Beer in Argentina
Euromonitor International's Beer in Argentina 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.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 62 | Publication date: Feb 2009
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
Dark beer; Lager by origin; Lager by price platform; Low/non- alcohol beer; Stout
Executive summary
Beer sales were boosted by an extremely hot fall (late March to late June) and winter (late June to late September) in Argentina in 2008. On May 19 temperature reached 30 degrees Celsius – the hottest May day for a decade – while 15 July saw a temperature of 29 degrees Celsius – fourth hottest for a hundred years. Argentinean consumers usually drink beer when it is hot or when among friends, as friendship day (20 July) saw high temperatures, further boosting beer sales that month.
During 2008 total beer sales grew 29% in current value terms, slightly above the 25% CAGR of the review period. The main reason for this performance is the fact that prices increased above inflation because of the raw materials hike.
Off-trade imported standard lager sales saw the largest growth as a consequence of Argentineans opting for higher quality beer and the introduction of Corona in 710ml bottle, which is 15% less expensive than the 325ml presentation in which Corona products were initially offered to the market. Being less expensive than the former bottle made the product more affordable to a wider consumer target and served to boost sales. Additionally the larger bottle was better adapted to Argentine tastes, as it was more appropriate for sharing.
Unit prices increased around 21%, mostly as a result of the influence of rising raw materials costs and salary increases in the range of 20%. Additionally, consumers’ preference for premium products and brands contributed to drive up unit prices.
Rising costs of raw materials are being passed on to consumers, as companies are keeping profitability as a key issue and have no problems of lack of demand. Furthermore, as beer makers have to purchase barley from the agricultural division of Quilmes (the leader in beer sales), the prices of products from beer companies other than Quilmes are indirectly set by the latter in order to maintain margins.
Low-alcohol beer still has to take off, as Argentinean consumers still consider that beer with a very low alcohol content is not real beer. Low alcohol beer has found a very small niche in women, who do not wish to drink standard beer products due to its alcohol content, taste and effects.
The Argentine market has begun a trend towards sophistication following the entrance of several varieties introduced by Quilmes, such as Quilmes Stout Quilmes Bock or Stella Artois, which could take advantage of Quilmes’ distribution muscle, and were heavily supported by advertising investments. Argentineans also demonstrated a strong preference towards artisanal beer or beer from microbreweries, as they perceive these products as being of higher quality. However, artisanal and microbrewery products only have importance in certain regions, such as Bariloche and Pilar, or in the on-trade channel.
Off-trade sales growth slightly surpassed on-trade growth, mostly as a consequence of greater uncertainty regarding the future of the Argentine economy. This is leading to consumers saving for a rainy day by limiting, among other things, the number of times they go out for dinner or lunch.
The vast majority of lager is in the 4.7-5.0% abv range, while dark beer is in the 4.5%-5.5% range and stout products are all 4.3%. There is a slight trend towards stronger products in dark beer, but this is mostly due to a trend towards drinking Bieckert Africana, due to its low price, rather than a preference for stronger beer.
The most typical package is the returnable 970ml glass bottle, which accounts for over 90% of off-trade sales. The main reason for the popularity of this package is the fact that beer is consumed with more people and there is a culture of sharing. Indeed, the main slogan of Quilmes Cristal (the leading beer brand in Argentina) is “el sabor del encuentro” (“the flavour of being together”). Returnable beer bottles use a deposit system, by means of which the consumers pays an extra Peso1.50 as a deposit for the bottle. As the consumer later returns the bottle to the store when buying another bottle, in practice the consumer pays for the bottle only once.
Production, Imports and Exports
Imports and exports do not play a significant role in the local market, as it is mostly a production decision, since the world’s most important brands are produced domestically. As a consequence, production resembles sales figures and apparent consumption
Imported sales, even though growing strongly, still have a very long way to go, as they only represent 0.4%. As a consequence they do not impact size at all. The main reason for this is that many imported brands, such as Heineken, Budweiser or Stella Artois are locally produced.
Table of contents
ALCOHOLIC DRINKS IN ARGENTINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Alcoholic drinks keep on the upward path
Sophistication becomes key
Global companies gain share
Specialist channels keep growing
A slow down in growth
KEY TRENDS AND DEVELOPMENTS
Increased targeting of drink-drivers
Teenage consumers boost sales, but can pose a problem in the future
Enotourism (wine tourism) boost wine sales
Premium products gain share
Specialist Retailers
Summary 1 Leading Specialist Retailers 2008
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2007-2008
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008 – Quilmes Cristal
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008 – Toro Viejo (red)
Table 5 Selling Margin of a Typical Imported Wine Brand 2008 – Moët & Chandon
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008 – Fernet Branca
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008 – VAT 69
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - ARGENTINA
CERVECERíA ARGENTINA SA ISENBECK - ALCOHOLIC DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Cervecería Argentina SA Isenbeck: Key Facts
Summary 5 Cervecería Argentina SA Isenbeck: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Cervecería Argentina SA Isenbeck: Competitive Position 2007
DELLEPIANE SAN LUIS SA - ALCOHOLIC DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Dellepiane San Luis SA: Key Facts
Summary 8 Dellepiane San Luis SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Dellepiane San Luis SA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 10 Dellepiane San Luis SA: Competitive Position 2007
FECOVITA COOP LTDA - ALCOHOLIC DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 FeCoVitA Coop Ltda: Key Facts
Summary 12 FeCoVitA Coop Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 FeCoVitA Coop Ltda: Competitive Position 2007
LLORENTE Y CíA SA, J - ALCOHOLIC DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 J Llorente y Cía SA: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 J Llorente y Cía SA: Competitive Position 2007
PEñAFLOR SA - ALCOHOLIC DRINKS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Peñaflor SA: Key Facts
Summary 17 Peñaflor SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Peñaflor SA: Competitive Position 2007
BEER IN ARGENTINA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 19 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013