the market for home water treatment products &...

Copyright © 2018 by Baytel Associates. • www.baytel.org • for more information +1-732-988-6792 or [email protected].

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Home Water Treatment in Brazil

Baytel Associates announces a completely new report on the Brazilian

Market for Home Water Treatment Products and Services.

Water Quality and Availability

A Brazilian Culture of Residential Water Treatment

Products, Brands, Prices—POU and POE

Attic or Rooftop Water Storage Tanks

Distribution Channels

Brand Trends

Sales versus Rentals

Competition from Bottled Water

Product Use in the Home

Issues, Drivers, Opportunities

Quantitative Market Analysis, Segmentation, Shares

Business Profiles of Key Foreign and Domestic Companies

“Detailed, factual and authoritative—like everything Baytel does.”

Despite the Infamous “Brazil Cost”...

The market deserves a serious evaluation right now

The residential water treatment market is surprisingly large

There is high consumer acceptance of residential water treatment

There is high category penetration

And high dissatisfaction with municipal water

A consumer base that considers water treatment a (near) necessity

Favorable current exchange rates (but in tough economic times)

THE MARKET FOR HOME WATER TREATMENT PRODUCTS & SERVICES

A recent quote about Baytel’s reports:

“ Worth the expense. Original research and insightful analysis.”

Global Marketing ManagerResidential Water Filtration

3M Purification Inc.

2018 EDITION

Is this a good time

to acquire a major player

is Brazil?

Now Shipping

in Brazil

http://www.baytel.org

mailto:[email protected]



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Multiple Retail Audits

How Consumers Use the Products Real photos from consumers’ homes

All types of products

Various demographic groups

In-Depth Business Profiles

Find out how brands/companies like Europa, Cerâmica Stéfani, 3M, Whirlpool (Consul & Brastemp), Latina, IBBL, Lorenzetti, Unilever), Pentair, and all the others are doing.

And find out about related organizations...

Distribution ChannelsThe distribution channels covered include:

➧ Retail1. Appliance stores2. Supermarkets and hypermarkets3. Home improvement/construction materials

stores4. Specialty water treatment dealers

➧ Direct sales and rentals

➧ Online sales

Market Size and Segmentation

Learn how the market breaks down by product type or con-figuration, by region, by distribution channel, and by systems versus consumables. Get the data you need on unit shipments, market values and company shares for the leading players.

Data provided from Baytel’s Quantitative Model of the Brazil Market includes (among other things):

Installed base in units (by configuration)

Units shipped (207, plus 2- and 5-year forecasts)

➧ By Configuration

➧ By Technology

Market in U.S. dollars (207 plus 2-year and 5-year

forecasts)

➧ Systems by configuration and technology

➧ Systems by market channel

➧ Systems by region

➧ Consumables, installation, and service

➧ Company market shares

Benefit from Baytel’s Experience

Backed by Baytel’s 30+ years of studying home water treat-ment markets—it’s all that we do!

This report is built on Baytel’s decades-long experience ana-lyzing home water treatment markets in over 45 countries around the world. Baytel principals each spend months out of the year engaged in on-site, in-country research.





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Business profiles of thirty-six

key players

WHAT YOU’LL GET:✔ Baytel’s reports are unique in the market

✔ This valuable information product includes an insightful analysis of the home water treatment market in Brazil plus original Baytel photos and numerous tables, charts, graphs, and maps.

✔ Scope: The report covers all types of home water treat-ment products and services including

• countertop systems,

• wall-mounted systems,

• under-sink systems,

• Brazilian faucet filters,

• inline filters,

• gravity-feed and gravity-drip products

• free-standing systems that treat water

• refrigerator filters

• whole-house water treatment products,

Not included: water heaters, water coolers or dispensers that do not include filtration or purification.

✔ The major competitor: bulk (19-liter/5-gallon) bottles.

