Latin America exports decline. So do sales of Burger King in the region. Both are among the topics of this week's TradeTalk.
BY CHRONICLE STAFF
Latin America's total exports fell by 30.9 percent in the first half, while imports decline by 29.1 percent, according to the UN Economic Commission for Latin America and the Caribbean (ECLAC). It estimates that for trade will pick up in the second half, resulting in an overall decline of 13 percent this year.
Latin America’s pharmaceutical markets are expected to grow by a CAGR of 9.9 percent between 2008 and 2013, outpacing the slowing North American markets, according to a new report from Espicom. Contrary to what has happened in developed markets, generics consumption in Latin America is low, with the exception of Brazil. Local protectionism, very low prices and high production capabilities have helped the country to develop a sizeable bioequivalent generics market which has proved tough for foreign generics producers, the report says. In Mexico, President Felipe Calderon’s government has started a renewal process for drug registrations, and it is expected that there will only be patented and bioequivalent generics by 2010.
U.S.-based Burger King posted a 7 percent decline in Latin America revenues to $107 million in its fiscal year 2009, which ended in June. Fiscal fourth quarter sales fell by 22 percent to $24 million, it said in a statement. The fiscal year 2009 results in Latin America were the worst worldwide, while the fourth quarter sales were the second-worst. However, Burger King franchises in the Latin America and Caribbean region continue to grow, with the company adding 85 new restaurants so far this year, CaribWorldNews reports.
While the term multilatinas typically is associated with giants like Vale, Cemex, Petrobras, Grupo Bimbo or CSAV, the “club” also include companies like Guatemala’s Pollo Campero and Colombia’s Enka. Pollo Campero is expanding in Costa Rica, local daily La Nacion reports. Meanwhile Enka is now actively looking at international markets – especially Brazil and Europe -- for expansion, according to Colombian business daily Portafolio.
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