Brazil Beer Industry Essay

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Executive Summary

This report displays the various possible Investment opportunities and Strategic choices for a Scottish Alcohol Company to enter and trade within the South American country of the Federative Republic of Brazil.

Documented and analysed are the concept of the overall environment of both the European and South American regions, detailing the many facets and characteristics present that may help or hinder possible market penetration into the area.

Furthermore, also displayed is the potential engagement of both countries through am alcohol based product. Additionally, shown, is the culture of both countries and the preferences and opinions towards alcohol and their effects.

The Investment and Strategic for an
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Brazilian Beer consumption expanded by a thumping 11% in 2010

Brazil is the world's fourth largest market for Beer, with over 85 million barrels produced and distributed in 2010 alone. The annual consumption per capita is 54 litres.

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(Brazilian Bubble, 2012)

The tradition of brewing in Brazil dates back to German immigration in the early 1800’s. The first breweries date from the 1830’s.

The brand Bohemia is claimed to be the first Brazilian beer, with production starting in 1853 in the city of Petrópolis, Rio de Janeiro. Bohemia is the oldest Brazilian beer which is now owned by Anheuser–Busch InBev. Two important brands, Antarctica and Brahma, started production in the 1880’s.

Over the past 15 years Brazil has imported brands of beer from Europe (for example, The Netherlands and Belgium). These imports are more expensive than locally brewed rivals. There are a growing number of bars and beer shops dedicating themselves to selling a large range of craft and imported. International brands are produced in Brazil, such as Stella Artois and Heineken, but are dedicated to the premium market with small market share.

Pilsener Beers are the most consumed in Brazil (98% of the market share), with only a small number of rivals. Majority of the market belongs to AmBev, the owner of the Brahma, Antarctica, Bohemia and Skol brands. Brazil's largest brewer was formed in 1999 from the merger of the
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