Washington DC-based ACON Investments has announced that its ACON Latin America Opportunities Fund IV, L.P. (ALAOF IV) has acquired a stake in Brazilian snack and candy company, Dori Alimentos S.A., for an undisclosed amount.

Founded in 1967 in São Paulo, Dori is one of Brazil’s leading makers and distributors of snacks and candy, posting net revenue of over US$190 million for the twelve months ending October 2016. From its three production plants employing a workforce of 2,100, the company sells its product line that includes gum, chocolate lentils, chewy and hard candies, chocolate sprinkles, jelly beans, peanuts, milk caramels, and lollipops, both domestically and in more than 60 foreign markets. Key overseas markets include the U.S., Canada, Venezuela, Angola, Uruguay, Cuba and Yemen, according to Food Business News.

“Dori has established itself as a leading player in the market for snack and candy products in Brazil,” said Andre Bhatia, managing partner, ACON. “We have been very impressed by the executive team, the strength of the brand and the positioning of its products throughout Brazil.”

The fresh capital generated from the investment will be used by Dori to enhance its product portfolio, expand its distribution capabilities, cut its short-term debt financing, fund its expansion plans, and as working capital.

Sweet Spot

Young and growing populations with the increasing ability for discretionary spending due to higher incomes have made both Latin America and Asia Pacific the two top markets for growth in the confectionary and snack markets.

Candy Industry reports that combined, both markets were valued at US$26.1 billion and are expected to grow at a compounded annual growth rate (CAGR) of 5.7 percent from 2015 to 2023, when it is expected to reach a value of US$46.1 billion. Of these two markets, Transparency Market Research (TMR) has earmarked Latin America as the fastest growing market during this time period.

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Lynda Kiernan