GualapackGroup says it has bought a controlling stake in the company, which is known as Trabador Stand-up-Pouches, and is based inSãoPaulo.
The company is said to be the only Brazilian player on the market to specialize in pre-made stand-up pouches and related solutions, making it an interesting acquisition.
Trabador is a specialized player
Trabador has further extended its differentiation in the market by investing in high-speed machines and flexible systems which allow it to manufacture a wide variety of pouches that are customizable for different applications and categories in the Brazil market.
"I am pleased to announce the closing of this acquisition, which allows us to proceed with the important work in terms of integration, synergy harvest and positioning for further growth in Brazil,” said Michele Guala, CEO of GualapackGroup.
“Indeed, the GualapackGroup intends to play a key role in the further development of the flexible packaging business in Brazil."
The move also helps to consolidate the company’s operations in Latin America, where it also has a manufacturing operation in San Jose, Costa Rica.
Brazil market slowing down
Brazil has been facing economic hardship over the past few years, with breakneck economic growth slowing to almost nothing during the course of the last year as the country faces mounting debts on the back of staging the World Cup last year and the Olympics next year.
This is giving way to the need for cheaper consumer products, as consumers are tightening their household spend in the face of rising retail prices and taxes.
Stand-up-pouches offer brand holders cost savings in respect to both transportation and material costs, that can invariably be passed on to cash-strapped consumers.
The solution also taps into the trend for on-the-go products, as the pouches can be more easily carried around by busy consumers who stay on-the-go. The pouches are also said to be unbreakable.