Belcorp expands toiletries presence in Chile

Peruvian cosmetics & personal hygiene products are tapping opportunities in Chile, as Belcorp that boasts an unit in Santiago has been increasing business gradually in that country and now accounts 16% of the market, says Silvia Seperack, Peruvian commercial advisor in Santiago.

According to her, the food segment also has great potential to boost up business in Chile, specially with olives, oregano, asparagus, pepper, artichoke, chilli paste and canned fish. However to be successful in Chile, businessmen have to be aware of the distribution channel scheme, which represents 60% of sales from the food sector. One of the leaders in the segment, D&S adopted a low prices policy and created its own brand Lider.

Publication: SABI - Business News
Provider: South American Business Information
September 1, 2009

Calidda to reach 70% penetration in Lima and El Callao in six, not four,years

In the next six years, 70% penetration of the residential market in Lima and El Callao will be achieved by natural-gas connections, says the firm in charge of such activity, Calidda Gas Natural de Peru. The firm's general director, Ernesto Cordova explains that, at present, penetration is at 17%, adding that in four years time 50% penetration should have been reached.

However, the Ministerio de Energia y Minas (MEM) has stated that Calidda should be reaching the 70% mark in just four years. Cordova suggests that this is unrealistic and that no country worldwide has been able to make such progress (Argentina took eight years and Colombia, even longer). He is aware that the firm will pay a tariff-based penalty for not reaching the 70% mark.

Publication: SABI - Business News
Provider: South American Business Information
September 1, 2009

Peru remittances totaled US$564 million in 2Q 2009

Remittance flow sent by Peruvians overseas to their relatives in Peru totaled US$564 million in the second quarter of this year; this is the highest amount so far this year, Central Reserve Bank of Peru (BCR) reported Sunday.

BCR added that those remittances of Peruvians who live abroad represented an increase of 5.2 percent in relation to the previous quarter this year.

Remittances from United States rose 3.4 percent in second quarter in relation to the previous quarter.

While remittances from other countries grew by 6.5 percent in the same period.

During second quarter of this year, remittance intermediation by banks rose 10.4 percent.

In second quarter, 44 percent of remittances were intermediated by banks, while 40 percent by Exchange Traded Fund (ETF).

BCR added that total remittances sent to Peru in 2008 amounted to US$2.43 billion, figure that represented a 14.4 percent growth in relation to the previous year.

Publication: Andina - English Newswire
Provider: Andina
August 30, 2009

ABB invests US$5mil in Cercado de Lima

In 2006 Asea Brown Boveri (ABB) has stopped production of electric transformers in Peru, and concentrated in electrical engineering and industrial infrastructure services. General director Enrique Rohde pointed out as results of this strategy the turnover rose from US$30mil in 2005 up to US$200mil. According to him, 50% of earnings come from services in Peru. ABB intends to reach turnover of US$300mil as of 2010, via investments of US$5mil in 2009 and 2010 in the modernisation of the unit in Cercado de Lima and the construction of laboratories to improve services.

Publication: SABI - Business News
Provider: South American Business Information
August 29, 2009

Laboratorios Portugal to penetrate Chile and Colombia

After initiating exports to Poland and Ukraine, Laboratorios Portugal is negotiating its entry in Chile for the next year and has contacted some Colombian businessmen as well. Currently, exports represent 10% of total sales that summed US$30mil in 2008. Jose Alonso Portugal, general manager of the lab, expects to be ending up 2009 with 15% increase in sales up to US$35mil.

Laboratorios Portugal, specialised in production of pharmaceutical products and cosmetics, has created a transportation company last year with investment of US$500.000. A total of US$2.5mil should be spent this year in the acquisition of machinery, equipment and infrastructure.

Peru: Publication: SABI - Business News
Provider: South American Business Information
August 29, 2009

Advertising investments of US$444,9mil in 2009 in Peru

Corporate investments in advertising would top US$444,9mil in 2009, up 8% from 2008, when the sector showed US$412mil, estimates Marketing Preciso. Manuel Fazio, manager Preciso, says television advertising accounts for 38% of the pie, followed by newspapers with 20% and outdoor advertising with 13%; radio has 12%, cable TV 5%, with magazines and Internet media each 3%. Companies engaged in the manufacturing of massive products account for 60% of the advertising investments, followed by financial services, educational services, and others.

