Growth at constant currency
Our business in the Americas showed remarkable resilience in the face of COVID-19, benefiting from both favourable consumption trends and customer wins. Growth was driven in particular by strong demand in Brazil and Mexico. In the USA, a negative impact from the spread of the virus – as foodservice sales were affected by closures due to lockdowns of outlets such as quick-service restaurants and schools – was offset by increased at-home consumption of food products.
In Brazil, an increase in at-home consumption of milk, culinary products and dairy cream was further stimulated by higher welfare payments during the height of the crisis. Overall, the market became more polarised, with consumers focusing either on basic affordable products or on indulgence purchases. SIG was able to help its customers meet these trends, by providing both “pocket money” and basic formats and by offering premium product packs in multiple sizes.
After a strong performance in 2019, Mexico saw further growth in white milk consumption in medium and large sizes. Demand continued to increase for recombined milk, which is an affordable ready-to-drink dairy formula. Sales of evaporated milk, tomato products and sauces also increased as people prepared more meals at home.
In addition to the positive consumption trends in Brazil and Mexico, our performance in Brazil reflected the success of filler placements made during the year with two large Brazilian dairy companies, Shefa and Líder Alimentos.
We also continued to expand our partnership with Nestlé in Brazil. Thanks to the flexibility of SIG’s system, Nestlé has launched four different pack sizes for sweet condensed milk to cater to different consumer needs. Nestlé has also adopted SIG’s renewable and recyclable paper straw solution for its NESCAU beverage range and SIG is the sole provider of small-size packaging for NESCAU, which is the second largest brand of flavoured milk in Brazil.
Innovation did not stand still in the USA. The industry-leading coffee creamer company nutpods introduced a zero-sugar oat creamer, expanding its offerings beyond its classic almond/coconut line. Both lines are available in combidome, which combines the best features of a carton pack with the best features of a bottle and demonstrates clear differentiation on the shelf. The strong environmental footprint of the pack also perfectly aligns with the environmental positioning of nutpods, which will continue to expand its combidome product offerings in 2021 and beyond.
We are continuing to expand our footprint in Latin American markets outside Brazil. We signed an agreement with COLUN, the largest dairy company in Chile, replacing three competitor filling machines with one SIG filling machine. This again demonstrates the advantages of our system in offering flexibility and operational excellence to our customers.