Estudio de Ernst & Young sobre situación y perspectivas económicas de Colombia

1. Colombia highlights
Time to tune in: Latin American companies
turn up the volume on global growth
Growing Beyond

2. 2 Growing Beyond
About this report
Forecasting methodology
Rapid-growth markets have largely been viewed and
studied from the perspective of inbound investment by
companies based in the West. Colombia highlights and
the main global report of which it is a part, Time to tune
in: Latin American companies turn up the volume on
global growth, offer rare insights about the strategies
of outbound investment from companies based in Latin
America and provide in-depth perspectives on decision-
making for companies from both mature and rapid-growth
markets.
Colombia highlights draws upon a survey of 600 business
executives based in Argentina, Brazil, Chile, Colombia,
Mexico and Peru. The survey was conducted by Oxford
Economics in November and December 2012. Among the
respondents, 29% were from Brazil; 24% from Mexico;
13% each from Argentina, Chile and Colombia; and 10%
from Peru. Among the companies surveyed, the reported
annual revenues were: 25%, US$1 billion or more; 29%,
US$250 million to US$500 million; and 46%, under
US$250 million.
Colombia highlights is based on three sources of research:
the survey results for Colombia, qualitative interviews
with several Ernst & Young sector and country leaders,
and the viewpoints of senior executives from companies
based in Colombia. Oxford Economics provided analysis of
individual Latin American markets and between Colombia
and the rest of the world.
The bilateral sector export forecasts for the Latin
American countries in the survey are underpinned by
Oxford Economics’ Global Macroeconomic and Industry
Models.
The Oxford Global Model covers 45 economies in detail,
with the rest of the world economy covered in six trading
blocs. Individual country models are fully linked through
global assumptions about internationally traded goods
and services, exchange rates, competitiveness, capital
markets, interest rates and commodity prices. The
input/output tables to estimate the share of domestic
Oxford Economics’ industry forecasts to inform future
demand and production trends.
exports was sourced from the UNComtrade database,
data on exports of services was sourced from the

3. 3Latin American companies turn up the volume on global growth / Colombia highlights
Introduction
Before the new millennium, Colombia was
portrayed in the international media
as a disintegrating nation torn apart by
a decade, Colombia has transformed itself
into one of the fastest-growing countries in
Latin America, and many economists expect
this growth to continue. The challenges that
remain are typical of many rapid-growth
economies: they involve logistics and strategic
choices, not survival.
America, Colombia has learned from the
region’s other leading economies. From
Mexico, Colombia has grasped the value of
free trade agreements. From Brazil, Colombia
has gained a sense of how a government
No wonder Christine Lagarde, Director of
the International Monetary Fund, described
Colombia’s macroeconomic situation as
“positive and promising” after her visit to the
country in December 2012.
economic policies and thoughtful
management, Lagarde and other observers
days. So are investors: foreign investment
in Colombia continues to grow as the world
rediscovers a country that was once all but
written off by many global businesses. What
once looked like the middle of nowhere now
looks like the middle of everything — Colombia
offers not only a stable economy but also
geographic proximity to both Latin America
and the US.
Even as more direct investment arrives in
Colombia, more Colombian companies are
starting to look abroad for new sources of
business. Although the Colombian economy
is still skewed heavily toward commodity
exports, businesses are rapidly diversifying as
Whether yours is a foreign company looking
to partner with one of Colombia’s leading
businesses or a Colombian business looking
for cross-border opportunities, we hope you
Luz Maria Jaramillo
Colombia Managing Partner
Ernst & Young S.A.S.
Colombia highlights and Time to tune in: Latin American companies turn up the volume on
global growth are part of Growing Beyond,
-
ing new approaches to talent management.

4. 4 Growing Beyond
Fast facts: Colombia
Poverty is now 34.1%, down from 45% in 2005, and
per capita income stands at US$9,560 in purchase
power parity terms, up from US$7,030 in 2005. (World
Development Indicators, World Bank)
2013 report by the country’s central bank.
Colombia’s public debt ratio declined from 36.9 to
34.2% of GDP between 2010 and 2011. (World Bank
Country Overview)
In 2000, the ratio of investment to GDP stood at 9%.
El
Tiempo
Portafolio.co, a Colombian
Portafolio.co
only 3.1% in the fourth quarter of 2012.
El Tiempo
2013)
Portafolio.co,
Colombian Government. If successful, it will mark the
years. (World Bank Country Overview) The peace accord
Economics)
While fewer Colombian companies have investments
Caribbean)
Doing
Business
territory) and Peru.
Colombia’s annual yield in the international debt

