Under the partnership, Cargill will distribute Hunt’s products produced at ConAgra Foods plants in the United States, specifically tomato ketchup, yellow mustard and barbecue sauce. ACT II microwave popcorn will be produced and distributed locally for the first time.
In the past three years the condiments market has grown 4.5 percent a year; the main product in this category is tomato ketchup, which accounts for about 93 percent of this market. In Brazil, the microwave popcorn market has considerable growth potential as a result of strong sales of microwave ovens to the country’s new middle class in recent decades, according to a company issued press release.
“This partnership combines ConAgra Foods market expertise with Cargill’s sales, distribution and merchandising strength to serve increasingly demanding consumers, in terms of the quality of the products they buy," said Haroldo Rego, leader of Cargill’s Dressing & Oils segment. "In Brazil, the microwave popcorn category has considerable room for growth when compared to sales in other countries; additionally, everyone loves ketchup in Brazil. Our consumers look for more quality and flavor, and they will find this in the Hunt’s and ACT II brands, which are leaders in these segments."
Starting in October, Hunt’s line of condiments will be available in supermarkets and other food retailers nationwide, and ACT II microwave popcorn will be distributed through supermarkets in the state of São Paulo. Cargill and ConAgra Foods are preparing a series of promotion and tasting initiatives for end consumers to strengthen these brands locally, the companies said.