Industry Liquor Packaging Sub Industry Wine, Pisco and other

I.C. Amorim S.A.
Industry
Liquor Packaging
Sub Industry
Wine, Pisco and other liquors
Location
Santiago, Chile
Size (sales)
US$ 12,1 million (2003)
Purchasing potential
US$ 100 thousand annually
Specific Business Opportunities
Machinery for packing bottles in boxes
A) Company Description
Amorim is a Portuguese company that produces and distributes corks worldwide.
Amorim Chile works together with Industria Corchera S.A. Both began as cork
supply companies for wineries and now are sub-contracted by important wineries
and liquor companies to package their products.
They work with pile proof covers, pox élan discs, cork, aluminum and plastic covers
in addition to promotion and representation of packaging machinery brands for the
winery industry. They are currently working on entering the pharmaceutical
packaging market.
In November 2000, Concha y Toro S.A. (the largest winery in Chile) purchased
49,6% of Industria Corchera S.A..
Today, Concha y Toro and Amorim jointly own 99,68% of the capital stock of
Industria Corchera.
B) Principal Products Produced and How Are They Packaged
Product
Brand
Package
Wine
Concha y Toro
Glass bottles and corks
(PVC and cork) with labels
C) Installed Packaging Machinery
Current Machinery
Brand
Units Origin Average Specification
Used
Capsule machine
Age
Ramondin Capsulas
1 Spain
N/A
For Bottles
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Country
Equipment for printing
Azevedos
Portugal
(ink) on corks
Industria
E) Future Packaging Machinery Ordering Plans
Amorim is planning to buy packaging machinery to improve their packing process,
specifically for placing wine bottles in cardboard boxes, sealing, and placing on
pallets.
F) Purchasing Policies and Financial Arrangements
Amorim is flexible, depending on specific requirement and needs.
G) Factors that Influence Purchasing Decisions
A combination of specific needs versus quality, technology and price.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers
They like working with Bucher from France, Diemme (Germany) and Sipren (Italy).
In general terms, Amorim prefers working with French and Italian suppliers because
they have frequent contact and years of experience working with them.
I) Trade Show Attendance / Trade Publication Information
European trade events related to the wine industry.
J) Specific Interests
Amorim’s specific interest is in wine packaging machinery, and as mentioned above
is specifically interested in machinery for packing wine bottles in boxes and placing
on pallets.
K) Contact Information
Company Name: Amorim, Industria Corchera
Contact: Enrique Bombal
Position: Packaging manager
Address: Jorge Cáceres 220, La Cisterna - Santiago
Telephone: (56 -2) - 5255655
Email: industria@corchera.co.cl
Fax: (56-2) 5255555
Carrozi
Industry
Food
Sub Industry
Pasta, flour, cookies, chocolates, caramels,
desert mix, tomato sauces, instant
Location
Santiago, Chile
Size (sales)
US$ 450 million
Purchasing potential
US$ 500,000
Specific Business Opportunities
Vertical Machines and Flow Pack-type
machines.
A) Company Description:
Carozzi is one of the largest food conglomerates in Latin America with over US $450 million in
total sales. Carozzi offers more than 2,000 products through their different divisions. Their
products can be found in more than thirty countries around the world, their most important
markets being: Brazil, Japan, Central America, Mexico, Peru, Paraguay and the United States.
Carozzi has production plants in Chile, Peru and Argentina, in addition to a Commercial and
Distribution Office in the United States. Tiger Brands, one of the leading companies in the South
African food industry, is their strategic partner and a driving force behind the Company's
development in new countries and markets. Carozzi currently exports to over thirty countries
worldwide invoicing over US $45 million.
B) Main Products Produced and How Are They Packed:
Product
Brand
Package
Pasta
Carozzi
Automatic Packaging: Plastic
film wrap; plastic bags
Cookies/Crackers
Costa
Automatic Packaging: Plastic
film wrap
Tomato Sauces
Carozzi
Automatic Packaging: Small
cardboard boxes; plastic
pouches; aluminum cans
Instant
Sprim
Automatic Packaging: Paper
Beverages
pouches
Dessert Mixes
Caricia
Automatic Packaging: Paper
pouches
Flour
TG; Carozzi; Mariposa
Automatic Packaging: Paper
bags
C) Installed Packaging Machinery:
Current
Brand
Units Origin
Machinery
Average Specification
Age
Used
UNMOLD
MACHINE
N/A
KNOBEL
1
MACHINE
1 unit package
Swiss
DOSAGE
For medium and double molds in
N/A
COMAS
1
Argentina
PACKAGIN
For filling packages
N/A
G
TECNOPAC
MACHINE
K
1
Argentina
PACKAGIN
For packing food products
N/A
G
ROBERT
MACHINE
BOSCH
1
Brazil
MACHINE
AQUARIUS
1
Holland
N/A
For packing pasta
MOLDING
SPOONER
MACHINE
VICARS
1
England
N/A
Revolving for 1 unit packages
COOKIE
WERNER&
BREAKER
PFLEIDERE
MACHINE
R
1
Germany
N/A
For cookie packages
For filling forming and sealing
thermo sealer bags.
WRAPPING
D) Last Purchases of Packaging Machinery:
Machinery
Brand
Country
Packaging machine flow pack type, TYLUS model with system
NGNS and NPNB
MASIPACK Brazil
Wrapping machine for chocolate
MASIPACK Brazil
Horizontal wrapper machine with LPF-4 loader.
SIG
Brazil
Horizontal wrapping machine, flow-pack type.
SIG
Brazil
Mold machine for candy industry. Used, year 1993.
MAZZETTI Italy
E) Future Packaging Machinery Ordering Plans:
Over the next three years Carozzi stated that they plan to spend US$500,000 on packaging
equipment. They did not specify which type of machinery they will purchase, but they did
mentioned that they are interested in vertical machines and flow-pack type Machines
F) Purchasing Policies and Financial Arrangements
Carozzi normally requests the following payment agreement:
15% at the time of purchase, 70% at the time of delivery and 15% after installation.
G) Factors that Influence Purchasing Decisions
Carozzi stated that the influencing factors for purchasing packaging machinery are quality,
familiarity, confidence in the provider, and the price/quality balance.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers:
The providers of Carozzi’s foreign machinery are primarily contacted at trade shows. Even if the
foreign company has representation, Carozzi prefers to communicate and negotiate directly.
According to them, this is enables them to negotiate more effectively and generally produces
better results for them. Carozzi currently has providers that do not have representation in Chile but
they did not provide the names of these providers.
Carozzi uses the Internet very little when locating a supplier of their packaging equipment. It is
used only when it is required that they know more about a particular machine. That is, an internet
search is performed when they are using a machine on a project that is outside the normal
parameters of their packaging operation.
For Carozzi, Canadian and North American packaging machinery is reliable but expensive.
Carozzi stated that Canadian and North American packaging equipment suppliers tend to have bad
negotiating dispositions and are generally not well-known.
Carozzi stated that European packaging machinery is well-known, technologically sound, and
reliable. Furthermore, they stated that European suppliers hold open negotiations.
Carozzi recommended that North American manufactures of packaging equipment (versus
European) should adjust to the reality of Latin America in their products offered, their methods of
negotiating, and in their prices. They should become closer to their potential clients in Chile with
visits and information to improve their product or service.
I) Trade Show Attendance / Trade Publication Information
Carozzi usually participates in Interpack (Dusserldorf) and Ipack Ima (Milan). They have also
attended industry trade shows in Chicago, Las Vegas, Sao Paulo and Barcelona.
J) Specific Interests
Carozzi stated that over the next three years the demand for packaging equipment will be focused
on vertical machines and flow pack-type machines.
The principal providers of their receptacles (manufacturers or converters) such as bottles, film,
etc. are Alusa, Edelpa, Carter Holt, Plásticos HyC, and Marinetti.
K) Contact Information
Company:
Empresas Carozzi
Contact:
Ricardo Cornejo
Position:
Plant development engineer
Address:
Av.Presidente Jorge Alessandri Rodríguez 5201 Km.23 Longitd.Sur,
San Bernardo, Santiago
Telephone:
(56-2) 3776400
Fax:
(56-2) 3776645
Email:
rcornejo@carozzi.cl
Concha y Toro
Industry
Sub Industry
Location
Size (sales)
Purchasing potential
Specific Business Opportunities
Beverage
Wine
Santiago, Chile
US$ 46 million
Total investment 2002 US$9.6 million
Packaging machinery for Tetra brik and glass
bottles of 1,500 ml, 1 liter, 750 ml, 375 ml and
187 ml.
A) Company Description:
Founded in 1883, Viña Concha y Toro is one of Chile's largest producer and exporter of premium
wines. Its exports represent 27% of Chilean wine exports, and its volume sales account for 24.6% of
the domestic market.
