Tetra Pak invests €65 million in upgraded Brazilian plant

Tetra Pak has increased capacity of its packaging material plant in Brazil through a €65 million investment by 70 percent to 22 billion packs per annum, demonstrating growing demand for its environmentally friendly packs. The Ponta Grossa-based plant meets both local Brazilian and export demands for the region and the enhanced production capacity and capabilities mean that Tetra Pak is able to meet growing demand for volume as well as variety. ‘The upgrade started in 2012,’ said Penny Ntuli, communications director for Tetra Pak, sub-Sahara Africa. ‘It now also produces a broader range and sizes of packs, including the advanced formats such as Tetra Brik Aseptic 1000 Edge. Tetra Gemina Aseptic 1000 and the new Tetra Top.’ Brazil is the second-largest market for Tetra Pak globally. When Tetra Pak began operating in the country it produced 25 million packs annually, which by today’s volumes is just half a day’s worth of output. Domestic demand for carton packaging in Brazil has been growing steadily at 5,5 percent CAGR since 2007, with 13 billion Tetra Pak packages sold in 2013. The beverage segment grew by 20 percent last year, driven by the 100 percent juice category. Other markets in Latin America, such as the Andean and Caribbean countries, are also growing and demanding increased production capacity in the region. The success of Tetra Pak packs in the region has been enabled by growth of the dairy and beverage industry as indicated by Tetra Pak’s annual Dairy Index that found developing markets would drive the highest growth figures around the globe.