✔ Distribution Channels

• Retail audits with proprietary Baytel photos

• Appliance stores

• Hypermarkets/Supermarkets

• Home improvement/constrution materials store

• Specialty water treatment dealerships

• Direct sales

• Online sales

✔ Brand and pricing Information

✔ Results of Baytel’s home visits with proprietary photos

✔ Market issues and drivers

✔ Detailed quantitative market analysis and segmentation

✔ Business profiles of major industry participants

Numerous photos showing

products, merchandising

& pricing





BaytelAssociates

Brazil—A Large and Unusual Market for Home Water Filters & “Purifiers”

Very high household penetration of home water treatment products

High level of dissatisfaction with the taste of tap water

The Brazilian economy has taken a nosedive over the past 18 months and overall demand for products and services has been down strongly since mid-2015. Promoters claim the Brazilian market for home water treatment products is nonetheless still going strong. Like the BMWs and Mercedes on display in Brazilian automo-tive showrooms, is this market “BLINDADO” (“bullet proof”)?

A Time to Buy? The dollar is strong against the Brazilian Real and prices must be down for acquisi-tions. There are some intriguing possibilities!

Local assembly or manufacturing provides a MAJOR advantage in this market.

How can your firm avoid the mistakes that Unilever made in Brazil? This report has something informative to say about that…

What has Whirlpool introduced here that is absolutely STUNNING (and begs for lower priced knock-offs)?

For more information contact Matt Moes at: Tel: +1-732-988-6792 Email: [email protected]

➠➠

➠➠

Table of Contents follows:

NOWSHIPPING





Brazil: 2018 editionTable of Contents

BaytelAssociates

The choice of industry insiders

THE MARKET FOR HOME WATER TREATMENT PRODUCTS IN BRAZIL

A Market Research & Analysis Report by Baytel—The Choice of Industry Insiders

208 edition

■ Executive

Summary

■ Scope &

Methodology

■ Drinking

Water in Brazil

■ Bottled Water

in Brazil

■ Issues &

Drivers

■ Products,

Brands, &

Prices

■ Distribution

Channels

■ Use in the

Home

■ Quantitative

Analysis

■ Key Market

Participants

■ About Baytel

■■■■■■■■■■■

Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected].

■ Executive

Summary

■ Scope &

Methodology

■ Drinking

Water in Brazil

■ Bottled Water

in Brazil

■ Issues,

Drivers &

Opportunities

■ Products,

Brands, &

Prices

■ Distribution

Channels

■ Use in the

Home

■ Quantitative

Analysis

■ Key Market

Participants

■ About Baytel

Table o

f Conte

nts





BaytelAssociates


Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page ii

TABLE OF CONTENTSSECTION . EXECUTIVE SUMMARY .................................................................................................................... 5

Scope ..........................................................................................................................................................6

Methodology ...............................................................................................................................................7

Drinking Water in Brazil ............................................................................................................................8

Bulk (Jugs ≥ 0L) Bottled Water ................................................................................................................. 20

Issues, Drivers, and Opportunities ..............................................................................................................2

Products on the Market ...............................................................................................................................23

Distribution Channels ................................................................................................................................ 26

Appliance Stores .................................................................................................................................... 27

Hypermarkets/Supermarkets ................................................................................................................. 27

Home Centers, Hardware, and Construction Materials Stores ............................................................... 27

Specialized Stores .................................................................................................................................. 28

Direct Sales and Rentals ........................................................................................................................ 28

Online Sales .......................................................................................................................................... 29

Homes ....................................................................................................................................................... 30

Quantitative Market Analysis ..................................................................................................................... 30

The Current Market ............................................................................................................................... 3

New System Shipments by Product Type, 207 .................................................................................32

Value of New System Shipments by Product Type, 207 ...................................................................33

The Combined Systems and CSI Market by Product Type ............................................................... 33

The Top Five Market Share Holders ................................................................................................ 34

New System Sales by Primary Technology ...................................................................................... 34

Size of the New Systems Market in Dollars by Region .................................................................... 34

Market Forecasts ......................................................................................................................................... 35

