Emerging Markets #3

Deregulation on the horizon

The regulatory landscape is changing and Brazil's de-regulation is in progress. On Aug. 9, 2010, Anvisa announced that the registration requirement will be lifted for 15 food categories. The inclusion of 'foods for athletes' will open up a significant opportunity for companies in this category.

With this action, Anvisa intends to reduce the number of food registrations that arrive at the agency by 47 percent. "Beyond this process of reducing bureaucracy, we will be able to concentrate efforts in action to improve the sanitary control of foods commercialized in Brazil," said Maria Cecília Brito, director of Anvisa.

Any entry into the market will help position your company as an early adopter and aid in brand recognition as the market evolves. However, a clear long-term strategy to meet local compliance requirements and consumer trends are the keys to success. If you are willing to study the market, the benefits can be significant as shown with MLM company Herbalife, which grew its net sales 14 percent in 2008 to $18.8 million. As a stable market with predictable growth, Brazil and Latin America as a whole are an option for those searching for almost virgin territory.

Other emerging market opportunities

1. Eastern Europe & Turkey
Favorable regulatory decisions have been made that will open up new-product opportunities.
2. Russia
High-level dialogue is creating a more positive regulatory environment.
3. Japan
The groundbreaking FOSHU regulation has not evolved and is suffocating the market. However, the oversight recently given to the Ministry of Consumer Affairs bodes well.
4. India
Will its model be a food- or drug-based law?
5. Asean nations
Harmonized regulations across 10 nations by 2015 is being done for trade purposes, not to create regulatory barriers.
Mark J. Tallon, Ph.D., is founder of NutriSciences Ltd., a consultancy firm specializing in health-claim substantiation, product development and technical writing. www.NutriSciences.com

http://www.functionalingredientsmag.com/content/print.aspx?topic=Regulation-relaxation-may-unlock-Brazils-massive-natural-products-market

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