Paraguayan Alcohol Inc. (CAPASA), the state-owned liquor company of Paraguay, is officially exporting Paraguayan sugarcane distillate to the international market after more than 30 years of silence. In an interview with local broadcaster GEN, CAPASA President José Ocampos announced that the overseas distribution of their traditional brand 'Aristócrata' will commence in May.
President Ocampos expressed his elation, stating, "This export marks the first time since the Stroessner regime. CAPASA was hit hard and undervalued due to failed privatization attempts that followed democratization, almost leading to its disappearance. However, today, thanks to our team united by patriotism, we are once again setting out to conquer the global market."
The first step in this re-entry will be taken in the state of Paraná, Brazil, with plans to expand the market to São Paulo thereafter. Simultaneously, CAPASA has also obtained legal export permits for Argentina and will showcase its products through major retail chains such as Coto and Jumbo.
The authorization process for entering both markets took approximately six to eight months, involving chemical analysis and administrative procedures by national and local government agencies. President Ocampos emphasized the overcoming of past difficulties, saying, "Today, we leave behind the days when liquor was smuggled out hidden in bus or car trunks. Now, it will proudly stand on shelves, displaying the Paraguayan flag."
The initial export volume for this first phase will be limited to establish market presence and consumer recognition. President Ocampos likened this cautious approach to "opening a pizza shop and letting friends taste the pizza for the first time."
President Ocampos underscored that this achievement exemplifies the potential of state-owned enterprises. He asserted, "We have always believed that a public company operating with patriotism and a sense of national brand can be as competitive as a private company. We are not just pursuing profits; we are raising the Paraguayan flag. This is more than just an export; it is a national cause."
He further expressed strong anticipation, saying, "I am confident that our Argentine and Brazilian brothers will appreciate our liquor, and this project will be a success."
CAPASA: Past and Present
Paraguayan Alcohol Inc. (CAPASA) is a state-owned company with a long history, playing a significant role in Paraguay's sugarcane industry. However, it faced management difficulties during the government's privatization policies following democratization, gradually losing its foothold in the international market. Particularly after the 1990s, intensified international competition and internal issues led to a virtual halt in exports.
This re-entry into the international market holds significance for CAPASA beyond mere economic gains. It represents a recovery of pride as a key national industry and an important opportunity to once again showcase the competitiveness of Paraguay's agriculture and manufacturing sectors to the international community. Furthermore, the traditional brand 'Aristócrata' is expected to play a role in cultural diplomacy, promoting Paraguayan culture and history to the world.
Future Prospects and Expected Effects
CAPASA's re-entry into the international market is projected to have a positive impact on the Paraguayan economy. Increased exports can secure foreign currency earnings, promote the development of related industries, and create new jobs. In particular, establishing a foothold in the large markets of Brazil and Argentina provides a significant opportunity to explore expansion into other South American countries and broader international markets in the future.
Moreover, this successful re-entry is likely to serve as a positive stimulus for other Paraguayan state-owned enterprises. By demonstrating that state-owned companies can be internationally competitive through efficient management and patriotism, it can inject new vitality into the operation of previously stagnant public enterprises.
The Paraguayan government and CAPASA plan to continue focusing on quality control and proactive marketing strategies to grow 'Aristócrata' into an international brand. The world awaits to see if the aroma of Paraguayan liquor, set to resonate again after 30 years, will capture the palates of global consumers.
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