Two- and Ten-Year Market Forecasts in Units .................................................................................. 35

Two- and Ten-Year Market Forecasts in Dollars ............................................................................... 35

Two- and Ten-Year Market Forecasts: CSI ...................................................................................... 36

Market Forecast, 207 – 2027 .......................................................................................................... 36

Industry Structure and Business Profiles of More than 30 Key Players ........................................................ 37

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page iii

SECTION 2. SCOPE & METHODOLOGY ................................................................................................................39

Scope .........................................................................................................................................................40

Plumbed Filtering Faucets ................................................................................................................4

Brief Country Background ..........................................................................................................................4

States and Regions of Brazil ............................................................................................................ 42

Brazil’s largest metropolitan areas .....................................................................................................43

Methodology ...............................................................................................................................................43

SECTION 3. DRINKING WATER IN BRAZIL ........................................................................................................ 44

Water Supply & Sanitation ..........................................................................................................................45

Water Resources ......................................................................................................................................... 46

Low water levels at the Atibainha reservoir north of São Paulo in January, 205. .............................. 47

Water Pollution .......................................................................................................................................... 48

Contaminants ............................................................................................................................................ 49

Microbial Contamination in Tap, Tank, Well and Spring Water in One Study ............................... 50

Waterborne Disease ..................................................................................................................................... 5

Water Quality Standards ............................................................................................................................. 53

Water Quality Monitoring ......................................................................................................................... 54

Rankings of Water Resource Monitoring Programs ......................................................................... 54

Urban Water Quality & Availability ........................................................................................................... 55

Urban Water Contaminants .................................................................................................................. 56

The Northeast ....................................................................................................................................... 56

Private Domestic Wells .......................................................................................................................... 57

Enforcement of Water Quality Standards .............................................................................................. 57

SECTION 4. BOTTLED WATER IN BRAZIL ...........................................................................................................58

Bulk Bottled Water .....................................................................................................................................59

Most 20-liter jugs of bulk bottled water are delivered by small distributors ......................................60

Bottled water at a local distributor’s store and in general retail .........................................................60

Routine Bulk Bottled Water Consumption by Region ..................................................................... 62

Bottled Water Production by Region ............................................................................................... 62

Bottled Water Regulation ........................................................................................................................... 62

Bottled Water Quality ................................................................................................................................ 63

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page iv

Bottled Water Marketing ........................................................................................................................... 64

A Nestlé free bottle promotion for Pureza Vital ............................................................................... 65

Major Brands ............................................................................................................................................. 66

SECTION 5. ISSUES, DRIVERS & OPPORTUNITIES .............................................................................................. 67

Target of Opportunity: Acquire a Local Player ........................................................................................... 68

Effects of a Continued Economic Downturn ......................................................................................... 69

Demographic Shifts .............................................................................................................................. 70

Penetration of Water Treatment Products by Year .............................................................................7

Is Now the Time to Acquire a Major Player in Brazil? ............................................................................7

Consumer Education ................................................................................................................................. 72

False and Misleading Claims ................................................................................................................. 73

Price ...................................................................................................................................................... 74

Is It Just a Replacement Market? ................................................................................................................ 74

Stimulating Awareness of New Products & Technologies ...................................................................... 74

Rentals and Financing .................................................................................................................................75

Import Tariffs & Duties for Brazil ...............................................................................................................75

Why Pentair Purchased Hidrofilter ....................................................................................................... 76

Hindustan Unilever’s Pureit in Brazil – a Tiny Case Study .................................................................... 76

The Pharmacies Channel ............................................................................................................................ 78

Regional Differences & Opportunities ....................................................................................................... 79

Aspects of Bottled Water ........................................................................................................................... 79

Industry Regulation ................................................................................................................................... 80

Mandatory Testing ................................................................................................................................ 80

Classificatory Testing .............................................................................................................................8

INMETRO Certification .......................................................................................................................8

Urban Housing and Opportunities for Water Treatment Products ..............................................................8

Urban Water Contaminants .................................................................................................................. 82

