Heineken has fall in volume sold in the country

As occurred with the leader Ambev, the volume of beer sold by Dutch Heineken multinational in Brazil has shrunk in the first half. The fall in the country was "a middle digit"-around 5%-compared to a year earlier, the company reported.
The brewery, which also markets the brands Kaiser, Bavaria and Sun, said that the Heineken label has grown "strongly" in volume in the first half of the year in Brazil, but that sales of its beers "mainstream" (most popular) were lower.
According to Heineken, performance in Brazil was harmed by inflationary pressures, economic slowdown and periods of social unrest.
Nevertheless, the President of the company, Jean-François van Boxmeer, said Heineken intends to continue its expansion plans in emerging markets, during a teleconference with investors and analysts yesterday. "There are things that are a little more flexible, such as returnable packaging, and you can wait a little longer to see what is happening. But structural investments, we will carry them out, "he said, without citing figures.
In Brazil, Heineken is terminating the activities of Cuiabá and transferring production to the Manaus units and Araraquara (SP). According to the company, the decision was made on the basis of market feasibility studies to follow with the upcoming growth plans.
The Brazil is the third largest producer of beer in the world-with revenues of $ 63 billion in 2012. But manufacturers installed in the country have had difficulties to expand the volume produced since the third quarter of 2012.
The production sectors, which advanced on average 6% per year between 2002 and 2012, may terminate this year without growth or even mild decrease in the country.
According to data from the production control system of Pastis (Sicobe), the volume of beer produced in Brazil fell 1.8 percent from January to June. In July, volumes rose 2.3 percent over the same month of last year.
Owner of brands such as Skol, Brahma and Antartica, Ambev felt 8.2% retracement in the volume of beer sold in the country in the first quarter. In the second, with momentum from the Confederations Cup, the recoil was lower, only 0.4%.
Overall, the net profit recorded Heineken € 639 million in the first half of 2013, indentation of 16.6% compared to the previous year. The company's revenue grew by 6.6% to € 9.3 billion.
The Dutch Brewer said expect the economic uncertainties and the weak consumer confidence to continue in its principal markets. According to Heineken, companies in the industry have suffered from bad weather and low demand in several markets in the northern hemisphere.
"Although volume trends have improved in July, with the hot summer weather in Europe, economic conditions of our main markets continue to limit consumer spending," said Boxmeer to investors.
To increase profit margins, Heineken raised its cost-cutting target of € 525 million to € 625 million by the end of 2014.