Friday, October 20, 2017

Heineken's growth, with purchase of Brazil Kirin, heats the beer market makes more than 6.5 billion liters in a can per year

The Brazilian beer market, the third largest in the world, with a production of 14 billion liters a year, won new contours in 2017. The movement was caused by Dutch Heineken, which invested R $2.2 billion and acquired the Kirin, Brazil the third largest brewery in the country. The result was a warming in the strategies of the major brands, stimulating a market that represents 1.6% of the Brazilian GDP. According to the latest annual number closed by the control System of production of Drinks of the Irs (Sicobe, 2015), no less than 48.4% of the brazilian beer is bottled, canned, which represents more than 6.5 billion liters.
With the acquisition of Brazil Kirin, which owns the brands Wanton, Schin, Baden Baden and Eisenbahn, Heineken expands your portfolio (Heineken, Amstel, Dos Equis, Birra Moretti, Kaiser and Bavaria) and have about 20% of the Brazilian market. The lead remains with Ambev (Brahma, Skol, Antarctica, Stella Artois, Budweiser, Bohemia, Quilmes, Caracu), with 63 percent of the market, getting third in the Petrópolis Brewery (Itaipava, Crystal, Petra, Miller, Lokal, Weltenburger Kloster), with approximately 14%.
In an interview with the newspaper O Estado de Sao Paulo, shortly after the announcement of the acquisition of Brazil Kirim, the President of Brazil, Didier Debrosse Heineken, made it clear that the country is a priority for the Dutch brewery and will become the largest overall market company. "Brazil is not for beginners, especially when abroad look the business environment here, including bureaucracy and concerns about taxes and the legal system. But we feel that we now know the country. We believe to be able to grow and we risk here, "he said.
Didier Debrosse also made clear three lines where the new Heineken: performance in States with fiscal stimulus, low per capita consumption regions and strengthening of the premium segment, increasing your portfolio with Baden-baden and Eisenbahn. "The current situation is complicated, the market fell a little in 2015 and 2016. But Brazil is still ' green ', with good chance of expansion in the Northeast, where per capita consumption is low. And the premium segment still has a much smaller share than in the rest of the world. It's an opportunity for us. "
The Service Manager from Nielsen for the beverage market, Marcelo Mendonça de Fázio, also evaluates as an opportunity the growth of premium brands, even with an average price two times above average category. "Comparing in self-service stores (Scantrack), the volume in the year 2016 is 42.5% of 2015 in Brazil. One reason is the development of category in the larger shops: hypermarkets with more than 4000 m2 grow 73.2% in volume. In spite of the contribution, the main channel are still Super stores (between thousand m2 and 4000 m2), concentrating 64% of sales in this segment. "
To broaden participation in low per capita consumption markets, the industry must assess the potential of each package. The 13.8 billion liters of beer produced in 2015 (Sicobe), 54% coming out of factories in the Southeast, where Tin has 47% of participation between the packages. The Tin is more used in the Midwest and southern regions, where it has about 60% share of production (1.6 billion liters of beer).
According to data from Brazilian Beer Industry Association (CervBrasil), the brewing industry is one of the most important of the brazilian economy, with annual sales exceeding R $70 billion, investments close to R $20 billion between 2011 and 2014, gathering some R $21 billion in taxes per year. Today employs about 2.2 million people along your supply chain and is present in all cities of the country, on a network that runs from the agribusiness to small retail, passing by the segments of packaging, logistics, and construction machinery.
Abralatas - 09/10/2017
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