The Business Year

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Herbert Vargas

Country Director, Unilever Andina Ecuador SA

BIG PICTURE

In Ecuador, we have two production plants: one for food products (ice cream and margarine) and another for hygiene products and laundry detergent. Overall, we produce 120,000 tons of goods and enjoy $235 million in turnover.

MAKES US PROUD

Most of our products are made with Ecuadorean raw materials, which has helped to form our very strong brand name. We are proud to produce goods with a very distinctive Ecuadorean and Andean flavor, something that is in high demand in the Latin American segment.

HERE AND BEYOND

Consumers in Ecuador tend to prioritize price and quality over any other factor. Therefore, these are two of the features we always seek to boost at Unilever, thanks to our extensive network of production plants not only in Ecuador, but also in the entire region.

Juan Carlos Barrera Juárez

Director, ARCACONTINENTAL Ecuador

HERE TO STAY

For us, coming to Ecuador has always been positive. We are constantly learning and aiming to achieve sustainable growth. We came here with the intention to stay; we are planning for the future by envisioning continued investments and growth in a responsible and sustainable way.

HUGE VOLUME

We operate from three production plants, 32 distribution centers, 13 production lines, and 600 sale and delivery routes. We cover the entire Ecuadorean territory, a total land area of 256,000 sqm, reaching a population of 14 million people.

GROWTH OBJECTIVES

The main objective for 2012 is to maintain sales volume growth. We are investing in the improvement of our production lines with the goal of increased efficiency. To do this, we will replace older equipment with higher production capacity tools.

Robert Watson

General Manager, Robert Watson

THRIVING POPULATION

Our aim is to help our consultants grow personally, professionally, and economically. People join the company, stay in the company, and thrive with the products and the sales system. We work heavily with incentives, premiums, trips, conventions, and seminars.

DEGREES OF BEAUTY

We started manufacturing in Ecuador in 1985 and used to produce lipsticks and nail polish. Later on we moved into fragrances, which today make up 50% of our sales. But we also do creams, healthcare products, deodorants, and shampoos—a whole range of beauty products.

TURNING TO IMPORTS

In the beginning, more people were consuming local products, which was good for everyone, because taxes were hurting imported products. But all of a sudden, especially in fragrances, which were highly taxed, people began turning away from national products, and opting to buy imported goods.

Edward McIntosh

General Manager, TONI

PRICE CONTROLS

In 2011, we had a good supply of milk, which is our basic raw material. With the implementation of new infrastructure in provinces such as Manabí­, it was much easier for us gather a good milk supply. We were able to increase milk production and stabilize its price.

TIMES TEN

To boost production we began a program with small-scale farmers and suppliers who were producing no more than around 50 liters a day. TONI provided training on how to produce milk, and many of the farmers began processing 500 liters of milk per day.

START EXPORTING

In Ecuador, we have a 75% market share in all of our product segments. For that reason, we can’t expand at the speed we would like to. We recognize the need to either diversify with new products or start exporting our existing products to other countries in the region and to the Ecuadorean communities that live abroad.

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