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.”