Glassware manufacturer holds less than 1% market share in the U.S.

03/11/2024

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“Copo americano,” or “American glass cup” is one of the company’s hallmark products in Brazil — Foto: Divulgação

A leader in the Brazilian glass household utensils market, the century-old company Nadir—formerly known as Nadir Figueiredo, which dropped its founder’s surname two years ago—is aiming to boost its exports to the United States following the expansion of its plant in Colombia.

As a potential candidate for an IPO on B3 and currently under the ownership of the private equity fund HIG, the owner of the Duralex and Marinex brands and the maker of Brazil’s traditional copo americano (“American glass cup”) holds less than 1% market share in the U.S. However, it is optimistic about increasing that to 3% by 2025 through adjustments to meet customer preferences.

In Brazil, one of the company’s hallmark products, the “American glass cup”—which, despite its moniker, is Brazilian and was launched in 1947 by Nadir Figueiredo designed for the tropical climate with a 190 ml capacity, crafted to keep beer chilled—is not expected to be the main export to the U.S. “Americans prefer larger glasses since everything is served in bigger portions there,” stated CEO Patrício Figueiredo, a descendant of the founding family, who is no longer a shareholder following the sale to HIG.

A key strategy for expanding in the U.S. market is leveraging its operations in Colombia. By acquiring Colombian Cristar in 2021, a glassware company previously part of the American O-I Glass group, Nadir has taken advantage of tax benefits for exports to North America through bilateral treaties. “In Brazil, the export tariff to the American market is 28%, but it’s zero from Colombia,” Mr. Figueiredo explained.

Colombia represented 22% of Nadir’s revenue last year, with approximately 70% of its Colombian production now destined for international markets. The country’s geographical advantage of access to the Pacific Ocean and the Caribbean Sea is also beneficial. “We have added two more production lines at the Colombian facility, which should boost the furnace’s capacity by 17%.”

Exports constitute 25% of Nadir’s sales, a figure expected to rise given the U.S.’s consumption potential. The company’s revenue reached R$2 billion last year, marking a 2% increase from the previous year. Nadir caters to both end consumers and the B2B market, being one of the top producers of curd cups, for instance.

In Brazil, the focus for 2024 is on enhancing online sales, which currently account for 0.5% of total sales, especially after the launch of its own e-commerce platform in January for direct consumer sales. “We previously had an e-commerce operation through a marketplace with partners, but we’ve now chosen to bring the operation in-house,” Mr. Figueiredo said.

The company, celebrating its 112th anniversary this year, had previously gone public but delisted in 2020. In 2021, Nadir filed for an IPO but withdrew due to deteriorating market conditions. Now, it is among the firms considering a return to the stock exchange after a two-year hiatus with no new listings on B3.

*Por Silvia Rosa — São Paulo

Source: Valor International

https://valorinternational.globo.com/