SAO PAULO (Reuters) -Brazilian brewer Ambev SA should have a good year in terms of beer demand in Brazil, its Chief Executive Jean Jereissati Neto said on Wednesday.
“From the point of view of consumer demand, it should be a good year. We have a return to the bars… The World Cup will take place for the first time in the summer,” said Jereissati Neto on the second day of presentations to analysts and investors. He did not disclose any specific forecast.
Chief Financial Officer Lucas Lira said the business is permeated by “macro challenges and volatility throughout this year,” but added, “after two years of demand pressures, there is the need from consumers to reconnect.” The CEO said that rising inflation has a bigger impact on the company’s most popular brands, while the higher priced ones have been “very resilient in recent years.”
Popular brands in Brazil include Brahma and Skol, while Stella Artois is one of the company’s premium beers. Ambev’s main commodities are aluminum and barley, and for that the company has contracted hedging instruments and focused on returnable packaging to protect itself from rising costs, Lira said.
(Reporting by Alberto Alerigi Jr.; Writing by Peter Frontini and Carolina Pulice; Editing by Bill Berkrot)
