Energy Drink and Red Bull Essay Example for Free

Energy Drink and Red Bull Essay This global profile focuses on the industry trends in soft drinks. ? All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). ? 2012 figures are based on part-year estimates. ? All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534. 8 billion litres Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205. 1 billion 16. 2 billion litres Concentrates litres 43 billion litres RTD Coffee 4. 5 billion litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. Carbonates 169. 5 billion litres. Fruit/Vegetable Juice 62. 0 billion litres Concentrates 43. 7 billion litres RTD Tea 30. 1 billion litres While Red Bull remains the world leader in energy drinks, it is facing growing competition from other players. TCCC in particular, with Monster in the US and Burn in Brazil, is also posing an increasing threat. These two markets are emerging as energy drinks battlegrounds and the implications are considerable for Red Bull’s ability to remain the number one ranked player.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 2Dietrich Mateschitz and Chaleo Yoovidhya each owned a 49% stake prior to 2012 when Mr Yoovidhya passed away. Mr Yoovidhya’s son Chalerm holds the remaining 2%. While Mr Yoovidhya was alive he acted as a silent partner. Red Bull GmbH Headquarters: Regional involvement: Category involvement: Fuschl am See, Austria Global Carbonates, sports and energy drinks ? Red Bull has created the global market for energy drinks, and the pioneering Red Bull brand has became synonymous with energy drinks for a large number of consumers. Red Bull remains bullish and ambitious in their corporate brand. Despite rising competition, Red Bull continues to comfortably lead the global energy drinks market in both volume and value terms. However, the threat from The CocaCola Co (TCCC) has been mounting. World soft drinks share by off-trade 0. 2% RTD volume (2012): World soft drinks off-trade RTD volume 12. 4% growth (2011-2012):  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 4 STRATEGIC EVALUATION Red Bull continues to see strong net sales growth ? Red Bull operates many other businesses aside from energy drinks The company owns and manages a construction company, football clubs, youth academies and TV broadcasting and recently online clothing (Red Bull label only) sales. ? Additional media products include print magazines about football, motor racing, celebrity gossip and lifestyle. The company has even ventured into the mobile phone service business in Austria, Hungary, Switzerland and South Africa.? As a privately-held company, financial information is limited however the company reported net sales of â‚ ¬4. 9 billion in 2012 and 5. 2 billion cans sold, representing growth of 15. 9% and 12. 8%, respectively.  © Euromonitor International ? Red Bull reported exceptionally strong net sales growth in South Africa (+52%), Japan (+51%), Saudi Arabia (+38%), France (+21%), the US (+17%) and Germany (+14%). Red Bull cited efficient cost management and ongoing brand investment as underpinning its growing profitability. SOFT DRINKS: RED BULL GMBH PASSPORT 5 STRATEGIC EVALUATION SWOT: Red Bull GmbH STRENGTHS WEAKNESSES Broad geographic presence ? Red Bull has ? Red Bull has a broad established a strong, geographic presence, consistent brand image which should ensure (an independent, edgy positive long-term brand) globally. Red Bull growth even if certain is synonymous with markets reach maturity. energy drinks in many countries. Category leader OPPORTUNITIES Category limitations Controversial ? In overall soft drinks, ? The relatively high Red Bull has a limited caffeine content of Red product portfolio Bull makes the brand compared to the rising highly vulnerable to number of rivals with a regulatory control. plethora of flavour variants and categories. THREATS. Emerging markets New production Competition High marketing costs ? Red Bull is building a new ? Monster represents the ? Market maturity in ? Emerging markets production facility in Brazil biggest threat to Red developed markets will represent newer which is likely to make its Bull as it contains make marketing to its geographies for Red retail price more natural ingredients, core consumers harder Bull’s expansion. competitive than imported which seem more than in the past. Accelerating the product prices. Building a desirable than Red Bull Constant communication marketing and site in Asia should also be for some consumers.with consumers means sponsorships in these high marketing costs. markets is a wise move. considered.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 6 STRATEGIC EVALUATION Key strategic challenges and objectives It is not easy at the top ? Red Bull’s success has attracted considerable interest from soft drinks multinationals, TCCC and PepsiCo. TCCC in particular has been successful at leveraging its distribution network to launch Burn across many markets and to back Monster. Burn is a major threat to Red Bull in Brazil while in the US Monster has overtaken Red Bull in offtrade volume sales terms. Red Bull will need to find ways to hold onto its number one ranking globally in energy drinks and stave off this competition. Will premium work in emerging markets? ? Red Bull has consistently maintained its premium positioning from its slimline metal cans to its price differential versus brands such as Monster. While this strategy has reaped dividends in the mature markets, it remains to be seen if it will sustain growth in the emerging