Panel SA: Panettone sales should grow 3% in Natal with fewer products on the market

The festive period of 2023 has been one of difficult choices for consumers.

Under lower incomes and after months of high inflation, especially in food, the end of the year also required more austerity with typical expenses. The Panettone industry is one that suffers the consequences of the slowdown in consumption, leading to forecasts of moderate sales increase.

The Abimapi (Brazilian Association of Biscuit, Pasta and Bread & Cake Industries) says it sees a “scenario of inflation and tighter pockets, in which the consumer will have to make choices.” According to the entity’s forecasts, the volume of sales in the seasonal period, from November 2022 to January 2023, should grow by 3%.

At Bauducco, production for this year was 80 million products for distribution in Brazil and export. The volume is the same released by the company at Christmas 2021.

Even in the Village, which registers an 18% increase in sales compared to the last two years, the result is still between 30% and 35% lower than in the pre-pandemic period. The trend is for growth, says Sócrates Luiz, from the commercial area of ​​the Village, but, along with retail, the sector is squeezed by high costs at a time when the consumer is also tight.

Sócrates says that important inputs for the production chain, such as boxes, cardboard, fruit, grapes and even chocolates had “exacerbated increase” in prices. This forced industry and retailers to seek a delicate balance in order not to lose money and consumers.

“Traditional retail is with smaller volumes and everyone is concerned with profitability, making a good campaign not to lose money”, he says.

These smaller volumes, he says, can be seen in supermarkets. “There is no flood of product, that lot of island and extra point, which translates the moment of precaution.”

Joana Cunha with Fernanda Brigatti