Blog: Battle in Brazil - global brewers on the prowl?
Olly Wehring | 9 October 2006
As I approach my third anniversary here at just-drinks, I am reminded by an analyst of one area I wrote heaps about during my first few months in the job.
Some of you may remember, in 2003, when the Brazilian beer industry provided interesting reading. The country’s second-largest brewer, Schincariol, stole a march on market leader AmBev almost overnight, with a marketing push that succeeded in eating away at AmBev’s dominance. With hindsight, AmBev concedes that it was “arrogant” and “slow” at the time.
In a note to clients today (9 October), industry analyst Bear Stearns is warning that a new battle is brewing in the South American country. This time, it looks like Kaiser, which Molson Coors sold to FEMSA at the beginning of this year, who is going to give AmBev a run for its money. The unit is poised to launch its own advertising blitz, which may lead to another round of market share grabbing.
While Kaiser has its work cut out, AmBev could take quite a body blow if the campaign proves effective. If the global brewers get wind of the preparedness of Brazil’s beer drinkers to chop and change, then what’s not to stop them paying the country a long, possibly permanent visit?
We’ll keep a close eye on how the situation pans out. But, for now, in the words of Bear Stearns: “Let's Get Ready to Rumble.”
Whisk(e)y companies spend a lot of money and effort ageing their products for that premium taste....
PepsiCo created a stir last week with the news it is testing a product called Caleb's Kola, with some in the media claiming it was the beginning of a new “craft soda” category....
SABMiller's bid to widen the appeal of beer is very much in evidence at its latest 'House of Peroni' - with beer cocktails and a bigger bottle for the Italian lager brand on offer. ...
Here's a round-up of the big stories on just-drinks last week, featuring PepsiCo, SABMiller, the Scotch whisky category and the US wine market....
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Moet Hennessy sales falter in YTD