markets. Brazil with its large population of lower-income consumers may pose a challenge giving cheaper brands such as TCCC’s Burn a competitive advantage. Red Bull stands up to health regulators ? While health officials continue to voice concerns over energy drinks and the category remains under threat from stronger regulation, energy drinks has seen relatively little impact in terms of sales. To some extent this has added to the category’s â€Å"edginess† attracting young consumers and generating consumer interest. There is little risk of Red Bull reformulating its product to cater to health concerns and instead the company insists that its products do not pose a health risk. Red Bull breaks with tradition in 2013 ? In 2013, Red Bull, for the first time in 15 years added new products to its energy drinks range. Red Bull underperformed the overall energy drinks market in 2011-2012. While the company’s market share of the energy drinks market in the US increased in 2012, the market’s growth rate overall began to wane. Red Bull remains heavily dependent on the US for its global growth. Weakness here is reflected in the company’s weakening global performance in volume terms. The company however continues to enjoy the position of number one ranked player in energy drinks globally with a 21. 4% market share. ? In terms of absolute volume growth however, the US remained Red Bull’s key growth engine in 2011-2012 reflecting growth of 96% over 2007-2012. Brazil came second in terms of absolute volume growth expanding by 608% over the review period or 48% CAGR. This market was a particular focus for Red Bull with the company sponsoring various sporting events in order to raise the brand’s profile.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 9 COMPETITIVE POSITIONING Red Bull faces mounting pressure ? In value terms, the company’s performance was stronger in recent years although even in value terms the company’s performance fell below that of the energy drinks market overall. The energy drinks market has attracted a number of other players including Monster Beverage Co, and The Coca-Cola Co (TCCC) which marketed it own brands in the category including Burn as well as engaging in a distribution alliance with Monster Beverage Co. PepsiCo had a modest presence in energy drinks with its brand Sting; however like TCCC it maintained its own alliance, with Rockstar Inc. ? Red Bull’s sister brand non-carbonated Red Bull remains owned by TC Pharmaceutical which led the energy drinks category in China and was present in Thailand where it ranked second. Top 10 players in soft drinks by off-trade value share Soft Drinks: Global Top 10 Companies by Off-Trade Value, Rank 2007-2012 and 2012 Share 2007 2008 2009 2010 2012 2011 Company Coca-Cola Co, The PepsiCo Inc Nestle SA Suntory Holdings Ltd Dr Pepper Snapple Group Inc Danone, Groupe Red Bull GmbH Asahi Group Holdings Ltd % company share 2012 26. 2 11. 3 2. 8 2. 7 2. 0 1. 9 1. 6 1. 5 ? Danone’s volume share is significantly higher than its value share, due to its large volume sales of low-priced bottled water in emerging markets, notably Aqua (Asia Pacific) and Bonafont (Latin America). Meanwhile, Mondelez does not rank among the top 10 in value terms due to its reliance on the low-priced concentrates category in RTD volume terms. ? Red Bull GmbH however with its relatively premium but small serving size Red Bull brand ranks seventh in 2012. The company’s narrow focus in soft drinks, being almost exclusively based on energy drinks, continues to keep the company out of the top five in soft drinks. ? TCCC and PepsiCo capture a stronger share in value than in volume terms chiefly due to their products, particularly carbonates, being priced higher than local brands and   ? North America will continue to lead energy drinks in absolute volume growth terms over the forecast period. However, its CAGR of 8. 1% over 2012-2017 represents a moderation from the 11. 4% CAGR seen over 2007-2012. The Monster brand has led the market in the US over the review period in terms of absolute volume growth. Rockstar, due in large part to its alliance with PepsiCo, has also seen strong growth in this market. ? Red Bull entered China in 2011, however Asia Pacific remains the company’s weakest region in terms of market share. However, this region will be exceeded only by North America in terms of absolute off-trade volume growth over 2012-2017 which may raise some concerns for Red Bull. After a period of strong market share gains in this region between 2007-2010 its performance began to moderate. TC Pharmaceutical with its non-carbonated version of Red Bull is the regional leader. Despite the close relationship between Red Bull GmbH and TC Pharmaceutical with the latter having been founded by the late Chaleo Yoovidhya, the companies remain separate entities.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 14 MARKET ASSESSMENT The Americas to lead growth in energy drinks ? In value terms, both Latin America and Asia Pacific gained in importance for Red Bull over the review period. Latin American sales represented 12% of global value sales in 2012 while Asia Pacific made up 8%. In terms of growth prospects, the strongest growth will take place in North America where the market for energy drinks will expand by US$4. 1 billion over 2012-2017. In CAGR terms however, the strongest performance will take place in Latin America which will see a 20% CAGR. ? Red Bull is ranked number one in both markets. In Latin America, its market share remains a healthy 49. 