 15

3. I.
Introduction
Bazzar is experiencing different moments in its main businesses. Regarding the food business, it has a wide
spread coverage in many states of Brazil. As for the restaurant business, Bazzar is living a period of brand
recognition among the target customers in Rio de Janeiro. Meanwhile, the company has short-term plans to
expand both its businesses.
Two major challenges are examined in this study: defininghow should Bazzar manage its restaurant and food
businesses and how can each business reinforce each other; and proposing a global strategy for Bazzar,
specifically, defininghow to launch the Bazzar brand in the US and in Mercosul.
II.
Management of restaurant and food businesses
Bazzar‟s businesses stand for a brand encompassing different products and services. To develop an
approach for reinforcing the brand and its businesses, one should consider the most important aspect in
reinforcing brands: the consistency of the brand nature and the amount of marketing support the brand
receives.
The consistency proposed does not conflict with performing changes in the marketing program. On the
contrary, it stands for managing the brand equity during the necessary tactical changes in pricing, perceived
quality, product attributes, communications and brand extensions so as to maintain the strategic direction of
the brand. Nevertheless, in order to be successful, the managers cannot overlook the stability of the strategic
positioning of the brand. Moreover, certain key elements should never be abandoned in order to maintain the
brand meaning over time.Although brands should always look for potentially powerful new sources of brand
equity, the priority must be to preserve the current sources since they can be considered as having enduring
value to the brand.
The way that brand equity is reinforced may depend on the nature of brand associations. Bazzar‟s core
associations are primarily related to symbolic and experimental benefits, counting on high perceived quality in
products and services. Therefore, in order to reinforce the brand, Bazzar should focus on expanding the
usage of current products by encouraging new and existing customers to buy more, through advertising
campaigns and well developed communication strategies.
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4. In that sense, the two core businesses of Bazzar have plenty of opportunities to reinforce each other, not only
in Rio de Janeiro where both businesses are based, but also in other states and regions of Brazil, where the
organization plans to expand.
The restaurant business has a strong appeal to the class A (upscale) customers in Rio de Janeiro, especially
in the noblest region of the city, the south area. The delightful cuisine and attentive service along with the
unique atmosphere of the restaurant provide a pleasant customer experience and create associations with
joy, exclusivity and status.Moreover, the upscale appeal of the restaurant also provides a high-end gourmet
experience for the customers and develops the habit of valuing and consuming upscale products, which
reminds customers of the pleasant moments experienced in the restaurant.
As for the food business, in Rio de Janeiro, where both businesses are currently developed, it represents a
huge opportunity for Bazzar to capture new customers, who might feel reluctant to try the restaurant in the first
place. In this sense, the home trial works as an incentive for new restaurant customers. Furthermore, the food
business increases contact with potential and actual customers leveraging brand recognition and developing
brand fidelity in both of the businesses.In other states, where Bazzar works solely with the food business, the
underlying opportunity is to feel the demand for upscale products and to understand the viability of expansion.
Once the expansion is considered viable and the plan is put in place, the food market works as a door opener
for the restaurant business.
Regarding the operational model, the growth plan determines strategic re-organization to achieve synergies
and to ensure that the company will focus on the core competences and will not be overwhelmed by
operational decisions. Therefore, we propose a few changes (see Exhibit 8). One of the suggestions is to
create a marketing department to manage campaigns, promotions, pricing and channel strategy throughout
the country, ensuring consistency of communications and the brand strategy. Another important
organizational change is to define a unique supply chain department encompassing the logistical company to
serve both food and restaurant businesses. Despite the differences in amount purchased, frequency of
deliveries and diversity of the products, a structured department will allow economies of scale for Bazzar by
increasing synergy, reducing re-work and developing stronger relationships with the suppliers.
Regarding the growth strategy for Bazzar, we recommend a phased approach in order to conquer the markets
consistently (see Exhibit 9).The first phase, estimated to last about 3 years, encompasses expanding the
restaurant businesses to the states which have high demand according to market research and good
2

5. acceptance of the products. Moreover, the organization should focus on developing a stronger connection
between the restaurant and food business in Rio de Janeiro by implementing stronger communication and
below-the-line promotions in order to reach the target customers.
