The Northeast leads sales expansion of mineral water

The adoption of healthy habits is the main explanation for the industry's annual sales growth of mineral water. The volume consumed by Brazilians jumped from 4.7 billion gallons in 2002 to more than 10 billion gallons last year. The expansion should keep in the next few years and, in less than a decade, the per capita consumption is expected to rise to 45 litres to 132 liters, even from France, estimates the Associação Brasileira da Indústria Mineral waters (Abinam).
"Nothing safe more consumption of natural products, including mineral water," says Carlos Alberto Lancia, President of Abinam. The recovery of purchasing power among consumers of classes C and D, in addition to the increase in the flow of domestic tourism and the ease of purchasing the product in various outlets, he said, also contribute to the increase in sales.
The figures for 2012 should be released by Abinam in April. Lancia estimates that last year the consumption must have been 15% above 9 billion liters consumed in 2011.
Most of the returnable bottles is sales of 20 liters, equivalent to 54% of the total sold by packaging. The consumption of disposable bottles corresponds to 43% of the market and the returnable bottles of 10 liters, to 3%.
Research on the mineral water market Nielsen also indicates growth in consumption. Between January and June 2012, were consumed 1.7 billion liters in the geographical areas surveyed by the company, 8% more than in the first half of 2011. Turnover in these areas, which include all Brazilian regions, grew 13.6 percent in the period, reaching r $ 1.4 billion. The increase in consumption in the Northeastern States, as Ceará, Rio Grande do Norte, Paraíba and Pernambuco was what else pulled sales.
In this region, the volume consumed grew 18.6%, reaching 875, 2 million gallons. The second largest increase was in the States of Mato Grosso do Sul, Goias and Brasilia, 11.7%, reaching 158.6 million liters. "Research shows a trend of increased sales in the Northeast, in small retail stores and 20 litre containers," says market analyst from Nielsen Bernardo Canella.
The industry's turnover also remains high. Between 2007 and 2011, jumped from $ 870 million to $ 2.1 billion, according to Abinam. The competition is fierce. There are 422 589 marks on the market, companies that employ 40 thousand people. Even so, prices rise far above inflation. In the year 2011, the price of the mineral water was readjusted at 8.66%, according to the consumer price index (CPI-Fipe), higher than the high of 5.10% of the overall index.
This trend remains in 2013. In the 12 months ended in February, the mineral water was 11.32% more expensive, increase higher than the inflation of São Paulo in the period, which was 5.91 percent, according to the IPC-Fipe. The evolution, according to the industry, reflects the increase in the cost of production and the weight of the tax burden.
São Paulo is the largest State producer, accounting for 19.5% of the national production. The expectation is that the Lancia São Paulo State Government adopt percentage close to that of other States such as Santa Catarina (7%). "For this, the mineral water instead of drink must be framed as food. With the recovery of GST less the price may drop up to 10%. "
To industry, prices are changing also because of increasing costs. "The value of labor, transportation and packaging, items that weigh in the cost, has suffered increases in excess of the official inflation indexes," says Helium Corrêa, President of fine gold, Water company with participation of 2.5% in a market that is sprayed.
Half of industry sales is disputed by some 70 companies, while other five hundred fight for the other half. This leads to the permanent quest for greater efficiency in the management, which, according to Correa, also explains the good financial results of the company in 2012, which he captured with the water and other products $ 75 million. Annual sales of fine gold, mineral water that had already grown 13 percent a year earlier, outscored 16% of in 2011.