March 5, 2022

08:03

Gabriel Abreu – Cenarium Magazine

MANAUS – One more company of the concentrate industry announced it will leave the Manaus Free Trade Zone (MFTZ). Heineken issued a statement on Friday, 4, informing that it will transfer its concentrates unit to the city of Itu, in the countryside of São Paulo, where the company’s portfolio of soft drinks is also produced, currently represented by the brands FYs, Itubaína, Viva Schin, Skinka and Água Schin.

Heineken’s exit from Manaus occurs at a moment of great insecurity for companies installed in the Industrial Pole of Manaus (PIM). A week ago, the decree was published, signed by President Jair Bolsonaro (PL) and the Minister of Economy, Paulo Guedes, which reduced the Industrialized Product Tax (IPI). The measure brings great risks to the PIM.

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In the statement sent to the press, the Heineken Group said the relocation should “optimize production, increase the efficiency of the entire chain involved in this process, reduce its carbon footprint and even accelerate the arrival of products at points of sale, becoming even more competitive and aligned with market dynamics”.

“The Heineken Group reaffirms its bet and confidence in the Brazilian market, where it has sought to grow in a respectful and sustainable way, and thanks the entire community of Manaus and the State of Amazonas for the welcome during all these years of local operation”, the statement said.

Reduction of plastic packaging

Asked by CENARIUM if the exit occurred because of the new presidential decree that decreased the competitiveness of companies in the Manaus Free Trade Zone, the company said the move is part of the company’s expansion in the country.

“The decision to transfer the operation from Manaus to Itu integrates the company’s growth plan and the expansion of efforts within the ESG agenda, such as reducing by 80% the volume of plastic packaging by 2025, a movement that started in June 2021. Because of this decision and a long study, the company decided to absorb the entire production for the operation in Itu, which will allow us to gain in efficiency, in agility in the transportation of products to the points of sale and will also reduce the carbon emission from logistic transportation”, added the document released on Friday, 4.

Read also: Abraciclo says IPI reduction may cause high unemployment rates

Pepsico

At the end of 2018, another large company in the concentrate sector left the Industrial Pole of Manaus (PIM). Pepsico’s decision came months after the federal government changed the IPI taxation of soft drink companies installed in the Manaus Free Trade Zone.

The companies paid a rate of 20%, but the rate was reduced to 4% to pay for oil subsidies promised to end the truckers’ strike. At the time, the Temer government announced the change in May and reversed it in September. The action was taken after pressure from several companies in the industry, including the Coca Cola Group, which threatened to leave the region.

IPI reduction

The IPI reduction directly affects imported products and those produced in the Industrial Complex. The measure has caused insecurity in businessmen and workers who fear losing their jobs.

The IPI reduction had already been announced by Minister Paulo Guedes, on February 22nd. According to him, this would be a measure to contain the widespread increase in prices and boost the growth of industry.

The goal of the measure is to stimulate the economy, but it will require a tax waiver, i.e., the government will stop collecting, according to the Planalto Palace, R$ 19.5 billion, this year alone.

The IPI is levied on industrialized products, and the value is usually passed on to the consumer in the final price of the goods. The tax has several rates, which range, for the most part, from zero to 30%, but can reach 300% in the case of products harmful to health.