In 2003 revenues totaled US$ 258 million with earnings per ADR of US$2.18. The Company exported
7,369,000 cases valued at US$ 145 million. Export revenues now comprise around 70% and include
sales of Concha y Toro UK, marketing and a sales subsidiary established in the UK to bolster the
Concha y Toro brand in the region. The company’s largest export markets are U.S., the U.K., Sweden,
Canada and Denmark.
The Company's product portfolio has wines in the premium segments such as: Almaviva (produced
together with Baron Philippe de Rothschild), Don Melchor, Amelia, Terrunyo and Marques in the
Ultra Premium class, Trio and Casillero del Diablo in the Super Premium category, and Sunrise and
Frontera in the Popular Premium niche.
Viña Concha y Toro cultivates approximately 10,000 acres of wine producing vineyard lands in Chile
and Argentina.
Under the ticker symbol VCO, in October 1994 Concha y Toro became the first winery to be listed on
the NYSE. Funds from the placement were destined to vineyard and cellar expansion and
improvements in Chile and were also used for starting business in Argentina.
In 1997, Concha y Toro formed a strategic alliance with Baron Philippe de Rothschild. Its aim was to
produce a Chilean, Grand Cru Classé equivalent, Primer Orden wine.
B) Main Products Produced and How Are They Packaged:
The Company has bottling plants in Pirque and Lontué. The Pirque bottling plant, located 28
kilometers from Santiago, is the company’s principal bottling plant, and all of the company’s
premium, varietal, varietal blend and sparkling wines are bottled there. The plant has four bottling
lines accommodating bottles of 1,500 ml, 1 liter, 750 ml, 375 ml and 187 ml capacities. The facility in
Pirque is equipped with the most advanced bottling and labeling equipment available, and has an
installed capacity of 9.9 million liters per month when operating three eight hour shifts per day, six
days a week.
The company’s bottling plant in Lontué, located 200 kilometers from Santiago, which principally
packages popular wines for the domestic market, bottles wine in five liter glass jugs and in 0.5 liter, 1
liter, 1.5 liter and 2.0 liter Tetra Brik packages which are made of several layers of paper, aluminum
and polyethylene. Similar packages are used worldwide for juice, milk, wine and other products. The
Tetra Brik packaging line is completely automated. The Company has a license from Tetra Pak Chile
to utilize the Tetra Brik technology and purchases pre-printed unassembled packages from Tetra Pak
Chile. The Lontué plant.s Tetra Pak packaging machines have an installed capacity of 13.0 million
liters a month based on three shifts operating eight hours a day, six days a week.
A small quantity of wine, 0.8% of total revenues, was sold in bulk form in domestic and export
markets.
Product
Premium Wine
Brand
Don Melchor, Amelia,
Terrunyo, Marqués de Casa
Concha, Casillero del Diablo,
Trio and Late Harvest.
Sunrise, Concha y Toro and
Frontera. In some export
markets, under the brand names
Tocornal, Cono Sur and Maipo.
Tocornal, Clos de Pirque,
Exportaciün, Fressco and San
José.
Varietal and Varietal Blend
Wine
Popular Wine
Package
Glass bottles of 750 ml, 375 ml
and 187 ml.
Glass bottles of 1,500 ml, 1
liter, and 750 ml capacities
Five liter glass jugs and in .5
liter, 1 liter, 1.5 liter and 2.0
liter Tetra Brik packages which
are made of several layers of
paper, aluminum and
polyethylene.
C) Installed Packaging Machinery
Current
Brand
Machinery
Used
Units
Origin
Average
Age
Specification
Pallet
machinery
OCME
1 Italy
Automatically lines up empty bottles for
transportation.
Capsule
machine
BERTOLASO
2 Italy
For PVC capsules in bottles. Bottle filler
and capsule system.
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Country
Filler machine for BAG-INBOX SMURFIT France
packages. 280 3 liters bags per
hour
E) Future Packaging Machinery Ordering Plans.
Viña Concha y Toro said that is permanently developing new formats, updating the presentation of its
products and investing in the latest technology and production techniques for enhancing premium and
super premium wines.
Company investments in 2002 to reposition its operating assets, modernize, to provide new facilities
for expanding and improving production capacity and to acquire land for vineyards totaled
Ch$6,934,131,000 (US$9.6 million).
They preferred not to give us details on their future equipment purchasing plans.
F) Purchasing Policies and Financial Arrangements
Concha y Toro usually pays for purchased machinery in annual installments.
G) Factors that Influence Purchasing Decisions
Principally quality and price.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers
Principal suppliers of packaging materials are: Cristalerías de Chile S.A. (bottles), Tetra Pak de Chile
Comercial Ltda. (Tetra brick packaging), Industria Corchera S.A. (corks and packaging machinery
some times) and Envases Impresos S.A. (labels).
Concha y Toro has a quality control department which controls the raw materials used in each bottling
plant and tracks the product up to the point of sale through a system of computer coding for each bottle
and case produced. The Company also uses electronic monitoring equipment to ensure that bottles are
filled to the correct level.
All of the winery’s premium and export wines are bottled in new bottles. To reduce pollution and
costs, the Company uses recycled bottles for almost all of its remaining bottled domestic wines.
Cristalerías, a principal shareholder of one of the company’s main competitors, Santa Rita, supplies
almost all of the company’s bottles. The company obtains the remainder of its bottles from other
Chilean and Argentine manufacturers.
Corks for most wines are produced in Spain and Portugal but are finished by Chilean firms. The
Company owns 49.84% of the principal cork supplier, Industria Corchera. The Company imports
champagne corks from Germany. Labels are produced in Chile, the United States and Canada.
Chilean companies supply cases and capsules (the tin, plastic or aluminum covering for the neck of a
wine bottle).
In most cases, the Company does not have contracts with its suppliers. The Company believes that,
except for bottles and Tetra Brik packages, alternative sources of supply are readily available. The
Company believes that it could find alternate suppliers for bottles and Tetra Brik packages, but it could
be adversely and materially affected in the short-term. New bottles and preprinted, unassembled Tetra
Brik packages are priced in U.S. dollars. Changes in the Chilean peso to U.S. dollar exchange rate
could increase the cost of components and have a material adverse effect on the Company.
Regarding packaging machinery, they prefer Italian brands and in general European brands over
American or Canadian. The winery said that they are generally more acquainted with European
products, which influences their buying decisions.
I) Trade Show Attendance / Trade Publication Information
International: Interpack, Germany (http://www7.interpack.com/) and Ipack Ima, Milan, Italy
(http://www.ipack-ima.it)
National: Expo Retail, Feria del Empaque y Embalaje, every other year. (www.expotrade.cl)
Trade Publication: Industria del Alimento magazine (information related to the food and beverage
industries) and Vas- Revista del Packaging magazine (Packaging information).
J) Specific Interests
Investments will be aimed, in part, at the construction of storage and wine making facilities for the
production and bottling of all wines with an emphasis on premium and varietal wines. The company
expects to continue planting vines, and developing the corresponding infrastructure needed on certain
properties owned by the company in Chile, as well as in Argentina.
Sales in the popular wine segment are concentrated in wines packaged in Tetra Brik packages. Tetra
Brik sales represents approximately 58% of all Chilean sales by volume in the popular wine segment.
K) Contact Information:
Company Name: Viña Concha y Toro
Contact: Juan Pablo Herreros
Position: Production manager
Address: Nueva Tajamar 481, Piso 15, Las Condes – Santiago
Telephone: (56-2) 4765000
Fax: (56-2) 4765000
Email: jpherreros@conchaytoro.cl
ECUSA (Embotelladoras Chilenas Unidas S.A.)
Industry
Beverages, Chocolate
Sub Industry
Carbonated beverages, beer, wine,
pisco, chocolate
Location
Reñaca, Chile; Santiago, Chile
Size (sales)
CCU’s annual revenues: US$ 650
million
Purchasing potential
Annual budget depends on growth in
volume and changes in
packaging mix
Specific Business Opportunities
Secondary packaging machinery
A) Company Description:
With a broad array of products, including soft drinks, mineral water and juices,
Embotelladora CCU (ECUSA) has become Chile’s second leading soft drink bottler and
the leader in the mineral water market.
ECUSA has been active in the soft drink business since 1916, and in the mineral water
sector for over four decades. In 1994, ECUSA created an independent group to facilitate
all mineral water and soft drink activities. Embotelladoras Chilenas Unidas S.A. arose
from a strategic partnership between CCU and BAESA, the bottler of PepsiCo’s brands in
Chile at the time. In 1999, CCU acquired BAESA’s share of the company, achieving its
current 100% ownership position.
Embotelladora CCU has its own brands of mineral water and soft drinks, in addition to
being a multiple licensee offering diverse brands. Soft drinks are licensed from Schweppes
and from PepsiCo and juices are under license from Watt’s. Together, these brands make
up a broad and attractive portfolio of products which have achieved great popularity among
Chilean retailers and consumers.