Having acknowledgedthe receptivity of the new restaurant markets (São Paulo and Minas Gerais) and the
performance of the strategy for strengthening bonds between restaurant and food businesses in Rio de
Janeiro, the company will have all the elements to begin the second phase, which encompasses increasing
usage in São Paulo and Minas Gerais and expanding abroad (the elements of the expansion abroad will be
better detailed in section III). While the strategy applied in Rio de Janeiro might require a few changes to fit
the new markets, Bazzar‟s experience in Rio will certainly provide a good level of information in order to face
the new challenges. In that sense, applying below-the-line marketing actions is the advised approach for São
Paulo and Minas Gerais. Once the brand is established and the profits begin to increase, an approach with
above-the-line institutional marketing programs is the next step for full establishment of the brand in the
national market.
The third phase stands for extending the global strategy as described in section III. The robust base in Brazil
and strong bond between its core businesses will allow Bazzar to develop a smooth and highly focused global
strategy. Furthermore, it is important to remember that international economic instability is another variable
that requires a more conservative approachwhile analyzing the best timeframe for going global.
III.
Global Strategy
The bookBrand Management by Kevin Keller explains many considerations to apply when planning a global
brand strategy. The book starts by explaining the advantages of global marketing in terms of economies of
scale, lower total marketing costs, power and scope, brand image consistency, speed to market, and
uniformity of marketing practices. The disadvantages to the global marketing program come in ignoring the
differences between cultures, wants, needs, and advertising reactions across geographies. A single marketing
program used across the globe also ignores the differences in competitive and legal landscapes between
markets. Particularly for the US market, Bazzar may need to regionalize its brand. Per Keller, the steps to
crafting a global brand strategy are to: 1) identify differences in consumer behavior and 2) adjust the program
accordingly through the choice of brand elements and marketing activities.
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6. A. Entry into the US Market
1) American associations with the brand
Following Keller‟s recommended structure to defining a global brand strategy, one must first seek to
understand how Americans will perceive the current Bazzar brand. According to dictionary.com, Americans
apply three definitions to the word „bazzar,‟ spelled „bazaar‟ in English: a marketplace or shopping quarter,
especially one in the Middle East; a sale of miscellaneous contributed articles to benefit a charity, cause, etc;
and a store in which many kinds of goods are offered for sale.
Bazzar is also cited as being commonly confused with the word „bizarre‟. Next, the Word Associations
Network at wordassociations.net explores American associations with the word bazaar. The two most
common word associations are awning and camel which reinforce the dictionary.com findings that Americans
sense a Middle Eastern connotation in the word bazaar. See Exhibit 1which shows the top twenty
associations and marks those that possess a Middle Eastern skew. Since the Bazzar brand is Brazilian, a
Middle Eastern association is likely to confuse the American consumer who will not perceive a clear
relationship between the two geographies. Due to the variety of unintended associations, Bazzar should
select a different brand name for the American market.
2) Marketing plan for packaged goods
Positioning.Due to different perceptions between the Brazilian and American consumers, separate
positioning should be applied between the two markets. In the Brazilian market, Bazzar represents comfort
food with quality and charm and products in grocery stores compete with high-end gourmet import products.
The high-end gourmet market is already saturated with strong brands in the US and the grocery store chains
may not give shelf space to a new Brazilian entrant. Bazzar should position as authentic, exotic, quality
Brazilian in the US market moving into the international food niche. The country of Brazil is increasingly
entering the minds of Americans through business, news, and sports. When Bazzar enters the American food
product market, the association to Brazil should become the leading brand element since it will play to
American curiosity.
Product Mix.Americans associate different countries with unique strengths in food preparation. The challenge
will be to modify Bazzar‟s product mix or select products from the existing product lines to fit into the food
niches that Americans associate with the Brazil. Americans see Brazil as being strong in the following food
4

7. types: coffee, sugar, meat, and exotic fruit. Exhibits 2-7 in the Appendix show the size and growth of the
American markets for each area in which Bazzar has products. The data is from Euromonitor‟s Global Market
Information Database.