7%, however this represents a decline over 2007-2012 as the company faced strong competition from TCCC whose share has risen from 2. 5% in 2007 to 14. 9% in 2012. ? Growth in both Eastern and Western Europe will be a comparatively modest at 5% and 5. 1% CAGRs, respectively. However, these exceed the CAGRs for soft drinks overall in these regions, which will be only 2. 7% and 0. 5%, respectively. CATEGORY AND GEOGRAPHIC OPPORTUNITIES Leading players in energy drinks by off-trade volume and value  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 17 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Red Bull shows some weakness in volume sales ? The rankings of the leading players in energy drinks vary significantly by volume and value. Red Bull commands a stronger market share in value than in volume terms reflecting its relatively high price points and reliance on the mature markets, particularly the US, for its sales. The company however maintained is leading position by both measures in 2012 although in both cases it has seen its market share plateau over 2007-2012. ? The Lucozade brand has faced strong competition in its domestic UK market from Red Bull. In 2012, GSK announced a strategic review of the Lucozade and Ribena brands, which may lead to possible divestment. ? Red Bull has been constrained to some extent in volume terms by its highly concentrated production infrastructure. Up to 2012, the company produced exclusively in Austria leading to high shipping and ? The major winner over the review period was production costs, which opened up the emerging Monster Beverage Co, which until 2012 was known markets in particular to less expensive energy drinks as Hansen Natural Corp. Underpinned by its brands. In 2012, the company announced plans to distribution agreement with TCCC the brand has build its first factory abroad in Brazil which may help made rapid gains in both value and volume terms. improve its competitiveness. The brand’s success has been driven by its North ? Rockstar’s distribution agreement with PepsiCo did American performance where it generated 90% of not bring in the same share gains as the Monster its volume sales in 2012. and TCCC alliance. Rockstar made few share gains ? In contrast GlaxoSmithKline (GSK) and its Lucozade brand have been losing market share. In volume terms, GSK has lost 2. 4 percentage points in market share over 2007-2012. globally, with sales mainly coming from developed Western markets where Red Bull continues to lead. PepsiCo may have found it hard to drive Rockstar sales in these mature markets in the face of TCCC’s penetration and Red Bull’s dominance.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 18 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Most dynamic energy drinks markets over forecast period  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 19 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Red Bull tries to counter weakness in key markets with new launch ? While the US will lead growth in energy drinks in both volume and value terms over 2012-2017 there are clear differences among the top 10 rankings by both measures. ? China will push ahead of Brazil in volume growth terms. The market for energy drinks in China is more mature than in Brazil. Unit price growth in Brazil will as a consequence be higher than that in China allowing it to take second position in terms of value sales growth. In China, Red Bull’s sister company TC Pharmaceutical with its Red Bull is the overwhelming category leader with a market share of 81. 2% in off-trade volume terms in 2012. ? Markets entering the top 10 in volume terms include the Philippines and Vietnam both relatively price-sensitive markets. Per capita consumption however in both markets is higher than the global average. Energy drinks in many Asian markets have a long history of being consumed by truck drivers and labourers as a temporary energy boost. These products were in fact the original inspiration for Red Bull; a Westernised version of the potent drinks sold through by Thai pharmacists.  © Euromonitor International ? The UK ranks among the top five most dynamic markets in both volume and value terms. While Lucozade remains the leader here, its fortunes have waned. Red Bull was responsible for much of Lucozade’s market share loss in the early part of the review period. However, later in the review period, smaller brands are increasing fragmentation. The UK is becoming increasingly fragmented as newer and smaller players have entered the market. ? In 2013, Red Bull launched three new flavour variants in the US market. This marks the first major launch for the brand in the energy drinks category over the review period. The new range called Edition includes cranberry-, blueberry- and lime- flavoured variants packaged in red, blue and silver cans, respectively. The move may help to invigorate consumer interest in key markets such as the UK and the US where the range of energy drinks options has increased considerably. It is recommended that the range be rolled out to other markets where market share has weakened. SOFT DRINKS: RED BULL GMBH PASSPORT 20 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Top US brands in energy drinks  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 21 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Red Bull and Monster look to high-adrenaline sports sponsorship Monster pulls ahead in volume sales ? The Monster brand pulled ahead of Red Bull in the US energy drinks market in 2009 in volume sales terms but remains second to Red Bull in value terms. Monster has achieved wider presence in supermarket and forecourt retailers. TCCC has leveraged its strong distribution network through both channels thus giving Monster an edge in terms of volume sales. ? The Monster brand has also been supported by sponsorship of high-adrenaline sports such as MotoGP, NASCAR and Freestyle Motocross which is a direct challenge to Red Bull, which also relies on sponsorship of these sorts of events to maintain consumer interest. Another reason behind the disparity has been the fact that Red Bull sells primarily in smaller 8. 