Drinking Out - Brazil - March 2017


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Mintel

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Brazilians are cutting down on drinking outside of the home. It is expensive and drinks specials and promotions are good motivators to make consumers drink more. To remain visible and relevant during the recession, brands and venues need to expand and offer special experiences and beverages to consumers. Venues also need their clients to talk about their establishments to family and friends as well as posting about them on social networks.

Table of Content

OVERVIEW
What you need to know
Products covered in this report
Beer
Spirits
Wine and sparkling wines
Excluded

EXECUTIVE SUMMARY
The market
Figure 1: Value sales forecast of on-premise alcoholic beverages in Brazil, 2011-21
Market drivers
Aging population presents challenges and opportunities
The economy is still unstable but consumer confidence is up
The consumer
Beer is consumed by 56% out of home
Figure 2: Consumption of alcoholic beverages out of the home, January 2017
Recommendations are used by 70% when trying new alcoholic drinks out of home
Figure 3: Drink trial motivators, January 2017
Recommendations and welcome offers are important when picking a place
Figure 4: Reasons to choose a place to drink, January 2017
Brand loyalty is weaker among young consumers
Figure 5: Attitudes to drinking out of the home, January 2017
Large bottles represent good value for money but encourage over-drinking
Figure 6: Correspondence analysis - Attitudes toward different formats of beer, January 2018
What we think

ISSUES AND INSIGHTS
Getting senior consumers into bars and restaurants
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
On-premise value sales forecast to reach R$61 billion by 2021
Aging population can impact future sales
A tax change to benefit the expansion of microbreweries

MARKET SIZE AND FORECAST
Market performance and forecast
Figure 7: Forecast of sales for on-premise alcoholic beverages, by value, 2011-21
Forecast methodology

MARKET DRIVERS
Aging population presents challenges and opportunities
The Brazilian economy is still delicate
Inflation is showing signs of slowing down
Figure 8: IPCA monthly change, by percentage, January 2014-January 2017
Unemployment rate keeps increasing
Cuts in the interest rate continue
Consumer confidence is up again

REGULATORY AND LEGISLATIVE CHANGES
Microbreweries to benefit from a tax change
Craft beer booming

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Beer and cocktails on tap
Heineken acquires Brasil Kirin
THE NEW BARS
São Paulo Tap House
COD – Craft on Draft
Choperia São Paulo
Goose Island opens a brewpub in São Paulo
“Anti-bar” opens up in Porto Alegre
Negroni
Mirante 9 de Julho
Emerging trends in bars and restaurants
Self-service beer
Cocktails on tap

COMPETITIVE STRATEGIES
Consolidation
Heineken purchases Brasil Kirin
Digital Activity
Skol uses Facebook to promote its beer offline
Kaiser tried to innovate with WhatsApp
Marketing and Advertising
Campari’s campaign takes guests on a multisensory journey
Summer party inside elevators
Cachaça stories
Heineken occupies MAC
Ambev promoted Skol during carnival
Budweiser’s new campaign focuses on being authentic

THE CONSUMER – WHAT YOU NEED TO KNOW
Beer is highly consumed out of the home
Brands should promote word-of-mouth
When choosing a place, consumers will listen to recommendations
Brand loyalty is stronger among older consumers
Large bottles encourage over-drinking

CONSUMPTION OF ALCOHOLIC BEVERAGES OUT OF THE HOME
Beer is the most consumed alcoholic beverage outside of the home
Craft beer is still niche
Figure 9: Consumption of beer out of the home, January 2017
Classic cocktails are the most ordered
Figure 10: Consumption of spirits out of the home, January 2017
Nonsparkling wine is the most consumed
Figure 11: Consumption of wine out of the home, January 2017
LGBT+ consumers present higher consumption of alcoholic beverages out of the home
Skol promoting acceptance
Figure 12: Consumption of alcohol by type out of the home, by sexual orientation, January 2017
Figure 13: Consumption of alcoholic beverages out of the home, January 2017

DRINK TRIAL MOTIVATORS
Recommendations play a strong role
Figure 14: Drink trial motivators, by recommendation type, January 2017
Drink specials can boost sales
Brands should be creative with their products
Figure 15: Drink trial motivators, January 2017
Figure 16: Drink trial motivators, January 2017

REASONS TO CHOOSE A PLACE TO DRINK
Recommendations are also important when choosing a place
Figure 17: Reasons to choose a place to drink, by recommendation type, January 2017
Welcome offers are important during economic difficulties
Figure 18: Reasons to choose a place to drink, January 2017
A nontraditional setting is interesting for 24%
Availability of different beverages
Figure 19: Reasons to choose a place to drink, by availability of different beverages, January 2017
Figure 20: Reasons to choose a place to drink, January 2017

ATTITUDES TO DRINKING OUTSIDE OF THE HOME
Brand loyalty is strong when drinking out
Figure 21: Attitudes to drinking out of the home, brand loyalty, January 2017
Consumers are cutting back on drinking out
Figure 22: Attitudes to drinking out of the home, cutting back, January 2017
Bars and restaurants should act to prevent drunk driving
Getting inspiration from other markets
Pairing alcohol with food to boost sales
Teaching consumers about alcoholic beverages
Brand-owned bars and pop-up parties get closer to consumers
Pop-up party with Budweiser
Absolut launched a pop-up bar in Recife
Figure 23: Attitudes to drinking out of the home, January 2017
Figure 24: Attitudes to drinking out of the home, January 2017

ATTITUDES TOWARD DIFFERENT FORMATS OF BEER
Large bottles represent good value for money but encourage over-drinking
Figure 25: Correspondence Analysis - Attitudes toward different formats of beer, January 2017
Figure 26: Attitudes toward different formats of beer, January 2017
Methodology

APPENDIX – MARKET SIZE AND FORECAST, ABBREVIATIONS AND SUPPORTING INFORMATION
Market size and forecast
Figure 27: Best/worst cases for value sales for on-premise alcoholic beverages, Brazil, 2016-21
Fan chart forecast
Abbreviations

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