Our academic team‟s understanding of the existing coffee joint venture is that the coffee is only to be sold in
the domestic Brazilian market. An additional joint venture might be pursued to deliver coffee to the American
market. The wet sauces that Bazzar produces for cooking meat should be successful because Americans see
meat preparation as a Brazilian strength. However, Bazzar should steer away from tomato based sauces
which Americans associate with Italy and curry-based and teriyaki-based sauces which Americans associate
with Asia. Similarly with the ice cream sauces, Americans do not associate Brazil with ice cream, chocolate,
raspberries, or strawberries but they do associate Brazil with exotic fruits. Passion fruit, guava, and acai for
example are becoming more popular in the US. Bazzar should cater to American perceptions by initially
marketing only the exotic fruit ice cream sauces.
Distribution.The grocery store distribution channel in the US is consolidated under a few large companies
that serve the majority of the US market through regionally branded or nationally branded grocery store
chains. Niche stores like Whole Foods, Trader Joes, and Cost Plus World Market all offer large selections of
foreign gourmet food products like Bazzar‟s product. Consumers go to each of these stores to find gourmet
products that are interesting and healthy and the shelved products are not as mainstream as the typical large
grocery chain. These companies have favorable distribution policies that allow startups to put products on the
shelves locally in one area and then pursue national distribution if success is demonstrated over a period of
time.
3) The restaurant business
In 2009, according to Euromonitor, the American food service market was $425B USD ($1,384 per capita)
and the Brazilian market by contrast was $102B USD ($528 USD per capita). Consumer foodservice is
comprised of cafés/bars, full-service restaurants, fast food, home delivery/takeaway, self-service cafeterias
and street stalls/kiosks. The upscale comfort food restaurant concept that Bazzar uses in Brazil may not
directly apply to the US market because comfort food implies different dishes to Americans. The restaurant
concept would need to shift to be more specifically Brazilian, appealing to those looking for an exotic foreign
meal rather than comfort food.
5

8. Bazzar should not initially pursue the expansion of the restaurant or café business into the United States. The
1
American restaurant market is highly competitive with a failure rate of 60% within 3 years and an average of
2
$500k-$1M USD required in startup capital. Since the Bazzar founders are local to Brazil, the startup capital
required would be larger, the understanding of the American consumer would be lower, and local control may
be more difficult leaving Bazzar to face greater risk and higher costs than competitors.
B. Entry into Mercosul Market
1) Paraguay
Potential market – Segmentation and targeting.The total population in Paraguay is around 6.349.000 and
the gross national income represented$27.678.156.100 in 2009. The GDP on a per capita basis is around
$4,700 but the real income has stagnated at 1980 levels. The population can be divided into several income
classes (from A to E) – see Exhibit 10. Since the top 10% of the population holds 43.8% of the national
income, Bazzar would need to target the AB+C1 income classes, which represent high income consumers.
So the target segment represents 634.900 people.These people usually live in the best neighborhood in
Paraguay, especially in the Capital Asuncion. AB classes accounts for 3% of Asuncion population (C1= 7%,
C2 = 20%, C3 =25%, D = 35% and E= 10%), therefore making Paraguay really small market opportunity, not
being considered as a priority in the Mercosul Region.
3
Food budget.The total food expenditure represents on average 27% percent of total expenditure (see
Exhibit 11). Paraguay is the country in the world where population spends the most to buy meat in their total
food budget. Every kind of products related to meat would be relevant to launch on this market.
Food imports. Total Imports in Paraguay represent $6.886 billion in 2009. Brazil is the leading economic
partner with Paraguay. In 2009, Brazil accounted for 28.36% of Paraguay‟s total imports while US is around
22.76%, Argentina 15.98%, China 8.96%. We can estimate that Brazilian products sold in Paraguay represent
$1,952 billion. Food imports in Paraguay account for 7% of total imports. Therefore food importation from
1
University of Ohio study published in the Dayton Business Journal, 1999.
