BRAZIL/UK: SABMiller still keen on Brazil - LatAm president

By | 26 March 2013

SABMiller is still looking for a foothold in Brazil

SABMiller is still looking for a foothold in Brazil

SABMiller has not given up hope on restoring its presence in Brazil's beer market, despite losing out in the race to buy Schincariol, and the closure of its import business last year.

In 2011, SABMiller backed out of the bidding process for Brazil's second largest brewer, Schincariol, after Kirin Holdings offered BRL3.95bn (US$2.5bn) for the company. Since then, SABMiller has closed its import sales office in the country, as tough exchange rates and aggressive local taxation proved too much.

Speaking at yesterday's (25 March) quarterly divisional seminar in London, the president of SABMiller LatAm, Karl Lippert, said that the brewer has very limited presence in Brazil. “If you do not produce locally,” he said, “then imports are very expensive. Import taxes are higher, logistical costs are higher and it's a very complex market to get into.

“For the moment,” he added, “we are at a standstill in the country.”

After his presentation, Lippert told just-drinks that SABMiller is still keen to make an entry into a beer market dominated by Anheuser-Busch InBev's AmBev division.

“There has got to be something for you to have an interest,” he said. “If you ask me if something is for sale, the answer's no. Could there be? Maybe. Would we be interested? Of course.

“Trust me, we are looking at every angle, all the time. There are things to think about, but nothing to announce. But, we will find a way.”

The next possible acquisition target for the world's multi-national brewers in Brazil appears to be Petropolis, which holds a 10% market share. Reports last year suggested that Kirin had approached the brewer, although nothing has developed further.

On Schincariol, Lippert said: “We were outbid. You know the price was crazy, yes?”

SABMiller's imported sales office in Brazil, which comprised nine employees, was opened in 2010. The brewer took the decision to close the office in September. Since then, the brewer has sold a small amount of international premium beer via Argentina.

Expert analysis

Beer in Brazil

Beer in Brazil industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to 2015). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Brazil beer market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Beer & cider, Emerging markets – BRIC, Mergers & acquisitions

Companies: SABMiller, Kirin, Anheuser-Busch InBev

There are currently no comments on this article

Be the first to comment on this article

Related research

Kirin Brewery Co Ltd in Alcoholic Drinks (Japan)

Kirin Brewery Co Ltd aims to increase its sales and profit by 2015. In order to achieve this, the company plans to invest its resources to enhance the Kirin brand regardless of its profit in 2013. The company plans to concentrate its resources on foc...

SABMiller plc : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "SABMiller plc : 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 products and servic...

SABMiller Plc in Beer (World)

The world’s second largest brewer, SABMiller’s geographic profile provides a strong platform from which to exploit forecast volume growth in emerging markets. This profile analyses the company’s employment of strategic alliances and emphasis on local...

Related articles

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

AUS: Carlton & United Breweries drops Cold brand for mid-strength Carlton Cold

Carlton & United Breweries (CUB) is replacing its "underperforming" Cold lager brand in Australia with the lower-strength Carlton Cold.

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