Brazilian Brewer Sells Assets, Cuts Costs

The local operations of brewer, Brasil Kirin, has already disposed of one of its thirteen factories and promises headquarters that it will reduce expenses by R$200 million this year alone.

In 2011, Japanese brewer, Kirin, spent almost R$4 billion for control of the family brewer, Schincariol. At the time, Schincariol was the second largest brewer in Brazil. Having grown 7.5% compared to the previous year, Schincariol was becoming a serious threat to leader, Ambev. Five years later, the situation has radically changed as a result of Brazil's economic crisis. As a result, Brasil Kirin saw its share of the market drop 25% placing it in fourth place in sales in the country.

The situation has reached such a critical point that last month the president of the company, Andre Salles, presented a plan for recuperation of local operations to headquarters in Japan. Proposed changes include reorganization of the company's portfolio of brands and a promise to cut costs by R$200 million this year alone.

In 2015, the Japanese company reported the first loss in its history with the loss of sales in Brazil being cited as the main reason.

Last year, revenues for Brasil Kirin fell 25.4%, around 134 billion yen or 1.3 billion US dollars. Losses were due to the depreciation of the Brazilian real as well as to a drop of 16.8% in sales in comparison to the year before.

For more go to Supermercado Moderno (in Portuguese) Brasil Kirin Sells Assets, Cuts Costs