Publication: SABI - Business News
Provider: South American Business Information
August 29, 2009

Vena enters into joint venture to develop Pucara project

Vena Resources Inc. announced that it has signed a Letter of Intent with IIMPUL Peru, a Peruvian gold/copper production and trading company, to put the Pucara gold/copper project into production as soon as permits are received.
The Letter of Intent, which will be set out in a definitive Joint Venture Agreement, involves four key revenue streams which will be funded by IIMPUL and from future cash flow generated by the Joint Venture:

"JV Mine": To develop and mine the underground gold/copper veins at Pucara. It is expected that by the end of 2010, Vena will be able to recover its US$2 million (approximate) invested so far in developing Pucara. The remaining after-tax profit will be divided 50/50 between the two partners.

"JV Expansion": The identification and purchase of high-grade copper (greater than 3% Cu) properties in the vicinity of the Pucara project with investments and gains/losses to be split 50/50 by Vena and IIMPUL. It is intended that the JV-Mine operation will fund these acquisitions. Vena is presently reviewing technical data from two nearby operations.

"JV Mill": To install a scalable mill capable of processing high-grade copper ore (greater than 3% Cu). The mill is expected to have an initial capacity of 200 tons-per-day (tpd) with the expectation that the mill processing rate will reach 5,000 tons-per-month of at least 3% Cu by the end of the first year of operations and continue to expand. 50% of the feed will come from the existing Pucara project. Any gains or losses resulting from this operation will be split 50/50 between Vena and IIMPUL.

"JV Toll Milling": This is IIMPUL's core expertise in Peru and given Pucara's strategic location (60 kilometres from Juliaca) and outstanding infrastructure, the JV intends to provide custom milling services to several local copper miners. IIMPUL has already identified and is negotiating with several miners with high-grade copper veins ready to be serviced by the joint venture. Any gains resulting from this operation will be split 70/30 in favor of IIMPUL.

Publication: Andina - English Newswire
Provider: Andina
August 19, 2009

AOC wants 13% of the TV and LCD market

The monitors and television sets giant AOC, subsidiary of the Chinese Admiral Overseas Corporation, has set up its strategy aiming to conquer 13% of the Peruvian market. Gustavo Rivera, president AOC Peru, stated that around 100.000 monitors and television sets will be commercialised in the country in six months, overcoming 2008's total performance in 25%. In order to achieve the goal, AOC has recently added 200 new selling points to its network, by setting up agreements with retail chains, such as Elektra, Carsa and Efe.

Publication: SABI - Business News
Provider: South American Business Information
August 19, 2009

Peusac looks for exports of fancy food products

Peusac, manufacturer of the jelly brand Universal, is targeting the external market and plans to be present on October as expositor in Anuga, food & drink fair trade to be held in Germany. The firm has recently been expositor in the fair trade Summer Fancy Food on New York.

Peusac intends to be launching new products in Anuga, such as ice cream made of lucuma, porridge and chicha morada. Idea is to be exporting not only to Spain, Italy and the US, but to all Latin America and further Europe. Turnover has been of US$8mil in 2008, says Dorian Zea, exports manager Peusac, forecasting a growth of 25% for 2009. Currently, Peusac counts with over 30 products, however Universal continues as its core business accounting 70% of production.

Publication: SABI - Business News
Provider: South American Business Information
August 19, 2009

Chocolates La Iberica looks to increase presence locally and in the US

Peruvian chocolate firm Chocolates La Iberica, which is based in the region of Arequipa, has reported that it is aiming to increase its popularity among local consumers, since it is currently targeted mainly at tourists. Some 50% of the firms sales are currently in Arequipa, where it has a chain of five shops.

However, the firm is planning to open more shops in the new shopping malls that are being constructed in Lima and Huancayo, notably the Plaza Norte and Real Plaza Centro Civico, as well as the Mall Aventura Plaza de Arequipa. Over the last two years, Chocolates La Iberica has invested USD 2mn (EUR 1.41mn) in machinery and equipment, which has assured it will be able to satisfy demand for the next ten years.

As well as increasing its presence in Peru, the firm also plans to begin exporting to Chile and the US in 2010. It is currently in talks with firms that manage Peruvian and South American products in the US. Chocolates La Iberica employs between 250 and 300 people in Peru and produces around 200 different chocolate products

Publication: Esmerk - News monitoring
Provider: Esmerk
August 11, 2009