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    Euro-dollar parity, how does it affect export?

    Hello! Today, from Venerable Capital, an export company, we want to talk about one of the most important points when it comes to exporting and importing: the value of coins. In case you had not noticed, the depreciation of the euro in recent months is leaving us closer to the euro-dollar parity. What’s that? We tell you.

    What is the euro-dollar parity?

    The euro-dollar parity is the point at which both the euro and the US dollar are worth exactly the same. That is, a change €1=$1. This situation has not occurred for 20 years, and would have important consequences for the economy of the euro zone.

    Why does the euro-dollar parity occur?

    There are several reasons, although they are all very similar. On the one hand, the conflict between Russia and Ukraine affects Europe more than the US in terms of food and energy distribution. Furthermore, Europe is energy dependent, while the US is independent.

    Before this situation, the US economy was already in better shape than Europe and, to combat inflation, the US Federal Reserve will raise interest rates more aggressively than the ECB.

    All this together, causes investors to see in the US, and therefore in the dollar, a much safer investment than in Europe and the euro. This is the reason why the euro has depreciated in recent months and is so close to reaching euro-dollar parity.

    How does it affect the economy?

    This parity has important effects for the European economy, both positive and negative, and all triggered by the importance of exports and imports, since most of the operations carried out in the world are made in US dollars. In Europe, around 50% of operations are directly in dollars.

    On the negative side, we find a possible even greater rise in prices, especially for products that come from the US or, as we say, are bought in dollars. The euro-dollar parity means that, with the same amount of euros, companies can buy less quantity of product, that is, prices rise.

    On the contrary, the opposite process occurs when exporting. All the European companies that export see how, receiving the same euros, the price has dropped for their buyers. This means that they can export even more and in a more competitive way compared to products from other continents.

    Will we reach the euro-dollar parity? We will see the evolution of the euro-dollar exchange rate in the coming months, but everything indicates that it is. We hope that this article has resolved your doubts. If you have any left, let us know!

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    Alcoholic beverages market

    Alcoholic beverages market, what is its situation?

    Good morning everyone! Today from Venerable Capital marketing and distribution, we will talk about the alcoholic beverages sector. If we decide to participate in this sector, it is important to know data on the evolution, growth and consumption trends in this type of beverages. In today’s blog we will try to analyse the situation of the alcoholic beverages market.

    GROWTH OF THE ALCOHOLIC BEVERAGES MARKET

    The alcoholic beverages market experienced growth of 25.4% compared to 2020 and 13% versus 2019. The increase in mobility following the end of confinements, and the revival of consumption and social life in general largely drove this growth. On the other hand, 2021 saw the resumption of some mass events, which also greatly helped to improve the sector’s performance.

    Global alcoholic beverages are showing positive signs of recovery, with volume growth expected to continue over the next few years.

    Spirit drinks

    CONSUMPTION HABITS AND TRENDS

    Analysis and knowledge of the spirits market enables business decision-makers, and the companies themselves, to formulate better plans and strategies to meet the demand for the products they market.

    Among alcoholic beverages, beer is the most widely consumed. In 2020, a total of 142,258.2 million litres were consumed worldwide. But if we focus on spirits, the vodka leads the ranking.

    Healthy and sustainable drinks

    Consumers today tend to demand products that share the company’s or brand’s interest in ethical and sustainable consumption. In this sense, brands that innovate with organic beverages, free of additives and transparent labelling, respond to the trend towards responsible consumption and commitment to the environment.

    Portion control cans

    Initially, the canned format came into play as part of the on-the-go trend (easy to consume and transport). However, in the wake of the pandemic, canned wines and spirits are geared towards the portion control trend. In other words, cans make it possible to control the number of calories in the drink, as well as the consumption of units of alcohol, in an accessible and affordable way.

    alcohol sector

    There is a growing trend towards consumers controlling their calorie intake and reducing sugar consumption.  And this leads us to understand, on the one hand, the growing interest in the consumption of sustainable and healthier beverages, as well as the purchase of canned alcoholic beverages.

     

    So much for today’s blog, if you are interested in marketing and distribution, stay tuned to our blog. At Venerable Capital we have a range of drinks that you are sure to love, click here and discover them..

     

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    Price rises

    Price rises, what impact on exports?

    Good morning everyone! from Venerable Capital comercialización y distribución we want to address an issue that is currently worrying both families and businessmen. For some months now we have been suffering from rising prices, and in a world as interconnected as the one we live in, the actions of one have an impact on all. Global trade, including exports, is also being affected by the price rises.

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