Half of the Trade Association’s Membership Disappeared ...........................................................................83

Shifts in Channel Performance ....................................................................................................................83

How are Purifying Pitchers Doing in Brazil? ......................................................................................... 84

Could Clorox be Pursuing this by licensing a Purifying Line? ......................................................... 84

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page v

How are RO Systems Doing? ..................................................................................................................... 84

How are the Japanese Manufacturers Doing in Brazil? ................................................................................85

pH-adjusting “Alkalizers” ............................................................................................................................85

SECTION 6. PRODUCTS, BRANDS & PRICES ....................................................................................................... 86

Common System Types .............................................................................................................................. 87

A gravity drip pot ............................................................................................................................ 87

A plumbed filtering faucet ............................................................................................................... 87

A simple countertop ........................................................................................................................ 87

A countertop with chilling and container size selection ................................................................... 87

POE sand filters .............................................................................................................................. 88

Some undersink and inline filters .................................................................................................... 88

POU Systems ............................................................................................................................................. 88

Gravity Drip Pots .................................................................................................................................. 88

Major Brands .................................................................................................................................. 89

Typical Prices ..................................................................................................................................90

Plumbed Filtering Faucets .....................................................................................................................90

Brands and Prices: Traditional & Hybrid .........................................................................................9

Brands and Prices: “Modern” Systems ............................................................................................. 92

Traditional Countertop or Wall-Mounted Filters ................................................................................... 92

A Deca filtering faucet “refil” .......................................................................................................... 92

Leading Brands & Pricing ............................................................................................................... 93

Countertop Systems with Chilling or Advanced Features ...................................................................... 93

Flavor capsules for the Brastemp b.Blend ......................................................................................... 93

Leading Brands & Pricing ............................................................................................................... 94

Undersink, Refrigerator & Other Systems ............................................................................................. 94

Refrigerator Water Dispenser Filters ................................................................................................ 94

POE Systems (Filtros de Entrada) ................................................................................................................95

Filters for use with water storage tanks .............................................................................................95

SECTION 7. DISTRIBUTION CHANNELS ............................................................................................................. 97

Major Distribution Channels ..................................................................................................................... 98

Appliances Stores ....................................................................................................................................... 98

A Casas Bahia appliance store ......................................................................................................... 98…continued…





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Via Varejo ............................................................................................................................................. 99

Casas Bahia ..................................................................................................................................... 99

Electrolux purificadores at Casas Bahia ............................................................................................ 99

Pontofrio ....................................................................................................................................... 00

Electrolux purificadores at Pontofrio ............................................................................................... 00

Close-ups of an Electrolux purificador ............................................................................................ 0

A refrigerator with a non-plumbed water dispenser ......................................................................... 0

Water dispensers at Pontofrio ......................................................................................................... 0

The same store four years ago ......................................................................................................... 0

Ricardo Eletro ( Máquina de Vendas S/A) ............................................................................................ 0

Fast Shop .............................................................................................................................................02

Electrolux and Consul at Fast Shop ................................................................................................ 03

Sparkling water and cola from the b.Blend ..................................................................................... 03

Controls and a gas cylinder ............................................................................................................ 03

Flavors for the b.Blend .................................................................................................................... 03

Hypermarkets (Supermarkets) ...................................................................................................................04

Companhia Brasileira de Distribuição (GPA) ....................................................................................... 05

Carrefour .............................................................................................................................................06

A Carrefour hypermarket in São Paulo ...........................................................................................07

Plastic gravity drip pots at Carrefour ..............................................................................................07

Ceramic candle refils ......................................................................................................................07

Colormax and Electrolux filters ......................................................................................................07

Consul filters and two bottled water dispensers ..............................................................................07

Various sizes of bulk bottle water .................................................................................................... 08

Carrefour’s larger selection in 202 (Latina & Masterfrio) .............................................................. 08

Walmart ...............................................................................................................................................08

A 7.5 liter SAP Filtros drip pot at Walmart .....................................................................................09

Lorenzetti and IBBL .......................................................................................................................09

Home Centers / Hardware / Construction ................................................................................................ 0

Leroy Merlin ...................................................................................................................................

