James Wilmore

Analysis - Brazil launch for Corona an A-B InBev "priority"

By | 14 March 2013

Brazil is expected to be a focus for A-B InBev once it gets its hands on Modelo

Brazil is expected to be a focus for A-B InBev once it gets its hands on Modelo

Anheuser-Busch InBev will make launching Corona in Brazil, the world's fourth largest beer market, a “priority” if it acquires Grupo Modelo, according to an analyst. 

Stifel Nicolaus analyst Mark Swartzberg said that Corona could also be priced higher than Budweiser in the country once A-B InBev's delayed US$20.1bn deal for Modelo completes. The US brewer's flagship brand was launched in Brazil in August 2011 and has around a 1% share of the country's beer market, according to the analyst in a note yesterday (13 March). 

“We think Corona can achieve at least that share over its initial 18 months,” said Swartzberg, following a meeting with A-B InBev CFO Felipe Dutra.

In full-year results, released last month, A-B InBev saw volumes edge up by 2.5% at its Brazil subsidiary, AmBev.  The brewer already dominates Brazil's beer market with its Brahma, Antarctica, Bohemia and Skol brands. The country is set to host the football World Cup next year and the Olympics in 2016.

Away from Brazil, the analyst added: “Mr Dutra sees revenue synergy opportunities in better price/pack management in Mexico, increased emphasis on Bud Light and Budweiser in Mexico, especially northern Mexico, and expanded sales of Corona outside Mexico and the US.” 

Expert analysis

Consumer Trends in the Beer, Cider & Pre-mixed Spirits Market in Brazil

The data in this beer, cider and pre-mixed provided allows marketers to track consumer behaviour through to its actual value impact on a product market. Unique in the market, this provides readers with a highly detailed data analysis of the market allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviours.

Sectors: Beer & cider, Emerging markets – BRIC

Companies: InBev, Modelo, Brahma

View next/previous articles

Currently reading -

Analysis - Brazil launch for Corona an A-B InBev "priority"

There are currently no comments on this article

Be the first to comment on this article

Related research

Anheuser-Busch InBev NV/SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "Anheuser-Busch InBev NV/SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major product...

Anheuser-Busch InBev NV in Alcoholic Drinks (USA)

Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrative Modelo brands in the US, the company will push...

Anheuser-Busch InBev NV in Beer (World)

A-B InBev is the leading global brewer with 18% of global beer volumes, and the company is well placed to take advantage of expected volume growth in emerging markets, especially in Mexico following its Modelo acquisition, and value growth in high-ma...

Related articles

Analysis - AmBev will hope for permanent World Cup boost

AmBev is likely to use next year's FIFA World Cup football tournament in Brazil to get consumers to "reappraise" its Brahma and Budweiser brands, an analyst has suggested.

BRAZIL: AmBev delays share merger

Plans by Anheuser-Busch InBev's Brazilian unit, AmBev, to merge its two classes of shares into a single stock have been delayed by around two months.

US: Anheuser-Busch InBev readies Bud Light for NFL push - video

Anheuser-Busch InBev has kicked off Bud Light's sponsorship of the National Football League in the US with the first of five new TV ads.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page