BRAZIL: AmBev Q1 suffers from weakness in Brazil
By just-drinks.com editorial team | 9 May 2008
AmBev today (8 May) posted a 3.1% rise in gross profit for the first quarter with strong performances in Quinsa and North America failing to offset weakness in the Brazilian market.
Gross profit was up to US$3.2m for the period to 31 March, compared with $3.1m for the same period last year.
Net income was up 15.2% to $743.8m from $645.9m year-on-year.
"Brazilian Beer and CSD operations faced volume decline in the quarter due to a slow down in the beverage industry driven by unexpected and unusually cold and wet weather, an early carnival and a sharp increase in core food prices impacting consumer spend," the company said in a statement.
Net sales saw a 4.1% jump from $4.6m from 2007 to $4.8m for the first quarter period of 2008.
The company said it has continued to focus on revenue management best practices and the development of the premium segment in all of its major markets.
Sectors: Beer & cider
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AmBev, InBev’s Latin American operation, had a tough first quarter, hit by higher costs and poor weather in Brazil. Earlier this month, Olly Wehring met with Luiz Fernando Edmond, zone president for Latin America North at AmBev, who spoke about the challenges in the home market, the progress and potential of other Latin American countries and the opportunities both for InBev’s international brands in Brazil and for AmBev’s Brahma brand in the US.
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Yesterday AMBEV lost a case in court and was ordered to retrieve and destroy millions of recyclable bottles with the AMBEV logo inscribed near the neck. This case was brought by other brewers including KAISER (Saab Miller) that have used generic 600ml contents amber for decades. AMBEV bottles the major Skol, Brahma and Antarctic brands. The unethical ploy by AMBEV was to market their new "exclusive" returnables (same height, width, etc) with 630ml
fill and demand other breweries not use them. AMBEV claimed the "new" bottles were an attempt to prevent rampant "false" Skol Beer in the market, mainly in the state of Rio de Janeiro.
Pedro Brazofuerte said at 8:54 pm, May 29, 2008
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