In January of this year, Ecusa and Empresas Lucchetti S.A. created a joint venture which
acquired the access of Calaf, a traditional candy and confectionary company with more than
a century of History. Calaf products are sold together with soft drinks, with the potential to
reach more than 90,000 clients. During the first months of operation, important synergies
have been obtained between Calaf and ECUSA. This new challenge offers interesting
growth potential to ECUSA in the ready-to-eat market segment.
B) Main Products Produced and How Are They Packaged:
Product
Brand
Package
Beer
Cristal, Escudo, Royal,
Six pack, in bulk (boxes
Morenita, Dorada, Aysen
of 24 units), carton
Licensed: Heineken,
boxes of 12 or 16
Austral, Kuntsman
bottles, glass bottles,
and cans. Banded
cartons.
Fruit Juices
Watts
Flexible packages, tetra
pack and plastic bottles.
Soft Drinks
Pepsi, 7-up, Crush, Canada
Thermo controlled
Dry, Blitz, Pop, Kem, Show,
plastic, plastic bottles,
Gatorade
cans and Gatorade in
glass bottle.
Bottled Water
Cachatun;, PorVenir
Thermo controlled
plastic and plastic
bottles.
C) Installed Packaging Machinery:
Current Machinery Brand
Units Origin Average Specification
Used
Age
Inspector Machine
Detector
MIHO
Bottle Impurities
DAVID
Several Germany N/A
Detector
KRONES
Several Germany N/A
Ultrasonic
D) Recent Purchases of Packaging Machinery:
From 2002 on, they have been buying more replacements and parts for their machinery
than machinery itself.
Machinery
Brand
Country
Bottle inspector machine
THERMEDICS DETECTION INC.
Argentina
Bottle inspector machine
MIHO DAVID
Germany
E) Future Packaging Machinery Ordering Plans:
Their annual budget depends on growth in volume and changes in their packaging mix.
F) Purchasing Policies and Financial Arrangements:
The buying conditions used by ECUSA are normally direct payment; the period of credit
granted (terms of credit) depend on the amount purchased. It is usually 15% upfront, 65%
60 days after departure and the remaining at the time of the reception of the goods.
G) Factors that Influence Purchasing Decisions:
Technology: Equipment should be compatible with the equipment that they already
possess.
The equipment should support the production process in terms of quality,
velocity, security, low costs for parts. The parts should also be easily obtained and the
suppliers should provide good post-sales service with representation in Chile.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers:
ECUSA uses different forms of distribution channels including direct import,
representatives, and local agents.
The principal providers of their receptacles (manufacturers or converters) are Cristalerías of
Chile, Plastiverg, Plásticos Montesa, Plasco, Tetra Pack and Sig Combibloc.
ECUSA claims that equipment from the European market (quoted in Euros) is more
economical than the equipment from the American market. The European market in
general offers more flexible machinery according to ECUSA.
I) Trade Show Attendance / Trade Publication Information:
The Internet is used as a search mechanism. Possible suppliers are contacted directly at
seminars and trade shows, followed by visits to representatives.
J) Specific Interests:
Secondary packaging machinery
K) Contact Information:
Company Name:
ECUSA (Embotelladoras Chilenas Unidas S.A.)
Contact:
Jorge Roblero
Position:
Imports manager
Address:
Avda. Pdte. Eduardo Frei Montalva 1500
Renca - Santiago
Telephone:
(56-2) 4274000
Fax:
(56-2) 4274256
Email:
jroblero@ccu.cl
Embotelladora Andina
Industry
Beverage
Sub Industry
Carbonated beverages, mineral water and
juices
Location
Santiago, Chile
Size (sales)
1st quarter 2004 US$81,8 million
Purchasing potential
N/A
Specific Business Opportunities
Packaging machinery for 237 cc (glass
and Pet); 2.5 Returnable Pet bottle and 8oz. glass bottle
A) Company Description:
The Coca-Cola Company operates in over 136 countries world wide through
approximately 1.500 bottling companies. Embotelladora Andina Chile is one of
the most important Coca-Cola bottlers in Latin America.
Embotelladora Andina covers the Metropolitan Region, San Antonio and
Cachapoal provinces. It is leader in the national market of carbonated beverages
with an average annual production of 567.800 million liters and 66% market share.
In addition to having the franchise to produce and commercialize Coca-Cola
products, Embotelladora Andina participates in non returnable plastic packages
production through Envases CMF S.A. and in can packaging, in addition to working
with Envases Central together with other bottling companies. The company also
transports its products through Transportes Andina Refrescos.
Embotelladora Andina has 11 branches throughout Chile, Brazil y Argentina.
In Chile, Embotelladora Andina S.A. produces and distributes the following
products licensed by The Coca-Cola Company: Coca-Cola, Coca-Cola Light, Fanta
Naranja, Fanta Light, Sprite, Sprite Light, Nordic Mist, and Quatro Balance.
The Company also produces juice & mineral water products licensed by The CocaCola Company through its subsidiary Vital S.A., which is distributed by Coca-Cola
bottlers throughout Chile.
B) Principal Products and How Are They Packaged:
Product
Brand
Package
Carbonated beverage
Coca Cola and Coca Cola
Glass, Plastic bottles PET
Light
and Cans. Returnable and
non returnable
Carbonated beverage
Fanta Nranaja and Fanta
Glass, Plastic bottles PET
Light
and Cans. Returnable and
non returnable
Carbonated beverage
Sprite, Sprite Light and
Glass, Plastic bottles PET
Sprite Zero
and Cans. Returnable and
non returnable
Tonic Water and Ginger
Nordic
Glass and Plastic bottles
Ale
PET. Returnable and non
returnable
Carbonated beverage
Quatro
Glass, Plastic bottles PET
and Cans. Returnable and
non returnable
Mineral water
Vital (carbonated, non-
Glass and Pet bottles
carbonated and “soft gas”)
Fruit nectars
Nectar Andina
glass and Pet bottles
Artificially flavored drink
Kapo
sachets and Pet bottles
Fruit juices
Andi Frut
Tetrapack, cans and Pet
bottles
C) Installed Packaging Machinery
Current
Brand
Units
Origin
Machinery
Average
Specification
Age
Used
Crown machine
(Capsular)
EMITEC
1 Argentina
20 units per second.
Automatic. For Bottles
Load machine
TYGARD
1 USA
with hook.
Filling, closing,
Production capacity
3.22M3.
AUXIEMBRA
1 Spain
20.000 units per hour. For
covering and
bottles of 1,5 and 2,0
labeling
Liters.
machine
D) Last Purchases of Packaging Machinery
Machinery
Brand
Country
Packaging machine for glass and plastic
SMI
Italy
packages. 45 packages per minute
E) Future Packaging Machinery Ordering Plans.
According to Andina, their current equipment is well maintained and sufficient to
sustain normal operations for the foreseeable future, so they do not plan to purchase
new or used equipment in the near future.
F) Purchasing Policies and Financial Arrangements
They prefer to pay in installments over a period of one year.
G) Factors that Influence Purchasing Decisions
Depending on the specific needs of the company. Generally, importance is given to
the relation between quality, price and previous experience with a particular
manufacturer.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers
Embotelladora Andina associated with CMF S.A. and Multipack S.A. Both
companies manufacture, process, acquire and market all types of containers and
packaging for Andina. All purchasing decisions, preferred brands and business
arrangements with equipment suppliers are discussed with them.
Andina also works with Cristalerías Chile S.A. for all glass bottle packages, Wenco
S.A for plastic cases and Comberplast Ltda. for bottle caps
Other packaging companies they work with include: Alusud Embalajes Chile Ltda.,
Crown Cork de Chile S.A., Food Pack S.A., Envases Impresos S.A. and Italprint
S.A.
The principal suppliers for production materials of PET bottles are:
Ink Naz Dar K.C., Packing Smurfit S.A., Nemsa, Enrique Zeni y Cía. SAC.
I) Trade Show Attendance / Trade Publication Information
Andina did not specify any particular trade events or publications.
J) Specific Interests
Their interests are focused on their new products: 237 cc (glass and Pet); 2.5
Returnable Pet bottle and the strengthening of the array of returnable formats
through the Ref Pet 2.5 lts. and the 8-oz. glass bottle, both for the Coca-Cola flavor.
K) Contact Information:
Company Name: Embotelladora Andina S.A.
Contact: Leopoldo Falconi
Position: Finance manager
Address: Avda. Carlos Valdovinos 560, San Joaquin - Santiago
Telephone: (56-2) 4622486
Email: lfalconi@koandina.com
Fax: (56-2) 5509342
Laboratorio Chile
Industry
Sub Industry
Location
Size (sales)
Purchasing potential
Specific Business Opportunities
Pharmaceutical
OTC and prescription medicine
Santiago, Chile
160 million units sold annually (no $ sales
were offered)
US$400,000 (annual budget) in packaging
machinery
New machinery needed for new
manufacturing plant to be completed in
2007
A) Company Description
Laboratorio Chile was formed in 1896 by three pharmaceutical store owners.
