The Business Year

Adolfo Correia

MOZAMBIQUE - Industry

The Big Squeeze

Director, Sumol+Compal Moçambique

Bio

Adolfo Correia was born in 1964 in Lisbon, Portugal. After completing his military service he began working for a German company in commercial sales from 1989 to 1998. He then started some personal projects and began exporting products to Angola and Mozambique. In 1999, he moved to Maputo and worked for a non-food distribution company. For the next decade he founded various companies before moving to Sumol+Compal in 2012.

How will state-of-the-art equipment give Sumol+Compal a competitive advantage? Sumol+Compal is of European reference considering the quality of its know-how, its long-running expertise, and state-of the-art equipment. We believe that […]

How will state-of-the-art equipment give Sumol+Compal a competitive advantage?

Sumol+Compal is of European reference considering the quality of its know-how, its long-running expertise, and state-of the-art equipment. We believe that in order to keep a competitive advantage, companies must hold unique advantages. In our case, they come from our vast experience, commitment to innovation, and an uncompromising attitude regarding quality. We can only achieve this with top equipment and professionals. The strong competition we find in Europe and worldwide has turned Sumol+Compal into a model in terms of production standards, and that will also be the case when compared to South African producers. We believe we have a clear advantage compared to the present state of southern African industry.

What are your plans to expand production in Mozambique?

We currently sell approximately 2 million liters of juice, which is a low amount, but we hope to achieve much higher volumes in the coming years. The production capacity installed allows the company to achieve over 30 million liters, and given the excellent indications we are already receiving from the market, we expect that in the short run such capacity will become insufficient for the demand. Therefore, we have an ambitious expansion plan both in Mozambique and other countries, and the company is ready to make the necessary investments to meet the market.

What are the strengths of production in Mozambique?

We believe Mozambique is an excellent place to invest. The investment conditions ruled by the government are very clear and straightforward; the local authorities have a positive approach to serious business and make the investment process easy. The country itself holds huge opportunities, considering the economic growth forecasts for the coming years. Mozambique also holds a very interesting position, as it is considered the gateway to the wider Southern African Development Community (SADC) market. It is also fundamental that we already have a strong presence in the Mozambican market, through our strong local partner Tropigalia. It has several years experience of distribution in Mozambique. In addition, Tropigalia is one of the six largest investors in communications in Mozambique, and it has very strong brand recognition, which is extremely beneficial. For example, at the FACIM fair, Tropigalia alone had 24 stands. We are very optimistic about our future in Mozambique due to our privileged setup.

Do you have plans to start growing fruit in Mozambique?

For now, we still import pulp and concentrate from Portugal. However, we will start using local and regional suppliers, and our goal is to do this with most of the raw materials. We believe that a fruit-drink company with strong consumer brands is the best way to develop upstream business, like fruit processing and farming.

How would you characterize Mozambique as place for investment?

Mozambique is currently an entrepreneur’s market, meaning that it is a place for professionals to expand foreign businesses and to offer value-added services. This window for entrepreneurs will last until 2015 at the latest. In that time, there will be an opportunity for investors to come in, study the market, and make a calculated decision to finance various companies that they feel are competitive and well positioned. Mozambique is unique in this part of the world in that it is a peaceful country and enjoys a certain level of stability. From that perspective, it will attract large investments. The business environment is very friendly, mainly because of the continuous effort by local authorities to establish and enforce very clear rules. The direct access to the SADC market is also key for the establishment of consumer-goods industries.

Do you see multinationals coming in to represent direct competition?

We expect to see international companies coming in and using Mozambique, not only as an internal market, but also as a stepping stone to access markets in the region. We cover all sectors of the non-alcoholic beverage market, although our core remains natural juice. Until now, there have been no multinational companies that have a worldwide natural juice brand. The company is used to competing with strong multinational companies and local players, in all 70 countries where it is now present. This gives us a clear advantage. Compal’s 2020 vision is to expand throughout the SADC region.

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