BISCUIT MARKET ADVANCES 5% by VOLUME

The biscuit industry grew higher than overall household consumption in the first quarter of this year. Alexandre Colombo, President of the National Association of industries of Biscuits (ANIB) says that the sector had expanded around 5.5% in volume and 10% in value from January to March, compared with the same period last year, and the expectation is to keep the pace throughout the year.
According to data of gross domestic product (GDP) released by the IBGE, household consumption grew 2.1% in the quarter compared to the previous year. Compared with the last three months of 2012, was stagnant, with a variation of just 0.1%.
According to Colombo, January and February were months "well-heated, better than in previous years", but in March the sale of biscuits slowed. "I think people got a bit scared with it inflation, which was in the media," he said. In April and may, sales returned to growth level of 5% on 2012.
Since last year, the biscuit sector revenue grows well above volumes sold. The manufacturers have passed the final price increases in raw materials costs. Climatic diversity have had significant impact on the food industry in the world: the prolonged drought in the Midwest of the United States has made trigger prices of grains, especially soybeans, wheat and corn, accentuating a high movement started by poor harvests in Brazil and Argentina.
"Set prices, commodities were more expensive. Everyone had to pass on increases, "says Columbus. According to him, the industry can absorb high up to 15% in the costs of raw materials, but last year the prices of some raw materials were rising almost 50%.
The manufacturers also took advantage of the price to the consumer transfers to recover operating margins. According to Colombo, 2011 was a more difficult year, with sales practically stable, of 1% in volume and in value.
But the increase in the wage bill allowed the consumer absorb the transfers. "The food, especially the biscuit, have passed an interesting moment due to the increased income of the class c. the Northeast is responsible for much of this growth, the Brazilians are eating more and has migrated to products with higher quality and greater added value," says Columbus.
He adds that the volumes are growing pulled by the expansion of shops "atacarejo"-attacked that also sells to the consumer and that has been the main focus of large networks as Carrefour (Atacadão) and Sugar Loaf (with Assai).
The cookie industry is also working with banks since January this year, when the manufacturers have obtained exemption on the payroll. Colombo says the industry plans to boost investment and hire more labor, but the ANIB has no survey on the measures taken by the companies from the tax reduction.
In 2012, the biscuit industry grew up around 3.5% in value and 8% in revenue, while Brazil's GDP advanced 0.9%.