In the 1940’s, several entities related to the Chilean government became the
company’s principal shareholders. A widespread privatization campaign in the
1980’s transferred 100% of Laboratorio Chile’s capital to the private sector. From
the 1990’s and forward, Laboratorio Chile has been growing and launching new
products, among them several in the OTC category, in addition to beginning to
export pharmaceutical products to over 15 countries in Latin America.
In June 1994, ADR’s with an IPO of US$26.4 million were placed in the New York
stock exchange (NYSE), leading to increased growth, including the purchase of
Armstrong and Syncro Laboratories in Argentina.
In 2001, IVAX Corporation (IVAX) bought 100% of Laboratorio Chile’s stock.
IVAX is a multi-national pharmaceutical corporation dedicated to research,
development, manufacturing, marketing and distribution of branded (proprietary),
brand equivalent (generic) and veterinary products. Its headquarters are in Miami,
Florida.
B) Principal Products Produced and How Are They Packaged
Product
Prescription/Antibiotics
Brand
Auxxil® 500 mg, Levofloxacino
500 mg./comp., Lodipres® 12,5
mg, Carvedilol 2,5mg./comp,
Amobiotic BID Susp/90/50ml,
Amoxicilina 1000 mg.,
Amobiotic® 1 g , Amoxicilina
1Gr., Pre-Clar® 500 mg,
Claritromicina 500mg.
Calcefor D Forte
Package
Packaged with 30 pills/case. 1000
P/SUSP 90/50ML, packaged with 20
pills/case.
Prescription/Anti-infections/
Anti-viruses
OTC/Vitamins
Vironida/Aciclovir
Packaged with 35 or 5 pills, 800mg.
Esvit C 100 mg/100 mg/500
mg/2000mg
Cardboard box with 100 pills and
plastic jars with 100, 20 and 10 pills.
Vitamins in packs of 10, 30 and 20
pills.
OTC / Anti Infection mouth
and throat
OTC / Analgesic
Freshmel® 5 mg, Tos Noscapina,
Multisabor.
Kitadol
Anti louse
Launol
Ophthalmologic solution
Red Off Aqua, Plus and 0,0125%
Plastic tubes with 14 and 20 pills
each.
Glass jars of various sizes. 125 mg
cardboard boxes with 6 suppositories.
80 mg packages with 16 chewable
pills.
500 mg 24 and 30 pills in cardboard
box.
1 and 60 sachets of powder.
60 ml plastic jars/ 20 sachets of 15 ml
and plastic jars of 60 and 120 ml.
Plastic jars, 15 ml.
Prescription/Vitamins and
mineral supplement/
Calcium
supplement/Vitamins
Packaged with 60 Capsules
(Vitamin D3 400 U.I. /cap., calcium
carbonated 1.250 mg. /cap.)
C) Installed Packaging Machinery
Current
Machinery
Used
Electric
casing
machine
Blister
packaging
machine
Blister
packaging
machine
Printer
Filling,
closing and
sealing
machine
Folding
machine
Brand
Units Origin
Average Specification
Age
CAM
1 Peru
N/A
15-70 cycles per minute.
Electric. Casing for
medicine.
Blister feeding system
for cardboard boxes.
CAM
1 Italy
3 years
O.M.A.R.
4 Italy
N/A
RL&ASA
CAM
1 Argentina 3 years
1 Italy
N/A
Capacity 1200 blisters
per hour. Operated
manually (lab use).
Printer.
Electro-mechanic.
GUK
FALZMASCHINEN
1 Germany N/A
For cutting and folding.
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Country
Filler Machine. 1200
plastic pomes per hour
DUBASA
Argentina
Labeling machine. 100
cylinder jars per minute
ETIPACK
Italy
E) Future Packaging Machinery Ordering Plans
Laboratorio Chile made substantial investments in equipment during 2001 and 2002,
when they were acquired by IVAX. During 2001 they bought packaging machinery
worth US$381,804 and in 2002 they added US$42,557.
Currently they are working on the construction of a new US$25 million plant which
should be completed by 2007, and will need to be equipped with new machinery.
F) Purchasing Policies and Financial Arrangements
Now that Laboratorio Chile is part of IVAX, they take advantage of IVAX’s global
purchasing power to negotiate favorable terms with existing equipment suppliers
(many of whom are European).
G) Factors that Influence Purchasing Decisions
The most important factors for Laboratorio Chile are the quality of the machinery
(generally judged by their own experience with the equipment), price, and the
supplier’s brand reputation.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers
Laboratorio Chile prefers Italian brands because of their combination of quality and
price. They have had good experiences working with these brands, and are not
actively pursuing replacement suppliers.
I) Trade Show Attendance / Trade Publication Information
The following trade events and publications were mentioned by Labchile: Interpack,
Germany (http://www7.interpack.com/), Interphex, New York, USA
(http://www.interphex.com) and Feria del Empaque y Embalaje, Chile
(www.expotrade.cl)
Publication: VAS- Packaging Magazine.
J) Specific Interests
By 2007 they will need to have purchased new machinery to equip their entire new
manufacturing plant.
K) Contact Information
Company Name: Laboratorio Chile S.A.
Contact: Hernán Pfeifer
Position: General Manager
Address: Avda. Marathon 1315, Ñuñoa - Santiago
Telephone: (56-2) 3655000
Fax: (56-2) 3655052
Email: serviciocliente@labchile.cl
Laboratorios Prater
Pharmaceutical (also personal care,
Industry
saccharine and contraceptives)
Sub Industry
OTC and prescription medicine
Location
Santiago, Chile
Size (sales)
US$ N/A
Purchasing potential
US$ N/A
Specific Business Opportunities
Manufacturing equipment, blisters, mixers
and capsule packagers
A) Company Description:
Laboratorios Prater has over 15 years of experience not only in the pharmaceutical
market, but also in the personal care and massive consumption markets.
In the personal care market they produce Etienne products: makeup, lotions and
perfumes; Eminence, a cosmetic line for men with deodorants and perfumes and
Biocel products to avoid hair loss.
In the massive consumer market, they produce Lifestyles condoms and Naturalist
saccharine.
Prater Laboratories operates two manufacturing plants located in Santiago and has
over 430 employees.
B) Principal Products Produced and How Are They Packaged:
Product
Brand
Packaging
Multi-vitamin
Infor and Valcron
30, 60 and 120 blistered capsules in
cardboard boxes.
Antihistaminic
Fasarax, Alledryl and
20 and 10 mg capsules from 10 to 30
Rigotax
pills blistered.
Pediatric drops of 100 ml.
Syrup 5mg/5ml -60ml, 10Mg/5Ml120ml.
Small glass jars in cardboard boxes.
Pain Killers and Anti-
Merpal
inflammatory
Drops: 20ml in glass jar.
Suppositories: 12,5mg per 5
suppositories, blistered and packed
in cardboard box.
Inject: 75mg/3ml-3 blisters.
Gel: Pomes 30 and 60 grs.
Capsules: 100mg-8 capsules.
75mg-10 capsules, 50mg-10 pills.
Cardboard boxes and glass small
jars.
Fitofarma line
Sominex
20 and 60 capsules.
(Tranquilizer, anti-
Ciplazin
30 capsules.
depressive and vessel
Noklatar
30 pills in cardboard boxes.
Ulcrux
7, 14, or 28 capsules in a cardboard
dilatator’s)
Gastrology
box.
Dermatology
Scar-t, Novadrel,
Plastic pomes, tubes, aluminum jars
Novacetol, Disopranil,
with spray and all in cardboard
Transplantar,
boxes.
Tranversal, Cariamil,
Biogel and Biolane
Cardiology
Vasiolat
Capsules in cardboard box.
OTC (Over the Counter)
Tocalm, tucsan,
Glass jars in cardboard boxes.
Coldstat, Crevet,
Capsules in cardboard boxes.
Claragine, Gasopax,
Plastic jars.
Grisux
Tests
Coryma and Hepy test
Sachet in cardboard boxes.
C) Installed Packaging Machinery
Current
Brand Units Origin Average
Machinery
Specification
Age
Used
Casing
CAM
1
Italy
N/A
3600 cases per hour, cardboard cases
machine
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Country
Blister Machine
BLIPACK
Argentina
E) Future Packaging Machinery Ordering Plans.
Prater is interested in machinery for plastic bottles and jars, specifically related to
PET bottles. But they do not have a specific purchasing plan for the moment.
F) Purchasing Policies and Financial Arrangements
According to Laboratorios Prater, the more credit (monthly installments) offered,
the better.
G) Factors that Influence Purchasing Decisions
Price and brand reputation.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers
Prater laboratories claims to prefer European or Argentinean brands over American
or Canadian, due to a lack of knowledge of American and Canadian products.
I) Trade Show Attendance / Trade Publication Information
Executives interviewed stated that they prefer reading catalogues and publications
from ASILFA (Pharmaceutical Association) to attending shows.
