Beer in Brazil
Euromonitor International's Beer in Brazil 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: 87 | 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
President Luís Inácio “Lula” da Silva approved a new law in June 2008 that establishes new rules for drink driving. According to Law 11705/08 (also known as “Lei Seca”), drivers who are caught under the influence of alcohol of more than 0.1 mg/litre, will be submitted to a fine of R$955, detention of the vehicle and withdrawal of their driving license for one year. For those who are caught with more than 0.6 mg/litre, the penalty also includes detention of the driver from six months to three years, with bail fixed between R$ 300 and R$1,200. In the first week, it was announced that 38 people were detained and 80 people had their driving licenses withheld and notified with a fine in nine states. The control by the police and agents of traffic continued in the next weeks, and therefore, people who had previously frequented bars after work or on weekends reduced their visits to these outlets. This had a direct impact on sales of beers in on-trade channels in the second half of 2008.
Beer volume sales were slower in 2008 compared to the review period. This slowdown is a result of the new law to combat drink driving approved in June 2008 which forced consumers to change their drinking habits to avoid severe penalties. To a lesser extent, the threat of inflation rates that largely influenced commodity products such as rice, beans, flour and bread affected the purchasing power of lower-income consumers who were forced in some way to cut expenses on non essentials including beer.
The new legislation regarding drink driving positively impacted sales of low- and non-alcoholic beers, both in the on-trade and off-trade. Consumers found in low- and non-alcoholic beers the possibility of appreciating beer and still being able to drive. Sales of low alcoholic beer increased by 7% in volume terms in 2008, while non-alcoholic beer outperformed with 22% total volume growth.
In 2008, the adjustment in unit prices was influenced by rising costs of raw materials such as sugar, wheat and malt. The higher price of aluminium used in metal beverage cans, and energy also impacted the unit price of beer, which experienced an average growth of 7%.
Premium lager continue to attract investment from leading manufacturers as this category was more dynamic than standard beers, reaching 8% volume growth in 2008. AmBev created a department (Central de Importação) responsible for bringing imported beers such as the German Spaten, Löwenbräun, Franziskaner Weissbier and Beck’s; the Belgium Leffe, Hoegaarden and Belle-Vue; the Argentinean Quilmes; and Uruguay Norteña, Patricia and Pilsen into the country. The company also continues to invest in Bohemia, Original and Stella Artois premium brands. Primo Schincariol, on the other hand, adopted the strategy of acquiring local microbreweries with a premium positioning such as Baden Baden, Devassa, Igarassu and Eisenbahn between 2007 and 2008.
Despite the effect “Lei Seca” had on sales, especially via on-trade channels, volume sales still accounted for 67% of overall beer sales. 600 ml glass bottles accounted for the majority of beer sales in on-trade, but sales of non-returnable bottles such as long neck (355 ml) and “chopp” increased in the last few years. In the off-trade, metal beverage cans represented the majority of sales. Nevertheless, the growing sales of premium beers in off-trade favoured the presence of non-returnable bottles of 600 ml, 960 ml, 1 litre and 355 ml.
Manufacturers have invested in different packaging sizes as a strategy to differentiate from competitors. Instead of the traditional 600 returnable bottles and 350ml metal beverage cans, which account for 68% and 29% of total beer volume sales, some companies such as Cervejarias Kaiser/FEMSA released Sol Shot, a version of Sol in 250 ml glass bottle. Meanwhile, AmBev launched 473 ml metal beverage cans and 630ml returnable glass bottle for Skol and Bohemia. The 630 ml glass bottle caused a lot of controversy amongst other beer manufacturers as it was claimed that this pack size will impact on the system of returnable bottles that is shared between all companies and AmBev owns 65% of the beer market. The sales of AmBev’s 630ml glass bottles, which also have a permanent stamp, was temporarily accepted by CADE (Council of Administrative Economic Defence) as it is only distributed in the states of Rio de Janeiro and Rio Grande do Sul.
The typical alcohol content of lagers is between 4.4% and 5% ABV. However, some breweries have invested in stronger beers, especially in premium lagers and dark beers. Baden Baden, for instance, released Baden Baden Tripel with 14% ABV, very similar to some Belgium beers, but it is expected that beers with a higher alcohol content will continue to be a niche.
Production, Imports and Exports
Beer production is expected to present slower growth compared to 2004 and 2007 with an average growth of 3.5% until 2013.
Beer imports will continue to remain high, chiefly lead by AmBev that has plans to increase the portfolio of imported premium beers and consolidate the leading position in this segment. According to SECEX, beer imports increased by 215% in volume terms from 2005 and 2007. Exports are estimated to remain stable over the forecast period as the domestic market remains heated and US dollar continues to be devalued.
Imported beer volume sales grew at double the average growth of domestic beer. In addition, imported beers, which are often positioned as premium, enable manufacturers and retailers to achieve higher margins. Therefore, a wide number of supermarkets/hypermarkets have been displaying a wide range of imported and premium beers.
