Ambev will invest $ 3 billion in sales and marketing this year

The beer market, which shrank last year, should return to the "normalized growth" in two to three years. That means repeat average annual expansion between 2.5% and 3%-level registered by the sector in the last ten years. The evaluation is João Castro Neves, President of Ambev, which works to reverse the negative frame of 2013. For this production, will invest about $ 3 billion in 2014-value doubles to $ 6 billion when they considered the areas of marketing and sales. It is the largest investment ever made by the company in the country, equivalent to 17% of revenue last year.
In 2013, the volume of beer sold by Ambev shrank nearly 3%-the fall was of 2.7%, according to the statement issued on 26 February. "Last year was a disaster. Fall 3% is disastrous, "said Castro Neves. But he's much more optimistic about the 2014.
He recalls that in the past ten years, the beer market in the country grew in volume between 2.5% and 3%. "There were only two years, 2009 and 2010, when growth was in the range of 8% and 10%," he said. These levels are considered points outside of the curve. "So, to grow 3% is cool", said Castro Neves.
The shrinking beer market-and also the coolant, which fell 3.7 percent last year, according to data from Irs-reflects, in part, the weaker economy of the country. "But we can't depend on the macro issue. We need to understand the macro ", says the President of Ambev.
He notes that the year 2014 "is totally different" from that of 2013. The exchange rate, for example, is more favourable to importing inputs. "The year started well, has World Cup. The message to [employees Ambev] is going ahead, "he says.
For Brewer, says Castro Neves, "even with the IPCA [official inflation measured by the IBGE] higher, the composition of interest, dollar etc, is more positive this year than in 2013."
In fact, according to data from the internal revenue service, in the first quarter of the year beer production increased by 10.5%, and that of soft drinks, 2.3%, as compared to the same period in 2013. The hottest summer helped increase sales, which in the same season of last year had retreated.
This year, even with the table adjusted to IPI for beer, in force since April 1, the Executive estimates that "the situation macro to our industry is better". Even with the higher tax burden, Ambev to announce price increase-in an opposite movement expected by some analysts.
The company announced on April 4 that don't reset the price of their beers until the end of the World Cup, extending the period increases by another three months the company had already announced the "summer without Increase", which ended in March. The initiative is considered by the President of Ambev a way of "bringing the consumer back to beer."
This April, Ambev's factories are producing the beers that will be sold at the World Cup-which runs from June 12 to July 13. Castro Neves repeats the prediction: "it will be a summer in winter". He doesn't tell you how much of the installed capacity is being used now, but notes that "we're using."
Ambev has been preparing for the World Cup four years ago, since the World Cup in South Africa. Investments in marketing, sales, and events continue to grow this year in 2013.
The value to be applied in factories, trucks and distribution centers, totaling about $ 3 billion this year, as previously announced by the manufacturer of drinks. "If we consider investments in sales and marketing, this value doubles," says the President of Ambev.
This means that the total investment made by the company this year-also considering ads on TV, tables and chairs for bars and events, for example-can be in the range of $ 6 billion or 17% of the recorded revenue last year of $ 34.8 billion. Castro Neves draws attention to the fact that the company since 2009 tripled the amount invested in Brazil.
Speaking specifically of campaigns on TV, Castro Neves cites a promotion made last year at the program Faustão, on Rede Globo. "Had never done. It was nice and we are repeating this year, "he said.
On investment in production, Castro Neves reports should inaugurate two more factories this year-in Uberlândia (State of Minas Gerais), next may, and in Ponta Grossa (PR), towards the end of the year. In total, Ambev has 35 factories in Brazil, considering drinks, maltarias and packaging. He and his team of executives are studying the demand and the necessary industrial park for the next three years. "It's too early to say if we're going to need more factories," he said.