Candy & Snack TODAY reporters traveled to Recife for the Sweet Brazil expo to explore the country’s burgeoning domestic market, the many new products released at the show and the possible impact on exports.

Candy & Snack TODAY visited with suppliers showcasing their newest products at the 12th annual Sweet Brazil expo, held in the northeast city of Recife. The four-day event attracted more than 30,000 wholesale and retail buyers and is estimated to account for 90 percent of the country’s annual domestic sales.

Brazilian candy and snack suppliers are major global exporters, but the tough worldwide market has brought more of the industry’s focus home. These domestic investments could eventually revive the country’s once healthy North American business as trading conditions improve and companies expand their offerings beyond the commodity sector.

Illustrating increasing domestic demand, caramel specialist Embaré debuted its individually flow-packed Tops line. The four-gram caramels in milk, chocolate and new strawberry yogurt flavors are smaller and flatter than Embaré’s six-gram export variety. They sell for five cents each and come in 800g bags. According to the company, the flowpacking is a first for caramels.

For export to Central and South America, Embaré introduced its Mini line of caramels in milk, condensed milk and strawberry yogurt. The 4.2g pieces pack in 420g bags.

Docile’s $1.7 million investment in gummies is expected to represent 20 percent of its sales within the first year. The company produces gummies in four shapes: hearts, bears, worms and clams. Flavors include strawberry, grape, raspberry, green apple and lemon.

Additionally, Zoah! brand filled chewing gum in grape, strawberry and Tutti Frutti comes as a result of the company installing a line to produce filled items. The gum sells for 10 cents.

Harald showcased its expansion into the domestic retail sector with a line of 23 items. Among those are ingredients for the consumer market, which include real and compound chocolate chips, discs, icing sugar, cocoa and chocolate powder. Real chocolate products sell for R$2 while the compound sells for R$1.30 to R$1.40.

Reinforcing its retail angle, the company built a full-size mock-up of a market place allowing buyers to see what its products look like on shelf. It won the award for best exhibit at Sweet Brazil.

Peccin’s new production line has doubled the company’s gum manufacturing capacity. The investment is being complemented with a $3 million expansion of its facilities in 2010, according to the company. At the show, Peccin unveiled a range of products including filled pops, milk caramels with chocolate filling and guarana-flavor, liquid-filled bubblegum shaped to resemble bottles.

Under its Maçã do Amor line, Peccin produces filled pops in flavors including green apple and watermelon. The company has acquired a licensing agreement to make Tweety Bird-shaped flat pops, a license also expected to be applied to bubble gum products.