Soft drink consumption should only present recovery in 2020

The prospect of economic improvement can bring recovery to the sodas. However, the product must face the advance of other categories of drinks, especially in the face of increased consumer concern with health. " The forecast of more robust growth of GDP in 2020 contributes for the consumer to go back to buy the products that cut into crisis. This recovery was already scheduled for 2018, but the truck drivers ' strike and the unstable political scenario ended up messing up, "explains Euromonitor drinks consultant, Angelica Salado. According to data from consultancy, the consumption of soft drinks recorded fall of 2.6 percent last year compared to 2017 and the country was overtaken by China, falling to fourth place in the overall ranking. "This drop is tied to the economy, discouraging out-of-home consumption and causing the population cut spending," reports. Another factor that prevented the recovery of consumption was below the expected commercial performance in the World Cup. "As the 2014 event had been in Brazil, the expectation was already lower. Yet the temperature have been lower and the schedule of the games just during office hours. Turned out to be less inviting for drinks. " She states that the concern with healthier living habits has not had an impact as big as the crisis in the category. "The economic situation was more relevant. There is a portion of the population that has not yet had access to soft drinks and there is room for that market grows. " Between 2013 and 2018, the participation of the drink in the Brazilian market fell from 66% to 53%. The bulk of this piece was occupied by the bottled water segment. "In the food service sector, we see a migration to the sparkling water and lemon. Is still small compared to soft drinks, but sales have grown ". Research shows that in 2018, unlike Brazil, the global soft drinks industry grew back, moving 216.5 billion liters, an increase of 0.3%. "Despite China has exceeded Brazil in absolute volume, per capita consumption still is greater here," says Angelica. Last year, the Brazilians consumed the equivalent of 14 cans of soft drinks (350 ml) per month, 12 more than the average Chinese. For Angelica, despite the losses, the market has not lost the importance on the global stage. "The industry needs to respond with new strategies and talk differently with the consumer." She points out that companies have sought greater diversification of packaging sizes, to act in different points of sales and pricing formats. "The manufacturers have also created new brands and products in other categories, without touching the soda, which is still a very important for the Brazilian indulgence". Market last week, Ambev and Coca-Cola Femsa presented their annual results of 2018. In the segment of non-alcoholic beverages in Brazil, Ambev had volume reduction (8.7%) and in net revenues (1.0%). "Despite the challenges, we continue to invest in the expansion of the premium, with the brands Lipton, tonic and Gatorade, which contribute to a more profitable mix. Also we will continue promoting our flagship brand, Guarana Antarctica, "said the company in a statement. Already Coca-Cola Femsa reported volume growth of 2.9% in the country about the outcome of 2017. "In South America, the recovery environment in Brazil, along with a robust portfolio, allowed us to volume growth," said the CEO of the company, John Santa Maria Otazua, by means of communication.