Leonard, Ashley. “How to Plan a Restaurant Business.” eHow.
2
3
http://www.ers.usda.gov/Data/InternationalFoodDemand/RERUN.ASP?RUNID=344401015&RSTYLE=1&VIEW=FBS&FIL
ETYPE=None&Country=Paraguay&Commodity=All%20commodities
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9. 4
Brazil represents a market of $136.640. This figure shows that Paraguay does not import as much food from
Brazil as appears at first sight.
Positioning. The company should focus more on premium products than on the provenance of its products
due to two main factors. At first, people are not familiar with Brazilian food. Few Brazilian foods are already
sold in Paraguay. Secondly, as an American country, Paraguay enjoys the same resources than Brazil. This
means that Bazzar cannot place emphasis on the provenance of its products.
Marketing Mix
Products.The firm should first produce condiments to be prepared with meats. Then it could sell other kinds
of premium products that are difficult to obtain in Paraguay such as Açai, achieving a competitive advantage
over local food producers.
Price.Bazzar should be aware of the fact that Asuncion is considered as the cheapest city to live in the world
The city has ranked as the least expensive city to live in for five years running by Mercer Human Resource
5
Consulting . A Very high premium price would not meet demand because people are used to buy things
cheaply.
Distribution. Bazzar products should be distributed in areas where high income people are gathered. The
best neighborhoods of Asuncion are located in the old town.
2) Chile
Segmentation and targeting.The total population in Chile was around 17,094,270 in 2010. Concerning the
economy, Chile has a GDP of $243.569 billion that has contracted an estimated -1.7% in 2009.People can
also be divided into income class (A, B, C1, C2, C3, D). The richest 10 percent of the population obtains 46.1
percent of the national income. Bazzar‟s products should target these 10% of the total population to meet the
high income consumer‟s needs. In Chile, a typical household earns$3,000 USD per month for C1, close to
$10,000 USD per month for B, and requires one to be a very significant multimillionaire to be an A. The target
has very high purchasing power.
However, Chile‟s rapidly increasing GDP and recent copper boom have provided Chileans with a sense that
economically they are doing better than they actually are. The result has been people accumulating massive
levels of personal and household debt to pay for the lifestyle they are convinced they should be living. The
4
http://www.tradingeconomics.com/paraguay/indicators/
5
http://www.mercer.com/referencecontent.htm?idContent=1268475
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10. upper class aspires to a lifestyle they cannot afford andto pay for it, they are put into debt. In Chile, people can
pay all at once or in installments which allow the middle class to buy premium products such as Bazzar‟s
products in order to reach the social status they could not otherwise afford.The “ABC1” class lives in the
biggest cities in Chile, especially in Santiago (5.4 millionpeople), Greater Valparaiso (803,683 people) and
Greater Concepción (666,381 people).
Food industry and imports. Food imports in Chile represent 7% of the total imports of the country, reaching
$54.6 billion in 2010. Import partners are the US 15.6%, Argentina 12.6%, Brazil 11.8%, and China 9.7%.
Brazilian imports account for $6.44 billion. In terms of food imports from Brazil we can estimate that it
represents a market of $450.000.
Chileans and food.Chileans spend 23% of their budget to buy food (see Exhibit 12). Among these
expenditures, 21% is dedicated to buy meat and they consume as much meat as breads and cereals. Chile is
a major beef producer which explains the low expenses on meat.Chileans normally eat four times a day. The
first meal of the day is breakfast, which consists of light fare including toasted bread with butter and instant
coffee with milk, then lunch, and then an afternoon tea once each afternoon with bread and jam that often also
6
includes cheeses and palta (avocados). People consume more tea than coffee in Chile . Therefore, the
products that are more likely to succeed in Chile are condiments associated with meat and tea.
Distribution.Class differences are primarily expressed in the strong spatial segregation that exists in large
Chilean cities. Bazzar should be careful to distribute products in the right cities and neighborhoods such as
Providencia or in the wealthy neighborhood of Las Condes in Santiago which gather high-income consumers.
