RIO DE JANEIRO, BRAZIL – The sale of alcoholic beverages dropped 52 percent in the period between March 15th and 31st, according to the Brazilian Beverage Association (ABRABE). The association, which includes producers of distillates, cachaça, beer and wine, says that 40 percent felt an even greater drop in revenue.
The reason is that 61 percent of alcoholic beverage consumption occurs in bars, restaurants, nightclubs and events, according to a survey conducted by KPMG for the association.
These venues remain closed to avoid crowds, to control the spread of covid-19.
In an attempt to mitigate the impact of the restriction on consumption, the ABRABE says it is negotiating a number of measures with the public authorities, such as deferring the collection of taxes and providing credit lines.
The companies in the sector generate more than 30,000 jobs. Despite the crisis, they have already donated over 200,000 liters of 70 percent alcohol to hospitals, nursing homes and communities.
Source: Estadão