Brazil: 2012 beer sales volume suffers, Ambev’s market share declines to 63%

In 2012, volume sales within the Brazilian beer industry suffered strongly from unit price increases by manufacturers. This marked an attempt to dilute the tax increase scheduled for late 2012, extended to the first semester of 2013, through negotiation with the government, Companies and Markets reported on October 15.

Thus beer manufacturers cooperated in the "Greater Brazil Plan", in which companies have to pledge investment in new jobs and production, to stimulate beer sales.

Brazil is the world's fourth largest market for beer with over 88 million barrels produced in 2010 and annual per capita consumption of 53.3 litres.

In the Brazilian Carnival period there is an explosion in consumption. In these 4 days, 400 million litres (or around 4% of the yearly production) are consumed. In November with the approach of summer, the manufacture and investment in marketing triples.

International tourists find that domestic and local beers are much less expensive than imported brands.

Over the past decade or so Brazil has imported more and more brands of beer from Europe (particularly from Belgium) and the USA. These imports are a lot more expensive than locally brewed beers. However, there are a growing number of bars and beer shops dedicating themselves to selling a large range of craft and imported beer.

Some international brands are actually produced in Brazil, such as Stella Artois and Heineken, but all are dedicated to the premium market with very small market share.

Cia Brasileira de Bebidas (Ambev) continued to dominate the Brazilian beer industry with a 63% share of total volume sales in 2012.

However, this represented a slight fall on 2011. In 2012, the company continued to increase prices as it anticipated the tax rise in 2013, in order to compensate for reduced volume sales.

The Brazilian beer industry is expected to post a positive performance over the next five years, with a 3% total volume compound annual growth rate (CAGR).

This will be mainly due to two important events: the 2014 FIFA World Cup and 2016 Olympic Games, both of which will take place in Brazil, analysts said.