Brazil’s presidential elec-

tions are slated to take

place this month, with in-

cumbent Dilma Rousseff

facing off against her

main two challengers in

Aécio Neves and Marina

Silva.

The first round of the

elections are set for Sun-

day, October 5, while a

probable runoff round

would be necessary if no

candidate wins 50 per-

cent of the vote. This like-

ly runoff would take

place later in the same

month, on October 26.

Polls show a very close

race between President

Rousseff and her primary

challenger, Ms. Silva.

Ms. Silva entered the

race late after the plane

crash and death of her

fellow party member

and running mate, Edu-

ardo Campos, in mid

August.

The contest promises to

remain close throughout

the closing stages of the

campaigns, with the

eyes of the country

fixed on the final de-

bates and closing argu-

ments before voters go

to the polls.

Some onlookers will be

relieved at the conclu-

sion of the election cy-

cle. Markets and inves-

tors are likely to calm

once the Brazilian elec-

torate finally decides on

which candidate will be

leading the country over

the next 4-year term.

Presidential elections set for October

Exchange Rate News

The Brazilian real (BRL) depreciated substantially against the dollar over the course of September. The currency is likely to stabilize after volatility sur-rounding the uncertainty of the presi-dential elections passes. At the close of September, the real remained under 2.45 BRL per USD.

SEPTEMBER 30TH

FOREX QUOTES:

USD-BRL 2.43

USD-GBP 0.616

USD-EUR 0.788

USD-JPY 109.43

USD-CNY 6.153

WINERIES SEE POTENTIAL IN BRAZILIAN MARKET

2

HYBRID VEHICLES GAIN TARIFF REDUCTION

2

ORYGEN LOOKS TO SAO PAULO FACTORY

3

AIRLINE INDUSTRY SHOWS LONG-TERM GROWTH

3

TAKEDA TO PLACE REGIONAL HQ IN BRAZIL

4

TRADE SHOWS FOR OCTO-

BER, NOVEMBER, DECEMBER

5

BRAZIL BUSINESS NEWS HEADLINES

6

Inside this issue:

October 2014 Volume 3, Issue 10

Brazil Buzz!

Business news and updates for opportunity seekers

Inteligencia Corporativa Ltda Rua Helena 280 Suites 703 & 704 Sao Paulo-SP—04552-050 Ph: +5511 -3044-4848 Mobile: +5511 –97207-2065 fabio@tradebrz.com

Source: Oanda

Brazil Office

More efficient models will

be granted lower tariff lev-

els.

While ethanol-powered ve-

hicles are commonplace in

Brazil, hybrid cars have not

become as ubiquitous local-

ly as they have in many de-

veloped countries.

The measure will open the

door to greater trade for

car companies previously

withholding most hybrid

models from the Brazil car

market.

Brazilian trade authorities

approved import tariff cuts

for hybrid cars entering Bra-

zil.

Under the new tax regime,

imported hybrid vehicles will

face a reduced tariff rate of

between 0 and 5 percent—

drastically lower than the

previous duty of 35 percent.

The import tariff, though low-

er overall, will be variable

and dependent on the effi-

ciency of the car in question.

Page 2

Brazil Buzz!

“THE VARIETY OF

LABELS [IN BRAZIL] IS

IMPRESSIVE, FROM ALL

OVER THE WORLD,

BUT MARKET

PENETRATION IS STILL

LOW. THE CONSUMER

DOESN’T KNOW

HOW TO CHOOSE,

AND CHOOSES BY

THE PRICE.”

- Jose Guilisasti, of

Emiliana

winemaker Emiliana predicts

strong growth from Brazilian

wine consumers in coming

years, with sales this year in

Brazil expected to outpace

2013 by 40 percent.

According to the company’s

director, middle class Brazili-

ans have a taste for what he

refers to as “culture,” and are

prime targets for slightly high-

er tier beverages like his firm’s

wine.

Any change toward more fa-

vorable conditions for import-

ers could quickly signal even

more rapid wine industry

growth. Firms in Chile and the

U.S. would be wise to watch

for any such shift.

Foreign wine producers recognize

continued opportunity in reaching

Brazilian consumers.

Brazil does not have a strong wine

industry, especially not that can

compete with well-established

producers like those in Chile, Ar-

gentina, Europe and the U.S.

