News

Soft drinks price rises beckon in Brazil as tax incentives dry up

Most popular

Diageo/LVMH move for Pernod won't wash

How to win the marketing war in spirits

just-drinks speaks to Pernod CEO Alex Ricard

Where will Pernod focus its attention in 2019-21?

Why spirits must rethink its future positioning

MORE

Soft drinks companies in Brazil have been left reeling after a recent drivers' strike in the country has resulted in a reduction in tax subsidies in their main concentrate production area.

Last week, a ten-day, nation-wide strike by truckers came to an end. The Brazilian Government has agreed to introduce a subsidy for the price of diesel, acquiescing to a demand by the strikers.

The subsidy, however, will be partly-funded by a reduction in tax incentives for the northern city of Manaus, the home of most - if not all - soft drinks concentrate production for Brazil by large players such as Coca-Cola, AmBev and Heineken.

The additional burden on the soft drinks producers could reach as much as BRL750m (US$199mm) for the remainder of this year alone. A mid-single-digit price increase would be necessary to offset the increase, compounding the pressure on weakened soft drinks volumes in the country.

Negotiations in Brasilia are ongoing.

Brazil on its way back, but not in a hurry - Click here for a recent just-drinks analysis


Related Content

Will the sugar tax story pan out as expected? - Comment

Will the sugar tax story pan out as expected? - Comment...

How the sugar tax has transformed the soft drinks category - Comment

How the sugar tax has transformed the soft drinks category - Comment...

Why the future looks better for low-calorie soft drinks, despite US troubles - Comment

Why the future looks better for low-calorie soft drinks, despite US troubles - Comment...

The soft drinks category in 2019 - just-drinks predicts

The soft drinks category in 2019 - just-drinks predicts...

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?