Euromonitor International’s estimates for apparent consumption are based on SINDICERV (Beer Industry Syndicate) and SECEX/MDIC (Secretary for External Commerce from the Ministry for Development, Industry and Commerce). Since SINDICERV’s associated beer manufacturers contemplate AmBev, Cervejarias Kaiser/FEMSA, Cervejaria Paranaensa and DaDo Bier, it was assumed that SINDICERV’s data does not cover 100% of the market.
Table of contents
ALCOHOLIC DRINKS IN BRAZIL : MARKET INSIGHT
EXECUTIVE SUMMARY
Premium products drive value sales of alcoholic drinks
“Lei Seca”: new regulations on drink driving
Stiff competition in beer continues in Brazil
“Lei Seca” hinders sales in on-trade channels
Optimistic outlook for alcoholic drinks after approval of new laws
KEY TRENDS AND DEVELOPMENTS
New drink driving regulations impact consumer behaviour
New advertising law to be approved in alcoholic drinks
Changes to taxation of beer in 2009
The rise of the middle class fuels sales of more sophisticated beverages
Specialist retailers
Summary 1 Leading Specialist Retailers 2007
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 - Skol
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008 - Almadén
Table 5 Selling Margin of a Typical Imported Wine Brand 2008 – Concha Y Toro
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008 – Pirassununga 51
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008 – Johnny Walker Red Label
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
Sources
Summary 3 Research Sources
LOCAL COMPANY PROFILES - BRAZIL
AMBEV - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 4 AmBev – Cia de Brasileira de Bebidas: Key Facts
Summary 5 AmBev – Cia de Brasileira de Bebidas: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 AmBev – Cia de Brasileira de Bebidas: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 AmBev – Cia de Brasileira de Bebidas: Competitive Position 2007
CAMPARI DO BRASIL LTDA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Campari do Brasil Ltda: Key Facts
Summary 9 Campari do Brasil Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Campari do Brasil Ltda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 Campari do Brasil Ltda: Competitive Position 2007
CERVEJARIA PETRóPOLIS SA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Cervejaria Petrópolis SA: Key Facts
Summary 13 Cervejaria Petrópolis SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Cervejaria Petrópolis SA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Cervejaria Petrópolis SA: Competitive Position 2007
CERVEJARIAS KAISER BRASIL SA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Cervejarias Kaiser Brasil SA: Key Facts
Summary 17 Cervejarias Kaiser Brasil SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 18 Cervejarias Kaiser Brasil SA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 19 Cervejarias Kaiser Brasil SA: Competitive Position 2007
CIA MüLLER DE BEBIDAS - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Cia Müller de Bebidas: Key Facts
Summary 21 Cia Müller de Bebidas: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 22 Cia Müller de Bebidas: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 23 Cia Müller de Bebidas: Competitive Position 2007
COOPERATIVA VINíCULA AURORA LTDA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 24 Cooperativa Vinícola Aurora Ltda: Key Facts
Summary 25 Cooperativa Vinícola Aurora Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 26 Cooperativa Vinícola Aurora Ltda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 27 Cooperativa Vinícola Aurora Ltda: Competitive Position 2007
PERNOD RICARD BRASIL LTDA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 28 Pernod Ricard Brasil Ltda: Key Facts
Summary 29 Pernod Ricard Brasil Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 30 Pernod Ricard Brasil Ltda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 31 Pernod Ricard Brasil Ltda: Competitive Position 2007
PRIMO SCHINCARIOL INDúSTRIA DE CERVEJAS E REFRIGERANTES SA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 32 Primo Schincariol Indústria de Cervejas e Refrigerantes Ltda: Key Facts
Summary 33 Primo Schincariol Indústria de Cervejas e Refrigerantes Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 34 Primo Schincariol Indústria de Cervejas e Refrigerantes Ltda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 35 Primo Schincariol Indústria de Cervejas e Refrigerantes Ltda: Competitive Position 2007
VINHOS SALTON SA INDúSTRIA E COMéRCIO - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 36 Vinhos Salton SA Indústria e Comércio: Key Facts
Summary 37 Vinhos Salton SA Indústria e Comércio: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 38 Vinhos Salton SA Indústria e Comércio: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 39 Vinhos Salton SA Indústria e Comércio: Competitive Position 2007
YPIóCA AGROINDUSTRIAL LTDA - ALCOHOLIC DRINKS - BRAZIL
STRATEGIC DIRECTION
KEY FACTS
Summary 40 Ypióca Agroindustrial Ltda: Key Facts
Summary 41 Ypióca Agroindustrial Ltda: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 42 Ypióca Agroindustrial Ltda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 43 Ypióca Agroindustrial Ltda: Competitive Position 2007
BEER IN BRAZIL
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 44 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