Beer in Chile
Euromonitor International's Beer in Chile 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: 60 | 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
Premiumisation was the main trend seen in beer in 2008. In premium lager, rapid growth occurred mainly in imported premium lager, as consumers became ever more willing to try new brands. However, another interesting phenomenon was the launch of upper-mass brands. Cervecería Chile SA’s Brahma line saw the launch of three new varieties in 2007 and 2008, with its Bock, Porter and Stout having a slightly more exclusive positioning than Brahma lager. This upper-mass positioning partly stemmed from these brands being initially launched as limited edition releases. They are slightly more expensive than standard lager but cheaper than premium products. These upper-mass products thus attract middle-income consumers who might not be willing to pay for a premium brand but who are increasingly interested in quality products.
Total volume growth for beer in 2008 was about half the level of the review period CAGR. Leading beer producer Cía Cervecerías Unidas invested heavily in product development, new packaging and advertising during the review period as a whole in order to increase per capita beer consumption. However, towards the end of the review period it focused more on other business areas such as RTDs/high-strength premixes, pisco and packaged food. Consequently, growth in beer slowed.
Imported premium lager saw the strongest growth in 2008 with a growth of 70% in volume and 77% in value. Chileans became increasingly interested in trying imported lager, especially in the on-trade. Importers of beer consequently increased the variety of their offering. For example, in 2008, Viña Concha y Toro began to import Miller Genuine Draft.
Unit prices saw increases in nearly all product areas in beer at the end of the review period. The main reason for this was the rising cost of commodities and energy sources such as fuel and electric energy. This made production more expensive and these costs were passed on to consumers.
Economy and standard lager underperformed beer as a whole in total volume terms in 2008. As tastes moved towards more sophisticated products such as microbrewery beer and imported lager, consumers turned away from lower-priced lager, in particular economy lager. Domestic economy lager saw a volume decline of 17% and did not see any launches or significant advertising investment towards the end of the review period.
Sales growth in the off-trade lagged behind that seen in the on-trade as Chileans continued spending outside home. The trend was reversing by the end of the review period. Economic growth slowed in the last quarter of 2008, while inflation affected consumers’ purchasing power. Consequently, some Chileans chose to entertain more at home rather than going out, in order to save money.
In general, there was a trend towards higher alcohol content in beer towards the end of the review period. Cervecería Chile SA was one of the companies leading this trend towards the end of the review period, for example launching Brahma Bock with 7% abv and Brahma Extra with 5.5% abv. Brahma Extra is promoted as having a more full-bodied flavour and richer colour.
Domestic beer is most commonly sold in one-litre returnable bottles. The deposit is about CH$350-400 for these bottles but is only paid once, as consumers can return to the store with an empty bottle as a subsequent deposit. However, there was strong growth for products with a premium positioning towards the end of the review period, with these generally packaged in bottles or cans of 350ml. The convenience of not having to return litre bottles to stores supported the growing popularity of disposable packaging in beer.
Production, Imports and Exports
While imported beer is gaining in popularity, most beer consumed in the country is domestically produced, with the production of products increasing across beer. Microbreweries also increased production in response to growing demand for their products towards the end of the review period. However, microbreweries’ share of sales remained very small when compared to that of the two leaders in beer, Cía Cervecerías Unidas and Cervecería Chile.
Chile is not a significant exporter of beer. However, consumers in the country were increasingly receptive to trying imported lager, with imports thus showing notable volume increases towards the end of the review period.
The majority of beer sold in the country is still domestically produced, even though imported lager made inroads towards the end of the review period. All imported lager is classified as premium due to high shipping/import costs and the fact that imported beer is not sold in returnable bottles. Even brands such as Cía Cervecerías Unidas SA’s Budweiser, which would not be considered premium in most countries, are classified as premium in Chile.
There was no data available for overall production in the last two years of the review period. Consequently, it is not possible to judge apparent consumption.
Table of contents
ALCOHOLIC DRINKS IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
2008 sees slower volume growth than in recent years
Premium beer makes inroads
Cía Cervecerías Unidas SA keeps lead in 2007 while 2008 appears less rosy
Specialists see share slide
Economic crisis to constrain forecast period growth
KEY TRENDS AND DEVELOPMENTS
Court ruling should open opportunities for smaller brewers
Economic problems likely to slow growth in premium alcoholic drinks
Congress considers legislation on alcohol advertising and product labelling
Specialist retailers lose share
Summary 1 Leading Specialist Retailers 2007
Market merger and acquisition activity
LEGISLATION
Summary 2 Drink Driving Penalties
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 2008
Table 3 Selling Margin of a Typical Imported Beer Brand 2008
Table 4 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 5 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 6 Selling Margin of a Typical Imported Wine Brand 2008
Table 7 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 8 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 9 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 10 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 17 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 18 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 19 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 20 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 24 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 3 Research Sources
LOCAL COMPANY PROFILES - CHILE
CíA PISQUERA DE CHILE - ALCOHOLIC DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Cía Pisquera de Chile: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Cía Pisquera de Chile SA: Competitive Position 2007
COOPERATIVA AGRíCOLA PISQUERA DE ELQUI LTDA - ALCOHOLIC DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Cooperativa Agrícola Pisquera de Elqui Ltda: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Cooperativa Agrícola Pisquera de Elqui Ltda (CAPEL): Competitive Position 2007
LICORES MITJANS SA - ALCOHOLIC DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Licores Mitjans SA: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Licores Mitjans SA: Competitive Position 2007
VIñA SAN PEDRO SA - ALCOHOLIC DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Viña San Pedro SA: Key Facts
Summary 11 Viña San Pedro SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Viña San Pedro SA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 Viña San Pedro SA: Competitive Position 2007
VIñA SANTA RITA SA - ALCOHOLIC DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Viña Santa Rita SA: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Viña Santa Rita SA: Competitive Position 2007
BEER IN CHILE
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 16 Lager by Price Band 2008
Published Data Comparisons
Table 25 Sales of Beer by Subsector: Total Volume 2003-2008
Table 26 Sales of Beer by Subsector: Total Value 2003-2008
Table 27 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 28 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 32 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 33 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 35 Beer Exports by Country of Destination: Total Value 2002-2007
Table 36 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 37 Beer Imports by Country of Origin: Total Value 2002-2007
Table 38 Company Shares of Beer by National Brand Owner 2003-2007
Table 39 Company Shares of Beer by Global Brand Owner 2003-2007
Table 40 Brand Shares of Beer 2004-2007
Table 41 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 42 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 44 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013