Brazil Economic Doldrums Inspire Exports

Brazil’s flat economy has inspired manufacturers of paint and coatings to turn to export markets to make up for lost domestic sales, reckons Antônio Valdinei da Rocha, the manager of exports and imports for Universo Tintas, based in Diadema, Sao Paulo state. “Although exports have not been a significant part of sales, we hope to double them in the next year or so, with targets in South America, the Middle East and Africa,” said Da Rocha.

Privately-held Universo, which manufactures architectural paints for home, wood and metal applications, already is exporting to the other member countries of Mercosul, the Common Market of the South, and to Peru. “We are now negotiating sales into Paraguay, Chile, Bolivia, Ecuador and other countries in Latin America,” said Da Rocha.

Universo also is exporting paint to unidentified Middle East and African countries, and hopes to augment sales. One marketing tool the company has employed for those regions is attendance at the Big Five trade show in Dubai, which it has attended twice, gaining a new customer in Angola, Da Rocha noted. Brazilian company attendance is promoted through the Câmara de Comércio Árabe Brasileira, the Arab-Brazilian chamber of commerce, and through the Agência Brasileira de Promoção de Exportações e Investimentos (Apex), the federal export promotion agency.

To strengthen its export potential, Universo has gained certification by the Portuguese Institute for Accreditation (IPAC), a member of European Accreditation (EA). Similarly, the company has ISACert recognition, a member of the Dutch Council for Accreditation RvA), which covers Africa, Asia and other regions.

Domestic costs of production, transportation and warehousing have risen markedly over the past year, Da Rocha said. New federal import taxes for paint raw materials increased, and electricity prices for industrial customers were bumped up 30 percent as of March, he noted. While the company does not reveal production or sales numbers, on-site tank storage capacity for water-based lines is sufficient to supply five million liters per month, company profile information indicates. Another two million liters per month of solvent-based paints and coatings are also manufactured by the plant.

To help hold the line in the Brazilian market, Universo rebranded two lines of paint recently and is promoting a very concentrated line. Among rebranding moves, the company’s top-of-the-line acrylic Premium Polycril is now sold as Tinta Acrilica Premium Universo; similarly the economy line acrylic Rilaplast is now sold as Tinta Acrilica Economica Universo. Within the economy lines, Unilar is also a new brand.

“We also are promoting our concentrated Rende Muito Mais (covers much more) architectural line, which can be diluted up to 80 percent with water. While the middle class had grown substantially in past years, this upward movement has slowed dramatically of late,” Da Rocha said.

In terms of specialty paints, Universo launched an antibacterial/antifungal product, Tinta Higiênica Universo, that is now gaining traction. With electrostatic additives from Clariant, the paint repels microorganisms seeking to attach to the paint surface. Universo has gained certification for the product under Japan’s JIS Z 2801:2006 Antimicrobial Products code, Da Rocha says. The line is available in acrylic, enamel and epoxy finishes, in five basic colors.