Alcoholic Drinks in Peru
Euromonitor International's Alcoholic Drinks in Peru 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.
Get immediate access to strategic market analysis when you buy reports online
Tables: 112 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Middle-income segment drives increase in Peruvian wine environment
The growing middle socio-economic class in Peru is fuelling growth as consumers are now able to afford to expand their purchases into alcoholic drinks. With more available income they have enough money to consume products with more added value. In other words, they are interested in consuming more wine and spirits rather than beer. Over 2006-7 domestic producers developed new brands and many types of wine for every consumer segment, focusing on the middle-income group, who are the major potential consumers in the country. Despite the recent boom in the traditional Peruvian spirit Pisco, wine has been the recent phenomenon within the Peruvian alcoholic drinks market.
Ajeper launches new Franca beer brand
Peruvian drinks group Ajeper, which has many brands in every category of the soft drinks market, finally launched new beer brand Franca during the review period. With this launched in August 2007, the war of beers will no longer be only between the two multinationals, as there will be more flavours, styles and prices on offer from a domestic player. Currently n/s9.50 can buy three bottles of Cristal or four of Brahma. However, Franca standard lager represents a new alternative for low-income consumers, at three 700ml bottles for n/s8.00. The objective of Ajegroup is for Franca to gain a 15% beer market volume share in the first year in Lima.
Brahma starts beer war with offer of four bottles for n/s9.50
In the middle of 2007, some days before the Franca launch, the Peruvian beer environment began to show signs of an approaching price war between two multinationals, Ambev and SABMiller, and popular domestic company Ajegroup. The first step was made by Ambev, which launched a new promotion of four 630ml beers for n/s 9.50, using a very creative mass media marketing campaign targeting the young segment. However, the low price strategy carried out by Brahma could be very dangerous, impacting the revenue of the company. While it could be effective in gaining a greater share, the soft drinks market has demonstrated that lower prices can have short-term results.
Domestic brands use Peruvian culture as competitive advantage
Many domestic brands are looking to be modern yet original, and are using Peruvian cultural concepts as selling points in order to gain share. For example, the domestic premium beer leader Cusqueña redesigned its bottle and label using the image of Machu Picchu, in order to differentiate itself from imported premium beer products such as Heineken or Corona. With the recent voting of Machu Picchu as one of the “New Seven Wonders of the World” and with booming tourism, national pride has been revived and utilised as an effective marketing device for local producers. In the spirits environment, Pisco uses national symbols on packaging, such as images related to the Inca legacy, in order to distinguish them from imported spirits. In conclusion, many domestic brands, large and small, are looking for differentiation using Peruvian concepts in order to achieve better competitive positioning.
Good expectations for alcoholic drinks dependent on political stability
The alcoholic drinks market faces both opportunities and possible threats for the forecast period. The most outstanding opportunities are increasing purchasing power among the low- and middle-income consumer segments, as well as the importance of gastronomy, which is closely linked to alcoholic drinks. On the other hand, the most important threat is economic uncertainty, which could affect the recent rise in purchasing power seen in Peru. However, the current government is showing political maturity and an excellent economic management strategy, generating good expectations for the next few years.