J) Specific Interests
Manufacturing equipment, blisters, mixers and capsule packagers
K) Contact Information
Company Name: Laboratorios Prater
Contact: Peter Stuedemann
Position: General Manager
Address: Avda. Pedro Aguirre Cerda 5291, Cerrillos - Santiago
Telephone: (56-2) 8707500
Email: pstuedemann@labprater.cl
Fax: (56-2) 5574336
Lever S.A.
Industry
Personal Care
Sub Industry
Soap, shampoo, deodorant, lotions and
mouth hygiene products.
Location
Santiago, Chile
Size (sales)
1st quarter 2004 US$ 12 billion (Holding)
Purchasing potential
US$ 100 million for 2004
Specific Business Opportunities
Flexible, stand-up pouches as an
alternative to rigid plastic packages and
spray valves.
A) Company Description:
In 1962, Lever S.A. started its operations in Chile. Currently it has two categories:
Personal care and house cleaning with international brands such as: Axe, Rexona,
Omo, Lux and Dove among other local brands such as: Cif, Quix, Vim and Le
Sancy.
Lever is part of Unilever, one of the biggest sellers of massive consumer products in
the world, which also operates Unilever Bestfoods S.A. in Chile (please see our
report on Unilever Bestfoods). Its headquarters are located in London and
Rotterdam and has operations in over 90 countries, with more than 500 companies
and approximately 300.000 employees.
Unilever in Chile currently participates in the following industries: personal care,
house cleaning, food and ice cream. The latter two are industries served by Unilever
Bestfoods.
Unilever will undergo major structural changes in Chile in July 2004. Unilever
Bestfoods will divide into Unilever Foods Chile and Unilever Ice Cream, and Lever
will become Unilever HPC Chile.
B) Main Products Produced and How Are They Packed:
Product
Brand
Package
Soap
Le Sancy, Dove and Lux
Solid soap in cardboard box
and wrapped in plastic film
or paper.
Liquid Soap in plastic
bottles with and without
dispenser.
Shampoo and conditioners
Linic, Organics, Sedal
Plastic bottles
Body and face lotions
Dove and Ponds
Plastic pomes and bottles.
Sachets. Some in cardboard
boxes as secondary
package.
Mouth Hygiene
Pepsodent
Toothpaste: Plastic tubes in
cardboard box.
Brushes and floss: Wrapped
in plastic and cardboard
packages.
Mouth washes: Plastic
bottles
Deodorants
Dove, Rexona and Axe
Plastic packages and
aluminum can with spray.
C) Installed Packaging Machinery
Current Machinery Brand
Units
Origin
Used
Covering machine
Average
Specification
Age
DEPUCKER
1 Italy
2 Years
Electric engine, 180 packages per minute
1 Taiwan
N/A
100 units per minute, electric, for oval
RONCHI
Labeling machine
DASE-SIN
plastic bottles
Filler Packaging
machine for
toothpaste
NORDEN
1 N/A
N/A
Filling capacity from 30 to 130Grs.
Filler Packaging
MASTERFIL
1 England
N/A
machine for bar
1 Unit per 60 GPM speed. Automatic,
electric, for 10 to 100 ml. Tubes
deodorant
Packaging machine
IWKA
2 N/A
N/A
300 Units/minute
for toothpaste pomes
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Country
Transporter machine
Flexlink USA
for deodorant
packaging
E) Future Packaging Machinery Ordering Plans
Lever has said that during 2004 they will invest US$ 100 million, primarily for
expanding its plants and other smaller projects.
Regarding packaging machinery, their interest will be focused on machinery related
to aluminum cans, specifically to aerosol valves and flexible, plastic stand-up
pouches.
F) Purchasing Policies and Financial Arrangements
As a multinational company, Lever has special international arrangements with its
suppliers as they often operate under international Unilever policies. They use their
significant buying power to negotiate favorable terms.
G) Factors that Influence Purchasing Decisions
The suppliers are selected by quality, service and commercial (price) criteria.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers:
They prefer Italian brands such as Senzani and Depucker Ronchi.
They did not mention anything about business agreements; they said it depends on
the specific situation.
I) Trade Show Attendance / Trade Publication Information
They do attend trade shows and receive catalogues and information by mail. They
did not specify any particular trade event or publication.
J) Specific Interests
Lever said that their specific interest will be in new aerosol valves integrated into
the package designs that eliminate lids and flexible, stand-up pouches as an
alternative to rigid plastic packages
K) Contact Information:
Company Name: Lever S.A.
Contact: Ernesto Labatut
Position: General Manager
Address: Carrascal 3551, Quinta normal - Santiago
Telephone:
(56- 2) 6812511
Email: elabatut@unilever.cl
Fax: (56-2) 6812127
Laboratorios Maver Ltda.
Industry
Pharmaceutical
Sub Industry
Mostly OTC (Over the Counter) pharmaceutical
products.
Location
Santiago, Chile
Size (sales)
US$ N/A (information not made available by
Maver)
Purchasing potential
2004 budget: Between US$100 thousand and
US$160 thousand. Given their every-other-year
purchasing schedule, 2005 should be greater
because equipment was last purchased in 2003.
Specific Business
Manufacturing equipment, capsule packaging
Opportunities
machinery, blisters, and mixers
A) Company Description:
Laboratorios Maver was founded in 1923. Today it is the Chilean leader in OTC
pharmaceutical production and sales. Maver sells over 48 brands of OTC products, in
addition to personal care and food products. Maver produces over 255 different products
and produces almost all of the products that it sells (with the exception of Hawaiian
Tropic, whom it represents in Chile).
B) Main Products Produced and How Are They Packaged:
Product
Brand
Package
Pain and fever
Tapsín
Blisters, jars, sachets and cases.
Antacid
Disfruta
110gr jar and sachets.
Natural weigh loss
Adelgazul
360gr cereal, packaged in
medication
aluminum flexible bag inside a
cardboard box, 20 and 50 tea bags
inside a cardboard box and
marmalade in a 300 gr. jar.
Antiseptic mouth-
Oral fresh
wash
Plastic bottles and laminated in
display boxes
Healing cream
Neneglos
120,80 and 40 gr. pomes
Tranquilizer
Armonil
Blister, plastic small jar (drops)
and glass jar.
Pain killer and anti-
Dolorub
inflammatory
Lotion pomes, patches and pills.
Packaged in blisters, pomes and
cases for display.
Special toothpaste
Caristop
100 gr. pomes, mouth wash of
0.05% in 300ml, and 0.2% in a
200ml jar.
Antiseptic mouth
Oralgene
wash
Pome 60 gr. 25 mts floss and jars
of 120ml (1%) and 500 ml (12%)
Pain Killer
Obleas Chinas
100 and 200 unit cardboard boxes.
Tanning lotion
Hawaian Tropic
Plastic bottles
Face cleaning
Mediklin
Wet Tishues, patches, remover
strips, protector base and liquid
soap.
Decongestant
Vopolatum
18gr. Can, 1,5gr. Inhalator and
chap stick.
C) Installed Packaging Machinery:
Current
Brand
Units Origin
Machinery
Average Specification
Age
Used
Cleaner
Machine
Cleaning and drying
TOVER-F
1 Argentina
N/A
packaging machine/air.
TOVER-F
1 Argentina
N/A
Jar and bottle filler machine
Filler
Machine
Wrapper
Case wrapper machine for
Machine
MAI S.A.-F
Capsule
KIRBY
Machine
1 Argentina
N/A
pharmaceutical use
LESTER-F
1 USA
N/A
Capsule machine
TOVER-F
1 Argentina
N/A
Dosage machine
Dosage
Machine
Sticker, gluer machine. 15
liters capacity for abrasive
Sticker
Machine
PRISCELL-F
1 Brazil
N/A
application.
D) Recent Purchases of Packaging Machinery (2004):
Machinery
Brand
Country
Metal Detector Machine
SYSTEMS SCIENTIFIC
USA
Dispenser Pumps/pulverizer machine.
SMITH CONTAINER
USA
E) Future Packaging Machinery Ordering Plans:
2004 budget: Between US$100 thousand and US$160 thousand. As mentioned above
2005 budget is expected to be higher. Specific packaging purchasing plans were not
offered by Maver.
F) Purchasing Policies and Financial Arrangements:
Maver prefers to pay for equipment in installments, although they mentioned that they
are flexible depending on product/price.
G) Factors that Influence Purchasing Decisions:
First and foremost, Maver cares about the presentation quality and volume. Other
concerns include price and compliance with the GMP norm of the WHO, especially for
primary packages such as the pommel or pomander (Secondary packages, boxes or
cases).
The Internet (mostly “window-shopping”), trade shows, and trade fairs all serve to
influence purchasing decisions as well.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers:
Maver prefers working with companies that have representation in Chile because they
provide after-sale service. They are leery of buying machines which do not provide local
service, regardless of the warranty offered.
