Latin America: Situation different from country to country but altogether negative for beer and malt industries

The situation looks different from country to country in Latin America, but altogether negative for the beer and malt industry, H. M. Gauger GmbH analysts said in their May report.

There are the mandatory shutdowns of beer production and/or sales in Mexico, Colombia, Peru, and Para (northern Brazil). The lockdown of social life is impacting all countries, most of them with a large on-premise trade of beer.

The economies of Argentina and Brazil are in a turmoil. The large number of workers without firm jobs have lost their incomes; they cannot afford luxury items like beer. Losses of beer sales are estimated at 40% for industrial and 70% for craft brewers. There is one hope: governments need the income from beer taxes, they must try to end the mandatory closures of the industry and retail trade.

The malting industry is confronted with this crisis in the first year of the Cargill/Boortmalt transition. Malt production has continued well into April, but now partial shutdowns are announced by the industries, the analysts said.