High inflation affects sales of Ambev and BRF in quarter

The skyrocketing food prices, which have grown over the past 12 months on a pace twice higher than inflation, affected sales of food and beverages and retail industry in the early months of this year.
Two industry giants, the BRF, which produces processed foods, and Ambev, manufacturer of brews, felt it hard to sell their products in the domestic market in 1° quarter this year and blamed inflation so. "We are in good condition at the moment, but concerned because the internal market is with great difficulty to absorb volumes," said Chief Executive Officer BRF, José Antonio do Prado Fay, to present the results of the company.
Despite the difficulty, in the 1° quarter of this year revenues from domestic sales totaled r $ 4,069 billion, with high of 4% as compared to the same period in 2012. Ambev recorded 7.1% drop in sales of beer at 1° quarter, compared to the previous year. According to the Director-General, Joao Castro Neves, food inflation and the slowing growth of consumer disposable income were identified as the main factors for the bad time of drinking. The decline picked up by industry already has resulted in numbers for retail.
The Nielsen Institute survey commissioned by the Brazilian Association of Supermarkets shows that the sales volume of a basket with-| posts by 130 product categories fell 1.6% in 1st Qtr 1 this year as compared to the same period in 2012 and increased 0.5% in value, already discounted inflation. This means that the consumer took the least amount of products for home and spent more money.
The biggest setbacks were recorded sales in toiletries and beauty (3.5%), grocery (3.1%), salt (3%) and groceries, alcoholic beverages beer sales fell 3.2% in Brazilian supermarkets in 1° quarter compared to the previous year. The frozen meat decreased 7.5% in the period. "This is a reflection of the high indebtedness of scenario families and the economic slowdown in the short term" 7, said Nielsen's Service Manager, Fabio Gomes da Silva. To the Chairman of the Board of Prove, Claudius Felisoni of Angelo, the retraction not surprised.
"As inflation re income and strip acts as a regressive tax, that is, punishes the poorest, it is natural for a fall in the consumption of food and drink," he said. In 12 months up to March, the IPCA, the official measure of inflation, rose 6.59%.
During the same period, inflation of food and beverages reached 13.48%. Trend. Already in the evaluation of professor Nelson Barrízzelli, of the University of São Paulo, it is too early to say that the decline in the consumption of basic items is a trend.
For him, the indicators are discrepant. As an example he cites the vehicle sales, which are heated. Is that usually the cut begins by durable goods consumption and ends in basic items. Marcia Jashvant Chiara Shah, Suzana Inhesta, with Reuters