Argentina and Brazil are currently entering the market with quality equipment. A Maver
representative stated that Italy is the best as far as quality versus price. He also prefers
machinery manufactured in Canada or USA. He listed Germany as a quality
manufacturer but mentioned that they are generally expensive.
The Maver representative also recommended that American and Canadians send
representatives who can speak Spanish. Furthermore, they should offer equipment that
makes sense for the Chilean market, that is, small and medium sized. In the
pharmaceutical industry there is a limited supply of American machinery according to
Maver.
I) Trade Show Attendance / Trade Publication Information:
Maver’s executives attend as many trade fairs as possible. Among those mentioned by
executives who participated in interviews were Interphex of New York, Interpack,
(Germany), “Feria Internacional del Empaque y Embalaje Chile” and the “Feria Expo
Retail Chile.”, both local trade events. They are interested in attending all those that
have information on pharmaceutical packing anywhere.
One trade publication mentioned by Maver executives is “Informativo Asilfa”, a Spanish
language pharmaceutical trade publication.
J) Specific Interests:
Manufacturing equipment, capsule packaging machinery, blisters, and mixers.
K) Contact Information:
Company Name: Laboratorio Maver Ltda.
Contact: Carlos Rivera
Position: Technical Director
Address: Lota 2267,Of.303, Providencia - Santiago
Telephone: (56-2) 3724100
Fax: (56-2) 6510526
Email: CRivera@maver.cl
Nestlé Chile S.A.
Industry
Food
Sub Industry
Nestlé Chile manufactures 1,500 products,
ranging from breakfast cereals and ice
cream to pet food.
Location
Santiago, Chile
Size (sales)
US$ 550 million sales in 2003 (Nestlé
Chile S.A.)
Purchasing potential
Nestlé Chile’s 2003-2008 equipment
purchasing budget is US$150 million.
Specific Business Opportunities
Machinery for final manufacturing line
(“end of process”).
A) Company Description:
The Nestlé brand appeared in the Chilean market in 1934, when the local company “Sociadad Industrial
Lechera Miraflores” began to manufacture condensed milk under the Nestlé brand name. In 1945 Lechera
Miraflores purchased two more plants in addition to Sociedad Nacional Lechera Graneros, becoming
Chiprodal S.A.C.I. In 1986, Chiprodal S.A.C.I. became Nestlé Chile S.A. Today, Nestlé Chile directly
employs over 4,000 people.
Nestlé Chile produces most of its products with Chilean raw materials. From 1995 to 2002 the company
invested US$179 million in manufacturing equipment. According to Fernando del Solar, Nestlé Chile’s
Managing Director, Nestlé Chile is planning to invest US$150 million from 2003 to 2008 in equipment in
order to double its exports to US$100 million annually (2002 export sales were US$42 million). This will
involve expanding production facilities at several of the seven plants in central and southern Chile.
Due to Nestlé’s modern technology and substantial foreign investment volume, the company has helped
Chile become one the most developed countries in Latin America in processed food production.
B) Principal Products Produced and How They Are Packaged:
Product
Brand
Package
Instant Coffee
Nescafé and Ecco
Cans and sachets
Cereal
Basic 4, Chocapic, Cluster,
Flexible aluminum bag
Cornflakes, estrellitas, Crunch,
and cardboard boxes
Fiber One, Fitness, Gold, La
lechera, Milo, Nesquik, Trix
and Sucosos
Powdered Milk
Nido
Cans and flexible
Ice Cream
Savory
Flexible bags
Refrigerated Goods
Maggi
Flexible bags
Powdered Juices
Libby’s
Flexible bags
Condensed Milk
Nestlé
Cans and flexible
C) Installed Packaging Machinery:
Current
Brand
Units Origin
Machinery
Average Specification
Age
Used
EXTRUDER
MACHINE
NESTLÉ
1
USA
N/A
Stainless steal, for cereal
NESTEC
1
Germany
N/A
Production of metal packs.
AUTOMATIC
MACHINE
C77-10s-73 model, to
cover with plastic caps can
CLOSING
MACHINE
LAURENT
1
France
N/A
food.
C31s/192/233 model,
plastic caps for canned
CLOSING
MACHINE
LAURENT
1
Mexico
3 years
food.
Mfvb/60 model, with
vibrator system for
UNLOADING
BUHLER
MACHINE
MIAG
1
Mexico
13 years
unloading grains in silos.
FRAMEC
1
Italy
N/A
Automatic.
ICE CREAM
DISPENSER
MACHINE
SOLID DOSE
MACHINE
For condensed milk
GUERIN
1
France
N/A
production.
1
France
N/A
Automatic.
CERMEX
OUEST
PACKAGING
CONDITIONN
MACHINE
EMENT
PACKING
BISIGNANO
MACHINE
S.A.
1
Argentina
New
package filling.
BURT
1
Mexico
14 years
408/d model, used.
NALBACH
1
France
14 years
For filling food cans
Revolving, series # 651 for
LABELING
MACHINE
FILLING
MACHINE
S-5050 model, with
shakers and dosage devices
for raw materials. 500 lt
MIXING
MACHINE
PAPEMEIER
1
Swiss
N/A
capacity.
Non-stop dosage system.
50-60 unit per-minute
CASES FILLING
MACHINE
ROVEMA
1
Spain
N/A
capacity.
For introducing cereals
already packed in bags and
PACKING
MACHINE
LANGEN
2
Canada
N/A
SEPARATING
MACHINE
For solid and powder
METALMAG
16
Brazil
N/A
SERTER
MACHINE
in boxes.
material.
41-l/12131191 model, for
ANGELUS
1
France
11 Years
sealing cans.
ANGELUS
1
USA
11 Years
For sealing cans
BUHLER
2
Swiss
N/A
Automatic
1
USA
N/A
Continuous action.
SERTER
MACHINE
CEREAL
FLAKES
ROLLING
MACHINE
VIBRATINGTRANSPORTIN
MATERIAL
G MACHINE
HANDLING
D) Recent Purchases of Packaging Machinery:
Machinery
Brand
Country
CENTRIFUGE MACHINE WITH DRYING COLUMNS
NESTLÉ Germany
AUTOMATIC BAG-FILLING MACHINE, INDUSTRIAL USE NESTEC Italy
CHOCOLATE MANUFACTURE MACHINE
RIDA
Argentina
E) Future Packaging Machinery Ordering Plans:
Depending on market evolution. They are currently focusing on flexible-package fillers.
F) Purchasing Policies and Financial Arrangements:
Nestlé often pays 30% in advance, (which they claim suppliers often ask for) with the balance payable 60
days after the delivery of the merchandise. Sometimes Nestlé Chile also operates through foreign Nestlé
purchasing offices.
G) Factors that Influence Purchasing Decisions:
Depending on the type of product and expected volume. Nestlé Chile uses their experience, contacts with
colleagues in the industry, trade events, and the Internet to evaluate possible suppliers. If the equipment is
for new products, Nestlé Chile calculates projected sales in addition to return on investment, which
depends on the existence of local technical support among other things.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers:
Nestlé Chile buys via direct import and from local representatives. They receive preferred pricing from
their principal international suppliers due to Nestlé’s global purchasing power.
A Nestlé Chile executive mentioned that Canadian and Americans manufacturers have a reputation for
producing solid and simple equipment. German firms tend to produce high quality machines at higher
prices, while Italian manufacturers have lower prices while maintaining a sufficient level of quality.
The Nestlé executive recommended that Canadian and American manufacturers of packaging equipment
follow the European model, which is to say strong local representation with technical support and
maintenance of solid, long term relationships with Nestlé executives.
I) Trade Show Attendance / Trade Publication Information:
Nestlé Chile mentioned that Interpack in Germany (http://www7.interpack.com/), and Hispack in Spain
(http://www.hispack.com) are among the most important trade events, which they attend regularly.
J) Specific Interests:
Nestlé Chile is specifically interested in “end of process” machinery, or machinery for the final
manufacturing line.
K) Contact Information:
Company Name: Nestlé Chile S.A.
Contact: Lorenzo Chavalos
Position: Project Engineer
Address: Roger de Flor 2800, Las Condes - Santiago
Telephone: (56-2) – 3384000
Fax: (56-2) 2316953
Email: Lorenzo.chavalos@cl.Nestlé.com
Sanibel Amenities
Industry
Personal Care
Sub Industry
Cosmetics for hotels, hospitals and airlines
Location
Santiago, Chile
Size (sales)
N/A
Purchasing potential
N/A
Specific Business Opportunities
Laminated plastic film
A) Company Description
Sanibel develops cosmetics and accessories for hotels, hospitals and airlines.
The cosmetic products vary from shampoos, bath products and mouthwashes, to shoe polish.
Each product is presented with a logo and a brand. Sanibel has its own brand but also offers the
possibility of private labeling.
All Sanibel’s products are produced with raw materials approved by the F.D.A. (Food and Drug
Administration, U.S.A.).
