Sales of 100% grape juice grew just 0.41% in the first five months of 2016. While consumer habits have changed during the country's economic crisis, Brazilians are not necessarily removing grape juice from their shopping carts.
After a 2015 in which the product saw an increase of 29.8% in volume, the sales of 100% grape juice grew just 0.41% between January and May of this year compared to the same time period the year before. The main reasons for lower sales is higher unemployment and lower income among Brazilian consumers. Estimations are that sales will be much lower than 2015 considering the country's economic struggles.
Dirceu Scotta, president of the Brazilian Institute of Wine (Ibravin) also blames an increase in the cost of production given the drop in this year's grape harvest and an increase in the IPI and ICMS taxes. These factors mean a higher price that consumers see in the supermarkets.
Even so, Scotta doesn't believe consumers will stop buying the juice. Brazilians continue to purchase healthy products, though, the frequency and quantity of these purchases have fallen.
Supermarkets will have to pay close attention to those factors that determine a consumer's purchasing decisions at the time of purchasing. According to the manufacturer, Famiglia Zanlorenzi, social classes A and B choose the based on the type of packaging. Then, they make their decisions based on brands, effectiveness, price and label information. Social classes C and also are concerned by the packaging type, but only after evaluating the price.
Making consumers aware of the products health benefits can also help increase sales. It's important that the consumer knows about the absence of preservatives and sugar as well as the fact that the product doesn't raise glucose levels. They also need to know that it is 100% natural fruit juice.
According to specialists, the drink helps protect the body from toxins and free radicals. It is also reduces the formation of fat in the blood, which helps reduce the levels of bad (LDL) cholesterol and raise the level of good (HDL) cholesterol.
Read more at Supermercado Moderno (in Portuguese) Grape Juice Sales Down
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Brazil Business News is a blog about business in South America's largest economy. This blog offers opinion pieces about doing business as well as touches on the top trends and issues in business across a wide range of industries and areas, such as industry, agriculture, automotive, technology, energy and more.
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