Partly for this reason, Chilean

Hybrid cars earn favorable tax status

Wineries see potential in Brazilian wine market

Source: Flickr Creative Commons, M 93

Source: Flickr Creative Commons, Sean MacEntee

Recently merged conglomerate

Orygen looks prepared to bet on

continued pharmaceutical growth

in Brazil, and is duly investing in

expansions of its production ca-

pacity in the country.

The firm was born of the consoli-

dation of Biolab and Eurofarma,

both Brazilian firms.

Orygen announced plans to invest

500 million reais in a factory in

Sao Carlos, in the interior of Sao

Paulo state.

The project will be financed by

Brazil’s main national development bank,

BNDES, and is expected to be operation-

al by 2017. Production of medications at

the facility, meanwhile, is slated for

2018.

The facility will also include partnerships

whereby Orygen will work in conjunction

with American firm Pfizer, pending au-

thorization from Brazilian regulators.

As the Brazil’s relatively young pharma-

ceutical sector continues to grow, foreign

producers still benefit from opportunity to

fill much-needed supplies, part of why

Brazil still has a trade deficit of 25 bil-

lion reais in medical equipment.

Orygen looks to biopharmaceuticals in new Sao Paulo factory

Brazilian airline industry registers steady long-term growth

August 2014 growth in inter-

national flights, however, was

even especially heightened ,

registering nearly 14 percent

more passengers than last

year.

Growth in the industry after

the conclusion of the World

Cup helped dissuade fears

that any gains made were

short-term, and that air traffic

could not sustainably continue

growing like it did leading up

to the tournament.

In the industry, Gol Airlines

represented almost 37 percent

of Brazil’s commercial aviation

market share, while its main

competitor TAM Airlines trans-

ported about 34 percent of

passengers so far this year.

The two airlines remain the

only two Brazil-based carriers

Data from Brazilian airline

industry and officials contin-

ue to show steady long-term

growth in the demand from

domestic passengers.

From January through Au-

gust of this year, the industry

showed 7 percent demand

growth over the same peri-

od last year.

Demand for domestic Brazil-

ian flights, when measured

in the industry’s Revenue

Passenger Kilometers, grew

for the 11th consecutive

month, and reached its high-

est point in the past 10

years.

Demand for international

routes over the same Janu-

ary to August time period

showed growth of just shy of

4 percent since last year.

Page 3

Volume 3, Issue 10

“THERE IS NOT YET A

BIOPHARMACEUTICAL

PRODUCTION IN THE

COUNTRY, AND THIS

AREA IS

TRANSFORMING

MEDICINE...BRAZIL

HAS A VERY

STRUCTURED PLAN IN

THIS AREA.”

- Orygen’s Andrew

Simpson

Source: Flickr Creative Commons, Denni Williams

traveling internationally, though Azul

is set to soon begin routes to select

U.S. cities.

Air travel continues to become more

accessible to more Brazilians as

standards of living rise, an indicator

of greater purchasing power overall,

which could translate into pent-up

demand in other areas as well.

English Language news sources for Brazilian news:

http://www1.folha.uol.com.br/internacional/en/ http://thebrazilianeconomy.com/

Takeda, Japan’s largest pharmaceutical firm,

announced its regional headquarters for Lat-

in America will be located in Brazil.

The move marks a move of confidence by

Takeda, which appears to be responding to

continued demand growth in the Brazilian

pharmaceuticals industry.

The firm already operates two factories in

the country, one in the southern state of Rio Grande

do Sul, and one in Jaguariuna, Sao Paulo.

The company has expanded its presence in Brazil

through acquisitions of local firms in recent years.

Overall, Brazil already constitutes an important

source of earnings for the firm. Brazil generates the

fourth-most revenue for Takeda by country, ac-

cording to company representatives.

Takeda to bring regional headquarters to Brazil

Page 4

Fabio Yamada Inteligencia Corporativa Ltda

Rua Helena 280 Suites 703 & 704

Sao Paulo-SP—04552-050 Ph: +5511 -3044-4848

Mobile: +5511-97207-2065 fabio@tradebrz.com

For information on how to participate in these or other trade shows in Brazil, contact fabio@tradebrz.com

October 1-4: CONSTRUIRRIO (construction materials) October 1-4: RIOPARTS (auto parts and repair) October 8-10: EXPO SAMU (emergency medical services and equipment) October 8-10: FIRE SHOW (fire fighting and prevention products) October 8-10: FISP (private security and alarms) October 13-16: FUTURECOM (telecoms and IT) October 21-24: LOGISTIQUE (international trade, transport and logistics) October 21-24: FIMMEPE MECANICA NORDESTE (metallurgy and mechanical engineering) October 28-30: SPORT INFRATECH E EXPO ESTADIO (sporting event infrastructure and equipment)

