Please use symbol entry at top right of page to search

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

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)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.