The Rise of Multilatinas: Latin America as a Source Language Market

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Latin America is traditionally seen as the backyard of business — a great market to sell goods from the United States, Europe and Asia. With half a billion people and two languages, it is definitely an attractive region. However, brands like Chevron, Sara Lee’s Bakery, Entenmann’s, Burger King, Thomas’ English Muffins and Swift now belong to Latin American conglomerates that are expanding worldwide. Companies like Embraer export high value and technology to the world, instead of just commodities. Are you taking advantage of this opportunity? Are you really thinking Latin America?

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The Rise of Multilatinas: Latin America as a Source Language Market

  1. 1. @renatobeninatto #TLA2012 The Rise of Multilatinas: Latin America as a Source Language Market1
  2. 2. 2 @renatobeninatto
  3. 3. Top 20 Multilatinas 2012 Ranking Company Country Sector Revenues 1 GRUPO JBS - FRIBOI BR Food 32.944,0 2 BRIGHTSTAR (1) BO Telecommunications 4.700,0 3 LAN CL Airlines 5.718,2 4 CEMEX MX Cemento 13.546,2 5 TENARIS AR Steel 9.972,5 6 TELMEX MX Telecommunications 7.057,0 7 GRUPO ALFA MX Car Parts/Petrochemicals 13.053,1 8 VALE BR Mining 55.014,1 9 GERDAU BR Steel 18.875,6 10 AJEGROUP (1) PE Beverages 1.450,0 11 IMPSA AR Power 1.066,9 12 CONST. N. ODEBRECHT BR Engineering 32.325,0 13 GRUPO BIMBO MX Food 10.462,8 14 LABORATORIOS BAGÓ AR Pharma 1.012,0 15 SIGDO KOPPERS (1) CL Contruction/Engineering 2.016,9 16 AMÉRICA MÓVIL MX Telecommunications 47.689,6 17 PETROBRAS BR Oil 130.171,7 18 ISA (INTERCONEX ELEC) CO Power Transmission 2.240,3 19 GRUPO CASA SABA (FASA) MX Retail 4.670,0 20 MARFRIG BR Food 11.548,83 @renatobeninatto
  4. 4. Drivers for Internationalization4 @renatobeninatto
  5. 5. Drivers for Internationalization• Catering to low-income and price-sensitive consumers4 @renatobeninatto
  6. 6. Drivers for Internationalization• Catering to low-income and price-sensitive consumers• Familiarity with challenging distribution systems, pragmatic knowledge of complex political and regulatory environments4 @renatobeninatto
  7. 7. Drivers for Internationalization• Catering to low-income and price-sensitive consumers• Familiarity with challenging distribution systems, pragmatic knowledge of complex political and regulatory environments• Lessons learned from domestic competition with foreign multinationals4 @renatobeninatto
  8. 8. Drivers for Internationalization• Catering to low-income and price-sensitive consumers• Familiarity with challenging distribution systems, pragmatic knowledge of complex political and regulatory environments• Lessons learned from domestic competition with foreign multinationals• Adoption of innovative strategies as a matter of survival.4 @renatobeninatto
  9. 9. Five Economies InviteInvestments5 @renatobeninatto
  10. 10. Five Economies InviteInvestments5 @renatobeninatto
  11. 11. Five Economies InviteInvestments Brasil, Chile, Colombia, Mexico and Peru represent 3/4 of Latin America’s GDP5 @renatobeninatto
  12. 12. Management6 @renatobeninatto
  13. 13. Management• Some Multilatinas are state-owned6 @renatobeninatto
  14. 14. Management• Some Multilatinas are state-owned• Most Multilatinas have centralized leadership and are family owned and managed6 @renatobeninatto
  15. 15. Management• Some Multilatinas are state-owned• Most Multilatinas have centralized leadership and are family owned and managed• Management teams have a reputation for making quick decisions to survive, grow, and get stronger in and unstable economic environment6 @renatobeninatto
  16. 16. Global Reach7 @renatobeninatto
  17. 17. Global Reach• Bimbo (Mexico): Over 100,000 employees in 17 countries7 @renatobeninatto
  18. 18. Global Reach• Bimbo (Mexico): Over 100,000 employees in 17 countries7 @renatobeninatto
  19. 19. Global Reach• Bimbo (Mexico): Over 100,000 employees in 17 countries• Concha y Toro (Chile): Sales 115 countries,7 @renatobeninatto
  20. 20. Global Reach• Bimbo (Mexico): Over 100,000 employees in 17 countries• Concha y Toro (Chile): Sales 115 countries,7 @renatobeninatto
  21. 21. Global Reach• Bimbo (Mexico): Over 100,000 employees in 17 countries• Concha y Toro (Chile): Sales 115 countries,• América Móvil (Mexico): Over 200 million clients in 18 countries.7 @renatobeninatto
  22. 22. Multilatinas by Country(2011 and 2012)8 @renatobeninatto
  23. 23. Data9 @renatobeninatto
  24. 24. Data• In 1999, less than half of the largest 500 companies in Latin America were homegrown. By 2007, Latin American firms commanded three out of every four positions in the regional top 500.9 @renatobeninatto
  25. 25. Data• In 1999, less than half of the largest 500 companies in Latin America were homegrown. By 2007, Latin American firms commanded three out of every four positions in the regional top 500.• Today, Multilatinas, armed with cash, are stepping out of their comfort zone and taking control of debt-laden firms in Europe and the United States9 @renatobeninatto
  26. 26. Geographical Coverage of Multilatinas by Sector and Quantity ofCountriesSource: AméricAEconomía Intelligence10 @renatobeninatto
  27. 27. Companies with Most Global Reach in 2011Source: AméricAEconomía Intelligence11 @renatobeninatto
  28. 28. Conclusions12 @renatobeninatto
  29. 29. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies12 @renatobeninatto
  30. 30. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies• Portuguese and Spanish cover large markets - 500 million people12 @renatobeninatto
  31. 31. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies• Portuguese and Spanish cover large markets - 500 million people• Into English translations in high demand12 @renatobeninatto
  32. 32. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies• Portuguese and Spanish cover large markets - 500 million people• Into English translations in high demand• South-South deals might require other language combinations (PT-ZH or ES-AR)12 @renatobeninatto
  33. 33. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies• Portuguese and Spanish cover large markets - 500 million people• Into English translations in high demand• South-South deals might require other language combinations (PT-ZH or ES-AR)• Major sports events will put Brazil under focus12 @renatobeninatto
  34. 34. Conclusions• You might have to go to São Paulo or Mexico City to sell to International Companies• Portuguese and Spanish cover large markets - 500 million people• Into English translations in high demand• South-South deals might require other language combinations (PT-ZH or ES-AR)• Major sports events will put Brazil under focus• THINK LATIN AMERICA12 @renatobeninatto
  35. 35. Renato Beninatto13
  36. 36. Renato Beninatto renatob@moravia.com13
  37. 37. Renato Beninatto renatob@moravia.com +1 (978) 394-700413
  38. 38. Renato Beninatto renatob@moravia.com +1 (978) 394-7004 @renatobeninatto13

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