In the heart of South America, Spanish supermarket chain SPARSA announced on Tuesday that it will start selling its first Brazilian products from a Brazilian-owned supermarket chain, Teodoro Brasil, next year.
The announcement came as Brazil, which has been a key trade partner for the Spanish company, is grappling with its own economic crisis and the ongoing political turmoil that has left the country with a political crisis.”SPARSA is committed to continue working with our Brazilian partners to improve their supply chain in Brazil and to support Brazilian farmers and small business,” SPARSCA President and CEO Javier Rangel said in a statement.
The company has previously said that it would be open to selling Brazilian products to other European countries.
The Brazilian brand will start with a range of groceries including breads, fruits and vegetables and a wide range of household products.
SPARISA already offers its own brand of bread in Brazil, but the Brazilian brand is the first to be sold through Teodoros Biosan, which will also be the first supermarket chain in South America to be based in Brazil.
The news of the opening of the first Brazilian store came as SPAR SA is facing mounting pressure to step up its fight against rising food prices.
Brazil’s economy, which is expected to contract by 1.3 per cent this year, has been one of the world’s fastest-growing economies and has been in recession since 2012.
Last year, the Brazilian government announced a series of austerity measures that included tax hikes, wage freezes and a reduction in public spending.
The government has been under pressure to address the soaring price of food, especially as the economy has been hit by a series on a number of fronts, including the global economic crisis, the political turmoil and the collapse of a major oil and gas project in the Amazon.