{"id":95583,"date":"2025-08-28T17:05:23","date_gmt":"2025-08-28T20:05:23","guid":{"rendered":"https:\/\/murray.adv.br\/?p=95583"},"modified":"2025-08-28T17:05:23","modified_gmt":"2025-08-28T20:05:23","slug":"coca-cola-stresses-autonomy-in-brazil-despite-tariffs","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/coca-cola-stresses-autonomy-in-brazil-despite-tariffs\/","title":{"rendered":"Coca-Cola stresses autonomy in Brazil despite tariffs"},"content":{"rendered":"
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With planned investments of around R$7bn this year in Brazil, company says it contributed R$87.5bn to GDP<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n
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08\/28\/2025\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Amid geopolitical tensions and steep U.S. tariffs, the president of The Coca-Cola Company for Brazil and the Southern Cone, Luciana Batista, reaffirmed the group\u2019s commitment to Brazil and the autonomy of its local operations despite global turbulence.<\/p>\n<\/section>\n

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According to a study by consulting firm Steward Redqueen, the company contributed R$87.5 billion to the Brazilian economy in 2023, equivalent to 0.7% of the country\u2019s GDP. The study underpins the launch of the new Coca-Cola System campaign in Brazil, titled \u201cFeita com todo o Brasil\u201d (\u201cMade with all of Brazil\u201d).<\/p>\n<\/div>\n

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The campaign is no gamble. The tariff issue has escalated, particularly with measures taken by U.S. President Donald Trump. Analysts\u2019 main concern in this context has been to gauge the impact of the dispute on business.<\/p>\n<\/div>\n

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Global executives of groups such as Coca-Cola, Heineken, and Ambev have long highlighted the strong local presence of beverage giants as an advantage in times of volatility.<\/p>\n<\/div>\n

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\u201cThe global context is relevant [for the new campaign],\u201d Ms. Batista told Valor. According to her, localizing production is inherent to the business, given the high cost of transportation. This extensive operational presence, she said, is the main competitive edge of the industry compared with others.<\/p>\n<\/div>\n

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\u201cIt is key to reinforce the autonomy we have in the Brazilian market, in continuing with our operations, our portfolio, and growth trajectory,\u201d she said, stressing that most of the company\u2019s inputs are sourced locally.<\/p>\n<\/div>\n

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Some inputs, such as aluminum, have seen sharp volatility in recent months. The industry, Ms. Batista said, has already provided answers to such challenges. \u201cWe have a supply-chain resilience concept, with alternatives in times of shortage. After the pandemic, there was an aluminum shortage, so we shifted to returnable PET or glass,\u201d she explained.<\/p>\n<\/div>\n

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The turbulence goes beyond tariffs. Coca-Cola made headlines recently after Mr. Trump said he had persuaded the company to replace corn syrup with U.S. cane sugar in the production of its soft drinks in that country. The multinational said it plans to launch, in the second half of this year, a version that meets Mr. Trump\u2019s request.<\/p>\n<\/div>\n

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Sugarcane is already used in the formula in several countries, including Brazil, where it has been part of the original recipe since its launch in 1886. However, in the 1970s, soaring sugar prices led the American industry to adopt corn syrup as a cheaper alternative, supported by U.S. agricultural policy.<\/p>\n<\/div>\n

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The Coca-Cola System in Brazil\u2014comprising seven bottling groups (Andina, Bandeirantes, Brasal, Femsa, Solar Coca-Cola, Sorocaba, and Uberl\u00e2ndia) plus Le\u00e3o\u2014operates 33 factories nationwide.<\/p>\n<\/div>\n

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Beyond its GDP impact, the study shows the company is responsible for generating more than 574,000 jobs throughout its production chain.<\/p>\n<\/div>\n

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This is not the first time Coca-Cola has commissioned such a study in Brazil, but a change in methodology prevents comparison with previous editions. The advantage of the new approach, Ms. Batista said, is that it now allows comparisons across countries in the region. \u201cThis work made us realize that we are also a major exporter of fruit in the region for other Coca-Cola businesses,\u201d she said. In Argentina, for example, the Coca-Cola System also accounts for 0.7% of GDP, while in Chile the figure reaches 1.2%.<\/p>\n<\/div>\n

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The executive also pointed out that Brazil is seen as a central market for the multinational\u2014currently, the country is Coca-Cola\u2019s fourth-largest market by sales volume.<\/p>\n<\/div>\n

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\u201cWe are in a long cycle. The company has been in Brazil for 83 years. This is not just a story of the past. It is a story of the future. We have a lot of room to grow,\u201d she said.<\/p>\n<\/div>\n

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Altogether, the Coca-Cola System plans to invest R$7 billion in Brazil this year. Among recent moves are R$380 million, alongside Femsa, to build its own Crystal mineral water factory in Rio Grande do Sul.<\/p>\n<\/div>\n

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Also this year, the group concluded an R$886 million investment in Porto Alegre to rebuild and modernize Femsa\u2019s plant, which had been damaged by floods in May 2024.<\/p>\n<\/div>\n

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Ms. Batista was asked about the ongoing tax reform debate. Soft drinks have been included in the excise, known as the \u201csin tax,\u201d applied to products considered harmful to health or the environment. \u201cWe do believe in the reform as something positive. But we also believe it is important to ensure equal treatment,\u201d she said.<\/p>\n<\/div>\n

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Asked by Valor, Alexandre Horta, president of the Brazilian Association of Soft Drink and Non-Alcoholic Beverage Industries (ABIR), said the country\u2019s non-alcoholic beverage sector continues to stress the \u201cinconsistency\u201d of applying excise to sugary drinks. \u201cRather than demonizing a product, we continue to believe in dialogue to ensure legal certainty and predictability for companies,\u201d he said.<\/p>\n

*By\u00a0Cristian Favaro\u00a0\u2014 S\u00e3o Paulo<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With planned investments of around R$7bn this year in Brazil, company says it contributed R$87.5bn to GDP         08\/28\/2025\u00a0 Amid geopolitical tensions and steep U.S. tariffs, the president of The Coca-Cola Company for Brazil and the Southern Cone, Luciana Batista, reaffirmed the group\u2019s commitment to Brazil and the autonomy of its local […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26375],"class_list":["post-95583","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-coca-cola-stresses-autonomy-in-brazil"],"yoast_head":"\nCoca-Cola stresses autonomy in Brazil despite tariffs - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/coca-cola-stresses-autonomy-in-brazil-despite-tariffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coca-Cola stresses autonomy in Brazil despite tariffs - 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