Brazil's Ambev CEO sees a good 2022 for beer sector

1 minute read

The AmBev (Companhia de Bebidas das Americas) logo is pictured in their unit in Fortaleza, Brazil January 10, 2019. REUTERS/Paulo Whitaker

Register now for FREE unlimited access to Reuters.com

SAO PAULO, April 13 (Reuters) - Brazilian brewer Ambev SA (ABEV3.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."

Register now for FREE unlimited access to Reuters.com

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.

Register now for FREE unlimited access to Reuters.com
Reporting by Alberto Alerigi Jr.; Writing by Peter Frontini and Carolina Pulice; Editing by Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles.