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Companies & industry

Razzo is betting on a new line of popular soap bars to expand sales by 25%

The company has been on the market for 50 years and is the second-largest soap base manufacturer in Brazil.

Livy raspberry cream and silk proteins

Livy raspberry cream and silk proteins

Brazil has been the largest world market for soap bars since 2008, according to Euromonitor data, with a penetration in more than 99% of households. However, there is still plenty of room for this category to expand in a country of continental dimensions with a hot, humid climate where people often take more than one shower a day.

Sales of soaps increased by 12% in Brazil between 2008 and 2012 and represented 14% of revenues for the cosmetics and personal care industry. This is higher than the world average of 9%, according to figures from the Union for the Industry of Perfumes & Toiletries in São Paulo (Sipatesp). Product segmentation and the dissemination of cheaper brands have been contributory factors in creating this bright outlook for the category.

Operating in the cleaning and personal care segments for 50 years, Razzo has opted for popularization as the way ahead. It has been manufacturing soap base for large domestic companies since 2004 and is currently the second-largest Brazilian producer. The company has also launched its own brand, Livy, which is sold in 90 gram bars at R$ 0.69 each (recommended retail price).

Livy bar soaps manufactured by Razzo

Livy bar soaps manufactured by Razzo

Razzo claims to have developed the new range in line with the latest international trends in fine fragrance. The soaps are available in five exclusive fragrances: raspberry cream and silk proteins, fennel and bamboo, lavender and chamomile, hazelnut milk and cotton flowers, and cucumber and dew drops.

Razzo expects the Livy brand to increase its sales by 25%. The company certainly has the structure to meet this expansion as it has invested in building one of the most modern soap plants in South America. The factory is located in São Paulo and has annual production capacity of 12,000 tons, a volume that is foreseen to double in the medium term.

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