What: Arcos Dorados Holdings Inc. has signed an exclusive contract with soccer star Neymar Jr. to support its 2018 FIFA World Cup Russia marketing and brand campaigns beginning in January 2018.
Why it matters: Neymar Jr.’s exclusive contract with Arcos Dorados’ Brazilian operation further strengthens McDonald’s brand market leadership in the country.
Arcos Dorados Holdings Inc., Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, announces that it has signed an exclusive contract with Neymar Jr. to support its 2018 FIFA World Cup Russia marketing and brand campaigns beginning in January 2018.
McDonald’s is an official sponsor of the 2018 FIFA World Cup Russia and Arcos Dorados has signed Brazil’s biggest soccer superstar to serve as an ambassador in its media and marketing campaigns related to next year’s sporting event. A self-described fan of McDonald’s food, Neymar Jr. will feature in several exclusive activations that will offer the Company’s millions of guests the unique experiences that only the McDonald’s brand is able to deliver in Brazil.
“Neymar Jr. and the McDonald’s brand share values related to leadership, success, feel-good moments, family and creativity. So, it’s natural that we join forces to celebrate Brazil’s participation in yet another FIFA World Cup. We are very excited to have Neymar Jr. on our team in 2018 as we continue working to deliver the best guest experience in each of our restaurants,” said Dan Gertsacov, Chief Marketing and Digital Officer for Arcos Dorados.
The signing of a global soccer superstar is yet another victory for the Company’s Brazilian operation, which has consistently delivered better operating and financial results in recent years despite a very challenging consumer environment.
Arcos Dorados has also announced a capital expenditure plan of around one billion Brazilian reais from 2017 to 2019 to modernize its existing restaurants and open new restaurants throughout the country.
During the first nine months of 2017, systemwide sales grew 6.2% in the Brazil division and 10.4% on a consolidated basis, excluding Venezuela. Its Brazilian market share is estimated to be between three to four times larger than its closest competitor based on systemwide sales. The Company’s Brazil division’s Adjusted EBITDA margin expanded 180 basis points during the first nine months of 2017 compared with the prior corresponding period. Arcos Dorados has also announced a capital expenditure plan of around one billion Brazilian reais from 2017 to 2019 to modernize its existing restaurants and open new restaurants throughout the country.
“We have an ambitious plan to deploy the Experience of the Future (EOTF) platform in the majority of our restaurants in Brazil by the end of 2019. We are very pleased with the initial results of this roll-out, which are consistent with the mid-single digit sales lift that McDonald’s has seen in markets where EOTF has been fully implemented. We delivered strong results across our main markets during the first nine months of 2017 and are confident that we will continue capitalizing on our competitive advantages to capture the full potential of McDonald’s brand in the years to come,” said Sergio Alonso, Chief Executive Officer of Arcos Dorados.
Brazil’s indigenous communities fear mining threat over war in Ukraine
Maurício Ye’kwana worries about the future. He comes from the community of Auaris, in northern Brazil, close to the border with Venezuela.
The area, part of the Yanomami Indigenous Territory, is rich in gold, diamonds and minerals – and illegal miners want a piece of it. In all, there are an estimated 20,000 illegal miners on the land.
“It’s got worse in the past few years,” Maurício says, explaining that during the pandemic, the number of planes, helicopters and boats linked to illegal mining increased.
He’s only 35, but it’s the younger generation that concerns him – boys increasingly being lured into illegal work.
“The young people are the best boat drivers,” he says. They can earn as much as 10,000 Brazilian reais ($2,140; £1,645) for a single trip.
Maurício has come to Brasilia to take part in the Free Land Camp, an annual event that brings together indigenous communities looking to defend their land rights.
On Brasilia’s main esplanade, a grand avenue that leads to Congress and the presidential palace, communities from across the country have erected hundreds of tents.
Milling around the camp are indigenous Brazilians, many of them wearing feathered headdresses, intricate beaded jewellery and painted with geometric tattoos identifying their tribe.
This year, the event has taken on an even bigger meaning.
President Jair Bolsonaro has made it his mission to push economic development in the Amazon. In his latest attempt to make inroads into indigenous territories, he has cited the war in Ukraine. Brazil relies heavily on imported fertilisers for its agribusiness industry – more than 90% of its fertilisers come from abroad, and Russia is its most important partner.
“A good opportunity arose for us,” Mr Bolsonaro said of Russia’s invasion of Ukraine. He has argued that by mining in indigenous territories, Brazil can build more of its own potassium reserves.
It’s an argument questioned by some experts.
“Only 11% of the reserves are inside indigenous lands and other states like São Paulo and Minas have reserves,” says politician Joenia Wapichana, the first indigenous woman voted into Congress in 2018. “It’s a false narrative that tries to confuse the minds of the Brazilians, making them believe it’s important, that people won’t have food on their table.”