BRAZIL TRADE SHOWS AND EXPOS, OCTOBER 2014

BRAZIL TRADE SHOWS AND EXPOS, DECEMBER 2014

December 16-20: FENAIUC (fashion, accessories)

BRAZIL TRADE SHOWS AND EXPOS, NOVEMBER 2014

November 4-7: SC TRADE SHOW (shoes, bags and accessories) November 4-7: MECPLAST (plastics, rubber products, tools) November 4-7: MECMINAS (machinery, tools, industrial equipment) November 11-13: AGROCAMPO (agribusiness) November 11-13: FIMAI (environmental consulting, sustainability, waste management, recycling systems, etc.) November 11-14: FEIPPETRO (oil and gas) November 17-20: EXPOSIBRAM AMAZONIA (mining) November 27-29: HORTFRUTEC (agribusiness technology)

MAN to invest additional 550 mil-lion reais in Rio de Janeiro facility

MAN Latin America, which produces trucks in Brazil, announced it would maintain its investments already made, and complete the expansions at its Rio de Janeiro factory by reaching 1 billion reais in investments by the end of the year.

Monsanto subsidiary to set up broader operations in Brazil

A subsidiary of the U.S.-based agribusiness giant Monsanto will launch its precision agriculture platform this month in Brazil. The firm, known as Precision Planting, was acquired by Monsanto previously, and will aim to meet the specific needs of a burgeoning Brazilian agribusiness sector.

Belgian chocolate maker invests 60 million reais in Sao Paulo factory

Belgian chocolate producer Puratos will begin producing chocolate this month from its newly con-structed Sao Paulo facility, which constituted an investment of 60 million reais. The factory is ex-pected to produce 50,000 tons of cake mixes and other dessert products.

Shacman plans for investments in Minas Gerais factory

Chinese truck maker Shacman is already planning to invest further in Brazil, this time in Minas Ge-rais. The company has experienced setbacks in the rollout of its expected factory in Sao Paulo, but is looking forward with new plans to reap the benefits of the government’s auto incentives program.

Fiat factory to soon begin produc-tion in Brazil’s Northeast

Multinational automaker Fiat is in the closing stages of constructing a factory in the northeastern state of Pernambuco. The facility, which was built over the past three years through 7 billion reais in investments, is expected to be operational by the beginning of 2015.

Regulatory authority opens door to better financing for ethanol

A Brazilian regulatory authority opted to include rural sugarcane production in a program aimed at expanding agricultural storage capacity. The measure will benefit sugarcane production through fa-vorable lines of credit, and is expected to aid the country’s advances in ethanol production.

Volkswagen invests 50 million reais in modernizing research lab

German automaker Volkswagen announced it will complete the modernization and expansion of its R&D site in Sao Bernardo do Campo, inland from the city of Sao Paulo. The investments will total 50 million reais,

Beer association sees new tax re-gime as favorable for beverages

Brazil’s beer association of industries pointed to Brazil’s new tax regime as being favorable for the beverage industry. The group celebrated the tax changes, due to take effect in 2015, claiming they would bode well for growth in the industry.

Petrobras makes gas discovery off coast of Sergipe state

Oil giant Petrobras made a discovery of gas and light oil that extended from the Sergipe-Alagoas basin. The well lies about 60km off the northeastern coast of Brazil.

Belarina Foods invests 200 million reais in expansions

Foodmaker Belarina, based in Brazil, will direct 200 million reais in investment toward expanding production capacity in the cities of Curitiba (in the Brazilian south) and Cuiaba (in the Midwest). The investments will be spread over the coming three years.

Poyry reaches deal on mega project for cellulose plant

Finnish multinational Poyry reached a deal with CRPE Holding to provide basic engineering and project development for a new cellulose factory in the state of Mato Grosso do Sul.

Mondial invests toward producing tablets in Brazil

Electrical components producer Mondial invested 4 million reais in its factory in Manaus, in the Am-azon region of Brazil. The factory is expected to produce tablets and other electronics.

Brazil Business News Headlines

Culture Corner

Batida de Coco

50 ml of coconut milk

25 ml of cachaça

a splash of Nestlé or Parmalat Table Cream

2 ice cubes, crushed

Shake or blend and pour. Leitecondensado.com