24 Jun 2013

How to do the Beer business in Brazil

Posted by rodrigo

Inc. magazine, specialized in entrepreneurs and owners of their own business, publishes various daily tips related to managing micro and small enterprises  and in recent edition, considered the beer business in Brazil the best for investments for Americans.

Brew is on the top of the list for those who want to open a new business and Brazil, third biggest world producer of beer, is among the 10 countries that consume more beer. With the 29% market increase for beer in 2012, investments seem to be a very good idea. Besides, the American market is given signs of saturation. Samuel Adams and Sierra Nevada dominate the handmade market.

Beer Business in Brazil

According to the Brazilian Association of the Industry of Beer (Cervbrasil), which brings together the four major Brazilian manufacturers (AmBev, Brazil Kirin, Heiniken and Petrópolis), the sector generates 1.7 million direct and indirect jobs and paid in average, more than U.S. $ 16 billion in wages.

Every year, Brazil produces around 13 billion liters, serving more than one million points of sale throughout the country and has an industrial park with more than 50 factories. The target audience for beer are 56% of men, ages between 20 and 35. Special beer market has maintained an average growth of 15% in recent years. This consumer, with differential profile, have financial stability and experience of tasting beers from international labels.

The segment is distributed in a broad strategic chain that starts in agribusiness, passes by industry of capital goods (machinery and equipment) and processing (packaging), by construction, the supply chain and retail.

According to a survey from research company Mintel, released in late 2012, the sales volume of beer "premium" - as they are called labels of foreign brands or craft - in Brazil rose 18% last year, compared to 2010. The rate of beer consumption per capita in Brazil (67.4 liters) equal to major markets such as the United States (75 liters) and the UK (64.7 liters).

The sector includes 200 microbreweries and accounts for 5% of total segment revenues, estimated at U.S. $ 39.6 billion in 2012. With annual growth four times higher than the market of traditional beers, specialty beers crave gain 10% market share this year and 20% preference 2015.

The figures from the Ministry of Agriculture, Livestock and Supply (MAPA) show the movement of special breweries towards achieving market: 31 new producers requested record in 2012, the greatest number of requests over the last 30 years. This achievement of shelf space is also verified in retail sector by supermarket shopping Rio South Zone, in which the premium beers already occupy 50% of the space devoted to this type of drink.