Beer has 2nd tri better than expected

The warmer climate than expected in the months of April and may and the low comparison base 2015 favored the beer market in the second quarter of the year. According to data of the Control system for the production of beverages (Sicobe) of the internal revenue service, in the second quarter of the year, the production of beer in the country amounted to 2.99 billion liters. This represented an increase of 3.3% compared to the same interval last year.
The result represents a small improvement and does not roll back the year-to-date losses, but it was better than expected by the market for the period. In the first half, beer production fell 2.2 percent to 6.33 billion pounds.
The team at Santander brokerage house, for example, expected to retract the beer market in the second quarter, according to the scenario of economic crisis and fall of 2% on sales volume of Ambev, the largest competitor in the market. The company closed the first quarter of the year with a 10% drop in the volume of sales of beer, while the production of the sector as a whole shrank 6.8% in beer. In revenue, the company registered a fall of 4% in Brazil, to 6.5 billion R$.
For Ambev, the only beverage company listed on BMF Bovespa, the prospect is of improvement. Ronaldo Kasinsky, analyst at Santander, said the Group carried out a series of actions throughout the quarter to strengthen its activities in the market. The initiatives included returnable glass bottles, a new Skol beer and new formats of retail sale-how the mini returnable bottles, that make the price more accessible to the tight pocket of consumers. For the quarter, the Outlook is for a slight improvement compared to the first quarter of the year.
The improvement is also expected by the company itself, as announced by the President of the company, Bernard P, in the presented results Conference in May.
Throughout the quarter, Ambev bet on several fronts. In the premium beer category, the company launched special lines with the Brahma brand Extra. At the end of June, also reinforced the Bohemia, with the launch of three special beers, joining artisanal lines of Colorado and Wäls brands, acquired in recent months.
The company also began distributing in the second quarter the lines of Juices, acquired in the first quarter. The acquisition will help offset part of the negative performance in soft drinks. Ambev''s soft drinks sales fell 3.8 percent in the first quarter, while the market shrank 7.8 percent in the same interval.
In the first six months of the year, the production of soft drinks in the sector builds up 4.2%, falling to 6.81 billion liters.
From August, Ambev, Coca-Cola and Pepsico have pledged to stop selling soft drinks in elementary schools and deliver only coconut water and 100% juice. The purchase of the Juices Well maintains the Ambev in competition for the school market.