This year, Jerónimo Martins will invest in the agriculture sector. The chairman of the group's Board of Directors declined to give details, but admitted that "a large investment" in agriculture in Portugal will soon be announced.
«We will have interesting things to talk about in a month or two», said, this Thursday, Pedro Soares dos Santos, in Algarve, at the press conference after the inauguration of the Algoz Distribution Center (Silves), which represents an investment of 25 million euros and created 220 direct and indirect jobs.
When the new regime that regulates commercial practices comes into force, namely restricting promotions carried out by distribution brands in its stores, the CEO of Jerónimo Martins believes that this will "greatly limit the contractual capacity" between large-scale distribution and the Providers.
The new regime aims, according to the Government, to protect small suppliers, who are now allegedly crushed by the prices that will be imposed on them by large-scale distribution. But Soares dos Santos sees things completely the other way around: «it's all work done with thousands of medium and small producers that can be completely compromised», he guarantees.
“The big and the strong will overcome this”, since, “if the sector wants to protect itself, a first solution in sight is import”. In fact, in the manager's opinion, the new law "brutally opens the door" to the purchase of foreign products.
"A law that was supposed to limit the big ones, gives them strength and squeezes the little ones", he guaranteed.
In the case of Jerónimo Martins, Pedro Soares dos Santos assures that «75% of what we sell is produced in Portugal», in terms of food. Chicken and pork, for example, is almost 100% national.
Disguised taxes and increased costs
Making a list of the things he says he doesn't understand in Portugal, Soares dos Santos asks why should “a Portuguese pay 30% more for food than a German pays in Germany? Why is a Coca-Cola in Poland 40% cheaper than in Portugal? Why force the Portuguese to pay more for food?”. In his opinion, everything results from the rules and taxes existing in the country.
For example, in relation to the food safety tax created by the current minister of Agriculture Assunção Cristas, the chairman of the Board of Directors of Jerónimo Martins says that the group "will not review its position", which is not to pay. “We consider this to be another tax. The courts will revolve».
As for the country, which considers that "not so soon" will it get out of the situation it is in, Pedro Soares dos Santos says that "I don't feel that there is already a great appetite for excessive consumption." «The start of consumption will delay», because «the tax burden increased more this year than last year». There may be "a stabilization of confidence", but "neither the average purchase is rising, nor is the consumer spending more". What is happening, in the manager's opinion, is that "people change habits, readjust".
What about the “economic miracle” announced by Minister Pires de Lima? "Since I'm not going to elections, I haven't detected any economic miracle," he replies, slicing.
Investment in Poland and Colombia is to continue
Investments in Poland, where, through the Biedronka brand, the group has its largest network of stores (2393), aiming to reach 3000 in 2015, Soares dos Santos admitted that "there is clearly a brake on consumption", but nothing to scare the Portuguese group: «I hope to have a nice year in Poland».
Despite "some competition having agreed and tightened with us", in the last year Biedronka even gained "2,5% market share in Poland".
As for Colombia, where the group opened its first Ara supermarkets and the country's distribution center about a year ago, in March 2013, Pedro Soares dos Santos says he is "very happy".
However, he admits, "I still don't feel clear about what Colombia is, what the Colombian consumer is." Until now, the "formula has been test, test, test".
It is certain that the manager confesses himself increasingly "confident" in this bet in South America, recalling that "in nine months we have opened 40 stores and this year there will be another 100 stores".
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