Alcoholic Drinks in 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: 94 | Publication date: Jan 2010
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Executive summary
The alcoholic drinks market is revamped, despite uncertainty
The slight recovery after the downturn which affected the alcoholic drinks market in 2008 did not quell the fears of manufacturers or distributors, who still feared that an unfavourable economic climate could settle in Bolivia for the long term. However, the entire market, including both the on-trade and off-trade channels, took it upon itself to fight slower sales and lower consumer spending by stepping up promotions and marketing and advertising initiatives in order to restore confidence in the market and strengthen the formal market as the driving force in alcoholic drinks in Bolivia. New beers were introduced, new spirits were launched, and new approaches to commercialising alcoholic drinks were implemented, despite rising costs and higher prices for consumers.
Advertising of spirits takes off in a very visual way
The alcoholic drinks market had never previously seen the recent level of marketing through advertising displayed in 2009. Beer has generally dominated the advertising scene in Bolivia, and Cervecería Boliviana Nacional SA is the dominant leader of the category with its Paceña brand. However, in 2009 global spirits brands such as Baileys Irish Cream and Absolut vodka, and domestic new liquor Maca Bull, flooded billboards, television and print media with unprecedented consistency. It would have been thought that cautious strategies would dictate commercialisation of spirits in light of the uncertain economic situation; however, the general population was bombarded with a great deal of spirits advertising. The most visual advertising was on billboards, as the likes of Johnnie Walker and Chivas Regal stepped up their support for their increasingly expensive brands. Advertising increased along with average retail prices.
Domestic producers strive to make wine mainstream and inexpensive
In less than ten years, Bolivian wine has started not only making a name for itself abroad and at home, but has decided to expand national consumption by making it easier for consumers to consume domestic wine. Bodegas y Viñedos Campos de Solana led this effort by introducing a BOB16 (retail price) 750ml bottle of quality red wine, and suggesting that it should be consumed daily with a meal, just like in Argentina or southern Bolivia (Tarija). However, the price is still a little over double a 2l bottle of Coca-Cola, and double a 620ml bottle of domestic beer. Bolivian wine manufacturers are conscious that low prices are not enough to grow the category, but it is a start towards greater availability and presence in a largely price-sensitive economy. Distribution is also going hand-in-hand with lower prices, since these products are being distributed by larger grocery stores at the neighbourhood level. Another factor which wine manufacturers are considering is to take a sizeable share of the wine category in order to promote wine at lower income levels and start a tradition, as exists in Tarija.
Specialisation in alcoholic drinks distribution is on the rise
One of the main obstacles to growth for all types of goods in Bolivia has always been distribution, due to poor roads, long distances, lack of business-to-business interaction and a small consumer market, amongst a host of other complementary problems. Interestingly, the solutions to distribution problems have come from alcoholic drinks distributors, which have developed distribution strategies and methods throughout the years, especially because of the close contact which exists between suppliers and smaller distributors under a large umbrella in a large territory. D&M Bolivia Ltda is a pioneer in distribution, and has begun to distribute for third parties. Campos de Solana Wines has effectively stepped up its presence in the national territory thanks to D&M’s capacity to place products effectively. This has given rise to specialisation in alcoholic drinks distribution, and has even formalised the market further. This will reduce costs and will benefit consumers.
The market readies itself for increased growth in stronger economies
Global recovery is essential for the further improvement of the alcoholic drinks market in Bolivia. The possible deterioration of the economic situation in Bolivia seems more remote as the stronger global economies begin to recuperate. For example, the largest alcoholic drinks operation in Bolivia, Cervecería Boliviana Nacional, is owned by Anheuser-Busch InBev NV, the largest beer company in the world; therefore Bolivia’s economy is to a great degree tied to global economic activities. That is not to say that a global recovery would guarantee higher sales and an improved economy, but it would mean a coherent corporate response to the events in Bolivia. Furthermore, the alcoholic drinks market is preparing for improved times, as alcoholic drinks companies are working on improving infrastructure, marketing methods and distribution strategies to ensure a more efficient use of resources when the larger economies begin to perform better. Bolivia has always depended on the trickling down of a solid North American economy.
