canned water
With 1st canned water in the country, Ambev “reflects” balance and reinforces bet on non-alcoholics
At the same time that it faces a period of challenges in the beer segment, exposed in its balance sheet for the third quarter of 2019, Ambev has sought to diversify its investments and actions in the non-alcoholic beverage sector, also focusing on sustainability. And these ingredients seem to be condensed in its latest release: the first canned water in the country.
The news was announced by the company about a week ago, days before the release of its new balance sheet. A strategy, by the way, that seemed to anticipate what the numbers presented to the financial market would say. If Ambev presented net income 11,6% lower compared to the same period in 2018, a result that was directly influenced by the 2,8% drop in beer sold volume and reflected the growth of Heineken in the domestic market, its performance involving non-alcoholic products was much better.
The company's revenue from non-alcoholic beverages in Brazil, for example, grew 13,6% between July and September compared to the same period last year. Thus, it reached R$ 1,027 billion, with a volume 6,5% higher (6,329 million hectoliters).
In this sense, Ambev's most recent initiative was the investment in the water market, with the announcement of the first can of water in Brazil, under its AMA brand. And it is also an action in the field of sustainability, after all, the product has a recyclable material and contributes to the reduction of the use of plastic.
More sustainable packaging
“We innovated once again and presented the first canned water in Brazil. Our main objective, with this, is to offer one more option to the consumer, this time thinking about a more sustainable packaging. Again, this is a move very much in line with the company's history, which has always developed projects with the environment in mind”, says Richard Lee, Ambev's head of sustainability.
As the company details to the Guide, the forecast is that AMA canned water will be available on the market in mid-December. And, although manufacturing will take place in a factory in the State of Rio de Janeiro, the product will be present and available in different regions of Brazil.
“The launch of canned AMAs will be national, not restricted to a group of cities or states. Production will take place in Rio de Janeiro, so, of course, we expect stores in Rio to be among the first to receive the product, for geographic reasons. In any case, distribution will be carried out throughout Brazil in bars, markets and restaurants, and it is a matter of time before reaching the other regions. In addition, canned AMA will also be sold in our e-commerce,” explains Lee.
Ambev's bets
But, as the executive himself clarifies, the new investment in a non-alcoholic and sustainable product must be seen, above all, as a bet. Ambev still lives the expectation of how the market will react to it, since the consumption of mineral water has a strong association with plastic bottles. The mood, however, is one of optimism.
“From now on, we will still assess the consumer's adaptation to this new packaging format, but we know that people are increasingly concerned about the impact that consumption has on the environment. Therefore, we are optimistic about this launch”, highlights the Ambev professional.
In addition to reinforcing the onslaught in the non-alcoholic market, the new water also sheds light on the company's commitment to sustainability. The AMA canned version is part of a broader project that began in 2017, when Ambev launched its own mineral water on World Water Day. The project has the differential of allocating all the profit to works and projects that bring water to those who don't have it.
According to Ambev, R$ 3,5 million in profits have already been raised, an amount that has been donated to 31 projects for access to drinking water, in the nine states of the Brazilian semi-arid region, benefiting more than 29 people. The company's objective is to end 2019 with 50 projects and 43 thousand people benefited.
Lee also highlights how the concern with water is fundamental to the brewery project. “AMA water is the result of our evolution of thinking about water: we have always seen and valued water as an essential resource for our business. After all, any beer is composed mostly of water”, explains the executive, and then adds.
Initiatives in our breweries
“For this reason, for 20 years we have been developing initiatives in our breweries and in the communities where we operate, to ensure the good use and protection of water resources. Even so, according to UN studies, there are still more than 35 million Brazilians without access to drinking water. How can we commit to taking care of water and doing nothing about this scenario? It was precisely to help these people that we created the AMA,” says Lee.
Another recent initiative that also involves Ambev's commitment to sustainability took place with the start of construction of its first can factory in Brazil. The novelty will be in Sete Lagoas (MG), next to the brewery that bears the city's name, and will initially supply the demand of Sete Lagoas, Juatuba and part of the operations in the Southeast region. The works are expected to be completed in 2020.
More than R$ 700 million will be dedicated to the construction of the factory, which will house two can production lines, a lid production line and will run on 100% renewable energy.
Source: https://guiadacervejabr.com/agua-em-lata-apostas-ambev/
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