Tal da castanha leads the vegetable drinks market in Brazil

The plant-based beverage market is experiencing a new moment in Brazil, driven by consumers looking for healthier, more functional products with natural ingredients. In this scenario, the A Tal da Castanha brand, from Positive Company, has consolidated itself as the national leader in the category, investing in cashew nut-based products and a supply chain made up mainly of family farmers from the Northeast.

The company emerged from a family business linked to the processing of cashew nuts, an activity carried out by the Carvalho family for over 30 years.

"In 2013, we started researching the plant-based beverage market and saw very strong growth in the United States, Europe and Asia. We understood that we could develop something similar using cashew nuts, which are a Brazilian ingredient," said Felipe Carvalho, founder and co-CEO of Positive Company, in an interview with CNN Agro.

The first product had just two ingredients: cashew nuts and water. According to the executive, the objective was to create a drink with a "clean label" profile, without additives and with greater nutritional density.

Growth above the market

Currently, the company has around 35 items in the A Tal da Castanha brand portfolio, including vegetable drinks, culinary lines and ready-to-drink protein products.

With growth between 20% and 25% per year, the company's performance is above the sector average, estimated at around 10% to 12%.

In addition to traditional plant-based drinks, the strategy is now to expand consumption occasions through culinary products and items with a higher protein content.

"The idea is to expand consumption possibilities and continue developing categories linked to healthiness", said Carvalho.

The company also claims to observe a consumer who is more attentive to the composition of food and the origin of raw materials.

"Consumers started to read labels more, understand the ingredients and look for brands aligned with health and sustainability", he said.

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Flexitarians drive the market

Although the vegetable drinks segment initially emerged associated with vegan consumers or people with restrictions on animal milk, Felipe says that the main audience today is made up of so-called "flexitarians", consumers who alternate products of animal and vegetable origin in their diet.

"Around 90% of our consumers are flexitarians. They are people who seek a more balanced diet and include vegetable drinks in their daily lives", said Carvalho.

According to him, the consolidation of the category occurred because plant-based drinks were able to deliver flavor, healthiness and practicality to the consumer.

The movement follows a global trend of growth in protein drinks and plant-based products.

Data from consultancy Mordor Intelligence indicate that the global protein drinks market is expected to register annual growth of 8% by the end of the decade.

The functional beverage segment, made up of products with proteins, vitamins and natural ingredients, is expected to exceed US$280 billion in the coming years.

Cashew nuts are the main raw material

The company's main raw material continues to be cashew nuts. Currently, around 95% of supply comes from family farming in the Northeast.

Positive Company claims to work with more than 3 thousand producers distributed between Maranhão, Ceará, Piauí, Rio Grande do Norte and Bahia.

"There is continuous work on relationship and development among these producers. This helps maintain production in the field and generates income for families", stated the executive.

The company also invested in organic certification for some of its suppliers to expand the supply of traceable and sustainable raw materials.

In total, the company moves approximately 3 thousand tons of cashew nuts per year.

Keeping an eye on the international market

Tal Castanha is already sold throughout Brazil and recently began its international expansion. Currently, the products are exported to Australia and Canada, "but we have plans to enter markets such as Mexico and Switzerland soon", says Felipe.

According to him, exports still represent around 5% of sales, but the growth potential is high due to the size of the global vegetable drinks market.

The company uses the Plant co brand in international operations and focuses on differences linked to the natural composition of products and international sustainability and quality certifications.

Source: CNN