Table of contents
ALCOHOLIC DRINKS IN BOLIVIA : MARKET INSIGHT
EXECUTIVE SUMMARY
The alcoholic drinks market is revamped, despite uncertainty
Advertising of spirits takes off in a very visual way
Domestic producers strive to make wine mainstream and inexpensive
Specialisation in alcoholic drinks distribution is on the rise
The market readies itself for increased growth in stronger economies
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2009
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2009
Table 3 Selling Margin of a Typical Beer Brand 2009
Table 4 Selling Margin of a Typical Wine Brand 2009
Table 5 Selling Margin of a Typical Spirits Brand 2009
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2004-2009
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Sector: Total Volume 2004-2009
Table 8 Sales of Alcoholic Drinks by Sector: Total Value 2004-2009
Table 9 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2004-2009
Table 10 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2004-2009
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2009
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2009
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2009
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2009
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2005-2009
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2009
Table 17 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2009
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2009-2014
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2009-2014
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2009-2014
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2009-2014
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - BOLIVIA
BODEGAS Y VIñEDOS DE LA CONCEPCIóN SA - ALCOHOLIC DRINKS - BOLIVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bodegas y Viñedos de La Concepción SA: Key Facts
Summary 3 Bodegas y Viñedos de La Concepción SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Bodegas y Viñedos de La Concepción SA: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 5 Bodegas y Viñedos de La Concepción SA: Competitive Position 2009
CERVECERIA BOLIVIANA NACIONAL SA - ALCOHOLIC DRINKS - BOLIVIA
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 2008
COMPETITIVE POSITIONING
Summary 9 Cervecería Boliviana Nacional SA: Competitive Position 2009
CíA CERVECERA BOLIVIANA SA - ALCOHOLIC DRINKS - BOLIVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Cía Cervecera Boliviana SA: Key Facts
Summary 11 Cía Cervecera Boliviana SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Cía Cervecera Boliviana SA: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 13 Cía Cervecera Boliviana SA: Competitive Position 2009
BEER IN BOLIVIA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 14 Lager by Price Band 2009
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2004-2009
Table 23 Sales of Beer by Subsector: Total Value 2004-2009
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2004-2009
Table 25 Sales of Beer by Subsector: % Total Value Growth 2004-2009
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2004-2009
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2004-2009
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 30 Beer: Production, Imports and Exports: Total Volume 2003-2008
Table 31 Beer Exports by Country of Destination: Total Volume 2003-2008
Table 32 Beer Exports by Country of Destination: Total Value 2003-2008
Table 33 Beer Imports by Country of Origin: Total Volume 2003-2008
Table 34 Beer Imports by Country of Origin: Total Value 2003-2008
Table 35 Company Shares of Beer by National Brand Owner 2005-2009
Table 36 Company Shares of Beer by Global Brand Owner 2005-2009
Table 37 Brand Shares of Beer 2006-2009
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2009-2014
Table 39 Forecast Sales of Beer by Subsector: Total Value 2009-2014
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2009-2014
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2009-2014
WINE IN BOLIVIA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Sales of Wine by Subsector: Total Volume 2004-2009
Table 43 Sales of Wine by Subsector: Total Value 2004-2009
Table 44 Sales of Wine by Subsector: % Total Volume Growth 2004-2009
Table 45 Sales of Wine by Subsector: % Total Value Growth 2004-2009
Table 46 Sales of Wine by On-trade vs Off-trade Split: Volume 2004-2009
Table 47 Sales of Wine by On-trade vs Off-trade Split: Value 2004-2009
Table 48 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 49 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 50 Wine Production, Imports and Exports: Total Volume 2003-2008
Table 51 Forecast Sales of Wine by Subsector: Total Volume 2009-2014
Table 52 Forecast Sales of Wine by Subsector: Total Value 2009-2014
Table 53 Forecast Sales of Wine by Subsector: % Total Volume Growth 2009-2014
Table 54 Forecast Sales of Wine by Subsector: % Total Value Growth 2009-2014
SPIRITS IN BOLIVIA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Sales of Spirits by Subsector: Total Volume 2004-2009
Table 56 Sales of Spirits by Subsector: Total Value 2004-2009
Table 57 Sales of Spirits by Subsector: % Total Volume Growth 2004-2009
Table 58 Sales of Spirits by Subsector: % Total Value Growth 2004-2009
Table 59 Sales of Spirits by On-trade vs Off-trade Split: Volume 2004-2009
Table 60 Sales of Spirits by On-trade vs Off-trade Split: Value 2004-2009
Table 61 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 62 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 63 Spirits Production, Imports and Exports: Total Volume 2003-2008
Table 64 Spirits Exports by Country of Destination: Total Volume 2003-2008
Table 65 Spirits Exports by Country of Destination: Total Value 2003-2008
Table 66 Spirits Imports by Country of Origin: Total Volume 2003-2008
Table 67 Spirits Imports by Country of Origin: Total Value 2003-2008
Table 68 Whisk(e)y Production, Imports and Exports: Total Volume 2003-2008
Table 69 Brandy & Cognac Production, Imports and Exports: Total Volume 2003-2008
Table 70 Vodka Production, Imports and Exports: Total Volume 2003-2008
Table 71 Gin Production, Imports and Exports: Total Volume 2003-2008
Table 72 Rum Production, Imports and Exports: Total Volume 2003-2008
Table 73 Other Spirits Production: Total Volume 2003-2008
Table 74 Company Shares of Spirits by National Brand Owner 2005-2009
Table 75 Company Shares of Spirits by Global Brand Owner 2005-2009
Table 76 Brand Shares of Spirits 2006-2009
Table 77 Forecast Sales of Spirits by Subsector: Total Volume 2009-2014
Table 78 Forecast Sales of Spirits by Subsector: Total Value 2009-2014
Table 79 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2009-2014
Table 80 Forecast Sales of Spirits by Subsector: % Total Value Growth 2009-2014