3oz cans, whereas Monster is sold in larger 16oz cans at a relatively cheaper price. Red Bull has since begun to offer its product in a wider variety of sizes and in 2012 trumped Monster with Red Bull Stratos, sponsoring Felix Baumgartner’s free-fall from over 128,000 feet. Threat from consumer health ? Both Monster and Red Bull have also been challenged by the 5-Hour Energy brand from Living Essentials, included in Euromonitor International’s Consumer Health database as a tonic and bottled nutritive drink. This product has been heavily marketed on US television and offers a small pack size (57ml) and the benefit of being sugar-free. While Monster is targeted primarily at younger male consumers, 5-Hour Energy is positioning itself as a pick-me-up for office workers and working mothers. ? The addition of new flavours in 2013 will help to reignite consumer interest. Red Bull’s success in the US has been due in part to its success in the on-trade which has helped to introduce the brand into the off-trade. Educating consumers about how the new flavours can be mixed with alcoholic drinks in the on-trade should form part the marketing campaign to launch the brand.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 22. CATEGORY AND GEOGRAPHIC OPPORTUNITIES Leading players in Brazilian energy drinks  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 23 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Red Bull vs Burn in Brazil TCCC pushes Burn ? Strong growth in the Brazilian energy drinks market has attracted a wider number of players, many of whom have focused on the emergent C socioeconomic class, launching energy drinks at lower prices in 1-litre PET bottles. Examples include BadBoy Power Drink from Horizonte and Orbit from Bebidas Chiamulera. These moves have helped to fuel growth overall in the category.? TCCC has made significant gains in the market with its Burn brand investing significant resources in marketing. Like Red Bull, TCCC has targeted high-adrenaline sporting activities, announcing in 2012 its sponsorship of Kimi Raikkonen’s Lotus F1 team. The brand competes directly with Red Bull, packaged similarly in a slimline metal can. Its price points however are typically lower than those of Red Bull giving it a stronger presence among lower-income groups. ? In 2012, Red Bull announced plans to begin producing its energy drinks locally. Localisation of production will help Red Bull ? Localising production in such a key market is a wise move for Red Bull. It also gives the company stronger capacity more widely in Latin America where the markets for energy drinks in Colombia and Mexico are also set to see strong growth. While Red Bull’s number one position remains safe for the time being, reducing the price premium with TCCC is recommended. This will be supported by significantly reducing costs associated with importing the product from Austria. ? The entry of Anheuser-Busch InBev NV was a key development in the market in 2011. By 2012, the Fusion brand had managed to capture 0. 2% of sales in off-trade volume terms which, while modest compared to the Red Bull brand at 19. 8%, indicates strong potential for further growth. Marketing initiatives centred around the popular Big Brother Brazil TV programme in 2012 helped to increase awareness of the brand among young people.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 24 CATEGORY AND GEOGRAPHIC OPPORTUNITIES Worlds apart: A tale of two Red Bulls ? The relative weakness of Red Bull from Red Bull GmbH in Asia Pacific is due in part to the strength of sister brand Red Bull from TC Pharmaceutical. A more cohesive international strategy should be developed by both companies. ? The strongest prospects for the two players is in China, however opportunities are also being missed in markets such as the Philippines, Thailand and Indonesia. TC Pharmaceutical sales here in energy drinks have been virtually flat over the review period, as newer, more dynamic brands such as Cobra from Asia Brewery and Sting from PepsiCo in the Philippines have invested heavily in marketing and advertising. ? A decisive entry for Red Bull GmbH in key Asian markets will be complicated by the presence of TC Pharmaceutical’s Red Bull. However, both companies could benefit from working more closely together including on the production side to reduce costs and widen their distribution network. The sudden death of TC Pharmaceutical founder Chaleo Yoovidhya in 2012 may present a challenge however in ongoing collaboration.