Nestlé launches social impact cereal bar

Nestlé inaugura Empório com produtos de todas as marcas em sua nova sede

Nestlé launched on Wednesday its first social impact food: a cereal bar with sale profits going entirely to NGO Gerando Falcões, which fights poverty in 1,700 poor neighborhoods in Brazil.

Called Gerando Falcões bar, the product is a global novelty of the multinational, present in 83 countries, and will initially be sold only on the internet, on platforms Mercado Libre and Empório Nestlé. “This is the first of many. My dream is to one day see, in supermarkets, exclusive shelves with all kinds of products, chocolates, cookies, coffees, whose profits are donated to social transformation,” said Nestlé Brazil CEO Marcelo Melchior.

The initial expectation, according to Carolina Sevciuc, head of digital transformation at Nestlé Brasil, is to generate R$1 million monthly, which will be allocated to the NGO´s iniciative Favela 3D.

The Favela 3D project — “dignified, digital and developed” — aims to restructure Brazilian poor neighborhoods to promote transformation through income generation, housing, citizenship, health, culture, education, and entrepreneurship programs.

This is the second major partnership announced by Gerando Falcões in less than two months. In December, Ânima Educação announced it will invest in courses in the communities where the project is being developed: Marte, in São José do Rio Preto (São Paulo state); Vergel, in Maceió (Alagoas state); Morro da Providência, in Rio de Janeiro; and the Boca do Sapo neighborhood, in Ferraz de Vasconcelos, Greater São Paulo.

“This initiative with Nestlé opens the way and will accelerate the development of social technologies. It can lead other companies to also want to create similar products, with actions that are institutionalized, that last,” said Eduardo Lyra, founder and CEO of Gerando Falcões.

According to Mr. Lyra, the NGO is supported by Kayma, an Israeli company run by Dan Ariely, a prestigious researcher in psychology and behavioral economics. The company specializes in creating digital solutions and methodologies that will help measure and assess the impacts of Favela 3D. “The goal is that it can be replicated in all the favelas in Brazil.”

The creation of the cereal bar involved the participation of 60 people, including employees of Nestlé and the NGO. There were more than 40 ideas presented, until reaching 12 final concepts that resulted in the bar. “We are starting sales through online channels because we don’t want to make this a chicken flight, but a hawk flight. We want all this learning, whether in distribution, in the price point, or in the investment made, to help us build something bigger, with sales that reach the whole of Brazil,” said Mr. Melchior.

According to Instituto Locomotiva, around 17.1 million people live in Brazilian favelas, equivalent to 8% of the population. Added together, they would form the fourth most populous state in the country, behind only São Paulo, Minas Gerais and Rio de Janeiro.

Source: Valor International

Nestlé to invest R$500m by mid-2021 to expand production

Nestlé plans to invest R$500 million over the coming year in its confectionery business in Brazil, which makes chocolate and cookies. During the first phase, R$200 million will be injected into the Garoto brand’s plant in Vila Velha, Espírito Santo. Another R$200 million will go to Nestlé’s chocolate plant in Caçapava and R$100 million to its cookie plant in Marília, both in the state of São Paulo. “For us, the recession never came. We have even managed to create 550 new permanent and temporary jobs for our two chocolate plants and 100 for the cookie plant,” says Liberato Milo, head of the chocolates division at Nestlé Brasil.

Source: Valor International

Coffee consumption at home creates opportunities for companies

The demand for coffee is likely to take time to recover from the impact of the pandemic, even as cafes and restaurants are open again in large cities such as São Paulo. “The expectation for the coming months is to maintain the levels of consumption at home, but outside the home the recovery will be slow,” says the head of the Brazilian Association of Coffee Industry (Abic), Ricardo Silveira. According to him, in recent months the increase in home consumption has not fully compensated for the drop in sales in cafes and restaurants. But companies are betting on higher-end products for consumption at home. Nestlé, for example, is investing R$151 million in the Nescafé, Dolce Gusto and Starbucks brands in 2020, focusing mainly on premium products. Suplicy, for its part, seeks ways to survive the crisis after a 90% drop in sales in the first quarter due to social distancing measures. The company’s roasting facility saw production fall to 12 tonnes of beans per month. “Our expectation was to grow 40% this year, but I think we will shrink 30%,” CEO Felipe Braga says.

Source: Valor International