5. 5Latin American companies turn up the volume on global growth / Colombia highlights
country was badly shaken by political
violence and organized crime, Colombia’s for-
tunes have changed remarkably. Now, media
headlines focus on the country’s relentless
growth. As the former slogan for Colombia’s
national tourism slogan put it, “The only risk is
wanting to stay.”
The results of the Ernst & Young 2013 Latin
America Outbound Expansion Survey and
our qualitative research show that Colombian
from outbound expansion. The following are
at risk. Oxford Economics estimates that
oil, gas and minerals represent two-thirds
of Colombia’s exports. This concentration of
economic activity may lead to vulnerability in
the event of a sudden price shock. One case
in point: although 87% of our survey respon-
dents sell to customers outside Colombia,
more than the Latin American average of
80%, only 20% support these operations with
brick-and-mortar establishments outside
their home country, compared to the Latin
American average of 33%.
China accounts for only 4% of total Colombi-
an exports, 32% of the Colombian executives
that anticipates a likely increase in Chinese
exports. Free trade agreements with China,
South Korea and Japan are in the pipeline.
Executive summary
that over 20% of their revenue will come
from foreign sources three years from now,
up from 46% who say they earn more than
20% of their revenue abroad now. They also
respondents say their company earns 20% or
believe they will match or pass that threshold
in three years.
than their ideas. More than any other group
of Latin American executives, Colombians
believe in the high quality of their products
in the value of their intellectual property, less
than the 12% Latin American average.
their boards. More than any other group in
Latin America’s six economies, Colombian
executives want to make their corporate
least interested in making their board more
perhaps of relatively close ties between the
Colombian business elite and the US.
commodities sales, Colombian executives
More than other groups of Latin American executives, Colombians
believe in the high quality of their products and services.
changes in sales and marketing, more than in
any other function.
-
tives say their companies are focused on
growth through exports and by creating
are also more open to mergers than the
culture of public companies, is home to many
of Colombia’s largest enterprises, includ-
ing Sura, Bancolombia, Nutresa, Argos and
Exito.

6. 6 Growing Beyond
Business implications and recommendations
hese opportunities and challenges
require several strategic responses from
Colombian companies that wish to succeed
in international markets. Most require mov-
ing beyond Colombia’s traditional role as a
supplier of commodities. We recommend the
following actions:
Leverage technology. Raising operational
-
ties game. Today, Colombia is connected to
Colombian companies, this means that they
need not wait to incorporate cutting-edge an-
alytics into their business, particularly given
the ever-increasing availability of software as
T Focus on differentiation. The value of many
-
ment. Typically, rapid-growth economies
value before shipping out their commodities.
Colombia should be no exception. CasaLuker,
for example, a Colombia-based food com-
pany, is now focused on differentiating its
chocolate for the European market.
Go green. Since 1959, the National Federa-
tion of Coffee Growers of Colombia has run
advertisements that feature Juan Valdez, a
-
paign educates consumers worldwide about
the qualities of climate and soil that make
Colombian coffee “pure” and special. Today,
with more consumers becoming concerned
about the quality of the goods they buy and
the social and environmental consequences
of their production, a similar strategy could
be used to raise perceptions of other prod-
America.gov, 09
Deepen connections with China. China
represents an enormous opportunity for
Colombia and for every economy in Latin
America. In 2010, China overtook Venezuela
to become Colombia’s second-largest trading
partner; Oxford Economics analysts predict
that Chinese exports will rise 11% a year on
average between 2011 and 2021. China has
also become a key player in several Colombi-
an development and infrastructure projects.
For example, Mansarovar, a consortium made
up of India’s oil and natural gas consortium
now controls 24% of Colombia’s oil market,
exporting its outputs to Asia. Cultural
differences, however, have hindered speedy
development of the relationship between
Colombia and China, and to take maximum
advantage of business opportunities, it will be
essential to bridge those differences.
Buy experience. Our survey suggests that
Colombian companies seem much less
daunted by the prospect of mergers and
acquisitions than other Latin American
companies. This adventurous instinct is prov-
ing to be an advantage in a part of the world
that is often conservative about deal-making.
Backed by high commodity prices and a
strong currency, Colombian companies with
an aggressive M&A strategy could grow very
quickly, whether the acquisition offers entry
into a new market or brings greater value to
the product.

