Wednesday, May 31, 2017

Drink ready advances in alcoholic beverages, but with lower margin

São Paulo-alcoholic beverages mixed and ready for consumption will remain high in the coming years. However, competition will increasingly evaluate industry sources.
"The scenario is still challenging for most categories [drinks]. All fell except the cider and the mixed drinks, which showed positive growth, "says the senior analyst Euromonitor International Research, Angelica Salado.
Last year, the Smirnoff Ice brand of Diageo that always topped the category of mixed drinks, lost the lead to the Skol Beats, Ambev. Thirdly, the 51 Ice, Müller.
"With the economy in critical situation, all manufacturers have sought alternatives to sell and [that] entered new competitors as Ambev. With greater competition, the dispute over price, "says the Director of marketing for Müller, Rodrigo Carvalho.
Already the commercial and marketing director of CRS Brands, Lourenço Filho, notes that, as a category intended for the younger crowd, the drinks ready are often consumed by people who are not part of the economically active population, as college students, limiting the purchasing power in the category.
"More elaborate products, to the public of greater purchasing power, it is possible to get better margins," he explains.
The manufacturers are still betting on the launch of new products and variations of existing labels to increase sales. According to Carvalho, Müller, the plans include launching 51 branded products in 2017.
The CRS Brands also plans to enlarge the portfolio this year. The company sells the distillate 88 on ready-to-eat '' category ''.
"We are working on rejuvenation of Ceres and cider we will have news I can''t elaborate, but we believe that it is something innovative, different of this concept of mixed drinks" Lourenço Filho. The new products can hit the market in the second half.
"There is room for the CRS grow more in ready to drink, but also in traditional categories like wine, vodka and whiskey. And it may be that in a few moments this growth leads to the consumer division, with some products cannibalizing others for a period, but the strategy is to understand what the consumer wants and what the occasion of consumption, "he says.
Added value
Although the fight over prices on drinks ready, the manufacturers continue to invest in value-added labels. "The traditional drinks may suffer some decline, but don''t go out of the market. We will continue working hard in the categories "says consolidated Executive of CRS. The company manufactures products such as cider Cereser, Don Bosco and Massimiliano wines and vodka Kadov.
In addition to maintaining the contributions recognized as marks cachaça 51, Müller wants to expand sales of the premium version of moonshine, 51 reserve, Oak adds.
"The special cachaças category has been growing and Recently 51 advances the three digits", complements him.
On the market since 2009, 51 reserve has received more investments with changing and strengthening in publicizing the product as premium. "I believe that happens a phenomenon similar to beer, with demand reduction in volume and in value," he says.
The company also changed the label of vodka Polak in 2016, to improve consumer perception about the added value of the drink.
For him, the trend is that the demand for drinks grow in two extremes: high added value, with Brazilians looking for different products, and another for those seeking better cost-benefit with lower prices.
Despite the bets for the expansion of the sales, the recent uncertainty in the political and economic scenario returned to worry the industry.
"We had noted an improvement in demand in the first few months of this year, but with the recent events the market returned the submit final sales downturn", reveals the CRS Executive Brands.
Lourenço Filho shows that orders to the company in January through may are in line with the registered a year earlier, still under negative effect of bad sales results in January. "But we''re reclaiming that month by month," he explains.
The Chief Executive of Diageo, Ivan Markovic, have highlighted the difficulties in the market even before the recent political problems.
"In Brazil, I don''t expect [the situation] get better. I think it is prudent to assume that the conditions will remain difficult. The mood in Brazil is a little better, but I''d say it''s still a very volatile situation, in terms of how the policy will unfold, "said the Executive, in Conference call with analysts earlier this year.
DCI - 31/05/2017
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