There are four distribution chains in Chile (three domestic and one foreign) that have 52% of the market in
2007: D&S (domestic), Santa Isabel (foreign) Jumbo (domestic) and UNIMARC (domestic). In contrast with
countries like Brazil, Mexico, and Argentina, the participation of foreign chains such as Royal Ahold and
Carrefour is still relatively small. This can probably be explained by the fact that the large multinationals
prioritized those larger markets.
3) Argentina
Segmentation – Targeting. Argentina is one of the key players in the Mercosul Region. With an estimated
population of 40.5 million is the second biggest market in the area. The GDP per capita $13,400 and the
country‟s GDP $351 billion, that contracted the last year. The per capita GDP is just behind Chile. Moreover,
6
http://www.faqs.org/nutrition/Smi-Z/South-Americans-Diet-of.html
8

11. socioeconomic levels in Argentina are distributed as follows: ABC1C2 – 34.3%, C3 – 29.5 %, D1 -17.4% D2 –
9.8 %, E – 9.0%. Food and non-alcoholic beverages represent around 61% of the monthly expenditures in
Argentina.
Lately Argentina have been overcoming several economic crisis from 1999-2002. Argentina was subject to
military dictatorship for many years and as well as a dollarized economy. This had a big effect on the
distribution of wealth and the wealth gap between the 10% poorest and the 10% richest among the
population, grew continuously since 2001, and decreased for the first time in March 2005. The richest classes
in Argentina mostly live in the Buenos Aires Federal Area. This class distinguishes of from the rest that they
enjoy having great food without thinking about the price. Proud of their Italian and French origins enjoy the
fact of eating and having fun around eating experience. Therefore, this opens the doors to an upscale
distinguished brand like Bazzar and defines Argentina as the top priority for the Mercosul expansion.
Imports. Brazil represents 31% of the $37.13 billion imports. This is due to the economic treaty with the
region. Nevertheless, a protectionist approach has been taking place for several months by restricting food
imports in order increase domestic consumption. Food that fit on the import ban represents 1.6 % all imports,
but crucially, 45% of that total represents imports from Brazil(85 Million).We have to check on this issue this
means that taxes can wave Bazzar products out of the market.
Argentinean cuisine: One of the biggest producers of meat around the globe. The Argentinean cuisine is
highly influenced by the French, Italian and Spanish. Main Argentinean dishes are grilled meat (asado),
empanadas, dulce de leche, alfajores, bread and the Mate tea. The Argentinean will always have bread on
the table which they put some spread on. This is an opportunity for the salty sauces like the mustard. A big
trend in the Buenos Aires region are the ice cream stores specially gelatos and frozen yogurts. This makes a
really big opportunity for the sweet line of products.
Distribution. Most of the distribution is done through smaller convenience stores within the city. Gourmet
food represents 3% of the total supermarket sales. There are several international retail stores like Carrefour
and Norte together represent 30% of market share with 200 stores, Jumbo and Disco 23% with 233 stores
and Coto 16% with 102 stores. We should focus on the major supplier in upscale markets in Buenos Aires
area as well as small grocery stores.
4) Uruguay
Segmentation – Targeting. The smallest population in the Mercosul region consisting of 3 million. The
9

12. capital city is Montevideo is the most populated with 1.3 million. Even though is the smallest population it has
a good GDP per capita at $12,600 (higher than the Brazilian one). Just 5% of the current population fit in the
A class sector, therefore making Uruguay a really small market opportunity, not being considered as a priority
in the Mercosul Region.
Imports. The trading balance is negative as Uruguay is importing more than what they are exporting. They
import industrial supplies, machinery & equipment, oil & fuels, non- durable consumption goods. And export
mainly food(Meat, grains, dairy), textiles and leather. Brazil represents the second largest importer just after
Argentina, with the estimated 17.5%.
With the opening of the economy, many of the small and inefficient local food industries were closed. There
are opportunities to export many food products to Uruguay, but particularly those in which the local industry is
not very competitive. Imported food products, especially from Brazil and Argentina, are substituting for many
domestically manufactured products. On the other hand, the wealthiest part of the society want to have
imported product a sign of status.