7. 7Latin American companies turn up the volume on global growth / Colombia highlights
hroughout the 20th century, Colombia
knew few peaceful years. For decades, po-
forced Colombian businesses to operate under
2000s these hardships have been in sharp de-
cline, and with peace in the pipeline prospects
are even better. While violence, kidnappings,
bombings of energy infrastructure and similar
incidents continue, Colombia has grown
steadily and is now well on its way toward
becoming one of Latin America’s leading
economies. Looking ahead, Oxford Economics
analysts expect real GDP growth to continue,
reaching roughly 4% annually through 2016.
One secret of Colombia’s success is the open-
ness of its economy. Ernst & Young’s 2012
Globalization Index ranks Colombia the 40th
most open economy in the world, placing it
ahead of many rapid-growth markets, includ-
ing Brazil, Russia, India and China.
Foreign businesses have responded to
Colombia’s hospitality: foreign direct invest-
in 2011. But foreign enthusiasm for their
domestic market didn’t convince Colombian
companies to stay home — instead, they
invested US$8.289 billion abroad in 2011, a
26% gain over the previous year. They focused
particularly on developing their interests in
Central America and Mexico. Targeted sectors
T
Foreign Direct In-
vestment in Latin America and the Caribbean,
2011, the United Nations Economic Com-
mission for Latin America and the Caribbean
Many businesses had no alternative. Today,
the Colombian economy is so developed that
some Colombian companies don’t really have a
choice but to grow abroad, says Luz Maria
Jaramillo, Colombia Managing Partner at
Ernst & Young Ltda. At some point, she points
out, considering their market share, they are
not able to continue expanding without violat-
ing anti-trust rules.
Some of these cross-border transactions have
been sizable. In 2011, the biggest acquisition
of the year in Mexico was Colombia’s Grupo
SURA purchase of Dutch bank ING’s assets,
a US$3.614 billion transaction that was also
one of the largest deals ever completed by a
Latin American company. In fact, as ECLAC
analysts note in their 2011 FDI report, Colom-
bia has grown into one of the biggest sources
of Latin foreign direct investment: between
2009 and 2011, 39% of outward FDI from
Latin American and Caribbean countries came
Foreign Direct Investment
in Latin America and the Caribbean, 2011,
One secret of Colombia’s success is the openness of its
economy. Ernst & Young’s 2012 Globalization Index ranks
Colombia the 40th most open economy in the world.
Business environment and economic outlook
services. The ING deal may have been the
was far from unique. Colombian banks, for
example, have expanded from 35 international
branches in 2007 to 175 in 2011, mostly
through acquisitions. In February 2013, Ban-
Panama for US$2.1 billion. As in the case of
the ING deal, Colombian banks appear to have
institutions, which have been compelled to
scale back operations because of the impact
This is a situation to which Colombian banks
have been largely immune, thanks to strict
regulatory reforms in Colombia that followed
the Latin banking crisis of the late 1990s.
into Banking Big Leagues,” America Economia,
2 February 2012; “Colombia’s Bancolombia to

