Beer in Brazil

PROSPECTS

FIFA World Cup not expected to be a catalyst for beer sales in 2018

While beer sales peaked in 2014 due to Brazil’s hosting of the FIFA World Cup, no such impact is expected in 2018, when the competition will be held in Russia. Significant drivers like constrained budgets, conservative spending habits and uncertainty are expected to have a negative impact on demand for beer.

Premium brands show steady growth, despite economic uncertainty

While the economy shows timid signs of recovery, consumers are still adopting conservative attitudes towards discretionary spending. The global trend towards “drinking less, but drinking better” reflects recent developments within beer in Brazil.

At-home consumption set to recover faster than on-trade channel

As many consumers are still struggling to save money, eating-out remains a rare treat for many Brazilians. Consequently, many consumers are opting to drink beer at home.

COMPETITIVE LANDSCAPE

Heineken and Brasil Kirin merger to face challenges over coming years

Since Brasil Kirin’s purchase by Heineken in the first semester of 2017, there has been much speculation regarding the continuity of each company’s brand portfolio, how to merge their distribution capabilities and the harmonisation of consumer management strategies. On the one hand, the deal increases Heineken’s production capacity and allows the company to increase penetration within non-alcoholic drinks.

Cia Brasileira de Bebidas investing in premium brands

Cia Brasileira de Bebidas remains reliant on the performance of its mid-priced lager range, including brands like Skol, Brahma and Antarctica. However, recently the company has started to strongly invest in its premium portfolio, especially brands like Budweiser and Stella Artois.

Grupo Petrópolis expands production and recovers second position in beer

In 2017, Grupo Petrópolis was overtaken by Heineken, which now owns Brasil Kirin brands. After falling to third position, the group decided to expand production capacity, especially for existing beer brands, and to launch new ranges.

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