Brazil Fruit Juice Production Fuels Drinks Exports

While most of the alcoholic and non-alcoholic beverages produced in Brazil are consumed domestically, the exception is the juice sector. Brazil is one of the world’s top three producers of tropical fruit, according to the Brazilian Fruits Institute (IBRAF), and an important global provider of fruit juice. Brazil produces and exports many types of juices including grape, pineapple, apple, mango and guava. However, its primary juice export is orange juice; Brazil is the top global producer and exporter of orange juice, providing about 60% of the world’s supply, according to the US Department of Agriculture (USDA).

Brazil is home to the top two largest orange juice-producing companies in the world, Cutrale and an as-of-yet unnamed company that was formed by a merger in May 2010 by Brazilian companies Citrosuco and Citrovita. This new company will replace Cutrale as the top global producer of orange juice, and is projected to account for about a quarter of global orange juice production with annual revenues of around US$1.1bn.

Another Brazilian juice that is a big seller abroad is made from the açai berry, which is also widely produced in Brazil. Açai was first exported from Brazil in 2000 and rapidly became popular in health drinks for its high antioxidant content and other healthy properties. Açai Roots, a Brazilian-owned, California-based supplier of natural açai products, estimates the size of the US retail market for açai products to stand in the range of US$70 to $100m, and expects these numbers to multiply in the coming years.

Carbonated soft drinks flavoured with guaraná (a berry from an Amazonian shrub) also have export potential. Several guaraná drinks brands are well connected: Guaraná Antarctica and Guaraná Brahma, Brazil’s top-two guaraná soft drinks, are now owned by Anheuser-Busch Inbev, while The Coca-Cola Co owns competitor Kuat. Guaraná Antarctica is widely available in Latin America, Portugal, Spain and elsewhere, and is the 15th-best selling drink in the world, according to A-B Inbev.

Brazilian coconut water is also gaining attention in Europe and the US. In late 2009, PepsiCo acquired Brazil’s largest coconut water company, Amacoco, which makes the country’s top coconut water brands Kero Coco and Trop Coco. Amacoco currently exports to the US, Germany, Angola and Japan, among other locations.

In the alcohol sector, Brazilian company Ambev (now owned by A-B Inbev) produces Skol, the third-best selling beer in the world, as well as Brahma, a strong local brand that is available throughout much of Latin America as well as 20 countries including Russia, the UK, Canada, the US, Belgium, France, the Netherlands, Portugal and Spain.

Unlike its neighbours Argentina and Chile, Brazil is not famous for its wine production and only produced about 3m hectolitres of wine in 2009 according to the industry association Wines From Brazil. Brazil exported 1.15m litres of wine, primarily to the US, Germany, Portugal, Japan, Colombia and Paraguay.

Brazil’s most produced, consumed and exported spirit is cachaça. Brazil produced a little over 1.3bn litres of cachaça in 2009 according to ABRABE (the Brazilian beverages association) and exported 14.8m litres. The top export market for cachaça is Germany, which purchased 6m litres in 2009.

Beer exports from Brazil, 2009.

Top markets, values, and volumes (US$ and kg)

 

Partner

Trade value (US$)

Net weight (kg)

Trade quantity

 

World

36,270,449

66,782,242

60,794,611

 

Paraguay

15,177,919

29,365,238

28,430,193

 

Bolivia

10,210,488

19,114,192

18,996,970

 

Angola

2,376,222

3,624,820

845,924

 

Canada

2,133,058

3,788,928

2,093,419

 

Suriname

1,324,988

1,983,318

1,736,517

 

Peru

1,014,336

2,513,844

2,640,712

 

Uruguay

850,902

1,254,957

1,228,798

 

US

710,224

1,028,040

852,340

 

Germany

620,474

374,690

328,240

 

Dominican Rep.

476,476

1,207,164

1,193,997

 

Argentina

467,214

1,363,870

1,344,620

 

Ecuador

309,163

672,372

675,197

 

Portugal

204,129

123,710

109,570

 

UK

98,360

110,667

90,295

 

Japan

73,405

47,847

46,201

 

Switzerland

72,122

25,656

25,606

 

Australia

67,478

102,252

87,525

 

Netherlands

55,936

26,830

24,628

 

Singapore

12,250

11,813

9,593

Source: United Nations Comtrade Database

Juice exports from Brazil, 2009.

Top markets, values, and volumes (US$ and kg)

Partner

Trade value (US$)

Net weight (kg)

Trade quantity

World

1,751,827,613

2,148,448,454

2,148,448,454

Belgium

651,176,585

819,982,368

819,982,368

Netherlands

375,451,526

503,942,085

503,942,085

US

320,694,954

464,617,877

464,617,877

Japan

103,291,095

80,470,115

80,470,115

Switzerland

71,826,641

80,368,742

80,368,742

China

61,435,338

49,186,590

49,186,590

United Kingdom

50,667,452

53,086,182

53,086,182

Australia

28,309,783

26,561,426

26,561,426

Rep. of Korea

16,523,890

12,241,517

12,241,517

Israel

6,219,864

6,361,055

6,361,055

Chile

5,825,225

5,103,299

5,103,299

Argentina

5,529,472

4,081,460

4,081,460

New Zealand

4,117,660

3,623,492

3,623,492

Other Asia, nes

3,840,711

2,852,254

2,852,254

Saudi Arabia

3,002,080

2,328,088

2,328,088

France

2,808,079

524,127

524,127

United Arab Emirates

2,715,126

2,304,526

2,304,526

Viet Nam

2,663,645

1,475,840

1,475,840

Singapore

2,553,348

2,461,975

2,461,975

Source: United Nations Comtrade Database

Wine exports from Brazil, 2009.

Top markets, values, and volumes (US$ and kg)

   

Partner

Trade value (US$)

Net weight (kg)

   

World

10,123,439

28,493,812

   

Russian Federation

6,486,720

24,708,654

   

US

876,399

422,702

   

China

482,400

1,553,416

   

Germany

423,435

231,796

   

Paraguay

411,761

508,207

   

Japan

349,401

292,974

   

Portugal

168,923

141,000

   

Netherlands

148,267

173,904

   

Angola

117,899

66,179

   

Switzerland

81,319

27,653

   

Canada

73,445

15,664

   

United Kingdom

68,788

30,092

   

Sweden

63,776

30,404

   

Belgium

58,764

125,962

   

Luxembourg

46,087

8,838

   

Czech Rep.

44,802

9,664

   

Poland

42,656

8,527

   

China, Hong Kong SAR

27,693

50,439

   

Bolivia

27,283

46,325

Source: United Nations Comtrade Database

This is part two of the six-part just-drinks' management briefing for June. For part one, click here. Part three can be found here.