PESTEL BACKUS ANALYSIS

POLITICO

 Peru has a very favorable legal and political environment for the development of
financial inclusion.

 An increase in the Selective Consumption Tax (ISC) on alcoholic beverages, which

began in July 2013.

 Low-income consumers have chosen illegal alcohol over beer because of the high
cost of a tenth of the cheapest beer.

 Under Peruvian law, Law 28681, passed in 2006, not only regulates the sale and
consumption, but also the advertising of alcoholic beverages.

 The government has halted beer sales due to covid-19 for more than 5 months.

 On April 25, Backus received permission from the Production Department to

distribute beer.

ECONOMIC

 Peru has long been a growth leader in Latin America along with Panama. It rose by
,1% in 2018 and this year, which is not good for the region, and even in the most
conservative forecasts it will hover around 2.5%.

 According to a report by the National Institute of Statistics and Informatics (INEI),

the Peruvian economy contracted 11.1% in 2020, the lowest rate in three decades.
The Peruvian organization said that the company's gross domestic product (GDP)
was

 Peru ranks third in beer consumption in Latin America with an average

consumption of 8.9 liters per capital.

 In addition, after almost six months of paralyzing operations due to governmental

measures against Covid19 , as part of the first phase of economic reactivation, the
production of beer, wine and other alcoholic beverages has been authorized,
demonstrating their respective biosafety procedures. It should be noted that, during
this period of paralysis, some companies in this sector have had to finance
themselves or use a large part of their resources to survive. On the other hand,
with the political crisis that will occur in 2020, the country's economy suffers: the
 exchange rate rises, private investors lose interest, inflation, GDP falls, etc. It also
affects companies on purchases, input prices, imports of some of them, income,
costs and prices.

SOCIAL

 According to the National Institute of Statistics and Informatics (INEI), Peru is the
eighth most populated country in the U.S. with 30 million 814 thousand inhabitants
and a growth rate of 11 persons per thousand inhabitants. In addition, according to
the Pan American Health Organization (PAHO) in 2015, Peru ranked sixth in Latin
America in terms of annual alcohol consumption with 8.1 liters per capita after
Chile, Argentina, Venezuela, Paraguay and Brazil. In addition, Peru maintains a
high rate of alcohol consumption with 83% of the total population. In general, the
consumption of alcoholic beverages occurs at parties, clubs and social gatherings
because they are associated with pleasurable stimulants.

 In this regard, it is worth mentioning that the most consumed beverage by

Peruvians is beer, due to its ease of consumption, since it does not need to be
mixed with other beverages as in much cheaper and shorter drinks. NES B, C and
D. The most representative brands are Cristal, Pilsen and Cusqueña. However, the
season in which they sell the most is summer. Backus is currently the leader in
several beer brands to date. In adulthood, the study also found different causes of
alcohol consumption among adolescents, the most important of which was the
family environment.

 On the other hand, it should be said that the trend of consuming healthy food is
increasing and expanding, which is why more and more Peruvians seek to
consume vegetables and fruits and read information on packaging should reduce
the amount of consumption of products are harmful to their health. For this reason,
manufacturers of high-fat or high-sugar products have had to react quickly and
have proposed healthier alternatives, as have beverage manufacturers. Alcoholic
beverages are increasingly offering low-alcoholic options. (KWP, 2020).