Alcoholic
Alcoholic Drinks

Alcoholic Drinks in Bolivia

Bolivia

Euromonitor International's Alcoholic Drinks in Bolivia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 80  |  Publication date: Jul 2007
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GBP475.00

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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
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Product coverage

Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine

Executive summary

Continued growth in alcoholic drinks

The aggressiveness of the leading brewery in Bolivia is an important factor contributing to the growth of consumption in the country. Cervecería Boliviana Nacional SA (CBN) has invested heavily not only to maintain its leadership, but also to increase domestic beer consumption. Chicha was traditionally the alcoholic beverage preferred by the masses, but price and marketing campaigns successfully relegated chicha to second place. CBN is also aiming its products at different socio-economical levels, making the Taquiña and Ducal brands popular offerings, and Paceña and Huari its premium brands, with marketing campaigns and price policies very different between brands.

Private and public support for wine

Since 1998 the Bolivian Government has worked to organise production clusters and fortifying wine and singani – a South American drink distilled from the special muscatel grape – industries in the south (Tarija, Sucre and Potosi). These efforts stimulated public awareness of Bolivian wine quality, and also gave producers the chance to fortify their companies and invest in marketing activities. In late 2005 some important international wine companies also started to invest in Bolivia, acquiring legal distributors and also investing in marketing activities. Santa Cruz de la Sierra hosts a wine and cheese fair every year, and this event has helped increase wine consumption, converting Santa Cruz into the biggest wine market. Considering that wine and singani production has an important impact on the South Bolivian economy, and that national producers and importers are committed to fortifying and increasing wine sales in Bolivia, growth is expected to continue over the forecast period.

Informal production and distribution

The alcoholic drinks market is one of the most affected by contraband and counterfeit products. According to legal producers and distributors, contraband and counterfeit products account for at least 50% of total domestic sales. There is also very important “homemade production”, which is sold in open markets in bulk. Homemade products do not comply with legal manufacturers requisites and are not subject to tax payments, and therefore they represent a health hazard for consumers. They are also very cheap, however, which is very attractive for many consumers in Bolivia, where according to INE almost two million people of a total population of nine million are alcoholics.

Consumption trends are changing

Due to economic crisis and the trend of an increasing number of underage consumers in Bolivia, consumptions patterns are changing. Younger consumers prefer to buy drinks in a liquor stores and go to clubs later due to the high prices charged in bars and clubs. New products are also increasing in popularity, such as Fernet, flavoured vodka, bourbon, and even wine. Another important trend is the new beer bottles. For several years 600-750cc bottles were preferred by consumers, but this is changing to personal bottles over 300-350cc. This change was planned by CBN in order to increase margins.

Lower but still positive growth expected over forecast period

Bolivia will continue to see positive growth in both volume and value terms over the forecast period, although growth rates in both terms will be slower to 2011 than over the review period. This is due to the efforts of the country’s government and social bodies to educate consumers regarding alcohol consumption. Spirits are expected to see the slowest growth as a result of increasing beer penetration, and spirits’ high prices compared with alternative alcoholic drinks. Cider/perry sales are not expected to see important growth, mainly because domestic consumers do not yet have legal products available. The wine sector is expected to keep on growing at steady rhythm, national producers are improving their distribution, but also increasing brand awareness and educating wine consumers in Bolivia to recognize quality and flavours. Nevertheless, all these efforts are targeted to upper class consumers; producers prefer to gain value rather than make important volumes.

Table of contents

ALCOHOLIC DRINKS IN BOLIVIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Continued growth in alcoholic drinks

