Food: Belgian company Puratos makes additional investment in Argentina to replace imports from Brazil

The foodtech (food company) food technology-based) Puratos announced that will increase its investments in Argentina for Expand the production of pastry fillingsin such a way that replace products that currently arrive from Brazil and Chile.

Puratos is a company of Belgian origin, dedicated to manufacturing and providing inputs and technology for the industries of baked goods, pastries and chocolates.

Now he has just announced that he will allocate an additional investment of US$1 million to expand a new production line for pastry fillings at the plant it owns in Talar de Pacheco. In addition to replacing some imported products with its own production, the new line will allow it to finalize entry into Brazilas planned for this year.

The new production line, which includes fruit filling options and flavorless glitters is already operational and has generated 5 new jobs. This brings the total number of Puratos employees in Argentina to reaches 120 people.

“Importing fillers presented significant challenges, especially in terms of costs. Now, with local production, We gained a competitive advantage which will not only benefit the local market, but also will open new opportunities in Brazila market with significant potential demand. We estimate that the Brazilian market could absorb up to 15% of our production,” said Alejandro Axelrud, Puratos Finance, Administration and IT Manager for Argentina, Paraguay and Uruguay.

The Belgian group has more than a century of history and is present in more than 100 countries, including Argentina. “This investment opens a new chapter for the pastry industry in our country. Until now, pastry fillings were mostly imported from Brazil and, in some cases, from Chile. With this new production line, Argentine pastry chefs Now they have a local optionwhich represents a significant advance for the sector,” Axelrud added. Scope.

Sustainability in food production, a growing demand

According to a report by the consultancy Fact.MR, the global market for pastry fillings It was valued at US$1.2 billion in 2023with a projection of gradual growth until reach US$2 billion in the next decade.

This report also reflects the evolution of a growing global trend: consumers are concerned about their physical well-being and want to know the origin of the food they consume.

In fact, according to the study Taste Tomorrow -a report with qualitative and quantitative information prepared by Puratos based on data from more than 50 countries- 66% of consumers worldwide andThey are interested in the origin of their fooda percentage that rises to 78% in South America.

“Our clients They demand products that are sustainable and meet the strictest quality standards.. Our fillings, made from natural fruits from Patagonia, are not only healthy, but also have traceability that guarantees our commitment to responsible production,” Axelrud explained on this point.

According to Puratos figures, apple filling is the most popular in the new line, although flavours such as raspberry have also been added. For this reason, the company maintains its plans to continue expanding its offering according to the demand of the local and regional industry.

This trend is in line with Puratos’ global goal that, by 2030, Half of its sales come from products focused on health and well-being.

Earlier this year, Puratos announced a $7 million investment to expand its operations in the country with a focus on healthy products. The decision takes into account its own survey which indicates that 69% of Argentine consumers buy plant-based foods and 78% would buy more from bakeries where everything is made with natural ingredients.

For Puratos, Argentina also offers an important packaged bread marketwith consumption remaining relatively stable despite episodes of high inflation that forced the company to narrow its profit margins.

But the commitment to maintain operations in Argentina despite the challenging economic context has to do with the fact that Puratos sees this market with a very large growth potentialbeyond the current situation.

The Belgian company assesses that due to the type of consumption and the type of society, Argentina should reach growth percentages similar to those of Chile, Costa Rica or Mexicothe most relevant markets that Puratos has in Latin America.

From its plant located in Talar de Pacheco, Puratos produces and exports inputs to Peru, Chile, Uruguay and Paraguay. This year, through the new production line that is already in operation, it will achieve its goal of setting foot in Brazil.

As part of the projects associated with the new production line, Puratos began negotiations with raspberry producers from Patagonia to develop the concept “field to fork” (from field to fork) a concept that involves guaranteeing traceability of raw materials from their production until they reach the consumer’s table.

One goal in that region is to take advantage of the designation of origin Patagonia is trying to position itself internationally, given that it is valued globally and also locally. In fact, the use of Patagonia as a designation of origin in some industries such as the wine industry has generated controversies among some wineries that have reached international courts.

At the moment, from Patagonia Puratos develops the “apple topfil”a product that allows bakers and pastry chefs to access Patagonian fruit ready to use in their fillings and with premium quality. The product is only sold in Argentina, but there are actions underway to reach Uruguay.