The Beer market in Brazil and opportunities for Danish breweries

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This article is dedicated to talk about the beer market in Brazil, but mainly to the to the premium beers market in Brazil.

A quick look at the Beer market in brazil

The beer market in Brazil is dominated by 4 very large corporations and them altogether hold a market share of 98,6%

  • Ambev (68%)
  • Petropolis (11,3%)
  • Brasil Kirin (former Skincariol) (10,7%)
  • Heineken(8,6%)

The microbreweries and the special beer market in Brazil

Brazil has seen its premium beer market to grow exponentially. The reason? People want to drink “better now”….

According to Maurício Nogueira, partner of On Trade, Brazil is the third largest beer market, but it is in its crawling stage for premium beers. Some business men forecast a growth of nearly 13 times within this niche for the next decade. Currently the consumption of premium beer in Brazil is equivalent to 0,15%, and there is potential to reach 2% over of the next decade, the total beer consumption in Brazil.

On average, Brazilians consume approx 140 million hectolitres of beer per year. Arnaldo Borges says that we loose to Germany in assortment but not in quantity. Several entrepreneurs from all fields are looking more closely to the sector of premium beers in Brazil. Pablo Castro, for instance realizing quickly that this is a sector of high growth in Brazil, decided to invest in a logistics company with his partner their job is to do all the warehousing,logistics and distribution.

Brazilians are having a different relationship with beers now and are keen on tasting different labels. Also, as loads of Brazilians are earning more money now than 10 years ago, they are going after different types of knowledge. Marco Antonio Falcone points out that now, many Brazilians don’t want to only drink the beer, but also to harmonize it with different dishes. By the end of 2014, specialist forecast that premium beers will represent 7% of the total volume of sales of beers in Brazil.

The microbreweries in Brazil

Untill 2012 there were nearly 200 microbreweries spread throughout Brazil, though this number could be quite superior. The reason is, that several brewers are producing their beers, but still await for their licenses. The prices of gourmet beers in Brazil are, on average, 3 times more expensive than the industrialized beers, while in the USA the difference is of 50%. According to some Brazilian brewers, the explanation for these beers to be more costly are the small scale that these beers are produced, the cost of the supplies and the taxes.

The imported beers in Brazil less expensive than Brazilian gourmet beers…

In Brazil talking about beers is a serious thing. There are several bloggers dedicating their times, and making money, just to talk about beers.

According to brewers the national chain of suppliers and the complexity on how tributes are charged are enormous. At the end this complexity turns the price of the Brazilian gourmet beer more expensive and therefore less competitive than international beers. Ironically, the same Brazilian if exported, for instacne to the USA, will cost less than it costs in Brazil.

This price comparison was done recently by Fernando Pacheco, a geography professional and beer lover:These is a comparison of equivalent beers

Country-Brand-Price

(Br) Wals (R$21,50 per liter) X (Ger) Bitburger( R$ 14 per liter)

(Br) Colorado(R$104,83 per liter) X (Sco) Brewdog (R$ 75,45 per liter)

(Br) Bodebrown (R$ 74,19 per liter) X (Sco) Brewdog( R$ 45,42 per liter)

(Br) Wals (R$ 39,44 per liter) X (Bel) Chimay ( R$ 37,85 per liter)

Obs: 1 BRL = 2,8 DKK


Where does Brazil imports it beer from

Holland was the country which imported most beers in Volume and since 2011 is the major holds its position as main beer exporter to Brazil.

 

beer importation Brazil

Source:Ministério do Desenvolvimento, Industria e Comércio Exterior

Despite the slight downturn of beer imports in 2013, specialists are very optimistic about the very premium beer segment for 2014. In fact, the data from the federal government shows that beers coming from Germany, U.K and Check Republic showed positive results in 2013.

Hope you enjoyed this article, let me know if I missed out on something.I’d love to hear your feedback

Mange tak

 

 

 

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Carlos Monteiro is a Brazilian citizen, graduated in Business Administration by the Catholic University of São Paulo. He lives in Odense, Denmark with his Danish Wife, Cathrine, and their half Danish /Brazilian daughter Ines Marie. You are very welcome to be in contact him at any time.

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