Breweries are advancing little, but win craft space

Despite the projection of light beers market expansion this year, the sector should not return to the record level of 2014 for the next two years, after the local industry 3 the impact of the economic crisis. However, the craft breweries earn space between consumers, eager for new products and with a little more money in your pocket. In 2017, the production volume has remained around the previous year, when it reached 13.3 billion liters, according to the Brazilian Association of the industry of Beer (CervBrasil). The entity represents Ambev, the grupo Petrópolis and Heineken (which recently acquired Brazil Kirin). Together, these companies account for about 96% of the national market. "In 2017, got stronger the opposition between the availability of income for consumption and the volume of production of beer", says the Executive Director of the Association, Paulo de Tarso Petroni. In the second half of 2017, however, he states that the economy began giving positive signs as the fall in inflation, interest rates and a slight reduction in unemployment. "So, we bet on a resumption of buying power for this year", says the Executive. Second Petroni, the last two months have brought back the optimism to Brazilian breweries and the Executive designs that the growth of the sector for 2018 must accompany the high estimated for the Brazilian GDP, from 2.89 percent, according to the bulletin Focus Feb. The results achieved by two of the giants of the sector support with the prospect of Petroni – even though growth – despite the crisis. In 2017, Heineken announced the acquisition of Brazil Kirin for $ $704 million and became the second largest in the country. The holding company reported net income of 1.94 billion euros overall in 2017, 25.6% higher than the result obtained in 2016. Already the Ambev increased 5.6% in net revenue last year, to R $26.35 billion, although the volume of production has grown only 0.7% before 2016. Even if this projection is confirmed, the growth will not be enough for companies to resume the pre-crisis production volumes, when the industry reached 14 billion liters. "We hope to 2018 1 slightly larger production volume if companies remain the same price strategies last year. But still we will take a couple of years to resume the volumes of 2014, "estimates. Over the next five years, the consulting firm Mintel estimates that the beers in the Brazil move R $101 billion, a growth rate low, but stable. The latest market data indicates R $70 billion in revenues in 2014. In this scenario, craft breweries that are dedicated to handcrafted or special drinks are room to grow, bolstered in the interest of the consumer in differentiated products. These companies represent between 2.5% and 3% of market turnover. According to the Ministry of agriculture (Mapa), the total number of breweries in Brazil reached 679 last year, up 37.7% before 2016, with 8900 products registered an average of 13 for each brand. "I believe that this number will continue to grow at this pace in 2018, especially in regions such as North, Northeast and Center-West", the President of the Brazilian Association of Microbreweries and Beer companies (Abracerva), Carlo Giovanni Lapolli . He bet on two factors for this growth: the popularization of brewpubs-breweries that sell directly to the final consumer – and the possibility of the microbrews join the national simple from this year. To fit this category, companies need to have turnover of up to £ $4.8 million. "For breweries, the limit is little, but to the brewpubs is very good," says Lapolli. The advance of this market draws attention also large companies that have acquired smaller breweries to offer more sophisticated products. "Both big as small manufacturers are trying to meet this demand of the public in a setting of resuming the power consumer population. It's a move that broadens the market, "says Petroni, of CervBrasil. The prospect of growth of craft beers have attracted even companies that don't work in the business. Valduga, traditional wine House, invested R $6 million in a unit for the production of special beers, the brewery Leopoldina, in Garibaldi, in the Serra Gaúcha, with production capacity of 70000 litres per month, for a year and a half. "I believe that this is a trend, both between the national and the foreign wineries. The production of wine and beer has much to contribute to each other, "says brand manager, Fernando Mark cross. Today, the Brewery produces 40000 liters per month and recorded high in sales of 47% last year. "This year, we expect a growth of 60%, with the market entry of new products and increased popularity of the brand," estimates the cross. The unit bet on technologies such as water treatment according to the type of beer that will be produced and the expertise of liquor maturation in oak barrels to position themselves as premium brewery. Unrelated to the crisis, the brewery Berggren, Nova Odessa, in São Paulo, ends this year, the expansion of your plant, with a production capacity of 1.2 million liters per month, with an investment of $3 million R-80% funded by the BNDES. For now, the unit should work with 320,000 liters per month, according to the Director General of the company, Lucas Berggren. In January 2016, when it was inaugurated, the brewery was producing 120,000 litres per month. "We started with 11 styles of beer and 12 tanks. With some products selling more than others, it has not been possible to maintain the variety of offer, so we opted for the enlargement. " With the investment, the Berggren intends to triple the revenues (which was R $750,000 in 2017) in the next 18 months. Drinks are sold in five States.