Ceramic and plastic gravity drip pots ............................................................................................. 2

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page vii

Plastic gravity drip pots at Leroy Merlin ......................................................................................... 2

A Pentair filtering pitcher ............................................................................................................... 2

Lorenzetti products ........................................................................................................................ 2

Various inline and undersink filters and cartridges ......................................................................... 2

A wide selection of plumbed filtering faucets ...................................................................................3

Electric purificadores from Pentair and Polar ....................................................................................3

More filtering faucets ......................................................................................................................3

Water storage tanks .........................................................................................................................3

A water filter for customers’ use .......................................................................................................3

C & C (Casa e Construção) ................................................................................................................. 4

Ceramic and plastic Stéfani drip pots ............................................................................................. 4

Lorenzetti filters and refils .............................................................................................................. 4

3M faucet filters and refils for undersink/inline filters ...................................................................... 5

Casanova products .......................................................................................................................... 5

Aqualimp cartridges ........................................................................................................................ 5

Telhanorte .............................................................................................................................................5

3M and Forusi marketing ............................................................................................................... 6

Deca and Lorenzetti products ........................................................................................................ 6

Esteves faucet filters ........................................................................................................................ 6

Restocking shelves at Telhanorte .................................................................................................... 6

Lorenzetti filtering faucets .............................................................................................................. 6

Acqualimp filter for a water storage tank ........................................................................................ 6

Dicico .................................................................................................................................................. 7

A selection of refils .......................................................................................................................... 7

Romar and Viqua products ............................................................................................................ 7

Acqualimp tank and filter .............................................................................................................. 7

Specialized Stores ...................................................................................................................................... 8

Casa dos Filtros (in São Paulo) ............................................................................................................. 9

IBBL filters at Casa dos Filtros ....................................................................................................... 9

3M’s Aqualar line ........................................................................................................................... 9

Europa and Consul purificadores ....................................................................................................20

Drip pots and various replacement cartridges .................................................................................20…continued…





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Aquacenter (Rio de Janeiro) .................................................................................................................20

Filtração ............................................................................................................................................... 2

The Filtração store front ................................................................................................................. 2

Views of products in the store ......................................................................................................... 2

Ricozon purificadores ...................................................................................................................... 22

Small and large filters and a chlorination system ............................................................................ 22

Mundifiltros ......................................................................................................................................... 22

Others .................................................................................................................................................. 22

Potavell Smart Filters ...................................................................................................................... 23

Superzon ........................................................................................................................................ 23

Direct Sales & Rentals ..............................................................................................................................24

Europa .................................................................................................................................................24

Europa store fronts in two malls ..................................................................................................... 25

A selection of purificadores and POE systems .................................................................................. 25

Various cartridges ........................................................................................................................... 25

One of the UV models ................................................................................................................... 25

Store front ...................................................................................................................................... 25

Europa filtering pitchers ................................................................................................................. 25

The sales desk .................................................................................................................................26

Online Sales ..............................................................................................................................................26

SECTION 8. PRODUCT USE IN THE HOME ........................................................................................................ 27

Household visits ....................................................................................................................................... 28

Household One .................................................................................................................................... 28

The asbestos cement water storage tank .......................................................................................... 28

Masterfrio purificador ..................................................................................................................... 28

The valve for the dedicated cold water line ...................................................................................... 29

A Pentair carbon filter .................................................................................................................... 29

Household Two .................................................................................................................................... 29

Neighborhood view ........................................................................................................................ 29

Impac wall-mount filter .................................................................................................................. 30

The kitchen and dining area ........................................................................................................... 30

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page ix

The gas supply is outside the house ................................................................................................. 30

The bathroom ................................................................................................................................ 30

Household Three ...................................................................................................................................3

View of the apartment building .......................................................................................................3

The living room ...............................................................................................................................3

