Brazil Kirin makes adjustments in the operation

The Brazil Kirin, Kirin Japanese group company and owner of brands such as Schin, Baden Baden, Devassa, Cintra and Eisenbahn, made some new adjustments in the operation to improve their performance. The company made a cut of approximately 250 people, or 2 percent of its total workforce (of 11 thousand people) and reformulated line of soda Pop, who now take Schin the brand Alive Schin.
In Brazil, Kirin reported that the layoffs were carried out due to the seasonality of the liquor industry, which has weaker performance in winter. "Due to the seasonality of the sector, there needs to be, in some periods of the year, changes in the headcount of the company," said the note.
The Kirin Brazil showed results below the market average in the first half. From January to June, recorded 18.7% fall in sales in Brazil, to 71.8 billion yen (us $ 1.78 billion), according to the Kirin Group. The operating loss of the Brazilian company was r $ 109,3 million, 12.8% loss greater than that recorded in the first half of 2014.
In the same period, Ambev registered 3.9% drop in sales volume in Brazil, maintaining its market share of 68.4%. Grupo Petrópolis, second largest brewery in the country, reported that he also maintained its market share of 13.2%. Heineken reported a double-digit growth in sales in Brazil, but did not inform your current participation. According to data of the Control system for the production of beverages (Sicobe) of the internal revenue service, the production of beer in the country fell 6.8% in the first half.
On behalf of the result in the first half, the Kirin reduced projection for performance in Brazil in 2015. The Group expects a fall of 17.7% in revenue in the year. The previous forecast was a retraction of 9.9%. The Group predicts zero operating profit in Brazil in the year. The previous forecast was for a profit of R $ 35,9 million.
The Kirin Brazil had already done a restructuring in 2014, which included cuts in factories in the Northeast and in the factory of Itu (SP) and the replacement of three Vice-Chairmen. In July of this year, the company opened a factory in Igarassu (Pernambuco), with an initial investment of $ 400 million.
Caio Moreira, an analyst at Banco Fator, pondered that Ambev and Heineken had better performance in the first half due to focus on sales of higher added value. "The core business of Kirin Beer premium is not Brazil," said the analyst. He added that Ambev has stepped up direct distribution, which ensures greater control on prices and expanded distribution to supermarkets, atacarejo and other self-service facilities.
"The Brazil Kirin has an operation more shy in self-catering, which also hinders a reaction, at a time when consumers extend the beer consumption at home," said Matthews.
As part of the strategy to recover market, Kirin Brazil announced the change of the brand of soda Pop for Viva Schin Schin. The products will have new packaging and a campaign more geared to the public with less than 30 years old. "The company saw the need to reformulate the brand to accompany the evolution of Brazilian consumers," said Bruno Piccirello, marketing manager of Brazil Kirin.
According to the Executive, around 40% of production of Brazil's non-Kirin alcoholic. The line of soft drinks accounts for just over 20% of the business of the company. The Kirin Brazil does not report the amount invested in the launch of the new brand, nor gives sales forecast. Piccirello said only that expects a similar performance with the market from January to June, accumulated fall of 5.7%.
Viva lines Schin include sodas in flavors guaraná, Orange, lemon, citrus and grape, with zero sugar and versions options ranging from 237 ml to 2 liters. The disclosure of the new brand will be made with advertisements for TV, radio and internet. As part of the campaign, the brand will sponsor the new program of the presenter Xuxa Meneghel on TV Record. The lines are in the production stage and arrive at retailers in September.