beyondbrics

By Dom Phillips in Belém

Nestlé’s “floating supermarket” made its maiden voyage today under scorching Amazon skies. The Terra Grande, or Big Land, is a R$1m investment by the Swiss food group designed to reach isolated riverside communities in the Amazon region.

It set off this morning from the city of Belém near the mouth of the Amazon with a complement of journalists, shelves neatly stocked and crew in immaculate whites. Painted white and blue, decorated with giant images of Nestlé products, it caused something of a commotion two hours later when it arrived in the riverside town of Barcarena. Residents were expecting its arrival: it had been announced on local radio.

The vessel is designed to enhance Nestle’s reach among the lower income consumers that make up a core part of its market. The company has been in Brazil for 89 years and products like its powdered milk are staples among Brazil’s poorer consumers. As the economy continues to grow quickly, Nestlé is hoping that rising incomes among the poor will bring its higher priced goods within their reach, too.

Interior of Nestle's Terra Grande

Alexandre Costa, Nestlé’s director for regional markets, on board for the first voyage, admitted the company had no idea if the boat would make a profit. But gains in marketing and costumer contact could well outweigh that. He also pointed to the success of Nestlé’s door-to-door distribution schemes in poor areas including Brazil’s favelas, which use local residents, mostly women, as freelance sales reps.

The people of Barcarena certainly seemed to like the idea and flocked on board, though not everybody made a purchase. Most pronounced themselves pleased. “The idea is really cool, it is something new,” said Luzeilton Costa, a local encyclopaedia salesmen.

The town is larger than many of the smaller communities – 18 are targeted – that the Terra Grande will serve. And as the Terra Grande only sells Nestlé products such as coffee, chocolate, powdered milk, cereals and ice cream, is not a “supermarket” as such – the absence of Brazilian food staples like rice, beans and chicken, not to mention the dearth of fruit or vegetables, would make it hard to cook a full meal after shopping on board.