LFL growth at constant currency
Our business in the Americas ranges from the developed markets of the USA and Canada to fast-growing emerging markets such as Ecuador and Chile. We have tailored our go-to-market strategies to meet the differing needs of the countries in the region.
The Americas registered another strong performance in 2021 with growth across the region. In Brazil and Mexico, high at-home consumption of liquid dairy and culinary products was sustained during the year. The effects of the COVID‑19 pandemic on spending power in Brazil have reinforced consumers’ focus on affordability, with demand for differentiated and premium products expected to pick up as the economic situation improves. In Mexico, high inflation rates are driving demand for large-size formats. The USA saw an increase in food service sales with the re-opening of quick-service restaurants.
In 2020, we placed nine filling machines with two large Brazilian dairy companies, Shefa and Lider Alimentos. These filling machines continued to make a significant contribution to growth in 2021. With Shefa, where the business includes co-packing services to brand owners, a highlight was the introduction of combismile. This contributed to the diversification of our portfolio into small portions designed for individual consumption, with a focus on new categories such as high protein beverages.
“With this new packaging, we have revamped our line of high-protein drinks.”
President of Shefa
“With this new packaging, we have revamped our line of high-protein drinks, which has a demanding young public that is always looking for quality products that match their lifestyle. The package has a beautiful design, is easier to hold and with a closure that makes consumption more convenient”, says Roberto Adabo, President of Shefa.
Our relationship with Nestlé in Brazil, originally covering sweetened condensed milk and flavoured milk, has progressed further to include plant-based beverages. SIG is also expanding with Nestlé outside Brazil with the opening of a second line in Ecuador for medium sizes. The expansion of our footprint with Nestlé reflects the efficiency we have demonstrated and the low waste rates on our filling machines.
Focus on food safety has increased following the pandemic as shown by the adoption of our PAC.TRUST product traceability solution by Cemil, a major producer of dairy products in Minas Gerais, Brazil. Cemil is deploying the automated PAC.TRUST system to manage its entire logistics chain in real time, monitoring volumes from the time the packaging leaves the filling line to delivery at the point of sale.
In the USA the re-opening of quick-service restaurants with the easing of COVID‑19 lockdowns resulted in a strong sales performance in food service. Growth in premium plant-based milks and creamers continued, particularly with emerging brands.
nutpods, an industry-leading plant-based coffee creamer company, continued to expand its portfolio in combidome.
“Our first to market partnership with SIG’s SIGNATURE PACK has allowed nutpods to increase its relevance.”
Founder and CEO of nutpods
“Our first to market partnership with SIG’s SIGNATURE PACK, which we call Plant Pack™, has allowed nutpods to increase its relevance and appeal to younger, environmentally conscious consumers who are looking for better-for-you brands as well as to differentiate us from the sea of plastic bottles in our category.” – Madeline Haydon, Founder and CEO of nutpods.
Super Creamer, a keto-friendly creamer from Super Coffee, also continued to expand its line of creamers packed in combidome.
“We couldn’t be more grateful and fortunate to continue to expand our Super Creamer portfolio with SIG. Our partnership allows us to create products in packaging that adds value to our customers”, says Jordan DeCicco, Super Coffee’s Founder and COO.
“We couldn’t be more grateful and fortunate to continue to expand our Super Creamer portfolio with SIG.”
Super Coffee’s Founder and COO
Broth and stock sales in the USA and Canada continued to show good growth due to an ongoing trend towards preparing meals at home.
In Mexico, we saw strong sales of premium white milk by Santa Clara, one of the leading dairies. Alpura introduced two new flavoured milk products under their premium Selecta brand. Alpura also launched their first plant-based beverage “Seeds” in combifit. The Nestlé range of coffee creamer (Coffeemate) and cooking products under the Carnation brand also performed well.
In 2022, construction of our new plant in Mexico will continue (see Realising further growth potential in North America). The planned opening of the plant in early 2023 will enable us to serve customers in both Mexico and the USA better and faster.
Innovation will set the pace for SIG’s growth in the region in 2022 – not only by reinforcing the offer of new formats but also by improving our customers’ performance through higher productivity and efficiency. The SIG Reliability Centre, a state-of-the-art remote solutions centre located at our site in Paraná, Brazil will coordinate the deployment of solutions such as our Plant 360 Remote Services and Plant 360 Asset Health Monitoring.