Beer consumption increases and profits grow at CDM with no price hikes – @Verdade

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Beer consumption increases and profits grow at CDM with no price hikes – @Verdade

10:39 CAT | 28 Jul 2022

FILE - Illustrative photo. [File photo: Domingo]

Beer consumption in Mozambique rose during the Covid-19 pandemic, particularly in the city and province of Maputo, providing growth in the profits of Cervejas de Moçambique (CDM), which has not increased the prices of its brands since 2014. In fact, @Verdade has learned that the prices of its 2M, Manica and Laurentina brands have even dropped.

Despite restrictions on the operation of bars and ‘barracas’ and the holding of social events, as part of government measures to contain the third and fourth waves of the respiratory disease pandemic caused by the new coronavirus, beer consumption increased in Mozambique.

According to the Instituto Nacional de Estatística (National Statistics Institute), “the quantity of beer sold increased by around 370.96 percent and imported beer reduced by around 13.27 percent in the first quarter of 2021, compared to the same period of 2020”. In the 2nd quarter of 2021 “the amount of national beer sold increased by about 71.91 percent and imported beer reduced by about 13.27 percent”. In the 3rd quarter “the amount of national beer sold increased by about 24, 68 percent and the imported one also had the same behaviour, with an estimated variation of around 576.60 percent”, while in the 4th quarter “according to data from the Monthly Industry Survey, the amount of national beer sold increased by around 9.19 percent and sales of imported beer increased by around 155.25 percent”.

Although it lost its monopoly with the installation of the Heineken factory, CDM earned revenues of 20.78 billion Meticais, compared to 16.8 billion in 2020, which generated a profit of 1.4 billion, an increase compared to the previous two financial years.

@Verdade has learned that this resumption of profit growth took place even with sales costs increasing to 12 billion and despite the policy of not increasing the price of its products in Mozambique.

In fact, prices even fell. A 330ml bottle of 2M beer that cost 35 Meticais fell in price to 30 Meticais; the same size bottle of Manica beer fell to 25 Meticais. Laurentina Preta, which in a 330ml bottle cost 45 Meticais, now costs 25 Meticais.

The 550ml returnable ‘médias’ of the 2M and Manica brands previously marketed at 55 Meticais fell to 46 Meticais, while a ‘média’ of Laurentina Preta fell from 55 to 51 Meticais.

The 330ml cans of 2M, Manica and Laurentina Preta that before sold at 40 Meticais saw their price reduced to 36 Meticais.