Brazil Food & Drink Q4 2018
Brazil offers substantial long-term rewards to food and drink investors due to its sheer market size and youthfulconsumer base. While the Brazilian food and drink industry has faced a challenging consumer environment in recent years due torecession, we expect growth to strengthen from 2018 onwards in line with the wider economy. Premiumisation trends will begin tore-emerge over our forecast period, as disposable incomes rise and middle-income households gradually trade up on price points.We expect discount/cash-and-carry stores to remain the focus of expansion in the grocery retail sector, as these underpenetratedand competitively priced formats have become extremely popular with consumers during the economic downturn.
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