Tuesday, September 08, 2015

Nestle sees room to grow in Brazil in the medium term

Nestle's sales have grown at annual pace of a digit in Brazil in recent quarters, the company considers positive result given the weakness of the economy, according to the Group's Executive Vice President for the Americas, Laurent Freixe.
"We have seen one-digit increase in sales, which is good within the context," says Freixe. "It's hard to make predictions. But I think there will be a period of adjustment "in the economy, he said.
He had avoided giving precise figures on the performance of the operation in the country. In the first half, according to the company's balance sheet, sales in the Americas grew 6.6 percent, a better performance than the overall result which showed high of 4.5% supported by price adjustments.
"The economy will remain under pressure, but, in the medium and long term, there is potential [growth]," he added. The Brazil is the fourth largest market of Nestlé, after United States, China and France.
Second Freixe, the Brazilian market is going through the same phenomenon seen in Europe during the crisis of 2009, when there was greater demand for premium products and also the cheapest. The crisis, according to the Executive, affects more intermediate products, since consumers appreciate the relationship between cost and benefit.
"It is interesting to see that some of our most successful brands are premium brands. Is counterintuitive but, in the crisis, people are looking for value, "he said.
According to Freixe, Nestlé markets in Latin America most affected by the economic downturn are commodity-dependent economies, such as Brazil and Venezuela. According to him, on regional comparison, the Colombian market has had better performance.
On investments in Brazil, Freixe declared without quote values that "nothing's changed" despite the entry of the country into a technical recession in the second quarter, once the company mira long-term.
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