en.Wedoany.com Reported - Argentine food company Ledevit has achieved counter-cyclical growth amid macroeconomic difficulties, expecting sales volume to increase by 6% to 13,500 tons in the current fiscal year.
The company, with factories and operations in Buenos Aires and San Juan, has historically focused on professional baking ingredients, with exports currently accounting for 6% of total revenue. Against a backdrop of widespread contraction in domestic mass consumption, the company is expanding by launching new products, developing new channels, innovating business models, increasing exports, and engaging in co-production and co-branding activities with other companies. CEO Nicolás Demarco stated that the macroeconomic situation requires companies to shift their mindset, focus on internal efficiency, and maintain frugality without losing sight of growth prospects.
For decades, over 80% of Ledevit's business has been concentrated on selling refrigerated cream to other businesses, a product that cannot be sold online or easily distributed at room temperature. Currently, the company is working to expand this area by reaching end consumers directly with other products, aiming to transform into a company offering a wide range of food solutions to meet the needs of different consumption scenarios. The digital strategy aims to accelerate this process and strengthen the brand's influence beyond the refrigerated cream category. This evolution means entering the home consumption market through ready-to-use mixes, baking premixes, and other forms suitable for digital distribution and room-temperature storage. A key competitive advantage of this business is that the company has adjusted its production processes to meet gluten-free factory conditions, ensuring its mass-consumption product lines are certified as TACC-free (the Spanish acronym for foods without wheat, oats, barley, and rye). In this context, the company launched the "Emprendé con Ledevit" training platform for those looking to turn baking into a craft or business.
In the direct-to-consumer segment, Ledevit operates through e-commerce. The company opened an official store on Mercado Libre on March 15, and within less than two months, it accumulated over 800 sales with an average ticket of 25,000 Argentine pesos (approximately 87.56 Brazilian reais at the current exchange rate). During this period, the brand achieved a Platinum reputation rating on Mercado Libre in less than a month. Demarco explained that Mercado Libre was chosen because the platform's high requirements accelerated the learning process for digital e-commerce, knowledge that is crucial for developing proprietary channels and building an omnichannel ecosystem connecting B2B and consumers. In the medium term, the company expects digital channels to account for 2% to 5% of total revenue. Demarco emphasized that its strategic significance far exceeds this figure, serving as a source of information, learning, and proximity to consumers, helping to understand purchasing habits, validate innovations, and identify growth opportunities. The relationship with the distributor network is a sensitive point in the direct-to-consumer expansion. Demarco stated that a coexistence model was planned from the outset, with differentiated pricing positioning for each channel, making the digital channel complementary to rather than competitive with traditional business. Additionally, data generated by the online store is shared with distributors to identify opportunities and optimize inventory.
The most concrete measure in this transformation process is relocating part of the operations from the Pompeya district of Buenos Aires city to an 11,000-square-meter facility in the Ezeiza Industrial Park. The total investment for completing the relocation was $4 million (approximately 21.6 million Brazilian reais), but international and domestic conditions have slowed the original plan, requiring caution to maintain business stability. The total investment plan for the next 24 months, including robotization, automation, and new production lines, amounts to $6 million (approximately 32.4 million Brazilian reais). The company currently operates at an average capacity utilization rate of 70%, with room for expansion by adding shifts. Its factory holds FSSC22000 certification, one of the international food safety standards.
Currently, exports account for 6% of total revenue. The most established markets are Brazil and Uruguay, the brand's historical destinations, with Ecuador recently added. In the short term, Demarco expects to implement a commercial expansion plan in the region, intending to strengthen operations in Brazil and initiate exports to two other countries, bringing the number of directly covered South American countries to five. The long-term horizon also includes Europe. The Mercosur-European Union trade agreement presents opportunities, but Demarco prefers to remain cautious, stating that the company is seeking distribution partners in the EU without rushing, as there is still local demand to meet. Regarding EU regulatory requirements, Demarco noted that with its food safety certifications, the company is well-positioned to meet these standards. Ledevit no longer sees itself solely as a professional baking company. Its factory in San Juan province specializes in producing fruit pulp packaged using UHT technology for its own use, contract manufacturing, and export, as the company advances vertical integration. This business aims to promote local fruit and vegetable production and ensure a supply of high-quality raw materials. For Demarco, the company's size is a competitive advantage compared to multinational corporations, as being a medium-sized enterprise allows it to respond more flexibly and successfully to changes in the Argentine and global markets.
