High temperature was insufficient to boost production of ice cream

High temperatures, even in winter, have not been sufficient to boost the production of ice cream this year. Summer sales must not reverse the impact of the economic downturn on the sector, which can introduce recoil face to 2014.
The trend of increase in the volume of production of ice creams in the past ten years, much stimulated by the improving Brazilians ' average income, should be stopped this year, says the President of the Brazilian Association of industries and ice cream (Abis), Eduardo Weisberg.
"The worsening of the economy is affecting the final consumer, which is reflected in a reduction in the sale of ice cream," says he. The entity does not disclose partial data of production of its members, but the manager told DCI that the numbers so far indicate stability or retraction this year.
"The Outlook is a lot more to fall than stability. So much so that the members are not willing to talk about, because the recoil is a novel situation for the industry, "he says.
He notes that the lower demand should further stimulate competition in the summer, during which the ice-cream industry traditionally records increased sales. "The rise in production costs is another factor that has pushed more companies", casts him.
Unilever, one of the largest manufacturers of ice cream in the Country, stands out in its financial report for the first half who delivered double-digit growth in sales in Latin America from a pricing strategy to compensate for the rise in supplies. "Our market leadership [ice cream] shows that our innovations and distribution are crucial," says marketing director of mark Kibon, Unilever, Katia Ambrosio.
For her, the ice-cream market has room to grow in Brazil and Kibon has sought to analyze market movements and diversifying the product mix. "Besides the innovations, the brand will bring TV campaign and activations for the postings [this year]," says she. The Executive didn't comment on expectations for sales in Brazil in the coming months.
The paulista Frutiquello have you noticed the movement of Unilever. The commercial Director of manufacturer, Rares, says it has seen a greater number of ads with the brands of ice cream of the competitor. "We realized we are investing more in advertising of popsicles in Billboard, leaving to fight in retail".
Malik expects the dispute by impulse sales at retail to expand, since the final consumer is less inclined to spend this year.
"We bet a lot in high temperatures to stimulate sales, but we know that the set is not favorable. We hope that the heat, not the economy, set sales this summer, "he says. If the high in demand, stimulated by heat, if confirmed, the Executive designs extend the volume of production in up to 15% in 2015, driven mainly by the sale of ice cream in packaging for individual consumption.
"That doesn't mean selling ice cream, cheap investment in higher value-added products continues to be our strategy", he points out.
The President of the Association confirms that, although the economic is unfavorable, the premium segment is one of the main stakes.
For Nestlé, higher value-added products follow on the front lines of the strategy in the ice cream market. This year, the company announced the arrival of Nestle line Gelato to the market and the return of the Molico brand ice creams.
A merger of the business of ice cream would also be in the plans of the company. According to news published yesterday by the Reuters news agency, Nestlé would be negotiating the creation of a joint venture with R&R Ice Cream. The announcement of the merger can be done yet this week, according to the report.
Palettes
The manufacturer of Mexican Monterrey palettes hopes high of 40% in the production in the coming months, helped by the expansion of the sales outlets. "We believe that [the demand] will not be such a big impact, and as we're expanding not feel much pressure," reveals the General Director of Monterrey, Pablo Ramirez. Today the freezers at retail are the main channel of sale of the company. "And the main competitors are selling products on impulse for dessert," he explains.