Table of contents
ALCOHOLIC DRINKS IN PERU : MARKET INSIGHT
EXECUTIVE SUMMARY
Middle-income segment drives increase in Peruvian wine environment
Ajeper launches new Franca beer brand
Brahma starts beer war with offer of four bottles for n/s9.50
Domestic brands use Peruvian culture as competitive advantage
Good expectations for alcoholic drinks dependent on political stability
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 3 Selling Margin of a Typical Beer Brand 2007
Table 4 Selling Margin of a Typical Wine Brand 2006
Table 5 Selling Margin of a Typical Imported Wine Brand 2007
Table 6 Selling Margin of a Typical Spirits Brand 2006
OPERATING ENVIRONMENT
Contraband/Parallel Trade
Duty-free
Cross-border/private imports
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 9 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 18 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
SANTIAGO QUEIROLO SAC
Strategic Direction
Key Facts
Summary 2 Santiago Queirolo SAC: Key Facts
Summary 3 Santiago Queirolo SAC: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 4 Santiago Queirolo SAC: Competitive Position 2006
UNIÓN DE CERVECERÍAS PERUANAS BACKUS Y JOHNSTON SAA
Strategic Direction
Key Facts
Summary 5 Unión de Cervecerías Peruanas Backus y Johnston SAA: Key Facts
Summary 6 Unión de Cervecerías Peruanas Backus y Johnston SAA
Company Background
Production
Competitive Positioning
Summary 7 Unión de Cervecerías Peruanas Backus y Johnston SAA: Competitive Position 2006
BODEGAS VIÑAS DE ORO SA
Strategic Direction
Key Facts
Summary 8 Bodegas Viñas de Oro SA: Key Facts
Company Background
Production
Competitive Positioning
BODEGAS Y VIÑEDOS TABERNERO SA
Strategic Direction
Key Facts
Summary 9 Bodegas y Viñedos Tabernero SA: Key Facts
Summary 10 Bodegas y Viñedos Tabernero SA: Operational Indicators
Company BackgrounD
Production
Competitive Positioning
Summary 11 Bodegas y Viñedos Tabernero SA: Competitive Position 2006
VIÑA OCUCAJE SA
Strategic Direction
Key Facts
Summary 12 Viña Ocucaje SA: Key Facts
Summary 13 Viña Ocucaje SA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 14 Viña Ocucaje SA: Competitive Position 2006
BEER IN PERU
Headlines
Trends
Production, Imports and Exports
Competitive Landscape
Prospects
Sector Background
Summary 15 Lager by Price Band 2007
Sector Data
Table 23 Sales of Beer by Subsector: Total Volume 2002-2007
Table 24 Sales of Beer by Subsector: Total Value 2002-2007
Table 25 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 26 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 27 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 30 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 31 Beer: Production, Imports and Exports: Total Volume 2001-2006
Table 32 Beer Exports by Country of Destination: Total Volume 2001-2006
Table 33 Beer Exports by Country of Destination: Total Value 2001-2006
Table 34 Beer Imports by Country of Origin: Total Volume 2001-2006
Table 35 Beer Imports by Country of Origin: Total Value 2001-2006
Table 36 Company Shares of Beer by National Brand Owner 2002-2006
Table 37 Company Shares of Beer by Global Brand Owner 2002-2006
Table 38 Brand Shares of Beer 2003-2006
Table 39 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 40 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 41 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 42 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
WINE IN PERU
Headlines
Trends
Competitive Landscape
Prospects
SECTOR BACKGROUND
Sector Data
Table 43 Sales of Wine by Subsector: Total Volume 2002-2007
Table 44 Sales of Wine by Subsector: Total Value 2002-2007
Table 45 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 46 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 47 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 48 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 49 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 50 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 51 Wine Production, Imports and Exports: Total Volume 2001-2006
Table 52 Wine Exports by Country of Destination: Total Volume 2001-2006
Table 53 Wine Exports by Country of Destination: Total Value 2001-2006
Table 54 Wine Imports by Country of Origin: Total Volume 2001-2006
Table 55 Wine Imports by Country of Origin: Total Value 2001-2006
Table 56 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 57 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 58 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 59 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN PERU
Headlines
Trends
Production, Imports and Exports
Competitive Landscape
Prospects
Sector Data
Table 60 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 61 Sales of Spirits by Subsector: Total Value 2002-2007
Table 62 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 63 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 64 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 65 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 66 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 67 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 68 Spirits Production, Imports and Exports: Total Volume 2001-2006
Table 69 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2006
Table 70 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2006
Table 71 Vodka Production, Imports and Exports: Total Volume 2001-2006
Table 72 Gin Production, Imports and Exports: Total Volume 2001-2006
Table 73 Rum Production, Imports and Exports: Total Volume 2001-2006
Table 74 Tequila Production, Imports and Exports: Total Volume 2001-2006
Table 75 Liqueurs Production: Total Volume 2001-2006
Table 76 Company Shares of Spirits by National Brand Owner 2002-2006
Table 77 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 78 Brand Shares of Spirits 2003-2006
Table 79 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 80 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 81 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 82 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES IN PERU
Headlines
Trends
Production, Imports and Exports
Competitive Landscape
Prospects
Sector Data
Table 83 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 84 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 85 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 86 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 87 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 88 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 89 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 90 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 91 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 92 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 93 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 94 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 95 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 96 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 97 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012