February 2012
Over The Wire Tissue Edition
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SCA Sees Big Potential for Incontinence Care in Brazil

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SCA, Stockholm, Sweden, says that Brazil represents a new market for the company. In September 2011, it acquired Pro Descart, a family-owned manufacturer near São Paulo with the No.2 position in Brazil’s incontinence care market.

SCA points out that, compared with Europe, Brazil’s population is aging, with about 7% currently aged 65 or older. That’s a completely different picture from 20 years ago, when the elderly population there was only a tiny minority.

"We think that, in Brazil, the category with by far the biggest potential is incontinence care," says Jan Schiavone, president of SCA South America. "Now that we have our own company, we intend to start growing fast."

As a factor in SCA’s favor, Brazil’s market for incontinence products remains fragmented, divided among many small companies. A typical family operation might manufacture incontinence care products for a limited local market, using a secondhand machine.

Another key factor is government support. "The Brazilian government has launched a reimbursement program for healthcare necessities, including incontinence care, and this should help increase our sales," Schiavone says.

In terms of sales focus in Brazil, SCA is looking to individuals rather than to institutions such as nursing homes. "In Latin America, most elderly people are cared for at home by their families," Schiavone says. "That means most sales of incontinence care products are made through pharmacies and retail chains."

Besides incontinence care products, other areas with strong sales potential include baby diapers and away-from-home (AFH) professional hygiene solutions. such as restaurant napkins. "Brazilians are starting to spend more and more time out of their homes," Schiavone notes. "Big chains like Starbucks and Applebee’s are coming, and that means this category will grow."



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