Weitnauer has opened a new distribution center in Uruguay, strategically positioned to create synergies and expand the existing presence in the region.
About Weitnauer
Weitnauer Group is a global distribution company, with offices, logistic centers, and distribution bases in over 100 countries. We also act as a service provider, offering brand equity programs to vendors, including field supervision and retail expertise.
We work with a wide range of distribution categories. Currently, we have developed highly competitive assortments in perfumes and cosmetics, spirits, food, and tobacco.
“Our ultimate goal is to leverage Weitnauer’s extensive expertise across all travel retail categories.”
Jonathan Romano, VP for Americas.
Why Uruguay
Establishing a distribution subsidiary in Uruguay offers significant benefits for Weitnauer Americas. Our existing presence in Paraguay and Brazil creates synergies that enhance our understanding of consumer behavior and market approach. By managing the same brands across all three markets, we strengthen our omnichannel expertise, providing added value to our brand partners in these interconnected regions.
Operationally, having a bonded logistics platform with easy access to most Latin American markets is a distinct advantage. We are already witnessing improvements in demand planning and benefiting from overall supply chain efficiencies.
Challenges Entering the Uruguay market
When it comes to distribution, it is crucial to bring our global capabilities while maintaining a deep understanding of the domestic realities of each market. This is why we began our approach with an extensive market survey to better grasp the markets and their consumers. A key success factor is partnering with local experts, who help unlock the full potential of the project.
However, as with entering any new market, unexpected challenges arose. Lead times for initial orders were much longer than anticipated, which threatened to delay the kickoff of our operations and disrupt our entire schedule. To overcome this, we activated regional supplies where possible, in agreement with the brands, to ensure a timely go-to-market.
Through either other Weitnauer offices or third parties, our strong regional network allowed us to effectively resolve the issue.
Our First Results in Uruguay
The results for our new distribution company in Uruguay are indeed very promising. Despite the operational challenges previously mentioned, we are currently supplying nearly 50 points of sale in Uruguay and Brazil. Notably, our portfolio from La Martiniquaise has been particularly successful, with brands like Label 5 and Glen Turner performing well.
New shipments are already on the way. In addition, we will be launching the renowned Italian premium beer “Peroni” in this market for the first time in November. Fragrances remain our leading category, and our lifestyle brand portfolios from Coscentra and ABC were so well received that we have had to revise our forecasts upwards.
Equally important, we are already seeing the first synergies between Brazil, Paraguay, and Uruguay, where managing a joint portfolio has proven to be the right strategy.
How Weitnauer Handles Distribution in New Markets Like Uruguay
We strongly believe in consumer centricity. Our approach to distribution services in Uruguay and across all of our branches is to deliver seamless marketing plans tailored to consumer and market specifics. Weitnauer Group recommends that brands allow for a certain level of local adaptation, where global brand equity harmonizes with a subtle sense of place and local uniqueness.
Weitnauer is a solid solution for all Distribution and Brand equity needs in Uruguay, but we are Entrepreneurs and are always happy to explore new markets and opportunities. Contact us to see how we can your brand.