8. 8 Growing Beyond
Colombian companies are starting to look
and China remain distant. China, in particular,
know, even while pursuing Colombia-bound
deals. “Unfortunately, our experience with
China is that they are not easy in terms of the
way they do business and the way they
approach their relationships,” says
Ernst & Young’s Jaramillo. “We have some dif-
investments, to try to get them to follow all
the rules and procedures.”
Closer to home, another question mark is the
future of Venezuela, traditionally an important
market for Colombia. Although Colombian
businesses were largely prevented from invest-
ing in the country, it’s unclear whether the
end of economic nationalism. In some ways,
however, the isolationist policies of the Chavez
Government encouraged Colombia to create a
more open economy and become less depen-
dent on a single market. In recent years, some
Colombian companies have been able to invest
in Venezuela again, but Jaramillo cautions
“We believe that what looks like a disadvantage today is actually an
opportunity to begin to enter the market.”
Yonatan Bursztyn, General Manager, Nalsani SA, Colombia
that risks remain because currency exchange
restrictions are still severe. The Government is
also very concerned about contraband coming
from Venezuela, especially since the latest
devaluation.
As Colombian businesses look to other mar-
competitive advantage:
Geographic proximity. If Latin America had a
heart, it would probably be near Colombia.
Miami, Mexico City and Santiago are all
China are also accessible.
Openness to inorganic growth. While most
Latin American companies are suspicious of
inorganic growth, Colombian companies are
an exception. Our survey suggests that Co-
lombian companies are much more open than
other Latin American companies to mergers
or acquisitions, which might allow an easier
way to test or gain a foothold in new markets
without the expense and risk of a direct invest-
ment.
Fearlessness. The experience of Colombia’s
last tumultuous century seems to have left
many Colombian executives with an unusually
nuanced sense of risk. For example, it’s prob-
ably safe to say that a mature market where
unemployment tops 26% and youth unemploy-
ment has hit 55% would probably not be on
Bursztyn, General Manager of Nalsani SA, is
looking at opportunities to expand in Spain.
“Conditions are bad in Spain, but this is when
opportunities arise,” Bursztyn explains. “We
believe that what looks like a disadvantage
today is actually an opportunity to begin to
enter the market.”
%
Argentina
Real GDP growth in Latin America
10
9
8
7
6
5
4
3
2
1
0
2012 2013 2014 20152011 2016
Source: Ernst & Young Rapid-Growth Markets Forecast,
Winter edition, January 2013
Chile
Brazil
Mexico
Colombia

9. 9Latin American companies turn up the volume on global growth / Colombia highlights
Rest of Asia
India
China
Colombia
United States
Middle East and
North Africa
Europe
Rest of
Latin America
1
2
9
9
6
37
22
14
8
21
1
2
Colombia regional goods exports by US$b, 2011-21
Source: Oxford Economics
2021
2011
6
Natural and cultural beauty. With its moun-
tains, beaches and some of South America’s
most beautiful colonial cities, Colombia should
be an important tourist destination. At the
moment, growth of the industry remains low,
just 3.6% between 2010 and 2011, compared
with the double-digit increases enjoyed by
consumers in North America come to realize
that the security situation in Colombia is very
different from what it was 10 or 15 years ago,
Multiple free trade agreements. Like Peru
and Mexico, Colombia has made free trade
agreements a core of its investment strategy.
Colombia now has free trade agreements with
47 countries, giving Colombian companies
preferential access to 1.5 billion consumers,
according to a tally by Colombia Proexport.
Now, the Ministry of Commerce is working on
that will deepen Colombia’s relationship with
Mexico, Chile and Peru, three of its most
important trading partners.

10. 10 Growing Beyond
Latin America is the top investment
destination
olombian companies might sell minerals
and hydrocarbons that are similarly
valued the world over, but the Colombian
strategy remains largely focused on the Latin
American region. Colombian companies
conduct more business nearby than the
average Latin American company, according
to our survey: 87% of Colombian executives
say they export to markets in Latin America,
compared with a Latin average of 80%. At the
same time, fewer sell outside Latin America
than average: 60% versus 66%. The same
C
Where, why and how Colombian
preference for the “near abroad” markets
appears when they are asked about the top
markets: Ecuador is the leader, at 51%,
compared with a 15% average. The numbers
are also well ahead for every market but
Argentina. Interest in the US and Canada is
China is also seen as a more crucial market,
but here, executives may be getting ahead
of themselves. Although not yet reported in
the trade data, total goods exports are only
about 4% of Colombia’s total, according to
Oxford Economics. At the same time, Oxford
Economics analysts predict that Chinese
exports will rise 11% a year on average
Looking ahead three years, Colombian
executives are more optimistic about growth
within Latin America than the average Latin
American company. They see brighter
15
54
21
17
21
15
27
22
10
20
51
49
29
43
28
36
24
32
20
31
Figure 1: Colombian companies conduct most of their international business in Ecuador and North America
(excluding your company’s home country)? Select all that apply.
Ecuador
United States or Canada
Brazil
Peru
Chile
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Venezuela
Argentina
China
Panama
Mexico
Colombia
Latin America

