Ambev says beer price will keep rising

Beverage maker Ambev yesterday announced a profit of R $ 10,642 billion last year, 22% from 2011. According to the company, the growth was the result of price adjustments, the greater weight of direct distribution and the good performance of sales of premium brands.
"Considering the inflation of the 12 months of last year and the increase in taxes, we had to make an average increase of 10%, prices for the end consumer," said Vice President financial and investor relations officer, Nelson Jamel.
This year, he said, the price should keep rising, since they are provided for the beer tax increases for April and October. Last year, the country's beer industries negotiated with the federal Government stepped in to increase the tax burden on the drink. Part of the increase was made in the last quarter of 2012. The rest will happen this year, in two times. In return, the companies would have to increase investment in the sector.
To minimize the impact of high prices, the company is, according to Jamel, diversifying packaging. "We launched, for example, the 300 ml returnable bottle, which throughout the year must be sold in supermarkets across the country," he said.
Investment. Ambev also announced that it plans to invest $ 3 billion in its operations in Brazil, for the construction of new factories and distribution centers, industrial units, new product development, logistics and production optimization. "This is the fourth consecutive year we announce investment records," said Jamel.
As has occurred in previous years, Ambev again conditioned the investment of r $ 3 billion by not increasing taxes on beer.
"Our goal with this contribution is to create conditions to meet the demands and be prepared to make the best World Cup ever," said Jamel. "But this investment forecast is subject to confirmation of a horizon of growth that depends on, among other things, the tax levied on the industry," he said.
Among the works of Ambev already announced are two new factories in Minas Gerais and Parana, in addition to the adaptation of a factory for the production of Budweiser beer, to be announced in 2013.