The Stéfani plastic and ceramic drip pot ......................................................................................... 32

Closeup of the ceramic candle ........................................................................................................ 32

Placement of the filter in the kitchen .............................................................................................. 32

The kitchen sink ............................................................................................................................. 32

The stove ........................................................................................................................................ 32

Household Four ....................................................................................................................................33

Traditional and “modern” filters in the same home ..........................................................................33

Household Five .....................................................................................................................................33

The purificador is outside the kitchen ............................................................................................. 34

In the laundry room ....................................................................................................................... 34

The small living room .................................................................................................................... 34

Household Six .......................................................................................................................................35

Bottled water and its dispenser .......................................................................................................35

Household Seven .................................................................................................................................. 36

An external Kemlfo refrigerator filter .............................................................................................. 36

Household Eight .................................................................................................................................. 37

The purificador in the kitchen ........................................................................................................ 37

The bathroom ................................................................................................................................ 37

The living room .............................................................................................................................. 37

An Everest system ........................................................................................................................... 37

Household Nine ................................................................................................................................... 38

A ceramic drip pot used without the candle ................................................................................... 38

Exterior view of the home ............................................................................................................... 38

The kitchen .................................................................................................................................... 38

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page x

SECTION 9. QUANTITATIVE ANALYSIS ............................................................................................................. 39

Market History .........................................................................................................................................40

Historical and Current Household Penetration .....................................................................................40

Penetration of Water Treatment Products by Year ........................................................................... 4

Installed Base and Market Trends ........................................................................................................ 4

Installed Base by Configuration ...........................................................................................................42

Product Lifetimes & Replacement Cycles .............................................................................................42

The Current Market .................................................................................................................................. 43

Income Level and Propensity to Buy ....................................................................................................44

The Systems Replacement and New Systems Markets ...........................................................................44

The Market in Units ............................................................................................................................. 45

New System Shipments by Product Type, 207 ............................................................................... 45

The Market in Dollars .......................................................................................................................... 45

Weighted Average Consumer-Level System Prices ..........................................................................46

Value of New System Shipments by Product Type, 207 .................................................................46

Consumables, Installation and Service (CSI) ........................................................................................46

Total Market Size .................................................................................................................................47

The Combined Systems and CSI Market by Product Type .............................................................47

Market Shares (Percent of Revenues) by Sales Channel ........................................................................48

Market Shares of Leading Brands .........................................................................................................48

The Top Five Market Share Holders ...............................................................................................48

The Market by Technology ...................................................................................................................49

New System Sales by Primary Technology .....................................................................................49

Regionality of the Market ......................................................................................................................... 50

Population, Household Size and Household Income by Region ...................................................... 50

New Home Water Treatment Systems by Region ................................................................................. 50

Size of the New Systems Market in Dollars by Region ................................................................... 50

Spending on New Systems vs Population by Region ........................................................................ 5

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page xi

Market Forecasts ....................................................................................................................................... 52

Methodology ........................................................................................................................................ 52

Assumptions ......................................................................................................................................... 52

Trading Up in the Systems Replacement Market ............................................................................ 52

Increasing Attention to Health and Environmental Issues .............................................................. 52

Directions of Market Expansion ......................................................................................................53

Can Less Expensive Bona Fide Purifiers Succeed in Brazil? .............................................................53

The Economy ................................................................................................................................. 54

New Channels to Market ............................................................................................................... 54

Market Forecasts through 2027 ............................................................................................................ 54

Two- and Ten-Year Market Forecasts in Units ................................................................................ 56

Two- and Ten-Year Market Forecasts in Dollars ............................................................................. 57

Two- and Ten-Year Market Forecasts: CSI ..................................................................................... 57

Market Forecast, 207 – 2027 ......................................................................................................... 58

SECTION 0. KEY MARKET PARTICIPANTS ....................................................................................................... 59

Background on the Market .......................................................................................................................60

Industry Structure ..................................................................................................................................... 6

