News

PERU: Profits of Peruvian brewer San Juan drop sharply

Most popular

Another drinks CEO steps down - But, why?

Pernod Ricard Performance Trends 2014-2018 - data

What's coming up in soft drinks in 2019?

What's coming up in spirits in 2019? - Predictions

MORE

Despite months of sweeping cost reduction measures, profits of Peru's San Juan brewing company dropped 15.8% during the first three quarters of this year.

The company, owned by the Backus Group, declared US$2.2m in profits for the year to September, compared to US$2.7m during the same period of 2000. San Juan sold US$17.6m during the period, US$1.9m less than in 2000.

San Juan executives said the profit loss was due to an economic recession in Peru that caused beer sales to drop 9.9%.

In response to the countrywide drop in beer sales, San Juan management embarked on a plan earlier this year to reduce production costs. Still, the company's operational profits fell 23% during the year to September.

Overall profits were helped, however, by US$576,000 dividends it received from a subsidiary.

Cost reduction has not yet buried an investment project scheduled for the end of the year that would replace much of the company's equipment with more modern machinery.

San Juan hopes this will improve production, quality and distribution in Peru's jungle regions. The brewer's executives said, however, that this project could still be delayed, since it is funded by company savings that may diminish if sales continue to drop.


Related Content

The end of the Anheuser-Busch InBev affair, the sale of Diageo's tail and the success of C&C Group in 2018 - The just-drinks Analyst

The end of the Anheuser-Busch InBev affair, the sale of Diageo's tail and the success of C&C Group i...

The spirits category in 2016 - just-drinks' Review of the Year, Part II

The spirits category in 2016 - just-drinks' Review of the Year, Part II...

The beer category in 2017 - just-drinks' Review of the Year, Part IV - FREE TO ACCESS

The beer category in 2017 - just-drinks' Review of the Year, Part IV - FREE TO ACCESS...

FREE TO READ - The future of autonomous delivery - just-drinks FUTURES

FREE TO READ - The future of autonomous delivery - just-drinks FUTURES...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?