11. 11Latin American companies turn up the volume on global growth / Colombia highlights
days ahead in Mexico, Brazil, Ecuador and
Chile. They are even more optimistic about
to the US or Canada or China, Colombians
are slightly less optimistic, although they
still expect the best growth opportunities to
One exception is clothing retailer Nalsani
SA. General Manager Yonatan Bursztyn
the US market, but sees an opportunity
commensurate with the risk.
“When Totto enters the United States, no one
will know what Totto is, basically,” he says.
“You’re competing against very powerful
brands with a lot of money and established
roots. But, on the other hand, there are
always opportunities, and the most important
is to bring an innovative brand concept, to
offer new things. You have to offer something
different from what they have today. If not,
you’ll fail.”
Access to new technology is the key reason
for developed-market expansion
Colombians’ motivations for expansion into
rapid-growth markets within Latin America
markets outside Latin America seems driven
by similar priorities.
43
13
9
16
15
8
5
5
4
20
40
25
15
24
11
23
11
17
11
16
Figure 2: Best growth opportunities are expected from North America and Mexico in the next three years
Which countries/regions outside your organization’s home country do you expect will hold the best growth
opportunities for your company over the next three years? Select the top three.
United States or Canada
Mexico
Chile
Brazil
Argentina
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Peru
Venezuela
Ecuador
Costa Rica
China
Colombia
Latin America

12. 12 Growing Beyond
Colombian executives are much more aggressive
than other Latin American executives in considering
Priorities, however, are somewhat different
when it comes to developed-market expansion.
Although they also want to reach new
Colombian executives are seeking qualities in
their expansion markets that were once elusive
in Latin America but are becoming easier to
their biggest challenges when going abroad
and making sure that the headquarters
management team has the right blend of skills
to manage a growing multinational business
When they size themselves up against the
competition, Colombian executives tout the
quality of their products or services much more
and the cost-competitiveness of their workforce
property, which is seen as important by only
Direct export, franchises and licensing are
the main expansion methods
Our Colombian respondents’ growth plans
in Latin America over the next three years
will be primarily an extension of their current
program: direct export and local sales
and distribution. Interestingly, Colombian
executives are much more aggressive
than other Latin American executives in
considering potential partnerships with a local
mergers.
60
47
22
48
18
39
18
43
21
34
63
57
29
44
23
41
20
40
16
37
Which aspects of the business environment do you assess most carefully when targeting an
Macroeconomic stability
Political stability
Legal and regulatory environment
Quality of research and
development centers
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Exchange rate stability
Tax policy and environment
Size of potential customer base
Cost of capital
Local trade barriers or protectionism
Colombia
Latin America
54
32
37
37
25
21
64
48
43
39
25
20
Figure 4: Finding reliable business partners and gaining detailed market understanding
are biggest challenges
Overall, what do you see as the biggest challenges for a Latin American company
planning international expansion? Select up to three.
Identifying reliable
business partners
Getting detailed market
understanding
Getting the right blend of skills
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Getting the right managers at
the country level
Integrating products and brands
Cultural compatibility
Colombia
Latin America

13. 13Latin American companies turn up the volume on global growth / Colombia highlights
Outside Latin America, the game changes.
While the strategy is broadly similar for
the minority who are looking to move into
developed markets, the slightly larger
minority who want to enter rapid-growth
markets outside Latin America are looking at
a somewhat different model. They say they
To execute their strategy, many respondents
think they will need to make their corporate
Every Latin American economy has a somewhat different approach
to trade development. Colombia is no exception. We discussed the
country’s trade policy with Gabriel A. Duque Mildenberg, Colombia’s
Vice Minister of Commerce, who points to three important aspects:
Colombia doesn’t try to pick winners. “We don’t have a vision of
a particular choice of sectors, so we give support across sectors,
than others. Much of Colombia’s exports are now mining-related —
that is, hydrocarbons, oil and gold, which do not really require any
effort to market or export. So we take steps to promote and negotiate
the components of all that is not mining and energy, which is more
Colombia has a long history of successful public-private
partnerships. “The development of coffee and its international
growth is a result of close public-private collaboration, which goes
back decades. That is, more than 50 years of collaborative effort have
was a great deal of public-private work dedicated to overcoming the
barriers that the sector faced, and there were people working hard to
make this occur. More recently, we have launched a program for the
‘productive transformation’ of sectors, based on joint public -private
work, which is proving very successful.”
Colombia’s trade initiatives don’t end with free trade
agreements.
with Mexico, Chile, Peru and Colombia, which is deepening
the already comprehensive FTAs among the four of us. We are
constituting an area of deep integration that will facilitate the free
movement of goods, services, capital and people and help us further
integrate with the rest of the world. The process is going very well
and has generated a lot of interest worldwide, so much so that nine
countries have become observers of the process. They are Costa
Rica, Panama, Canada, Spain, Australia, New Zealand, Uruguay,
Guatemala and Japan.”
Trade policy, Colombian style
49
35
55
30
22
25
17
28
13
63
45
35
35
21
29
7
27
5
Figure 5: Making corporate culture more international is the most important change
needed to expand successfully
Which of the following changes will be most important for your business
to succeed with its international expansion plans? Select up to three.
Making our corporate culture
more international
Entering new market segments
Making our board more
representative of global markets
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Decentralizing decision-making
Altering the value proposition
for customers
Getting the right local partners
Strengthening corporate
governance
Developing new distribution
channels
Changing our organizational
structure
Colombia
Latin America