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 25 STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS BRAND STRATEGY Red Bull’s premium focus will result in pressure on market share ? Red Bull’s sales in 2012 remained dominated by the US market. In most of its major markets the company has managed to retain its number one position in volume terms despite strong competition from newer entrants. The US is an exception where Monster owing to the strength of its alliance with TCCC combined with an aggressive marketing campaign has managed to topple Red Bull from first place. ? In value terms however, the company’s premium positioning has meant its ranking has remained more secure. As the dynamics of forecast demand shift to emerging markets, where consumers remain more price sensitive, this premium focus will result in growing pressure on Red Bull’s market share. TCCC and PepsiCo have emerged as the company’s strongest competition whether indirectly through distribution agreements such as TCCC/ Monster and PepsiCo/Rockstar and through their own directly owned brands such as Burn and Sting, respectively  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 27 BRAND STRATEGY High octane sports drive home Red Bull message ? Event and sports sponsorship have been key elements for Red Bull’s marketing strategy for many years. Red Bull’s eponymous brand has achieved remarkable global success and 30-40% of its sales are re-invested back in marketing and promotional activity. Red Bull’s strategy has historically been a 3-pronged approach incorporating buzz marketing, sponsorship and TV advertising. Buzz marketing, including handing out free samples at campuses and events where under 30s gather, is often used as a way of initially raising consumer awareness when entering new markets. ? In 2012, the company took its marketing literally to an entirely new level with the Stratos campaign which featured Felix Baumgartner in a record- breaking 128,000 feet jump from the earth’s stratosphere, making him the first man to break the speed of sound while in freefall. The event was streamed live on line with viewers able to log in to post comments via Twitter and Facebook. Motorsports is another key focus for the company with its own very successful F1 racing team.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 28 BRAND STRATEGY Red Bull tries to stay true to its roots ? In a bid to stave off competition from rival brands, Red Bull launched the Red Bull Edition range in 2013 in select city markets in the US. The launch will likely be followed by a nationwide roll-out later in the year. Despite pressure from other energy drinks brands many of which have launched additional flavours Red Bull has stayed loyal to its original formulation and packaging. ? The launch of cranberry, blueberry and lime Red Bull variants is a major direction change for the brand, being its first major launch over the review period. In order to differentiate between Red Bull Edition and the original Red Bull the new cans received a facelift with the addition of new colours and a new bull design. ? Red Bull has not as aggressively as other brands launched into new packaging formats, remaining almost exclusively with slimline metal cans. It has however in some mature markets such as the UK launched into 1-litre PET bottles. This reluctance is in part due to the company’s strategy of retaining its premium positioning.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 29 STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS OPERATIONS Expanded corporate operations Red Bull GmbH Red Bull Soft Drinks Other Businesses Red Bull Energy Drinks Motor Racing, Media, MVNO, Fashion Online Retailing Red Bull Simply Cola, Carpe Diem.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 31 OPERATIONS Red Bull looks to diversification ? Red Bull is diversifying into other businesses, rather than limiting itself to energy drinks. In recent years, it has been branching out and became a media company in its own right. The participation in sports sponsorships and events connects the company with a global brand that has passion and excitement associated with it. The company is also present in RTD tea and bottled water with the Carpe Diem brand which it launched to target the health and wellness trend in soft drinks. Carpe Diem Kombucha is a premium RTD tea sold in Western Europe. The brand is also in bottled water in Switzerland and Austria using plant extracts and slight carbonation to offer a healthy alternative to carbonates. ? The company owns two Formula One teams (Red Bull Racing, Scuderia Toro Rosso), a NASCAR racing team as well as several football teams in Brazil, the US and Germany. ? In South Africa, the company is partnering with Cell C to offer voice and broadband services as a mobile virtual network operator (MVNO), ie a company that provides a mobile phone service but does not have its own licensed frequency. Red Bull Mobile will be the second MVNO in the country, after Virgin Mobile. ? It also sponsors many events from cliff diving to air races and subscribing to Red Bull Mobile is a way for people who like the brand to access further benefits when they attend these events. These kinds of partnerships between operators and consumer brands are common in Europe. In Germany, for example, one operator, E-Plus, has 19 such partnerships. It is a way for these brands to get closer to their target group. ? The Group also includes Austrian TV station ServusTV, lifestyle and fashion magazines and a construction company called Bull Bau. ? Red Bull had 8,966 employees in 165 countries as of 2012. The company, which is not listed, traditionally finances its investments from its cash flow.  © Euromonitor International SOFT DRINKS: RED BULL GMBH PASSPORT 32 OPERATIONS Red Bull expands production outside Austria for first time ? Red Bull received approval from the B\razilian government to build its first production facility in the country in early 2010. The companys initial investment in the pr.