Private and public support for wine

Informal production and distribution

Consumption trends are changing

Lower but still positive growth expected over forecast period

ALCOHOLIC DRINKS – KEY TRENDS AND DEVELOPMENTS

Cervecería Boliviana Nacional is still the leader

Wine consumption increases

Contraband and counterfeit products are the biggest competitors

Alcoholism is an important issue in Bolivia

Specialist retailers and Distribution trends

Market Merger and Acquisition Activity

MARKET DATA

Table 1 Sales of Alcoholic Drinks by Sector: Total Volume 2001-2006

Table 2 Sales of Alcoholic Drinks by Sector: Total Value 2001-2006

Table 3 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2001-2006

Table 4 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2001-2006

Table 5 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2005

Table 6 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Volume 2006

Table 7 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Value 2006

Table 8 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Volume 2006

Table 9 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Value 2006

Table 10 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2006

Table 11 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2006-2011

Table 12 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2006-2011

Table 13 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2006-2011

Table 14 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2006-2011

MARKET INDICATORS

Table 15 Retail Consumer Expenditure on Alcoholic Drinks 2001-2006

APPENDIX

Legislation

Taxation and Duty Levies

Table 16 Taxation and Duty Levies on Alcoholic Drinks 2005

Table 17 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2005

Table 18 Selling Margin of a Typical Beer Brand 2005

Table 19 Selling Margin of a Typical Wine Brand 2005

Table 20 Selling Margin of a Typical Spirits Brand 2005

Operating Environment

Price Band Methodology

Summary 1 Lager by Price Band 2005

DEFINITIONS

BEER IN BOLIVIA

Headlines

Trends

Production, Imports and Exports

Competitive Landscape

Prospects

SECTOR DATA

Table 21 Sales of Beer by Subsector: Total Volume 2001-2006

Table 22 Sales of Beer by Subsector: Total Value 2001-2006

Table 23 Sales of Beer by Subsector: % Total Volume Growth 2001-2006

Table 24 Sales of Beer by Subsector: % Total Value Growth 2001-2006

Table 25 On-trade vs Off-trade Sales of Beer: Volume 2001-2006

Table 26 On-trade vs Off-trade Sales of Beer: Value 2001-2006

Table 27 On-trade vs Off-trade Sales of Beer: % Volume Growth 2001-2006

Table 28 On-trade vs Off-trade Sales of Beer: % Value Growth 2001-2006

Table 29 Company Shares of Beer by National Brand Owner 2001-2005

Table 30 Company Shares of Beer by Global Brand Owner 2001-2005

Table 31 Brand Shares of Beer 2002-2005

Table 32 Forecast Sales of Beer by Subsector: Total Volume 2006-2011

Table 33 Forecast Sales of Beer by Subsector: Total Value 2006-2011

Table 34 Forecast Sales of Beer by Subsector: % Total Volume Growth 2006-2011

Table 35 Forecast Sales of Beer by Subsector: % Total Value Growth 2006-2011

WINE IN BOLIVIA

Headlines

Trends

Production, Imports and Exports

Competitive Landscape

Prospects

SECTOR DATA

Table 36 Sales of Wine by Subsector: Total Volume 2001-2006

Table 37 Sales of Wine by Subsector: Total Value 2001-2006

Table 38 Sales of Wine by Subsector: % Total Volume Growth 2001-2006

Table 39 Sales of Wine by Subsector: % Total Value Growth 2001-2006

Table 40 On-trade vs Off-trade Sales of Wine: Volume 2001-2006

Table 41 On-trade vs Off-trade Sales of Wine: Value 2001-2006

Table 42 On-trade vs Off-trade Sales of Wine: % Volume Growth 2001-2006

Table 43 On-trade vs Off-trade Sales of Wine: % Value Growth 2001-2006

Table 44 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2005

Table 45 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2005

Table 46 Brand Shares of Still Light Grape Wine 2002-2005

Table 47 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2005

Table 48 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2005

Table 49 Brand Shares of Other Sparkling Wine 2002-2005

Table 50 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2005

Table 51 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2005

Table 52 Brand Shares of Fortified Wine and Vermouth 2003-2005

Table 53 Forecast Sales of Wine by Subsector: Total Volume 2006-2011

Table 54 Forecast Sales of Wine by Subsector: Total Value 2006-2011

Table 55 Forecast Sales of Wine by Subsector: % Total Volume Growth 2006-2011

Table 56 Forecast Sales of Wine by Subsector: % Total Value Growth 2006-2011

SPIRITS IN BOLIVIA

Headlines

Trends

Production, Imports and Exports

Competitive Landscape

Prospects

SECTOR DATA

Table 57 Sales of Spirits by Subsector: Total Volume 2001-2006

Table 58 Sales of Spirits by Subsector: Total Value 2001-2006

Table 59 Sales of Spirits by Subsector: % Total Volume Growth 2001-2006

Table 60 Sales of Spirits by Subsector: % Total Value Growth 2001-2006

Table 61 On-trade vs Off-trade Sales of Spirits: Volume 2001-2006

Table 62 On-trade vs Off-trade Sales of Spirits: Value 2001-2006

Table 63 On-trade vs Off-trade Sales of Spirits: % Volume Growth 2001-2006

Table 64 On-trade vs Off-trade Sales of Spirits: % Value Growth 2001-2006

Table 65 Company Shares of Spirits by National Brand Owner 2001-2005

Table 66 Company Shares of Spirits by Global Brand Owner 2001-2005

Table 67 Brand Shares of Spirits 2002-2005

Table 68 Forecast Sales of Spirits by Subsector: Total Volume 2006-2011

Table 69 Forecast Sales of Spirits by Subsector: Total Value 2006-2011

Table 70 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2006-2011

Table 71 Forecast Sales of Spirits by Subsector: % Total Value Growth 2006-2011

BODEGAS Y VIÑEDOS LA CONCEPCIÓN SA

Strategic Direction

Key Facts

Summary 2 Bodegas y Viñedos La Concepción SA: Key Facts

Summary 3 Bodegas y Viñedos La Concepción SA: Operational Indicators

Company Background

Production

Summary 4 Bodegas y Viñedos La Concepción SA: Production Statistics 2005

Competitive Positioning

Summary 5 Bodegas y Viñedos La Concepción SA: Competitive Position 2005

CERVECERÍA BOLIVIANA NACIONAL SA

Strategic Direction

Key Facts

Summary 6 Cervecería Boliviana Nacional SA: Key Facts

Summary 7 Cervecería Boliviana Nacional SA: Operational Indicators

Company Background

Production

Summary 8 Cervecería Boliviana Nacional SA: Production Statistics 2005

Competitive Positioning

Summary 9 Cervecería Boliviana Nacional SA: Competitive Position 2005

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