Brazil's AmBev SA, the world's fifth-largest brewer, said it expected to sell slightly more beer and invest more in 2003, as well as make further cost cuts, according to Reuters. Marcel Telles, the co-president of the board of Companhia de Bebidas das Americas' (AmBev), said the firm expected to increase its beer sales volume by between 3% and 4% in 2003, or slightly above consumption growth.

"By market share, our internal target is to hold it around 70 (percent)," he told a conference call with analysts to discuss the company's fourth-quarter and annual results.

AmBev executives said the company aimed to make cost and expense savings of between 150 million reais and 200 million reais ($42 million-$55 million) in 2003 on ingredient and packaging costs and improving sales and distribution.

Cost savings and price rises were key to boosting AmBev's profits in 2002 as they helped offset the drop in sales volume due to the sluggish growth in Latin America's biggest economy.

The company raised beer prices in October to combat inflation and higher dollar-denominated costs of ingredients and packaging, which were boosted in local terms by a 35 percent depreciation of Brazil's currency, the real, in 2002. In a country where there is little difference in flavor between the leading beer brands, the coldness of the beer is often what makes the difference to consumers.

To meet this peculiarity of the Brazilian market, AmBev has sold cooler units to retailers to differentiate its product.