Among the developing and emerging (D&E) markets dubbed BRICIT—Brazil, Russia, India, China, Indonesia, Turkey—that K-C is targeting as part of its strategic growth initiatives, Brazil continues to be a strong performer.

K-C’s businesses in this country generate more than half of overall company BRICIT sales, which in turn are 20-plus percent of total D&E sales. Brazil has been a solid contributor to the strong annual double-digit sales growth in the BRICIT countries that the company has generated over the last several years.

Growth in Brazil this year has been broad-based, with organic sales up at a double-digit rate through September in all three segments in which K-C does business in the country: personal care, consumer tissue and Kimberly-Clark Professional (KCP).

The bulk of K-C’s sales in Brazil are in personal care and consumer tissue products, propelled by the company’s strong market positions in these categories. K-C products are No. 1 in infant care, consumer tissue and baby wipes and No. 2 in feminine care.

“Our business in Brazil continues to play a key role in K-C’s overall strong performance in Latin America,” said Juan Ernesto de Bedout, group president, Latin American Operations. “We are building on our longtime market strength in the country by delivering product innovation, enhancing our brand-building efforts and further improving customer relationships.”

Innovation and Brand Strength

K-C is leveraging its well-known brands to introduce a stream of innovations across its product portfolio and is supporting these efforts with significant marketing support.

Baby and child care innovations in 2008 added several new offerings to the successful HUGGIES® Monica line, including an improved, better-fitting diaper that provides enhanced leakage protection. This upgrade was introduced in the third quarter and was followed in the fourth quarter by a new sun care line for infants and children.

In feminine care, K-C expanded the market position of its well-regarded INTIMUS® brand with pad, tampon and liner improvements in 2008, and introduced extensions to its successful Intimus Teen and Intimus Gel product line-ups.

Among the consumer tissue innovations brought to market this year was a third quarter improvement to SCOTT® bathroom tissue. The enhanced product is thicker and softer, providing consumers “new cushiony softness.”

Improving Mix

Another growth driver in Brazil has been the continued successful implementation of a strategy across both the personal care and consumer tissue businesses to move consumers to value-added, higher-margin offerings. In consumer tissue, for example, the business has made notable progress over the last several years trading bathroom tissue consumers up from single-ply to two-ply offerings.

In personal care, the diaper business has focused on being first-to-market with premium tier products such as HUGGIES Monica Soft Touch diapers, which feature a breathable cover, and Monica Newborn diapers. To spur trial, both products were made available in single-count packs. Innovations such as these have helped generate solid mix improvements and strong overall volume growth for the last several years.

Expanding Business for KCP

While currently still a fairly small percentage of K-C’s total Brazil business, sales continue to build for Kimberly-Clark Professional products for institutional and workplace settings—including bath and facial tissue, wipers and protective apparel. KCP products lead the market in the washroom tissue segment.

K-C has continued to build competitive advantage in this category by introducing a number of innovations in 2008. Among these are electronic no-touch dispensers for hand towels and bath tissue, a new KLEENGUARD* stretch coverall product and extensions to the WYPALL* wiper product line.

Building Strong Trade Relationships

K-C has leveraged its highly effective Latin American customer management program to particular advantage in Brazil. This approach comprises a balanced focus on developing sound customer relationships with both the burgeoning modern trade in Brazil’s metropolitan areas and the still-dominant traditional trade in smaller markets.

The program centers on enhancing K-C’s capabilities in reaching and meeting the specific needs of the variety of smaller customers in the market. As a result, K-C sales and distribution in the traditional trade continue to expand significantly.

“Our team has continued to execute well against our Global Business Plan strategies and objectives in Brazil,” said Bob Black, group president, Developing & Emerging Markets. “Even in the current volatile economic and currency environment, we believe that our focus on brands, innovation and customers will serve us well and will generate solid results in this market and in D&E overall.”