2008: The Winds are Against Florida Ice & Farm

©image: Laboratorio Enmovimiento

“If you drink don’t drive, if you drive don’t drink.” The new transportation law of Costa Rica, with rigorous sanctions that could even include the seizure of vehicles for drinkers behind the wheel, has caused a reduction in the consumption of beer. This is added to the depreciation of the colon, which has generated losses due to the exchange rate, and a greater participation in the project Reserva Conchal that naturally has been affected by the real estate crisis.

The article in Elfinancierocr.com points out that “In the first two trimesters of the current fiscal year, the company accumulated net utilities in the sum of ¢8,581 million, which meant a reduction of almost 52% (in nominal terms), compared to the same period of the previous fiscal year. Also, the price of the stock of the brewing company went down in the last year. From quotes close to ¢1,500, they were lowered to approximately ¢750 each.”

“With the purpose of reactivating earnings, Fifco restructured the labor force in Guatemala and Costa Rica, reduced costs, reorganized routes, and renegotiated the price of raw materials, among other measures, commented Gisela Sanchez, a spokesperson for the company.”

Source: elfinancierocr.com

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Beer Market in Costa Rica

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Beer imported from the US and Germany compete with with similar prices to those of local brands.

The entrance in effect of CAFTA-RD implied a tariff reduction of 15% to 11%, for U.S. beers. This tariff will be gradually reduced to 0%, at a rate of 1% per year. Currently, most imports come from Mexico and Nicaragua.

Florida Ice & Farm’s Strategy

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Since 2006 the company has been buying companies that make juices, beers, nectars and milk, firming up its plans to become a total beverage company.

Gisela Sanchez, director of corporate affairs for Florida Ice & Farm (Fifco), defines the company’s main objective: "Florida wants to become a total beverage company."

'Cervecería Costa Rica' Expands China Distribution

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Since entering the Chinese market in January, the Costa Rican brewer has expanded its reach to six provinces.

To date they have exported 50 containers, each one with 1.512 boxes of 24 bottles, reported Gisela Sánchez, company executive.

"The company [Florida Ice & Farm] entered China by signing an alliance with brewer Tsingtao and also with distribution company Powsun, one of the top dealers of that brand in the Asian country", reported Nacion.com.

Layoffs in Costa Rica: Wal-Mart, Scotiabank and Florida

March 2009

Florida Beverage laid off 136 people, Wal-Mart 60 people and Scotiabank 10% of its payroll, as measures to face the economic crisis.

At Wal-Mart, the lay offs were in administrative levels, as part of the 200 jobs that it reduced at a regional level. The company, however, plans to create 1000 jobs in the region through the opening of 22 new stores.