Production of soft drinks still skates

So far, nor particularly hot summer, at the beginning of the year, and the World Cup were able to give big boost to soft drink market in 2014. While beer production grew 11.2% in the first half compared to the same period last year, the manufacture of soft drinks increased by only 1.2 percent in volume, according to preliminary data from the IRS. Shy performance comes after a year of falling-in 2013, the production of soft drinks fell 3.6% before 2012. For industry-leading companies, however, the medium-to long-term scenario is optimistic.
The refrigerant is present in almost all Brazilians, but the manufacturers see room to increase the frequency of consumption. So come by investing in packaging for different occasions and the launch of products considered healthier, with less sugar and even with fiber.
"A large part of the population still can develop economically, adding more people to the consumer market," says Vice President of communication and sustainability for Coca-Cola Brazil, Marco Simoes. The sales volume of the industry leader retreated 1 percent last year, after nine-year high. In the first quarter of this year, the volume grew 4%, compared to the previous year. "We're still far from the overall potential. We think we can grow the participation [Coca-Cola] and also the market as a whole ", says the Executive. The volume of soda manufactured by Ambev, including Guarana Antarctica and Pepsi, fell 2% in 2013 and increased 2.1% in the first quarter of this year.
With the increased income of the Brazilian, other categories of drinks have gained penetration. The sale of NECTARS (juices with water) grew 7.5% in volume in 2013. To Silvia Andrade, Manager of Brazil's non alcoholic Kirin, doesn't mean that the soda lose with it. "The refrigerant is the largest category of non-alcoholic beverages and does not yet exist a drop in Brazilian homes us penetration". According to consulting firm Euromonitor Research Manager in Brazil, Meika Nakamura, a part of the public migrates to the juice, because you realize that category as healthier.
The per capita consumption of soft drinks in Brazil is of 90 litres per year, well distant from the reality of the United States. Each American consumed on average 160 liters of carbonated beverage last year. But consumption in the world's largest soft drink market has been decreasing: in five years, was 185 liters per capita. "They reached the maximum volume per capita, but Brazil still has room to grow," says Meika.
The preoccupation with the large amount of sugar and calories present in soft drinks is often pointed to as the cause of shrinkage of the United States, a country that suffers from obesity epidemic. To try to reverse the losses in the country, the world leader prepares the launch in the u.s. market from Coca-Cola Life, mixing a quantity of sugar lower than the regular product with plant stevia sweetener.
The product, green label, was tested initially in Argentina and Chile and also this year will come to the United Kingdom, but cannot be released in Brazil. A decree of 2009 prohibits the Association of sugar and sweeteners for the manufacture of beverages in the country, except for solid preparations for refreshment. Coca-Cola will not be able to bring the product if the legislation is not changed.
When the Coke Zero was launched in 2007, the Brazil was the country where sales rose faster. According to Sen, the low-calorie segment, however, is no longer what drives the expansion of the company's soft drinks in the country. Of every ten sold cokes, a is Zero and the rest is regular.
The Brazil Kirin launched in Brazil, at the end of last year, the Fibz, sugar-free soft drinks and with added fiber. The news initially came to the South and, in April, it began to be sold in Sao Paulo. "The taste remains the main attribute of non-alcoholic drinks, but we see that the consumer is seeking other attributes," says Silvia. The idea is to attract consumers who enjoy soda and want to continue consuming the drink, but also seek nutrients. In the last three years, the Brazil Kirin also reduced the amount of sugar in their soft drinks.
The market is concentrated, with about 80% of sales in the hands of the two largest companies. Coca-Cola Brazil-owner of the brands Coca-Cola, Fanta, Kuat, Schweppes and Aquarius Fresh, among others-have around 60% stake. Then, all Ambev, manufacturer of Guarana Antarctica, Pepsi, Sukita, Education!, among others. Thirdly, it comes to Brazil, Kirin with Schin, Itubaína and Fibz.
The last projection of Euromonitor-made a year ago-was a high annual average consumer sales around 4% in the next five years. The Bills are being reviewed now based on current socioeconomic indicators. But polls have indicated that the market would grow as before.
Euromonitor's prediction for 2014 was a high of 6%-less than the 8% rate registered in 2010, when the World Cup was held in South Africa. In the year of the last World Cup, the Brazilian GDP grew by 7.5%. For this year, the forecast is at 1.1%.
Coca-Cola has yet to release second-quarter data, but according to Simões, the World Cup has been "highly positive". The company, which is the largest sponsor of the event, made special packaging and highlighted a team of 50 people to accompany the world and generate real-time communication pieces during the tournament, for the internet and TV. The Guarana Antarctica, sponsor of the Brazilian national team, decorated their cans with the shirt of the team and also with digital and television campaigns.
For the second half of the year, a further increase in tax burden. The readjustment in the reference table for the calculation of IPI and PIS/Cofins was postponed from June to September and will be done in stages. The sector is awaiting more details to define possible transfers. The tax increase occurred at the end of 2012 is rightly touted as one of the villains of the market last year, have led to rising prices on the shelves. "In this market, a minimum increase can reduce consumption significantly," says Simoes, the Coca-Cola company.
The sale of soft drinks to consumers moved $ 59 billion last year, according to Euromonitor. With the price adjustments, there was high of 6 percent in turnover over the previous year.