Number of breweries in Brazil almost doubles in 3 years and industry back to create jobs

In spite of the fall in consumption of beer in the country over the past 3 years, the number of manufacturers, brands and labels of the drink has multiplied, the industry returned to create vacancies and the number of workers resumed the pre-recession level. Behind this activity, warming is the worldwide phenomenon of craft beers, which has been garnering more and more new entrepreneurs and consumers. According to the official data, the number of breweries registered in Brazil grew 91% in the last 3 years, jumping from 356 establishments in 2014 to 679 in 2017. Last year alone, the country gained 186 new factories. Already the number of beers and beers came to 8,903 registered last year, according to the Ministry of agriculture, livestock and food supply (MAPA), which corresponds to an average of 13 labels for each brand. More than 80% of the breweries are concentrated in the South and Southeast, but already there are establishments spread in all States of the country, with the exception of Acre and Amazonas. Friends invest R $2 million in factory in SC among new entrepreneurs who have decided to bet on the sector's engineer David Zimmermann, of 41 years, who decided to change the construction for the beer. With two more friends as partners and initial investment of RS $2 million, he opened this month in Blumenau Alles Blau, in a 900-square-meter area and production of 50000 litres per month. The factory began to operate with 6 employees, but plans to reach 18 until the end of the year case reach the goal to triple production. He estimates that the Brazilian market will still grow at least 10 consecutive years. "The big challenge for the craft beers is falling in taste of the general public and can give volume to have a competitive price," he said. More Brewers most craft breweries usually have regional activities and hiring a few employees. But every little bit has been done too much beer and created job opportunities in different points of Brazil. Data from the Brazilian Association of Craft Beer (Abracerva) show that are small and medium-sized businesses that have ensured the growth of number of workers in the sector. From 2015, the factories with more than 99 employees 1,184 cut jobs, while companies with up to 99 employees created 1,549 vacancies, which resulted in an increase of 365 workers in the formal sector. "Who held jobs in the sector was surely the microbreweries," says the President of Abracerva, Carlo Lapolli. He points out that the official figures of workers include the universe of professionals working in the so-called Roma breweries, which are formally constituted business with marketing of own brands, but that outsource production. Pulled by the signings of microbreweries, the number of workers in the sector has taken over the level of 36000 employees at the end of 2016, after two years of cuts in the midst of economic crisis and restructuring arising from mergers and acquisitions in the industry. This made the signings come back through layoffs. The Caatinga Rocks, launched in 2017 in Maceió, for example, increased your headcount of 1 to 5:00 pm less than 1 year. With an investment of RS $1 million and financing the development agency of the State of Alagoas, the brothers Marcus and Rafael Leal decided to transform the production in professional business with homemade "northeastern identity" and use local ingredients such as umbu and cocoa and toasted coconut. "Our proposal is to make product of excellence. We could create a mass product, cheaper, but we chose a product with greater added value, "says Rafael. In 1 year, the brewery's production rose from an average of 3 to 10000 litres per month. "Although we were born in a difficult time, it was a really good year," celebrates. To the President of Abracerva, the multiplication of small breweries represents a paradigm shift, in that it has shown that most people use to produce fewer litres of beer can contribute to reheating and market innovation consolidated and centenarians like beer. There is room for more despite the boom of recent years, the industry's assessment is that there is still plenty of room for new breweries. Today the market share of the craft Breweries still is marginal and it is a niche segment. The President of the Abracerva States that the growth potential is huge, and still cites the United States, where there are about 6000 breweries. "There's a lot of ongoing project and to leave this year. We live so far only the prehistory of artisanal beer in Brazil ". Small have 1% of consumption the Association estimates that the artisan production respond by just 1% of the total volume and for about 2.5% of sales revenue in the country. "We believe that we can multiply by 3 or 4 in a 10-year horizon," says Lapolli. The Brazilian Beer Industry Association (CervBrasil), which brings together the 3 giants of the Brazilian market (Ambev, Heineken and Petrópolis), estimates that the marks of the three groups accounted for 95% of all brazilian production last year. The most curious of the advancement of craft beers and special is that so far the phenomenon seems to be a good business for both new entrepreneurs and the industry giants, which also bet on special recipes and acquisitions. The Colorado brewery, for example, was bought in 2015 by Ambev. Lower consumption, higher quality according to data from Nielsen, the total sales of beer fell by 1.7% in volume in 2017 compared with the previous year, while turnover rose by 1.6%, driven by growth of 13% of sales of premium beers and craft, what According to analysts confirmed a world trend to drink less, but better. That is, the companies are selling less volume, but on the other hand are able to raise the penetration of more expensive labels. The participation of the premium beer segment in total sales jumped from 7% in 2007 to 11% in 2016, according to data from Euromonitor. The number includes the craft beers, but also imported drinks and special labels or simply more expensive than portfolio of major manufacturers. Ambev, for example, surged to 0.7% in the volume of beer sold last year, but the revenue of the category grew in pace of 6.3% higher. Per capita consumption stagnated according to Euromonitor, per capita consumption of beer in Brazil fell in 4 years from an average of 67.8 liters for each Brazilian for less than 60.7 liters per year. In the US, for example, the average is above 80 litres. Already in countries such as Germany, Ireland and Czech Republic, the matter of 100 liters. To the Executive Director of CervBrasil, Paolo Petroni, the stagnation of per capita consumption of beer in Brazil in recent years owes much more to the strong recession than a change in consumption habits. "We see with good eyes this explosion of entrepreneurs in the segment. And it's not kindness. It's a matter of economic competitiveness even. The more we can raise the per-capita income in Brazil, more beer market will grow. We understand that the multiplier effect of entrepreneurship in the expansion of consumption will supplant a possible loss of share points, "he said.