Penalty, a leading Brazilian producer of shoes and balls for futsal and other team sports, has created its first subsidiary outside South America with Penalty Iberia, which will take over the distribution in Spain and Portugal. Previously, Sports World, a Portuguese company, was the distributor in the region, and it will still handle the brand in Portugal. Penalty Iberia's office is in Barcelona, but sources indicate that it may move to Madrid.

Alex Almeda will be the general director of the new Spanish subsidiary. He has worked for companies including Puma, Adidas, Fila and Diadora in Spain.

Penalty manufactures and sells athletic shoes, sporting goods apparel, sports equipment and accessories. The Brazilian company recorded total sales of around €200 million in 2010, with domestic sales representing 90 percent of the total. Its export efforts have been concentrated on other South American countries. In other European countries, such as the Netherlands and France, Penalty products are sold through distributors.

The objective of the new subsidiary is not only to distribute the company's products directly in the Spanish market, but also to promote the company's expansion to other European markets, such as France, Italy and Germany. The distribution models currently set up in the Netherlands, Portugal and France could change in the next couple of years. Additionally, new markets, like those of Eastern Europe, can be more easily reached from the Spanish subsidiary. The company's products will be stocked in Barcelona from now on, which makes it easier for retailers to reorder products

Meanwhile, Penalty is aiming to rejuvenate the brand by introducing a new logo and website for the Brazilian market. In Spain, the new logo was introduced on June 11, at the finals of the Spanish indoor football league. Penalty is focusing its marketing efforts on its origins in futsal. The company aims to strengthen the brand's image and concentrate on the fact that it is a brand from Brazil, where football is a great passion and where the next World Cup will be held.