As Central American economies ease the restrictions that have been placed on the spread of covid-19, sales of bottled water are forecast to decline by at least 2%.
Using a demand/income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, variations in household demand for different goods and services can be projected as the most critical phases in the spread of covid-19 are overcome and mobility restrictions are lifted in the countries of the region.
The TGI Friday's chain decided to close its store located in the Oxygen Human Playground shopping center, in the province of Heredia, for a 90-day period.
"As you know, the food and beverage sector has been highly impacted, which is why we have taken the measure to suspend operations at our Friday's Oxygen store," explained a statement issued on March 21 by the company.
This sector would be one of the least affected by the covid-19 crisis in Central America, which would be partly explained by the performance of bottled water sales and dairy marketing.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
From January to September 2019, foreign purchases of beer in Central America amounted to $170 million, 32% more than reported in the same period in 2018, with Guatemala and El Salvador being the markets that registered the most significant increases in their imports.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
In Costa Rica, 5% of the population shows interest in energy drinks, and about 57% of them are between 21 and 30 years old, and have one of the highest purchasing power levels.
An analysis of consumer interests and preferences in Costa Rica, prepared by the Trade Intelligence Unit of CentralAmericaData, provides interesting results on the characteristics and people who show interest in any type of beverage.
During January 2020, the production of alcoholic beverages in Panama was 26.6 million liters, 13% more than the same period in 2019.
The most recent data published by the General Comptroller of the Republic, states that the production of alcoholic beverages in general reported 3.1 million liters, going from 23.5 million liters in January 2019, to 26.6 million liters in the same month of 2020.
From January to September 2019, bottled water imports in Central America totaled $18 million, and purchases from companies in the United States increased 14% over the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
From January to September 2019, companies in the region bought fruit and vegetable juices abroad for $95 million, 5% less than in the same period in 2018, mainly due to the drop-in imports from Honduras and El Salvador.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption "Click to interact with graphics"]
In Guatemala, the sector's union estimates that exports of processed food and beverages totaled $1.39 billion, 5% less than what was reported in 2018.
Preliminary data from the Guatemalan Chamber of Food and Beverages (CGAB) indicate that between 2018 and 2019, exports of processed food and beverages decreased from $1.47 billion to $1.39 billion.
During 2019, the production of alcoholic beverages in the country was 285 million liters, 6% less than the same period in 2018.
The most recent data published by the General Comptroller of the Republic, states that the production of alcoholic beverages in general reported a decline, from 302 million liters in 2018, to 285 million liters in 2019.
From January to June 2019, Central American companies imported $205 million in alcoholic beverages, 16% more than the same period in 2018, explained again by the behavior of purchases from the U.S. and Mexico.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
In Costa Rica, the Coca-Cola company announced that it had completed the construction of its new raw material production plant in Liberia, and it has now begun operating in its first phase.
As a result of the tax reform implemented in February 2019, at the beginning of 2020 the prices of beverages increased, mainly soft drinks sold in plastic containers.
In February of last year, the Ortega regime approved the reform of the Tax Agreement Law, which consisted of increasing income tax from 1% to 2% for medium sized companies with higher incomes, and from 1% to 3% for large taxpayers.
Until January 13, 2020, the Sworn Declaration of Liquidation of the Selective Consumption Tax on Soft Drinks may be presented in Panama, corresponding to November 2019.
Law 114 dated November 18, 2019, which entered into force on November 19, 2019, establishes a new rate for the Selective Excise Tax on Soft Drinks, which is why the e-Tax 2.0 system was modified.
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...