2008: The Winds are Against Florida Ice & Farm

Several factors have affected the brewery: the depreciation of the colon, the real estate crisis, the purchase of Kern’s and Pepsi, and the Draconian transportation law in Costa Rica.

Monday, June 8, 2009

“If you drink don’t drive, if you drive don’t drink.” The new transportation law of Costa Rica, with rigorous sanctions that could even include the seizure of vehicles for drinkers behind the wheel, has caused a reduction in the consumption of beer. This is added to the depreciation of the colon, which has generated losses due to the exchange rate, and a greater participation in the project Reserva Conchal that naturally has been affected by the real estate crisis.

The article in Elfinancierocr.com points out that “In the first two trimesters of the current fiscal year, the company accumulated net utilities in the sum of ¢8,581 million, which meant a reduction of almost 52% (in nominal terms), compared to the same period of the previous fiscal year. Also, the price of the stock of the brewing company went down in the last year. From quotes close to ¢1,500, they were lowered to approximately ¢750 each.”

“With the purpose of reactivating earnings, Fifco restructured the labor force in Guatemala and Costa Rica, reduced costs, reorganized routes, and renegotiated the price of raw materials, among other measures, commented Gisela Sanchez, a spokesperson for the company.”

More on this topic

Movements in Costa Rica Beer Market

August 2014

An increase in the consumption of craft beer has led the Florida Ice and Farm corporation to enter this niche market, where it is expected that the upward trend will continue.

Gisela Sánchez, director of corporate relations at Florida Ice and Farm, told Elfinancierocr.com that the company "... has decided to invest in creating a small craft beer business, completely independent of Cervecería Costa Rica."

Florida Ice & Farm’s Strategy

April 2012

Since 2006 the company has been buying companies that make juices, beers, nectars and milk, firming up its plans to become a total beverage company.

Gisela Sanchez, director of corporate affairs for Florida Ice & Farm (Fifco), defines the company’s main objective: "Florida wants to become a total beverage company."

Beer Market in Costa Rica

September 2009

Beer imported from the US and Germany compete with with similar prices to those of local brands.

The entrance in effect of CAFTA-RD implied a tariff reduction of 15% to 11%, for U.S. beers. This tariff will be gradually reduced to 0%, at a rate of 1% per year. Currently, most imports come from Mexico and Nicaragua.

'Cervecería Costa Rica' Expands China Distribution

August 2009

Since entering the Chinese market in January, the Costa Rican brewer has expanded its reach to six provinces.

To date they have exported 50 containers, each one with 1.512 boxes of 24 bottles, reported Gisela Sánchez, company executive.

"The company [Florida Ice & Farm] entered China by signing an alliance with brewer Tsingtao and also with distribution company Powsun, one of the top dealers of that brand in the Asian country", reported Nacion.com.

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