2008 Packaging Machinery Market Overview. Argentina
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1 2008 Packaging Machinery Market Overview Argentina Prepared by KOOBET exclusively for the Packaging Machinery Manufacturers Institute April 2008
2 Table of Contents I. EXECUTIVE SUMMARY...4 II. ECONOMIC/ POLITICAL/ FINANCIAL ISSUES Economic Forecasts Political Outlook Relevant Issues Affecting the Sales of Imported Packaging Machinery...6 III. THE PACKAGING MACHINERY INDUSTRY...7 IV Trends in Equipment Financing and Other Factors That Can Influence Purchasing Decisions Regulatory Framework Trade Barriers/ Import Duties Domestic vs. Imported Machinery Origin of Imported Machinery Perceptions of U.S. & Canadian vs. European and Other Origin Manufacturers Why European Machinery Continues to Grow Despite a Relatively Strong Euro Market Drivers - Factors That influence Purchasing Decisions Packaging Machinery Trends Trends for the Industrial Consumer Products Trends for the Food Industry Trends for the Beverage Industry Trends for the Pharmaceutical Industry Trends for the Personal Care Industry Best Prospects for Packaging Machinery Sales Food Beverage Pharmaceuticals Personal Care...17 THE FOOD INDUSTRY Industry Trends Key Players Top Products and Their Packaging Needs Company Profiles...20 Arcor SA...20 Aceitera General Deheza S.A...24 Compañía Argentina de Levaduras S.A Conservas Alco S.A...31 Corlasa Ecofrut S.A...37 Fargo...40 Farmfrites...43 Georgalos S.A...46 Grupo Matas S.A Kleppe S.A La Piamontesa S.A Lheritier Argentina S.A Molino Cañuelas S.A Moño Azul S.A Productos Lipo S.A Valente Briosh S.A...71 Page 2
3 V. THE BEVERAGE INDUSTRY...74 VI. VII. VIII Industry Trends Key Players Top Products and Their Packaging Needs Company Profiles...76 Bodegas Escorihuela S.A Coca Cola Polar Argentina S.A...79 Finca Flichman S.A...82 Grupo Peñaflor S.A...85 La Agricola S.A La Rural Viñedos S.A...91 Pritty S.A Valentin Bianchi S.A THE PHARMACEUTICAL INDUSTRY Industry Trends Key Players Top Products and Their Packaging Needs Company Profiles AstraZeneca Argentina S.A Laboratorios Abbot S.A Laboratorios Denver Farma S.A Laboratorios Roemmers S.A Quimica Montpellier S.A Schering Plough Argentina S.A THE PERSONAL CARE INDUSTRY Industry Trends Key Players Top Products and Their Packaging Needs Company Profiles Cosmetica Avon Dybelcorp S.A Laboratorios Victoria S.A Reckitt Benckisser S.A OVERALL ASSESSMENT AND FINAL RECOMMENDATIONS Strategic Recommendations Page 3
4 I. Executive Summary PMMI commissioned a market study of Argentina s packaging machinery industry sector. The study s main purpose is to unveil relevant business opportunities in various market segments. This report was produced by Koobet ( With a network of affiliate offices in 55 countries, Koobet is a consulting firm that specializes in business development and market research. Argentina currently represents an attractive market, with various business opportunities that PMMI members should consider. The packaging machinery industry sector features 85% of imported equipment. In 2007, the total import market accounted for USD $115 million, a 17% increase from During 2008, the import market is expected to grow approximately 11%, accounting for nearly USD $128 million worth of packaging machinery imports. Germany leads the packaging machinery import market with a 35% share, followed by Italy with a 30% share and the United States with 10% of the import market. In the past six years, U.S. exports of packaging machinery to Argentina increased by 5%; however, current brand recognition of U.S. machinery is far from its European competitors, which dominate the market. This report addresses key factors influencing purchasing decision-making, competitive elements, best sales prospects, market preferences, and other factors that depict the industry. Historically, Argentine buyers of packaging machinery have preferred European equipment, and have invested heavily in packaging machinery of European origin. Italian and German manufacturers are highly regarded market leaders for their cutting edge technology and service excellence. The economic collapse of 2001 adversely affected Argentine packaging machinery investments in all industries across the board. However, Argentina s rapid economic recovery, featuring a 9% GDP growth in almost six consecutive years, have propelled new investments in packaging technology and machinery. The growth of packaging machinery imports is closely tied to the increase in Argentine exports, and also to the growth of internal demand. The main drivers of packaging machinery imports are the food and beverage, pharmaceutical and personal care industries. In general, U.S. manufacturers of packaging machinery have not made much of an impact in the Argentine market. Only a handful of Argentine firms have invested in U.S. technology in the past, and most of the company representatives interviewed for this report are unfamiliar with U.S. brands in the packaging machinery industry. A lack of local representation and the scarce presence of U.S. manufacturers in local trade shows are factors adversely affecting the perception of potential Argentine buyers for U.S. technology. The feedback of Argentine companies about U.S. machinery is generally good. From a technical standpoint U.S. machinery is believed to be reliable. However, from a customer s perspective, the relationship with the manufacturer is nonexistent. New market players from other latitudes, such as manufacturers from Brazil, Australia, New Zealand, China and India, are beginning to penetrate the Argentine market. Asian machinery is not popular for its quality; however, it is popular for its pricing. Asian suppliers are gaining success with relatively small firms that need to automate productive lines, as well as those that have limited resources to invest in machinery upgrades. Page 4
5 Brazilian manufacturers have made significant progress by improving the quality of their machinery manufacturing. Further, their commercial proactiveness, Brazil s strategic location in the South Cone, and the fact that Brazil is a member of the Mercosur trade block represent serious competition to global manufacturers of packaging machinery. Argentina holds 15% of the total packaging machinery market. Argentine equipment is perceived as being smaller in size and not as technically advanced as internationally manufactured machinery. However, the machinery is generally accepted for its low pricing and good after-sales technical support. The most prominent local players include Tecmar, Bisignano, Prodol and EDOS (food and beverage industry), Blipack and Tover (pharmaceutical industry) and Rodofeli (personal care industry). Page 5
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