Brazil Beer Market Insights 2012




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Product Synopsis

A detailed market research report on the Brazil beer industry. Researched and published by Canadean.

Introduction and Landscape

Why was the report written?

This report comprises high level market research data on the Brazil beer industry, published by Canadean. The report covers the total market (on- and off-premise) and includes valuable insight and analysis on beer market trends, brands, brewers, packaging, distribution channels, market valuation and pricing.

What is the current market landscape and what is changing?
Strategy is the word defining the current state of the Brazilian beer market, especially due to AmBev, which is now focusing on revenue increase after reaching its market share limit. Over the past three years the company has been raising its prices, testing elasticity and receiving good acceptance. Despite GDP levels falling below expectations and several economic implications, the Brazilian beer market continued in its growth path, increasing by just over 3%. The market was fuelled by several investments made by big players, added to by the acquisition of Schincariol by Kirin Group in the second half of the year.

What are the key drivers behind recent market changes?
As more and more Brazilians enter the labour market, on-premise channels are gaining importance and becoming highly strategic. As AmBev moved towards the premium segment, some gaps were left in the market, giving space to brands such as Itaipava, Kaiser and some renewed discount brands. These brands were given the chance to reposition themselves, though this did not involve growth of volumes since AmBev kept its share almost stable.

What makes this report unique and essential to read?
The Brazil Beer Market Insight report is designed for clients needing a quality in-depth understanding of the dynamics and structure of the Beer market. The report provides a much more granular and detailed data set than our competitors. All data has been researched, brand upwards, by an experienced 'on-the-ground' industry analyst who conducts face-to-face interviews with key producers, leading companies in allied industries, distributors and retailers.

Key Features and Benefits
  • This report provides readers with an excellent way of gaining a thorough understanding of the dynamics and structure of the Brazil Beer industry. Data includes volumes from 2007 to 2011, plus forecasts for 2012, enabling historical and current trend analysis.
  • This report provides readers with in-depth market segmentation: mainstream, premium, superpremium, discount, alcoholic strength, local segmentation, and beer type.
  • This report provides data and analysis of the performance of both domestic and imported brands and reports on new product activity in 2011.
  • This report provides an analysis of the industry structure, reports on company volumes and contains brewer profiles for ten major brewers.
  • This report provides distribution channel data (on- vs off-premise) and discusses the latest trends in the key sub-channels. Packaging data includes consumption volumes by pack material, type, size, refillable vs non-refillable, and multi-serve vs single serve. Market valuation data and pricing data, including beer consumption by price segment/distribution channel and selected consumer beer prices, are also included.

Key Market Issues

  • Small/regional companies, especially price driven brands, already started to withdraw from the market due to lack of capital, professional management and even lacking being adapted into the market.
  • In addition to the increase in purchasing power among low income consumers, over the past few years a search for more sophisticated beers has occurred among the high income consumers.
  • A migration from Brazilian cachaa (Brazilian rum) has occurred, especially based on investments made by companies in distribution, advertising and also from purchase power improvements.
  • During 2011, several efforts from AmBev were made to improve distribution and diminish third parties (and consumer prices), especially in the north and northeast regions.
  • Also, one of the biggest retailers in Brazil, CBD (Po de Aucar), improved their beer portfolio, including several premium and superpremium imported beers. This was soon followed by other specialty retailers, who although not as big are still important channels.

Key Highlights

  • A migration from Brazilian cachaa (Brazilian rum) has occurred, especially based on investments made by companies in distribution, advertising and also from purchase power improvements. It is expected that another multinational company will enter the Brazilian market in 2012, causing some change to the segmentation of the market.
  • Beer specialties franchises have been launched, improving superpremium presence in off-premise channels (kiosks) and also beer clubs, with monthly premium and superpremium beer tasting.
  • Imports gained importance, supported by beer specialty franchises and improving distribution from trade companies. With several investments made by metal can producers, it is expected that this pack material will reach 40% share in the next five years without suffering shortage of packs, which has occurred in the past years.
  • Some of the players and brands known as discount beers have been redesigned and repositioned, intending to fulfill gaps left by investments made to premium and superpremium beers. These brands have gained share.
  • The dramatic decline in the volume of 'Others' reflects the impact of the SICOBE measures, the retreat from illegal players and also, the impact on legal discount beers.