Uruguayan cuisine: Uruguayans as all of South American countries focus on the consumption of meat as
one of the main sources for food. We should look into the savory sauce segment.
Distribution. Supermarket penetration is really small is about 40% with 3 major supermarket chains Disco,
Devoto and Tienda Inglesa. Most of the sales are done through specialty stores. Most import good are sold
through these kinds of stores which have no chain (40 in Montevideo and 30 in Punta del Este).
IV.
Conclusion
This paper has provided the academic group to explore opportunities of enhancing and developing the brand
and the businesses of Bazzar. Throughout the paper, the group could identify the common thread between
the businesses (food and restaurant) and the synergy opportunities. Developing a structured approach for a
global expansion, comprising branding and marketing strategies, was a challenge that led the group onto
important conclusions as the choice of countries to expand, the brand name associations, the best time frame
as well as determining the regional appeal for different products. Finally, we understand Bazzar, which enjoys
good brand recognition along with high quality products and services, has a promising future inside and
outside Brazil.
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13. V.
Exhibits
A. Exhibit 1 – Top Word Associations with Bazaar According to the Word Associations Network
Number
Word
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Awning
Camel
Selling
Bustle
Merchant
Eastern
Shop
Whip
Bought
Market
Famous
Sell
Pipe
Folk
Buy
Slave
Street
Crowd
Worth
City
Potential Unintended Middle Eastern
or North African Associations
X
X
X
X
X
X
X
X
B. Exhibit 2 – Average Retail Prices of Beverages (Off-Trade)
2009 Pricing
$USD/liter
White Spirits
Brazil
USA
Still Bottled Water
Brazil
USA
Carbonated Bottled Water
Brazil
USA
11.86
15.18
0.25
0.61
0.65
1.14
C. Exhibit 3 – Average Retail Prices of Packaged Coffee
2009 Pricing
$USD/kg
Fresh Coffee
Brazil
USA
Instant Coffee
Brazil
USA
4.78
11.35
23.49
32.45
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14. D. Exhibit 4 – Average Retail Prices of Packaged Foods
2009 Pricing
$USD/kg
Wet/Cooking Sauces
Brazil
USA
Pasta Sauces
Brazil
USA
Table Sauces
Brazil
USA
Tomato Pastes and Purées
Brazil
USA
Vinaigrettes
Brazil
USA
Salad Dressings
Brazil
USA
Soup
Brazil
USA
Chocolate Spreads
Brazil
USA
Chocolate Confectionery
Brazil
USA
6.67
12.85
3.16
4.96
8.54
6.91
2.59
3.40
13.00
8.78
8.54
8.39
19.27
3.73
11.31
9.37
14.76
11.25
E. Exhibit 5 – Market Size of Beverages (Off-Trade)
mn liters & $mn USD
Per Capita
Liters & $USD
2006
White Spirits
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Still Bottled Water
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Carbonated Bottled Water
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
2007
2008
2009
2010
2009
26
224
403
5,914
27
269
425
6,245
26
288
451
6,751
25
300
482
7,322
27
359
506
7,722
0.1
1.5
1.6
23.9
3,235
744
19,423
12,053
3,621
967
21,171
12,875
3,879
1,164
20,670
12,578
4,236
1,069
20,008
12,226
4,575
1,190
19,608
11,959
21.5
5.4
65.3
39.9
376
230
409
447
410
284
419
468
425
324
421
472
446
289
417
477
462
307
411
471
2.3
1.5
1.4
1.6
*Current Prices – Year-on-Year Exchange Rates. 2010 figures are forecasts.
