Small liquor factories out of the fight by prices

Sao Paulo-The small beverage manufacturers indicate that will not enter the fray by price with the giants of the industry. The strategy not to lose space is investing in product quality and performance in regional markets, executives heard by the DCI.
"We closed a tough year and we think that 2017 continues hard, but the manufacturers are still doing everything possible to keep sales and face the great", said the President of the Association of Manufacturers of soft drinks of Brazil (Afrebras), Fernando Rodrigues of neighborhoods.
The catarinense Purity Soda felt the aggressive policy of Brazil''s prices to try to win Kirin space in the region in recent years, says the Director of manufacturer, Sell. However, according to the Executive, the company avoids play in price competition, many years ago, and prefers to invest in the quality of the products. But the strategy just approaching the price of Purity products with the Giants.
"Even fleeing the fight for price, we see the great putting a second product line priced under our, which always has some effect. That worries, "he said.
Pressure from competitors, however, did not make the company revise the goals and this year it is expected to have up to 5% high in volume sold, in line with the growth of previous years. "Only in 2016 we had a high of more than 10%, but on time, because tourism grew up in Santa Catarina and the great were not ready for this, so we move on them," Sergio Sell.
"The smallest have developed appropriate strategies that enable your growth. We can observe, for example, the geographic expansion of small businesses, including family members, within the same region or even for other Brazilian regions, offering products to new markets, "commented the President of the Brazilian Association of manufacturers of soft drinks and non-alcoholic drinks (Abir), Alexander Kruel Jobim.
The President of the Afebras warning that the purchase of Kirin Brazil by Heineken, announced yesterday, could have a different dynamic to the soft drink segment. "The Kirin is strong in distribution, which can impact the smaller, and she came with a very aggressive pricing practice" evaluated neighborhoods.
To face a possible pressure from major competitors, Sodas Cibal bet on quality of your product and the definition of the regions, the Director of the liquor manufacturer of Minas Gerais, Rafael Kapil.
"We''re not going to fight over price, because today who sells soda for less than $2 the PET is going bad. It is not sustainable, "said he.
The Executive explained that the Cibal operates within a radius of 200 kilometers from the factory, located in Passa Quatro (MG). "We were outside the major centres so as not to upset the big, but they still press the regional markets," he said.
According to him, the expectation from the Cibal is to expand in 5% sales in 2017 about 2016, after a high of 7% in the last year. But he does not rule out only repeat the volume registered in 2016. The drinks are marketed in Minas Gerais, São Paulo and Rio de Janeiro.
Already Bioleve you want to expand the business in line of mineral water because it is an essential item, says the Director of the company, Sylvio relative. "Last year was worse than 2015, because the consumer had to choose very how to spend your money," said he, adding that in periods of crisis increases competition because the market becomes more competitive.
In spite of the strategy aimed at the basic item, the Bioleve kept investment also in the lines of juices and energy drinks.
"This year we should be in line with 2016 [in the two categories], two years of stability", stressed.
According to Parente, Bioleve''s plans do not include cut in prices, as well as the other regional companies consulted by the DCI. "The large industries have this practice to reduce price to grow, but that''s not our policy, because the quality of our products." The Bioleve is among the five largest water companies in the country.
The beer segment must also change after negotiating the Kirin with Heineken. The Japanese occupied the third place among the largest breweries in the Brazilian market. Heineken was the fourth runner-up, points the Euromonitor International.
"Soon we will have 90% of the beer market in the country with only two companies and I see no way to fight it. The big fight with the craft Breweries still on two fronts: acquired brands and labels of malt product, sold as something wonderful for the consumer, "said the Director of" Schornstein ", Adilson Altrão.
Artisan brewery of Santa Catarina must produce 200,000 liters of drink per month in 2017, a high of 40% over the monthly average last year.
Without giving many details, told Altrão that the deal was probed by Ambev. The giant would have commissioned an evaluation of the company to a consulting firm.
Berggren also expects consumers to continue valuing handmade labels. "The large have hampered competition with aggressive price strategies, but the consumer today know differentiate a premium product," said the commercial and marketing manager of the brewery, Robson Vergilio. This year, he expects to double production to 240,000 litres per month.
Taxation
The makers of soft drinks and beer taxation still cite as an issue in the fight with the great. From 2015, the Industrialized Product tax (IPI) in cold drinks is calculated on the value of the operation. For the smallest, this calculation model weighs more on costs and gives even more strength to the strategy of the great in practice.
"This concept of taxation in which it is estimated the final price of sale to calculate tax comes to account for 50% of my costs in some States," said Altrão, "Schornstein".
In assessing the lawyer and partner at tax area of Demarest, Claudia Maluf, the worse for the little ones is the control required to follow properly the legislation. " The small business owner should always check the price that he practices with the rate applied. If he does wrong, can be booked by the Irs, "he noted.
Between State taxes, an increase in the tax on circulation of goods and services (ICMS) is cited as the main problem.
"Today, the State tax is higher than the federal, but we''re working with the States to try to reduce it," he quoted Kapil, Cibal.