ABRAFIPA—The Industry Trade Association ...................................................................................... 62

ABRAFIPA Industry Association Membership ............................................................................... 63

INMETRO ..........................................................................................................................................64

Global Players ......................................................................................................................................64

Major Local Players ..............................................................................................................................64

Exports & Imports .................................................................................................................................... 65

Exports ................................................................................................................................................ 65

Imports ................................................................................................................................................ 65

Import Duties and Tariffs ............................................................................................................. 65

Importation Tax ............................................................................................................................. 65

ICMS .............................................................................................................................................66

…continued…





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Copyright © 2018 by Baytel Associates, NJ, USA • www.baytel.org • +1-732-988-6792 • [email protected]. Page xii

PIS & COFINS Duties ..................................................................................................................66

IPI ...............................................................................................................................................66

Other Duties & Fees ......................................................................................................................66

Estimating Total (Compounded) Taxes and Duties ........................................................................66

Online Brand Popularity ........................................................................................................................... 67

Business Profiles of Thirty-Six Key Players ................................................................................... 168 – 268

ABOUT BAYTEL .............................................................................................................................................. 269




2018 editionSample Pages

BaytelAssociates

As frequently happens, the national abundance of water is not naturally distributed in the

same way that the population, the agricultural areas, and industrial centers are. Almost

80% of Brazil’s surface water is located in the Amazon and Tocantins-Araguaia river sys-

tems, far from the country’s population centers.

Because of this, and because of climate change, a famously leaky water distribution sys-

tem, local deforestation as well as deforestation in the Amazon, pollution, and population

growth, serious droughts have been seen. The worst of these was in São Paulo during 205,

when the largest city reservoir became depleted and some residents going completely with-

out water for days at a time. Officials even discussed the possibility of radical rationing,

with water being available only two days per week.

Thankfully this drought has now ended; but recent water shortages have also impacted the

states of Rio de Janeiro and Minas Gerais.

In 2007, there were drought events throughout the arid northeast, covering the areas of the

San Francisco, Parnaíba, Northeast Atlantic (eastern part), East Atlantic and a portion of

the Araguaia-Tocantins basins. Out of a total of 5,564 Brazilian municipalities, 788 (4%)

Low water levels at the Atibainha reservoir north of São Paulo in January, 2015.

��

��

Copyright © 2018. Baytel Associates. www.baytel.org. Page 20

Section 3. Water in Brazil NOWSHIPPING




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tion. One recent study, using Daphnids as test organisms, found little viability in treated

municipal water, presumably due to high chlorine levels. Surprisingly, however, even water

that had undergone sustained aeration to remove residual chlorine appeared to be toxic to

the tiny crustaceans, and the authors speculated that this was due to high THMs. (See

Ecotoxicology. (2006). 15(1):73-82.)

Despite heavy chlorination, total and fecal coliforms have been found both in tap water

and in water from residential storage tanks; and indeed, the contamination of water in

rooftop storage tanks might almost be taken for granted. Quantitatively, one investigation

reported the following results with respect to the Maringá metropolitan region of popula-

tion ≈ 500,000 in Paraná.

Microbial Contamination in Tap, Tank, Well and Spring Water in One Study

Percent of Samples Positive for Total Coliforms Positive for Fecal Coliforms

Tap Water (mid distribution line) 6% 2%

Storage Tank 17% 8%

Private well 46% 15%

Spring water 83% 48%

Concentrations of radioactive ions in Brazil are not well studied, although a number of

mines are known to present high exposures. A recent investigation of groundwater con-

centrations of (238)U, (228)Ra, (226)Ra, and (222)Rn in coastal areas of Rio de Janeiro

state found that almost 20% of samples had radium levels above the MCL with one general

region and two isolated hot spots contributing most of these hits. They are associated with

particularly low water pH values. Uranium concentrations were below the MCL. Overall,

a total annual (adult) radiological dose of up to 0.8 mSv due to water use was postulated.

(See J Environ Radioact. 2004. 73(3):323-34.)