14. 14 Growing Beyond
those kinds of changes may not be easy, at
least within Colombia. Growth at home and
the free trade agreement with the US are
likely to heighten competition for home-grown
business talent, according to Nestor D’Angelo,
head of operations for CTPartners Latin
America, a Bogota-headquartered executive
El Tiempo,
Few respondents think about strengthening
development economists often see corporate
architecture as keys to sustainable growth.
Sales and marketing is the business function
respondents view as most in need of change
are less concerned about tax planning and
“We had to adapt our product, even though it was imported, so
Luz Adriana Osorio, General Manager, CasaLuker, Colombia
50
39
43
29
11
11
22
11
24
18
60
49
44
27
13
5
20
13
19
7
ensure the success of your company’s international expansion plans? Select up to three.
Sales and marketing
Strategic planning
Information technology
Source: Ernst & Young 2013 Latin America Outbound Expansion Survey
Public relations
Financial reporting
Financial management
Internal communications
Risk management/enterprise
Tax planning
Colombia
Latin America

15. 15Latin American companies turn up the volume on global growth / Colombia highlights
Looking ahead: bright prospects for growth
Blessed with rich natural resources and
arguably one of the most strategic locations
of any South American country — no other
country in the region faces both the Caribbean
enormous potential. Add to that a number of
sophisticated cities and the possibilities seem
even richer. With forethought, Colombian
companies should be able to build on that
consumer experience abroad as well.
to move beyond the traditional boundaries
of a classic commodity business. This can
be done through increasing operational
or developing educational campaigns that
be perceived by consumers as a differentiated
offering. And for many companies that already
have a large share of the domestic market,
there is no alternative but to look outside for
growth. “I’d say that at least 70% of our efforts
will be dedicated to international expansion,”
says Nalsani SA’s Bursztyn. “There is not much
that we can do locally, other than maintain
and grow a little bit more, because we really
have a very strong leadership position. We’ve
achieved a dominant level of coverage and
positioning in the country.”
Perhaps the greatest opportunity of all is one
that remains relatively latent in Colombia: the
capacity for reinvention. More than most Latin
American executives, Colombians are open to
inorganic growth. This suggests that the most
crucial differentiator for Colombian companies
as they grow beyond their home market will
be neither capital nor the availability of a
particular commodity, but creativity.
When CasaLuker, a Colombia-based food company, began to focus
on exporting chocolate to Europe, executives realized that they
needed to make some changes: the cacao they had was different from
the cacao Europe valued. Although they were focused at home on
growing mass consumption, chocolate was such a mature category
in the developed markets that CasaLuker’s managers concluded the
company would be better off focusing on the sale of cacao ingredients
in those markets.
or like,” explains Luz Adriana Osorio, General Manager of CasaLuker.
“We had to adapt our product, even though it was imported, so that
chocolate has less vanilla than in Latin America. So one has to put [in]
less vanilla and adjust the overall formulation so that it’s consistent
with the tastes that they developed as children.”
At the same time, CasaLuker marketers realized that European
consumers wanted other attributes in their chocolate that had nothing
to do with taste. Just as particular products in Europe have long
been associated with particular regions, such as champagne, which
takes its name from the Champagne region, or burgundy wines with
Burgundy, cacao could be sold by origin as well. What had worked for
Colombia’s coffee could work for its cacao.
“The business in Europe is based upon cacao ingredients with
traceability and origin,” says Osorio. “This is a well-differentiated
product in the global market. In Colombia, the concept is still not
fundamentally sound. “We expect the cacao brand for the world to be
Sweetening the deal

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