Beer in Uruguay

PRE-COVID-19 PERFORMANCE

Economic instability, rising prices and the weak summer season impact total volume growth for beer in 2019

Beer consumption declined in 2019, due to economic instability, with a strong increase in unit prices also impacting volume sales. Price increases were affected by fluctuations in the exchange rate, which increased the prices of imported beer.

Consumers are increasingly demanding quality, innovative flavours, and craft beer offerings; boosting the premiumisation trend in the country in 2019

Over the review period, craft beer continued to grow, appealing to younger adult consumers, particularly women. This is often due to the beer being made with barley, with some women in the country avoiding wheat-based products.

Fábricas Nacionales de Cerveza continues to lead the landscape, as competition from craft players increases in 2019

With a significant distance from its competitors, Fábricas Nacionales de Cerveza (FNC) continued to lead beer in Uruguay in 2019, with well-known offerings such as Pilsen and Patricia. During the year, the player had good results with its premium offerings Stella Artois and Zillertal, and its craft beer Patagonia, experienced strong volume growth, with a large advertising campaign and exclusive commercial agreements in brewpubs.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of beer are expected to fall by 3% in 2020 in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted in May 2019, before the spread of COVID-19.

Affected products within beer

The majority of beer products are expected to record a decline in on-trade volume growth for 2020, with COVID-19 restrictions closing all on-trade facilities from March-May 2020. In addition, even once establishments are open, ongoing social distancing will impact consumer numbers inside on-trade premises, continuing to dampen growth.

Recovery and opportunities

On-trade consumption of beer will continue to struggle during 2020, as consumers continue to social distance and remain cautious about visiting public places. In addition, many smaller establishments will need to reduce their intake of consumers to align with social distancing rules, further dampening volume growth.

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