AmBev diversifies flavors and packaging

After 1 2016, Ambev gets to 2017 with prospects of improvement in performance, with the somewhat more favorable macroeconomic scenario-which benefits the beverage sector as a whole. The company also reinforces the focus on segments that have grown, even in recession: the malt-based drinks ("near beer"), root beer, special beers and returnable bottles.
Luciano Tulio, Innovation Manager of Ambev, said that one of the best performing areas in recent years was that of malt-based drinks, developed to meet mainly the young (under 30 years of age). "The company has sought to deliver innovations relevant to the consumer, is the need for a different flavor, or a product adapted to a specific occasion of consumption," said Tulio. This product development work is done by a team of 170 people.
He notes that the young audience has a habit of taking alcoholic drink night away from home, search news and has a preference for distillates, such as vodka and Gin. So the company developed the category "near beer", with the Skol Beats. These drinks mix malt and citrus fruits or wild and can be taken with ice. Among the major competitors, only the Heineken has a few options of beer with mixtures, as Kaiser Radler (with lemon juice) and the Desperados (mixing beer, tequila and lime).
Consumers, Ambev presents the Skol Beats as a new category of alcoholic beverages. In practice, the line competes directly with the drinks "ice", which blend distillates (such as vodka and rum) with fruit juices. The category represents 2% of the total volume of beer sold by Ambev in Brazil.
Without citing numbers, the company reported that sales of the Skol Beats showed growth in the first nine months of 2016, while the total sales of drinks in the country fell 6.2% in volume over the same period.
Another category that according to Tulio, had strong growth in 2016 and should help boost the company this year is the Brahma 0.0%, developed during four years for the drink without alcohol reached a taste closer to traditional beer. "The category without alcohol is taking a new direction. Before there was a stigma that the flavor was not good, only served to those who couldn''t drink. Today there is a growing interest in non-alcoholic beer for the taste, be a healthier option, less caloric, "says Tullius.
Premium
In the premium category, the company invested in 2016 special lines Extra Extra Lager Brahma Red Lager and Extra Weiss, made with pure malt; and expanded lines of Bohemia, with the launch of the labels Bohemia 838 Pale Ale, Lager, Aura Bohemia Bohemia 14-Weiss and Magna Pils. And prepares new labels for this year. The premium beers represent 10% of the sales of Ambev.
Another bet that will gain strength in 2017 is the offering of beers in returnable bottles, which enable the Ambev reduce the retail price of 20% to 30% compared to traditional bottle. Ambev has already returnable bottles to Skol, Brahma, Brahma, Antarctica and 0.0% Stella Artois and intends to extend the offer in 2017.
All this effort was not enough to nullify the impact of retraction of consumption of drinks in the country last year. From January to September, Ambev registered in Brazil fall of 3.1% in net revenues, to R$ R$ 17.31 billion, and drop in earnings before interest, taxes, depreciation and amortization (Ebitda) from 13.2% to 7.72 billion R$.
In the third quarter, the company surprised the market to revise downwards the Outlook to 2016 and to announce that it will not disclose targets for 2017. For 2016, the company was forecast to fall in revenue instead of stability and increase in cost of goods sold "between a medium and a high digit digit".