Alicorp’s strategy to avoid headwinds | ECONOMY

Meanwhile, the company’s profitability was impacted by the growth of raw materials such as soybeans, palm oil or wheat. “There are categories affected since 2022, such as oils, which fell 10% this first quarter, or detergents, which decreased 5%”says Patricio Jaramillo, regional vice president of Mass Consumption and Innovation at Alicorp.

READ MORE: Alicorp: protests and weather events affected results, what is expected for the rest of the year?

Impact

Although 2023 started with some headwinds, these were mostly, says Jaramillo, in a macro aspect. That caused them between US$150,000 and US$180,000 in cost overruns per month.

In Bolivia, Alicorp increased its sales and gross profit by 5.4% and 30%, respectively. This is thanks to the fact that, as a result of the interruptions at the border, the company reduced the risk by looking for local manufacturing, with business partners that helped it with some products. However, projections for such a market are reserved because they are on the verge of an eventual currency devaluation process.

The strategy in the Ecuadorian market changed in 2021, which allowed them to grow 31% in sales. “Before we reached 5,000 points of sale, but we changed the distribution model and now we reach 50,000”. This, adds the executive, helped them to diversify categories beyond those they promoted in the Ecuadorian market, such as pastas and sauces, and to increase the participation of cleaners, mayonnaises and others.

Changes

As of June 1, Alicorp will make changes in the composition of the Management Committee. The responsibilities of the Vice Presidency of Massive Consumption will be divided into three. The provision obeys a strategy of “look for cost savings by simplifying some processes”says Jaramillo.

The executive will leave the role of regional vice president of Mass Consumption and Innovation in June and will assume the position of senior advisor to the CEO.

Releases

• Alicorp launches between 30 and 40 products a year. This 2023, Magia Andina, the new line of Amarás, your hair care brand, will enter the market.
• The focus will also be on a new market that they will enter in two months’ time.
• “We just created a legal entity in the United States with the goal of building a large business there. Today we start with sauces to penetrate that market”advances Jaramillo.