Wednesday, April 08, 2020

Contaminated Easter: chocolate sales should drop by up to 20% due to Covid-19

Faced with the pandemic of the new coronavirus (Sars-Cov-2), sales of chocolates for Easter tend to fall. According to the projection of the São Paulo Association of Supermarkets (APAS), sales in the state of São Paulo are expected to fall by 8.5%. Before the pandemic affected the national scenario, the projection was for an increase of 2.2% compared to the same period in 2019. In the state capital, the projection of a drop in sales of chocolates and Easter eggs is 10.5%. In some localities in the interior of the state, the expectation is even worse: in the region of Campinas, for example, the forecast is a drop of 19.5%. "So far, entrepreneurs report little pace of sales," APAS reports. And the situation is not restricted to the state of São Paulo, considered the epicenter of the new coronavirus in Brazil. In Rio de Janeiro, the World supermarket chain said it bought 20% fewer Easter eggs in 2020 compared to last year. According to APAS, social isolation is not the only reason that makes chocolate sales fall this Easter , but the economic context has also weighed heavily on this account. "Families have turned their spending to basic products, hygiene and cleanliness. Supermarkets, given the situation, have reduced their islands and chocolate vines focusing their efforts and supply on most sought-after items in the coronavirus crisis," the association said. With an eye on the economic issue, world supermarkets bet on the sale of chocolate tablets and chocolate candies. Despite the cut in the order of Easter eggs, the chain bought 15% more of the other chocolates. Pedro Paulo Leite, commercial manager responsible for the chocolate sector of the World Cup, believes that social isolation should encourage the consumption of sweets. "The sale of Easter eggs falls, much because of the price, since the customer makes a comparison of weight. In relation to sales, especially tablets and chocolates, they are positively surprising us. Because the consumer stays at home, he ends up consuming more. In fact, who doesn't like to eat a chocolate in the afternoon?" says the manager. On the industry side, production continues. Although the Brazilian Association of the Chocolate, Peanut and Candy Industry (Abicab) has not projected expectations for the production of chocolates this Easter, the agency states that the associated factories "continue in operation and working to get their products to the homes of Brazilians". With production happening and many stores closed, the solution found by the industry has been to sell more to supermarkets. "With the closure of specialty stores and chocolate retailers, brands have been offering their products to supermarkets. Some suppliers offer discounts of up to 15% to be able to sell more of their stocks, and supermarkets have passed this discount on to consumers," aPAS reports. Many stores specializing in chocolate have ceased to operate across the country due to recommendations to close the trade. In Belo Horizonte, however, the situation gave us what to talk about. Earlier in the week, the Chamber of Shopkeepers of Belo Horizonte (CDL/BH) authorized the operation of chocolate shops located in the street trade. According to the entity, the delivery of food is considered essential. "According to CDL, stores selling chocolates, sweets, Easter eggs can open, yes. They are food stores, so they can be open and can put their employees to help sales", said Marcelo de Souza e Silva, president of CDL/BH. On the morning of Tuesday (7), however, the mayor of Belo Horizonte, Alexandre Kalil, published a decree prohibiting the sale of goods inside the city's stores. "I have already signed the decree. The stores of Belo Horizonte, including chocolates, will only be able to answer from the door out, without customers on the inside", said the mayor on his Twitter account. To circumvent the impossibility of selling in physical stores and the drop in purchases of Easter eggs in supermarkets, some brands have bet on other possibilities. "Industries are working together with points of sale to ensure the organization and availability of products, and are also strengthening their internet and delivery service services as alternatives to consumers for access to products," abicab said. This is the case of the Cocoa Show and Lacta, for example. The Cocoa Show, which said it can't predict an estimate of sales and is "living one day after another," bet on e-commerce, delivery and discounts. The company closed all stores due to the Covid-19 pandemic and, on March 23, paralysed the industry and began to devote itself only to Easter. Cacau Show has created a website to sell the products, offering progressive discounts on Easter eggs, which can reach 50%, and special installment conditions. In addition, the company has partnered with iFood, which already delivers the brand's products in all Brazilian capitals. Lacta also bet on delivery apps, partnering with Rappi and Uber Eats. In addition, the brand has also created its own e-commerce with the help of technology startup Lett. The site finds the store closest to the consumer and directs the delivery of Lacta's Easter eggs in a short period of time.
IG - 07/04/2020 News Item translated automatically
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