Total appearances: 1
Team debut: 2014
Gabriel Vaz de Lima of Bradesco Corretora debuts in the No. 3 position in this sector, which previously was covered as part of the Consumer Goods category. From his base in São Paulo, the analyst reports on 11 Brazilian food and beverages names and plans to expand coverage to 15 stocks soon. We have a neutral view on the sector, as it encompasses food and beverage companies with very different profiles, he says. With an expected economic deceleration in Brazil, we favor less-penetrated products, such as ready-to-eat meals, rather than more penetrated products, such as beer. More broadly, adds Lima, we believe the scenario for the sector remains challenging, without clear economic drivers to propel consumption. The Brazilian economy has confirmed softer predictions, as industrial production and retail sales have been in the red, corroborated by weak figures for formal job creation. This makes us cautious about the outlook for any improvement in macro fundamentals. He recommends that investors favor bottom-up investment opportunities, including turnaround stories, or companies leading industry consolidation. As examples he cites BRF, a São Paulobased food processor, and wheat-based-products provider M. Dias Branco, which is headquartered in Ceará.