Increases demand for new packaging sizes

The demand for packaging in economical formats has increased, to the extent that inflation advances and the Brazilians are looking for alternatives to reduce expenses. In this scenario, the manufacturers of consumer goods widened the offer of packages in different sizes.
"This shift in demand for larger packages was expected. In 2014, this trend has intensified, with the final consumer reducing the ida to points of sale, "said the consultant, Olegario Ahmad, referring to the macroeconomic framework. Currently, the accumulated inflation over the past 12 months is 9.56%, which decreased the purchasing power of the Brazilian.
He cites a survey done consultancy Nielsen, who identified three phases in which the demand takes place in periods of less heated economy. First, the final consumer demand cut spending, then it starts to migrate and, finally, going on to seek bigger packages and formats considered more economical.
"Right now, if the industry does not offer the product that the consumer seeks bigger packing, runs the risk of losing participation, because he will get a similar competitor," he says.
Euromonitor consulting, also identified that the current moment might be an opportunity for companies in the industry. "A way to capitalize is to offer discounts through larger packages with multiple units or family-size packages, a practice that is not well developed in the country," the consultancy report on the Brazilian consumer market.
This is the strategy of the food maker, oven that has released three packages in larger formats for retailers this year. Before, the packages with greater volume were directed only to the demand for food service (food service).
"We had a pack in larger format that migrated from food service to retail a few years ago, but now stepped up the movement of extension of the offer to meet a growing demand," the company's industrial Director, Vicente Camiloti.
The demand for food in the Oven of Mines between January and July of this year was about 25 percent above the first seven months of 2014.
Already sales of products in smaller packages had advanced on lower pace, with average rate of 20%, on the same basis of comparison, according to the company.
"My production cost for larger packaging is a bit smaller, then I can offer a more attractive price for retail and he passes it to the end consumer," he says. Camiloti estimates that the product on the packaging greater arrives with price between 5% and 6% less at the point of sale front the same amount, in smaller packaging.
In the drinks, Kirin Brazil recently announced investments in two liters of the brand Itubaína. According to the company, the package is one of the most sold brand portfolio.
Ambev, owner of the Guaraná Antarctica, in turn, decided to expand the offer of returnable packaging "guaranteeing a price more accessible to consumers cost-effectively," according to financial statements released by the company last month. The returnable packaging has lower price in relation to PET bottles and cans.
The Unilever Brazil also invested in 1.5 litre in line of juices, Ades. "The larger packs are for individuals and families who consume Ades more frequently, generating an economic benefit per litre consumed", details the Ades brand marketing manager, Luciana Guernieri.
According to Luciana, in recent months, sales of the 1.5 litre containers has grown, but still represent the smallest slice of sales within the portfolio of the brand.
In the case of dairy manufacturer Piracanjuba, the strategy has been to observe the different demands by region across the country, says the company's marketing manager, Lisiane Guimarães. "In some regions, in which the average income is less, the demand for smaller packages may be more significant, because consumers can't afford to pay for the larger package, even though cheaper", says she.
In the segment, the Unilever Brazil come betting on increased consumption of concentrated products, explains company President, Fernando Fernandez. "The concentrated product is more economical, and does not necessarily in a major. In addition, it has the advantage of reducing logistics costs, which impacts the final price of the products ", explains.