Collagenna expands into Latin American markets
The deal, which targets the Brazil and Mercosul markets – which, as well as Brazil, includes, Uruguay, Paraguay and Argentina and accounts for a combined population of 235 million people – will see the products distributed under the license name ‘Collagenna do Brasil’.
The business will be based in Brazil and will comprise a warehouse operation, together with a laboratory that will be used to fulfill specific hygiene and safety requirements determined by the Brazilian authorities.
The move is the latest for the company in Brazil, where it has been working hard to establish its business there.
Culmination of years working to gain a footing in Brazil
“It has taken the company nearly two years to meet all the regulatory and administration requirements to put this deal in place,” said Collagnna CEO Michael Arnkvern.
The company says it expects to establish a strong foothold in the fast-growing market for anti-aging products in Brazil and the surrounding region, with Arnkvern estimating that the company should be able to reach ‘product purchase commitments in the 6 figure range or more on a quarterly basis’.
Collagenna Skin care products are derived from native marine collagen, which was developed in Canada, and is claimed to be 100 percent soluble, allowing it to penetrate the skin.
Latin America looks strong, despite downturn
Many of the Latin American markets have continued to show strong growth for cosmetics and personal care sales, despite the global economic downturn.
In particular Brazil has been leading the pack, with the most recent figures from the Brazilian Association of Toiletries, Perfumes & Cosmetics (Abihpec) showing that the market grew at 8.6 percent in 2008 to reach BRL 21.2bn ($8.9bn), growth that is currently only matched by the China and India markets.
A lot of the market growth has been derived from Brazilian companies, a ffact that is reflected by the fact that the personal care market had an estimated trade surplus of US$200m in 2008.