B) Principal Products Produced and How Are They Packaged
Besides the cosmetic products listed below, Sanibel also offers accessories for hotels, hospitals and
airlines with either Sanibel’s brand or the name of the client printed. Some of the accessories are:
Shower cups, sewing sets, shoe shining materials, shoe polish, laundry bags, combs, tooth brushes,
razors, nail files, and tissue.
Product
Brand
Package
Soap
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Shampoo
Conditioner
Lotion
Perfume
Tooth paste
Shaving lotion
Bath salts
Bath oil
Powder
Sanibel Amenities / hotel, hospital or airline’s
Polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
Sanibel Amenities / hotel, hospital or airline’s
30-40-50-100 ml. PVC or polyethylene package.
brand name.
Cases in different sizes and shapes.
C) Installed Packaging Machinery
Current Machinery Used
Brand
Origin
Sealing machine
P.& D-F Italy
Average Age
Specification
N/A
6,000 units per hour
D) Recent Purchases of Packaging Machinery
Machinery
Brand
Semi Automatic Labeling machine Universal
Country
USA
E) Future Packaging Machinery Ordering Plans
Sanibel did not want to give provide information about their purchasing plans.
F) Purchasing Policies and Financial Arrangements
The company did not feel comfortable talking about this subject.
G) Factors that Influence Purchasing Decisions
As Sanibel is a small company compared with other multinational companies in the sector, the price is
the key factor for them. Italian machinery is preferred, but they are open to any offers from other
packaging machinery manufacturers.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers
Sanibel said that they prefer Italian brands mainly because of their price.
They said they do not have specific “arrangements”, they negotiate on a per-purchase basis with the
supplier.
I) Trade Show Attendance / Trade Publication Information
The usually attend the national “Feria Internacional del Empaque y Embalaje Chile”, which is carried
out every other year. (www.expotrade.cl)
J) Specific Interests
In general terms, Sanibel is interested in laminated plastic film equipment, labeling machines and
equipment related to PET plastic jars.
K) Contact Information
Company Name: Laboratorio Sanibel Ltda.
Contact: Lucía Tomas
Position: General manager
Address: Los Canteros 8511, La Reina – Santiago
Telephone: (56-2) 2732727
Email: ltomas@sanibel.cl
Fax: (56-2) 2750390
Soprole
Industry
Food
Sub Industry
Dairy
Location
Santiago, Chile
Size (sales)
US$275 million (2003)
Purchasing potential
US$50 million (2004)
Specific Business Opportunities
Flexible cartons and packaging
A) Company Description:
•
Soprole produces and markets over 200 products. It represents over 30% of the dairy market and is
the leading brand in yogurt, deserts, cheese, liquid milk, and butter.
•
In 2000, Soprole decided to centralize the administration, distribution and commercialization of all
Soprole, Dos Alamos, and Lácteos Pirque brands under the name of Comercial Santa Elena.
•
In 2003 the company had an operating profit of US$18,256,250; 24% higher than 2002. After-tax
profits were US$11,035,937; 62% higher than 2002.
•
Investments Dairy Enterprises S.A. or Fonterra (from New Zealand) controls Soprole with 56.84%
ownership. Soprole has approximately 1.475 employees.
B) Main Products Produced and How They Are Packaged:
Soprole launches over 20 new products a year. Soprole has over 200 products, such as those listed below:
•
Liquid milk
•
Deserts
•
Powdered milk
•
Yogurt
•
Margarine
•
Cream
•
Cheese
•
Butter
•
Juice
Product
Brand
Package
Dairy products
Soprole, Dos Alamos, Lacteos
Cardboard packages for
Pirque.
UHT (Ultra High
Temperature), films for
cheese, milk in plastic
bottles, bags, cardboard
boxes and tetrapack.
Calcium enriched milk
Huesitos
Tetrapack, plastic bottles,
and yogurt
and plastic pomes.
Yogurt
Yoguito, PetiFort, Dannon,
Plastic pome 130gr.
Dannonino
Low fat milk, yogurt
Next
Plastic bottles and pomes.
and butter.
Cultivate milk: 1 lt and 240
ml., 500 ml Yoghurt, and
milk: 1 lt.
Deserts
Uno al día, Manjarate, 1+1.
Plastic pomes formed by
plastic plates.
C) Installed Packaging Machinery
Current
Brand
Units Origin
Machinery Used
Average Specification
Age
N/A
Automatic. For preformed
PACKERS
Wrapping machine
VITZ
2500 packages per hour.
packages of 750 Grs.
1 Argentina
50 Bottles per minute. Bottle
PACKERS
Labeling machine
VITZ
1 Argentina
N/A
0,50 and 1 LT. Automatic
Labeling machine
DASE-SING
1 Taiwan
N/A
250 Bottles per minute. Electric
50 Units per hour. Electric. 1LT-
PACKERS
Labeling machine
VITZ
1 Argentina
N/A
0,5LT.
Filler machine 90/100Packages
Packaging machine
MASIPACK
1 Brazil
N/A
Per Minute. Electric. 40mm Bags
3600 pacakges per hour.
Automatic for preformed pacages
Wrapper machine
PACKERS
1 Argentina
N/A
of 750 grs.
D) Last Purchases of Packaging Machinery:
Year 2003.
Machinery
Brand
Country
Packaging machine for covering or labeling
BUANLIR
Uruguay
Bottle labeling machine Control 600-15 type
KRONES
Germany
Bottle cover machine: Covering machine CA 8/360
ETS.ANDRE
France
Filling machine For 240ML Bottles
ETS.ANDRE
France
E) Future Packaging Machinery Ordering Plans:
Soprole is generally looking for machinery related to flexible plastic packages and cardboard packages.
F) Purchasing Policies and Financial Arrangements:
The company prefers to work with local representations for communication reasons (language). In terms
of financial arrangements, Soprole often provides Letters of Credit to suppliers.
G) Factors that Influence Purchasing Decisions:
Price and technical characteristics are the most important factors for Soprole. It does not matter to the
company where the machine comes from, as long as it has a fair price and meets technical requirements.
For research purposes, while using the Internet to increase technical product knowledge, Soprole still
prefers catalogues and magazines for general sourcing purposes.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers:
According to Soprole, German packaging machinery companies are more serious and have a reputation
for being meticulous and prestigious. Canadian and American equipment are unknown commodities for
them. Soprole says that companies from these two markets need to send more information and establish
a presence locally. They said that there is almost no information about their machinery here. Therefore,
given the expectations from Chilean companies to know their suppliers well, it is not surprising that
Sorprole does not purchase a great deal of U.S. and Canadian machinery. Given the recent signing of
the US-Chile Free Trade Agreement and the existing agreement with Canada, companies from the U.S.
and Canada should make a concerted effort to increase their product awareness at Soprole.
I) Trade Show Attendance / Trade Publication Information:
According to Soprole, the most important trade event for packaging manufacturers in Chile is the Feria
Internacional del Envase y Embalaje. This and several other important retail trade events are listed at
www.expotrade.cl .
Trade magazines mentioned by Soprole are “Vas- Revista del packaging” (Packaging magazine) and
“Noticiero Fepach” (Food industry magazine).
J) Specific Interests:
Machinery for plastic and cardboard flexible packages.
K) Contact Information:
Company Name: SOPROLE (Sociedad de Productores de Leche S.A.)
Contact: Rodolfo Miranda
Position: Import manager
Address: Diagonal Santa Elena 2605, San Joaquín – Santiago.
Telephone: (56-2) - 4203000
Email: rmiranda@soprole.cl
Fax: (56-2) 5520555
Unilever Bestfoods Chile S.A.
Industry
Food
Sub Industry
Salad dressing, mustards, ketchups, sauces,
bouillons, flavorings, noodle snacks, meal kits,
ready-to-mix sauces, tea, ice cream, margarines,
meal replacements, soy milk and soy juices.
Location
Santiago, Chile
Size (sales)
Unilever Chile annual sales (approx.): US$ 1.2
billion.
Purchasing potential
N/A (They were not forthcoming with purchasing
information)
Specific Business Opportunities
Flexible packaging machinery
A) Company Description
In Chile, Unilever began diversifying its business in 1987, buying several different companies in
the process. A brief chronology is as follows:
•
1989 Unilver buys Coprona S.A. (Oil and margarines)
•
1990 Unilver buys Oils of the Compañía Industrial (Brands: Chef, Cristal, Dixie).
•
1992 Unilver buys Dos Alamos, (Cheese, butter and powder milk)
•
1992 Unilver buys Mega Chile S.A. (industrial Oil)
•
1993 Unilver buys Bresler and Panda, both ice cream companies
•
1995 Unilver buys Frigosam (tea)
•
1996 Unilver buys C.A.I. of Malloa S.A.
•
1997 the companies: Frigosam, Coprona and Malloa merge, becoming Malloa Alimentos
S.A., a company producing tomato sauces, cans, tea, margarines, mayonnaise and oil,
among others.
