2% increase of the IPI to worries beer manufacturers

The unfavorable exchange rate makes it more expensive to purchase commodities such as sugar and malt. The demand is slowing and since Monday (4/01), IPI (tax over Industrialized Products) for beer carries a real increase of 2%. The combination of these macroeconomic factors and market leaves John Castro Neves, President of Ambev, with the "neutral optimism" to 2013.
"This is going to be a more difficult year than the average of the last two years," says Castro. The impact on beer prices will come, but not right away. Last year, the price of beer in the country rose 13.56%, according to the IBGE, which measures the official inflation index, the IPCA. This general index closed 2012 with high of 5.84%.
The Ambev command saying that the net price increase of their products in accordance with inflation. Ideally, on a ten-year horizon is that the beer price rise according to inflation, says the President of Ambev. "This time must be above this average," he says.
To the Chief Executive Officer of Cerv Brazil (Brazilian Association of the Beer Industry), Paul Petroni, the industry was prepared for this projected increase to happen once every six months for the next three years. "But it's an offensive factor in growth that is no longer so high". In the first quarter of this year the production of beer totaled 3.3 billion liters, according to the Sicobe (Federal Reserve System), with a fall of 0.6% over the same period last year.
Castro Neves works with the possibility of the Government reverse the decision to increase beer tax burden every six months. "We're always saying to the Government, explaining the industry's weight in the economy and that we can help in the growth of the country," he says. According to Cerv Brazil, the industry employs 1.7 million people and is equivalent to 1.7% of GDP.
"What makes it interesting is that 2013 we will have to make a strategic plan to address negative aspects this year and balance with the positives of next year with the World Cup, election and increased volumes", says the President of Ambev.
For this year, Castro Neves comes to adopt measures, with acceleration and deceleration as fast as the market moves. He gives an example: the stock can be adjusted down, but without compromising the future supply of the product. Is a fine tuning since the purchases of some inputs are made with 12 months in advance. "One of our strengths is the quick adaptation to market scenarios", concludes the Executive.