Portugal's Super Bock Group Sees Sales Decline Due To Market Slowdown
Portuguese brewing and soft drinks company Super Bock Group (SBG) has reported a 1.4% drop in sales in 2018, compared to the previous year, to €458 million.
Investment in the business totalled €42 million last year, a significant increase on the €12 million invested in 2017, which was mainly allocated towards boosting capacity at the production plants at Leça do Balio and Pedras Salgadas.
According to the company’s management report, details of which were published by the Lusa news agency, a slowdown in the global economy and the climate of uncertainty in trade has influenced the group's performance.
Despite the negative factors, SBG increased the sales volume of Super Bock and Pedras in Europe, with a particularly strong performance of both beer brands in Galicia.
In China, economic circumstances and strong competitive pressure created a less positive environment for imported brands. Despite the adverse conditions, SBG boosted its presence on the local market.
Last month, SBG announced the launch of a new beer brand in China, the ‘1927 Crystal Wheat Beer’, which was created exclusively for local consumers.
The Portuguese group considers China one of its most promising markets, where it has a strong local partnership in place since 2009.
In Africa, the economies of Mozambique and Angola remained unfavourable, but SBG grew in the on- and off- trade channels in the various African countries where it is present.
SGB also said it reduced the use of plastic packaging (mainly still water bottles) by 5,000 tonnes over the last decade for the production of its Vitalis natural water brand.
During the same period, in its Castelo de Vide unit alone, the company achieved a 25% reduction in total energy consumption and 20% in water consumption.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine