How could consolidation in the Latin American chemical distribution market take shape, and if Univar Solutions were to participate in M&A, what qualities do you look for in target companies?

For Univar, there is high potential for growth as no one player has a large share of the total market in Latin America, and the share of total distribution within the chemical industry is still small as compared to the US and Europe. Consolidation has always been a lever for us to grow the company. In fact, in December 2021 Univar acquired leading distributor Sweetmix to expand our food ingredients and CASE (Coatings, Adhesives, Sealants and Elastomers) portfolio in Brazil. We continue to look at bolt on acquisitions where we can find both commercial and cost synergies, and in markets where we can grow above average economic growth rates and that are less cyclical. In general, this tends to be, but is not limited to, the specialties markets such as Personal Care, Food, CASE and Pharma.

On a global level, Univar Solutions had the third biggest sales of all distributors in 2021, according to ICIS. Which markets contributed most to this performance?

Univar Solutions grew double digits in 2021, both top line and bottom line. In Latin America it was no different as we increased EBITDA by approximately 45%, and revenue grew by almost 27%, representing the largest percentage growth for any region within Univar Solutions globally. In terms of volume, the company has seen growth in all of the markets. Specialties represents approximately 50% of our portfolio in the region, and we have seen great growth within this market segment.

I would like to emphasize that our focus on customer experience and detailed management of growth plans with our suppliers has really driven growth. The competitive advantages that Univar Solutions bring to the market have contributed significantly, based on commercial excellence, streamlined processes, dedicated and talented teams, broad portfolio of products, and great partnerships with suppliers. Last but not least, we have been making investments into our digital strategy, which is beginning to show results.

Can you explain how Univar Solutions accelerates growth for customers with its Destination: Innovation online hub?

We have global solution centers, such as Houston and Chicago in the US, Paris and Essen in Europe, in addition to what we call Super Solution Centers, such as the one in Mexico City and one in Sao Paulo. These centers can be used for application assessments, analytical testing and development of formulations and recipes. Univar Solutions leverages knowledge, processes and R&D for cross-region collaboration. For example, Brazil is known as a strong market for Beauty and Personal Care, specifically in the hair treatment industry, and from here we share technologies and trends so that other centers can bring these solutions to customers around the world.

What are some of Univar’s latest sustainability-related initiatives in Latin America?

From an environmental standpoint, we are working to reduce our greenhouse gas emissions and have embarked on an initiative to look at incorporating alternative fuel vehicles into our truck fleet. For example, in Brazil we have ethanol as an alternative to gasoline and we are also investing in an electric fleet. Univar Solutions is investing in solar solutions and has already installed solar panels at our sites in Los Angeles, Brazil, and Spain. In terms of waste, we are implementing processes that ensure we recover and reuse material from the whole supply chain, both internally and with customers. Our ChemCare business delivers tailored end-to-end sustainable waste management solutions. From a social standpoint, safety is a paramount value of ours and we are working hard to keep site incidents at an all time low level and improve focus on behavior-based safety.

Univar Solutions also has inclusion, equity and diversity initiatives with global employee networks in Brazil, Mexico, US, Canada and Europe, where our people can dialogue and increase attention to underrepresented populations to ensure that all perspectives are included, heard and have opportunities. We are very proud that on June 1st, 2022, we were certified in Mexico for being a great place to work for women.