Fall in income affects beer market

The Brazilian Beer Industry Association (CervBrasil) said that the fall in disposable income for consumption-affected by the high levels of unemployment, indebtedness, interest rates, inflation and increasing tax burden-is slowing the growth of the market.
Paolo Petroni, Executive Director of CervBrasil, cited unemployment as the main pressure factor for the sector. According to surveys of the National Confederation of industry (CNI) and the Getulio Vargas Foundation (FGV), there are unemployed in the country 11,600,000 at the time, and the rate is increasing, reaching, in the third quarter, 11.3% of the economically active population.
Another pressure suit pointed to by the Executive is the increased tax burden as a result of new laws enacted and discussion for the formation of the fiscal balance funds in some States.
Due to this environment, Brewer directs investments for cost reduction actions, relocation of the operational capability and innovation. Investments in productive capacity growth depends on greater stability in consumption to be resumed.
The national production of beer retreated 2.3 percent in July over the same month of 2015. Year to date, the retraction was 2.2%.