In January 2001, the Unilever food division merged with Bestfood, combing under one company
such well-known brands as Knorr, Hellmann´s, Maizena, Ades (Bestfoods) and Lipton, Bonella,
Chef (Unilever). Today Unilver Bestfoods is one of the world’s leading suppliers of fast moving
consumer goods in foods, homecare and personal care products.
B) Principal Products Produced and How Are They Packaged
Product
Brand
Package
Salad dressing, mustards,
Hellmann's, JB, Malloa, Doña
Flexible pack packages and
ketchups and sauces
Clara, Elak
plastic bottles. Tomato sauce
also packaged in cans.
Bouillons and flavorings noodle
Knorr and Maizena
Cardboard boxes, aluminum
snacks, meal kits and ready-to-
film, flexible packages, plastic
mix sauces
bags.
Tea
Lipton, Club, Emblem
Paper bags in cardboard boxes.
Ice cream
Heart (Bresler)
Plastic boxes, plastic bags,
cardboard wrapped.
Margarines, Fat, Oil
Becel, Bonella, Dorina, Banda
Plastic pomes, aluminum film.
Azul
Fat
Astra, Palmin
Paper and aluminum film.
Oil
Chef, Cristal, Mazola, Cada día
Plastic bottles.
Meal replacements
Slim·Fast
Beverages: cans
Bars: Plastic bags
Soups: Flexible package
Meals: cardboard box
Soy milk and juices
Ades
Tetrapack
Arvejas
Doña Clara
Can
C) Installed Packaging Machinery
Current Machinery Used Brand
Margarine packaging
BISIGNANO
Units Origin
Specification
1 Argentina 1 box (40 packages) of 500gr.
machine
per minute. Thermo-codifier /
thermo-graphic
Self-adhesive labeling
KRONES
1 Germany 3500 Bottles per hour for oval
machine
D) Recent Purchases of Packaging Machinery
bottles.
Machinery
Brand
Country
Casing machine for fat and margarine.
MAINAR
Argentina
Transporting machine for food processing
plant.
RAPISTAN Brazil
E) Future Packaging Machinery Ordering Plans
The company does not want to share its purchasing / ordering plans, but did mention that they
improvise according to the market trends and innovation.
F) Purchasing Policies and Financial Arrangements
Unilever is not forthcoming with this type of information: They only mentioned that their policies
are “flexible” and that they prefer payment plans that include installments over periods of more
than 12 months.
G) Factors that Influence Purchasing Decisions
The principal factors that influence Unilever Bestfood’s purchases are: cost, history, lead time and
flexibility.
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers:
Their suppliers are almost exclusively local representations with whom they have an established
relationship.
They have American and European machinery, but did not comment regarding what types of
machinery or their level of satisfaction with the equipment.
I) Trade Show Attendance / Trade Publication Information
Executives interviewed at Unilver Bestfoods Chile said that the company does not attend
packaging-related trade events and did not mention specific publications.
J) Specific Interests
Laminated packaging machinery
K) Contact Information:
Company Name: Unilever Bestfoods Chile S.A.
Contact: Mauricio Silva
Position:
Manufacturing leader and excellence manager
Address: Panamericana Norte 5981, Conchalí – Santiago
Telephone: (56-2) 6552100
Email: Mauricio-c.Silva@unilever.com
Fax: (56-2) 6232373
Watt’s
Industry
Food
Sub Industry
Juices, margarine, ketchup and grease
Location
Santiago, Chile
Size (sales)
NA
Purchasing potential
US$300 thousand per machine
Specific Business Opportunities
Flexible packaging machinery
A) Company Description
Watt's Alimentos S.A. was founded in the 1960’s, initially producing and selling fruit
derivative products.
In 1978 the company began to produce their own raw materials, which made Watt’s expand
its product mix from traditional fruit derivatives such as marmalade to margarines, fat and
oil. This trend continued over the past 25 years, and today Watt’s produces pastas,
prepared plates and cured meat associated with new brands in addition to their traditional
product mix. An example of this trend is their association with Loncoleche S.A., in 1996,
which brought Watt’s into the dairy business.
Currently, Watt's is part of the holding Santa Carolina S.A., with business activities
spanning the production and sales of margarines, fats, oil, mayonnaise, marmalade, sweets,
fruit pulps, juices, fruit concentrate, tomato sauce, ketchup, pastas, prepared plates, cured
meat, and dairy products.
B) Principal Products Produced and How Are They Packaged
The current trend is moving away from Tetra-Brik packages and towards flexible
packaging such as the Doy pack. This trend is fueled by the lower price of flexible
packaging compared to others.
Product
Fruit Division
Brand
Watts and Baby Watts
Package
Marmalades: Flexible package.
Juices and Nectar: Tetra-Brik, flexible and
plastic bottles.
Tomato Sauce: Flexible, tetra-Brik and can.
Ketchup: Flexible, Doy pack.
Quince Jam: plastic film.
Dairy
Loncoleche and Calo
UHT Milk (Ultra High Temperature):
Tetra-Brik, plastic bags and plastic bottles.
Manjar (Caramel, sweet milk boiled):
plastic pomes and flexible plastic bags.
Yogurt: Plastic pomes
Cream: Flexible Doy pack, plastic pomes.
Butter: Plastic pomes, aluminum film.
Powder Milk: Can and cardboard boxes
with aluminum bag.
Cheese: plastic bags and plastic film.
Pastas
Il Gastronomico
Fresh Pastas: in trays with modified
atmosphere such as: Ravioles, Agnolottis,
Tortellonis, Tortellinis, Gnocchis,
Fettuccines, Pancutras, etc.
Fresh Pastas: Wholesale: for institutions
and restaurants such as: Ravioles,
Tortellini, Fettuccines, Lasagna etc. In
modified atmosphere bags.
Frozen breaded cheese (empanadas): For
fast food restaurants. In boxes of 54 and
216 units.
Cured meat
Felco
Glacé, York and cooked ham, salami, pork
sausage, hot dogs: vacuumed sealed.
Oleaginous
Sureña, Belmont, Click,
Margarines, fat, grease: Mostly aluminum
Superior and Calo
film.
Mayonnaises: Doy pack.
Oil: plastic bottles.
C) Installed Packaging Machinery
Current
Machinery Used
Filling machine
Brand
Units
Origin
DUPONT
1
Canada
Averag
e Age
N/A
Automatic
packaging machine
Packaging machine
KING
KONG
RR
1
Argentina
N/A
1
Argentina
N/A
Specification
For forming and sealing
bags. Comprised of
formation plaques and
feeding tubes with a filling
nozzle.
Mechanic for margarine
packaging.
Nº.5265 with cylinders
ENAISI304.
D) Last Purchases of Packaging Machinery
Machinery
Thermo former automatic
machine 8000 packages
per hour
Brand
Country
BISIGNANO Argentina
Automatic packaging
machine for bottles and
other packages
CRAMSA
Argentina
E) Future Packaging Machinery Ordering Plans
Watt’s is planning to purchase packaging machinery for juice, mayonnaise and ketchup.
Their budget is approximately US$300 thousand per machine (they did not disclose the
number of machines they’d like to purchase).
F) Purchasing Policies and Financial Arrangements
Watt’s normally pays in installments, negotiated at the moment of purchase. The most
commonly negotiated payment plan is 3 or 4 installments of equal value, although this
depends entirely on purchasing volume.
G) Factors that Influence Purchasing Decisions
According to Watt’s, their experience (or lack thereof) with the equipment is the key factor.
They do not want equipment that requires great deal of maintenance.
The company likes to work with local representatives who visit Watts’ offices on sales
calls or who send information via mail. They also occasionally respond to catalog
advertisements or information obtained at trade fairs. They do not use the Internet to source
packaging machinery.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packaging Equipment Suppliers
According to Watt’s, German manufacturers are famous for having superior durability and
quality. Italian equipment is known for having machines designed for more domestic uses,
smaller and principally for pastes. They have worked with Canadian compressors for
hydrogen, (Electrolaiser) and with U.S. made machinery related to crackers (Vicar and
Baker Perkins). They prefer US or German made equipment for high volume, continuous
functions.
The company would recommend that American and Canadian companies have more local
representations and/or send more information directly to the packaging office at Watts.
I) Trade Show Attendance / Trade Publication Information
Watts attends trade events related to packaging in Chile and Argentina. They generally
send representatives to attend and to discuss interesting prospects with management upon
return.
J) Specific Interests
Watts is specifically interested in equipment related to flexible containers.
K) Contact Information
Company Name:
Watt's Alimentos S.A.
Contact:
Juan Carlos Mante
Position:
Package and process chief.
Address:
Avda. Pdte. Jorge Alessandri 10501, San Bernardo - Santiago
Telephone:
Email:
(56-2) 4414000
jcmante@watts.cl
Fax:
(56-2) 4414149