12

15. F. Exhibit 6 – Market Size of Packaged Coffee
Tonnes & $mn USD
Per Capita
Kg & $USD
2006
Overall
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Fresh
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Instant
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
2007
2008
2009
2010
2009
552,433
2,673
667,565
6,647
566,825
3,619
661,391
7,069
575,199
3,802
658,400
7,606
587,629
3,234
688,920
8,238
605,970
3,401
723,066
8,962
3.0
16.4
2.2
26.9
531,907
2,232
644,725
6,021
544,015
3,004
640,395
6,460
552,427
3,138
638,508
6,987
564,879
2,699
669,232
7,599
583,041
2,851
703,411
8,296
2.9
13.7
2.2
24.8
20,526
441
22,839
626
22,810
615
20,996
608
22,771
664
19,892
620
22,750
535
19,689
639
22,930
551
19,654
666
0.1
2.7
0.1
2.1
*Current Prices – Year-on-Year Exchange Rates. 2010 figures are forecasts.
G. Exhibit 7 – Retail Market Size of Packaged Foods
Tonnes & $mn USD
Per Capita
Kg & $USD
2006
Wet/Cooking Sauces
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Pasta Sauces
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Table Sauces
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Tomato Pastes and Purées
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Vinaigrettes
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Salad Dressings
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
2007
2008
2009
2010
2009
1.5
8.4
39.6
422.3
1.6
10.5
34.6
415.1
1.7
13.5
35
430.9
1.8
12
35.7
458.9
1.9
15.1
36.4
482.3
0.0
0.1
0.1
1.5
138
372
374
1,734
166
477
372
1,772
182
640
390
1,878
208
657
397
1,968
241
898
401
1,978
1.1
3.4
1.3
6.4
15.9
110
180
1,096
16
131
167
1,095
16.1
147
162
1,107
16.2
138
172
1,185
16.4
163
177
1,226
0.1
0.7
0.6
3.9
179
336
145
419
172
369
147
433
167
488
147
475
170
440
153
519
174
524
159
558
0.9
2.3
0.5
1.7
0.3
2.9
83.1
681.0
0.3
3.5
80.3
668.5
0.3
4.1
79.6
685.2
0.3
3.9
82.4
723.6
0.4
4.6
83.0
735.2
0.0
0.0
0.3
2.4
3
22.4
153
1,215
3.3
28.4
149
1,187
3.5
35.0
145
1,192
3.7
31.6
147
1,235
3.8
38.0
146
1,231
0.0
0.2
0.5
4.0
13

16. Soup
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Chocolate Spreads
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
Chocolate Confectionery
Brazil Volume
Brazil RSP Value
USA Volume
USA RSP Value
11
166
1,321
4,327
13
227
1,308
4,457
15
292
1,323
4,686
17
333
1,280
4,780
20
438
1,276
4,826
0.1
1.7
4.2
15.6
6.0
55.2
2.2
19.1
6.1
66.0
2.3
19.8
6.2
73.3
2.5
21.9
6.4
72.4
2.7
25.3
6.5
83.8
2.8
27.2
0.0
0.4
0.0
0.1
192
2,184
1,681
15,778
225
2,898
1,660
16,166
242
3,517
1,613
16,530
240
3,542
1,515
17,046
256
4,542
1,401
17,627
1.2
18.3
4.9
55.6
*Current Prices – Year-on-Year Exchange Rates. 2010 figures are forecasts.
H. Exhibit 8 – Bazzar current and proposed operational model
I.
Exhibit 9 – Proposed Bazzar Growth Strategy
14

17. J.
Exhibit 10 – Paraguay demographics
90
100
52
48
50
10
0
AB + C1
C2 + C3 + D + E
% of the population
%Gross national income
K. Exhibit 11 – Paraguay Food Budget Shares
10
11
15
34
10
Beverages & tabacco
breads & cereals
dairy
fats &oils
fish
fruits & vegetables
meat
13
3
4
others foods
L. Exhibit 12 – Chileans and Food
Country
Beverages
tobacco
Chile
13.414
& Breads
cereals
21.483
&
Dairy
Fats &
Fruits
&
Other
Fish
Meat
oils
vegetables
foods
11.193 4.595
2.063 17.334
21.791 8.127
Total
food
expenditure
22.961
7
7
Source: USDA, Economic Research Service, using the 1996 ICP data. From the ERS report Cross-Price Elasticities of
Demand Across 114 Countries (TB-1925)
15