Tuesday , January 19 2021

CCU is betting on efficiency to deal with falling prices in Chile

Full of nuances is the CCU result, which is reflected in a large number of questions from analysts during their conference call.

The part of the consultation that was made reference to the impact on the average price, which even though it registered a marginal decline, was influenced by the promotion of its main competitors in the beer segment: AB Inbev.

Patricio Jottar, general manager of CCU, said that "for many, we have faced difficult conditions at the level of commercialization of beer with many promotional activities from our main competitors as well as imported brands, especially in supermarkets, but also on other channels."

Therefore, the company has intensified the promotion of its portfolio, to maintain market share, although Jottar feels that this does not need to change much.

He added that the way to deal with these attacks increased efficiency, which actually allowed them to increase yields and increase margins.

Argentina is one area of ​​focus, where even though hyperinflation adjustments have an impact on market outcomes, the prospect is more profitable in terms of volume, due to a brand exchange with AB Inbev, which sent seven in exchange for Budweiser, which would result in an increase of 6% and 7% volume category.

In Colombia, meanwhile, they perfected the start-up of their new factory in partnership with Postobón.

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