Monday, September 28, 2015

Sales of powdered juice help General Brands

General Brands focus on increased demand for powdered juices to increase earnings this year. The expectation of the manufacturer's record high of 20% in volume and revenue before 2014.
According to the President of the General Brands, Isael Pinto, the increase in orders for powdered juices retail in recent months has supported the expansion of the company's revenue. "We have observed that the final consumer is with a much smaller shopping basket this year and retailers want alternatives to maintain sales," he says.
The Executive explained that, with the income of Brazilians more pressed this year, the sale of nectar juices, whose price is greater, has retreated. "The [category] retraction of nectar has been compensated by the high powder versions," he recalls. To further stimulate the demand for these products, the manufacturer has expanded its portfolio with the launch of a new packing size for the Camp.
"Before, we had only the packaging for two liters and now we have to five litres," details. With a focus on combat products in the food sector, the manufacturer also offers powdered juices in a price range below the line of Camp Fructos branded. "Our strategy is to meet different consumers, but we aim, above all, lower-income families."
Negotiation
To ensure competitiveness in this market niche, in which the fight over price is more fierce, the General reset your table in just Brands 5.5% this year. "We seek constantly alternatives to hold the transfers while maintaining our product as a cost-effective alternative," he said.
In the year to September, Isael Pinto estimates that production costs are on average 15% larger.
The strategy not to lose profitability, reveals the Executive, has been to negotiate more aggressively with suppliers to reduce the percentage of readjustment of the raw material. "At the beginning of October we will assess the economic situation and decide whether it is necessary to make another adjustment."
General Brands filed a request for reorganization last year and, according to the businessman, has managed to recover the accounts. "It was a rough couple of months, strong expenditure restraint, but our situation is stabilized and, with this high demand for powdered juices, we are able to deliver a good financial results," he says.
The expectation of the manufacturer is to expand sales in the coming months, driven by the hot season in the South and Southeast of the country. "The market of juice for us is still very seasonal in this part of Brazil, so let's enjoy because in winter demand recedes," he reveals.
Although it is an alternative in the short term, the data consultancy Euromonitor indicate that the category of nectar should keep expanding in faster pace that powdered juices in coming years. From 2009 to 2014, sales of juices and powdered teas grew 54.4 percent, to $ 1.85 billion, while nectar advanced 111.3% to $ 1.78 billion. Until 2019 is estimated that the record high of 14.9% categories and 77.9%, respectively.
DCI
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