Concentrations of the major heavy metals of concern—lead, cadmium, aluminum, zinc,

cooper, and chromium—were measured at public drinking fountains on a campus of the

University of São Paulo. Concentrations of Pb, Cd, and Zn exceeding WHO MCLs were

found in 40%, 20% and 3% of the samples, respectively. (See Arch Latinoamer Nutr. (2003).

53(1):59-64.)


Section 3. Water in Brazil




BaytelAssociates

ally, a significant proportion of total mineral water production, perhaps as much as a third,

is funneled over into the production of other beverages or similar applications.

Large bottles are generally delivered to the home or to other points consumption such as

offices, schools, restaurants, and the like. There are probably more than xx,xxx small, end-

point distributors, most serving only an immediate neighborhood. They tend to be family-

owned and run, and sometimes also deliver gas canisters or similar products. Traditional

retail also supplies a large quantity of bulk bottled water, with predominance in the category

of five to ten liter bottles. Both bottled water distributors and retail outlets often offer dispens-

ers for bottled water, many of which heat and/or chill the water as well as dispensing ambient

temperature water.

Most 20-liter jugs of bulk bottled water are delivered by small distributors

Bottled water at a local distributor’s store and in general retail

“Disk Água” means “call for water delivery”.

Section 4. Bottled Water in Brazil





BaytelAssociates

Close-ups of an Electrolux purificador

A refrigerator with a non-plumbed water dispenser

Water dispensers at Pontofrio The same store four years ago

Ricardo Eletro ( Máquina de Vendas S/A)

Key people: Ricardo Nunes (CEO) and Luiz Carlos Batista (Chairman)

Máquina de Vendas (www.ricardoeletro.com.br), which translates as “Sales Machine,” orig-

inated from the merger between Ricardo Eletro and Lojas Insinuante. It operates stores


Section 7. Distribution Channels


http://www.ricardoeletro.com.br



BaytelAssociates

HOUSEHOLD VISITS For many years Baytel has been visiting Brazilian households in order to speak with con-

sumers and see first hand how they deal with issues pertaining to water in the home.

The following examples cover several households from differing economic, geographic, and

social settings.

Household OneThis apartment belongs to a couple in their fifties whose thirty-something year-old son stays

with them here in São Paulo on many weekday nights (in order to be close to his downtown

office job), but who lives with his own wife on the outskirts of SP the rest of the time.

The family have a Masterfrio purificador, which is installed on a shelf positioned above the

original cold-water line designed for a plumbed filtering faucet. In addition, there is a car-

bon filter (Pentair Hidro Filter) installed above the purificador.

The asbestos cement water storage tank Masterfrio purificador

Section 8. Use in the Home





BaytelAssociates

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Penetration of Water Treatment Products by Year

Installed Base and Market TrendsThe 207 installed base of systems in Brazil amounts to somewhat over xx million systems

located in some xx million households. As is typical for home water treatment data, it is

not known what proportion of these systems are actually in daily use and how well they

are being maintained. However, some years ago an executive at Cerâmica Stéfani hazarded

a guess that the owners of perhaps xx% of all low-end (ceramic-candle based) units were

purchasing replacement candles for their systems at the rate recommended by the manu-

facturer; others purchase them less frequently or have ceased using their systems altogether.

Baytel believes that this figure, while suggestive, should be taken quite literally as applying

to owners of low-end ceramic drip pots only; owners of more expensive products, includ-

ing plumbed filtering faucets and the entire range of countertops and undersink systems,

appear to be far more compliant in system maintenance or replacment.

Section 9. Quantitative Analysis




Click or tap here to download our Capabilities Brochure as a pdf.

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Copyright © 2018 by Baytel Associates. • www.baytel.org • for more information call Baytel’s U.S. office (Eastern Time) +1-732-988-6792 or email [email protected]

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“ Baytel’s residential water treatment reports have been valuable in our market assessment activities, particularly due to the detail provided from having experienced people on the ground actually investigating the market dynamics.”

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