Cepêra predicts end of year weaker

The Cepêra, food manufacturer, already works with weaker sales Outlook for higher value-added products at the end of the year.
According to the President of the Cepêra, Decius Son, the expectation is that the sale of these items has fall between 2% and 3%, while the volume sold commodities must advance 8%.
"Products such as asparagus and mushrooms had a small fall in the volume [this year]. Basic products as tomato sauce and guava paste, however, showed growth. Related products already at the end of the year as cherries and figs in syrup we hope stability. If it falls, will be little, "he says.
In the year, the company expects high of 7% on sales volume, boosted by sales of basic categories.
The Executive points out that the brand has always positioned itself as a cheaper alternative in relation to the market leaders, with prices on average 10% lower, and so avoids the most adjustments, not to lose competitiveness.
"This positioning favors us more in a crisis, when the consumer's income is smaller and it looks for alternatives to save money," he says.
He recalls, however, that the Cepêra has suffered the impact of the devaluation of the real in the cost of imported raw material. To ensure profitability, the company has increased the percentage of transfer for the price this year. Traditionally readjusted only in January, with percentages around 5%, the table will have two increases this year.
The first transfer took place in February with average elevation of 9% in prices. With the second rate increase, scheduled for this month, the table will be on average 13 percent more expensive this year.
"In the second half, high power rates and the exchange rate should continue pressing the costs, but we don't have to readjust forecast more, so as not to waste space for competition. In addition, we intensified actions to reduce costs in the production line ", explains the Executive.
Packing
According to him, despite the price positioning to be an important part of the strategy, the company follows investing in higher value-added products this year.
"We have created a new line of condiments, with the same products, but different packaging to bring a portfolio of higher added value to retail", quotes. The goal of Cepêra is to make space in the segment of premium products, where competitors like Heinz are already consolidated.
"We have seen that the competition is higher this year and so we increased investments in marketing to make the brand better known."
Decius Son notes that, besides the retraction in consumption, the increase in the regional market is the main factor that has elevated the competition in the industry.
"The regional manufacturers can better prices by proximity to the points of sale and the big are expanding actions outside of major centres to boost sales this year," details.