The mature industry that keeps on growing - Novozymes Household Care in Latin America

Novozymes’ half year results revealed that sales in Latin America were up by 18% in LCY when compared with the first half of 2013. Strong demand for laundry detergent enzymes was the primary contributor to growth in this region.

​Making up 10% of Novozymes’ overall business, Latin America is the smallest sales region but also the most rapidly growing one. Results in this emerging market are not just based on new products, but also on close-knit customer relationships.
  
“We have a highly motivated and committed team in Latin America, with a very clear goal – keeping our customers happy,” explains Andrew Fordyce, Executive Vice President of Novozymes Business Operations. “Through working closely with our customers and developing solutions specific to the region’s needs, we have been able to successfully grow our business in Latin America with our Household Care business as the driving force.”

Novozymes has been in the Latin American market since opening a production site in Curitiba, Brazil in 1989. In 2013, the company experienced a sales growth of 17% in this region – far above local GDPs considering, for example, that Brazil’s GDP was 2.5% in 2013.

Converting customers into partners
Fordyce explains that in-depth customer understanding and targeted solutions are at the core of the growth within Novozymes’ Household Care business in Latin America.

“Achieving growth in an industry that is already highly developed requires an intimate understanding of your customers’ needs,” he says. “Rather than taking existing products and pushing them into the market, we have completely localized the solutions to create really targeted offerings for our customers.”

Based on the fact that enzymes for powder detergents are usually delivered as granules, a key element of these specific, localized products is a technology known as co-granulation.  In Brazil, Novozymes has developed this unique technology where one granule can contain several enzyme activities.  This enables the production of multi-enzymatic products locally, avoiding importation. 

Mutually better business
The trend to replace chemicals traditionally used in detergents with biodegradable enzymes continues to play an important role for Household Care sales, and this is no different in Latin America. Novozymes often conducts special optimization projects with customers to plan how best to reduce chemicals and compensate with enzymes.

“In Latin America, the use of enzymes is often perceived as being something that is only used by high-end detergent brands,” says Andrew Fordyce. “We have customers of all sizes, and through collaborating closely with them, we have been able to demonstrate that our solutions really add value; that the correct multi-enzyme solution can not only enhance performance and improve sustainability but also reduce costs.”