Investment in Brazil news: AmBev expects beverage market to boom in 2010
Date added: 21st December, 2009 at 09:39
(view all articles from December, 2009)
Categories: Economy
Those considering making an investment in Brazil's manufacturing sectors may like to consider the beverage market, if the words of an industry analyst are to be believed.
Nelson Jamel, chief financial officer of Latin America's largest brewer Companhia de Bebidas das Americas - otherwise known as AmBev - told Bloomberg that the drinks manufacturing sector would flourish in 2010.
He forecast that it will benefit from the football World Cup which will kick off on June 11th 2010 when hosts South Africa take on Mexico.
"The World Cup allows us to have a month of summer, where we sell more, in the middle of winter," Mr Jamel explained.
It will have a particularly noteworthy impact on the sector if Brazil's football team does well in the tournament, he added, saying: "This always has a positive effect on our industry."
This boost to sales comes at a particularly welcome time for the beverage industry, as it traditionally generates the highest revenues between September and March, which are the hot summer months that include some of the country's biggest events.
One such celebration, the Rio de Janeiro carnival, takes place annually towards the start of the New Year, with the 2010 festival set to get underway on February 13th.
Another reason that the market could be an ideal opportunity to make an investment in Brazil is the country's forecast economic growth in 2010, which Mr Jamel predicted will have a knock-on effect on AmBev's profits.
According to its central bank's Focus market survey, the Latin American country's GDP will grow by five per cent in 2010 from the level of around 0.21 per cent that it is expected to reach by the end of December 2009.
Furthermore, the report - published in English by Xinhua - revealed that direct foreign investment in Brazil will increase by a substantial amount over the next 12 months on figures recorded this year.
It said that overseas investment in Brazil would reach $25 billion (£15.5 billion) by the end of 2009, an amount which is set to grow to $35 billion in 2010.
This, combined with an increase in the average Brazilian's disposable income as more and more people become a part of the consumer market, will encourage sales of sodas and beers such as Brahma, Bohemia and Antarctica, Mr Jamel explained.
He added that the only risk he expected the industry to face next year would be a potential increase in taxation on drinks.
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