Also, it’s not a short-term fix.
“From a technological and environmental perspective, the licences needed and the infrastructure – it all takes time. Being able to offer these products to the Brazilian market would probably take seven to 10 years,” says Suzi Huff, Prof of Geology at the University of Brasilia. “We’re talking about an extremely sensitive area in which care needs to be taken. It’s false to say that it will solve Brazil’s problems.”
The bill has been in the works since 2020. But last month, the lower house voted to consider it under emergency provisions, removing the need for committee debates.
“It’s very clearly blackmail,” says Prof Huff. “Bolsonaro saw an opportunity to continue with this project of allowing mineral exploration including in indigenous lands and used the scarcity of fertilisers in Brazil to move forward with this project.”
It was expected to be voted on in the lower house this week, but that hasn’t happened – and few believe, in this election year, that it will. Not even the big players in the industry agree with it, with the Brazilian Institute of Mining last month saying it was a bill “not suitable for its intended purposes”, and calling for broader debate.
While a delay in voting is seen as a relief by indigenous leaders, it’s still a challenge on the ground.
“A fiery political discourse encourages invasions in indigenous lands,” says Joenia Wapichana. “The fact that Bolsonaro says he supports mining, that he will regulate mining in indigenous lands already exposes the indigenous people and makes them more vulnerable.”
The discourse is, of course, deeply political, especially with elections around the corner. On Tuesday, former president Lula da Silva – and the man leading in the polls to win October’s vote – made a visit to the camp.
“Today the headlines are about a government that doesn’t have scruples when it comes to offending and attacking the indigenous communities who are already on this land,” he said.
The response was huge cheers of “out with Bolsonaro” – but there are still six months until the elections. And this is Brazil – much can change in politics here, and the future of Brazil’s indigenous tribes is more uncertain than ever.
Homes engulfed as deadly landslide hits Colombia
A landslide triggered by heavy rains has killed at least 14 people in central Colombia, officials say.
Another 35 people were now in hospital after several homes were engulfed in the Dosquebradas municipality, Risaralda province, on Tuesday.
The officials issued a photo showing a gash in the lush foliage covering a mountain overlooking the area.
Other residents living close to a swollen river nearby have been moved to safety.
Rescue teams have been searching in the mud for more survivors, Colombia’s disaster management officials said.
“A very loud noise scared us. We went out and saw a piece of the mountain on top of the houses,” taxi driver Dubernei Hernandez told the AFP news agency.
“I went to that place and it was a disaster, with people trapped.”
Mr Hernandez said he helped dig up two bodies and a survivor. At least five homes were buried by the mud, he added.
There are fears that the death toll will rise further.
Landslides are common in Colombia and houses built on steep hillsides are at particular risk during the country’s rainy season.
In 2019, at least 28 people were killed after a landslide hit the south-western Cauca province.
Two years earlier, more than 250 people were killed when a landslide hit the town of Mocoa, in the southern Putumayo province.
Mexico violence: Third journalist killed this year
A Mexican journalist has been shot dead in the northern border city of Tijuana, officials say, the third journalist to be killed in the country this year.
Lourdes Maldonado López, who had decades of experience, was attacked in her car as she arrived home on Sunday.
She had previously said she feared for her life, and was enrolled in a scheme to protect journalists, activists said.
The country is one of the world’s most dangerous for journalists, and dozens have been killed in recent years.
Many of those targeted covered corruption or powerful drug cartels. Campaigners say the killings are rarely fully investigated, with impunity virtually the norm.
The motive for Maldonado’s killing was not clear and no-one has been arrested.
During a news conference in 2019, Maldonado asked President Andrés Manuel López Obrador for his “support, help and labour justice” because, she said, “I fear for my life”.
She was referring to a labour dispute with Jaime Bonilla, who was elected governor of Baja California state later that year as a candidate from the president’s Morena party. Mr Bonilla, who left office late last year, owns the PSN media outlet, which had employed Maldonado.
Maldonado had sued the company for unfair dismissal and, last week, said she had won the lawsuit after a nine-year legal battle. Mr Bonilla and PSN have not commented.
Rights group Article 19 said she had previously been attacked because of her work and was registered in the Mexican government’s programme to protect journalists.
The campaign group Committee to Protect Journalists (CPJ) said it was “shocked” by the murder.
The killing came six days after photojournalist Margarito Martínez was shot dead outside his home in Tijuana. He covered crime in the city, with his work appearing in national and foreign media.
A week earlier, José Luis Gamboa Arenas was found dead with stab wounds in the eastern city of Veracruz. An editor at the Inforegio and La Notícia news websites, he often wrote articles about organised crime and violence.
Exact numbers of victims are hard to come by as investigations often get nowhere, and different studies apply different criteria in counting the dead.
According to Article 19, 24 journalists were killed between December 2018, when President López Obrador took office, and the end of 2021.
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