Despite
the weakness of the Brazilian economy, the drinks market is going strong. Beer
and soft drinks manufacturer, AmBev, posted a Q3 net profit of $92 million and
still seems to have a solid cash flow. It looks like this is going to continue,
with the volume of beer drunk in Brazil set to near nine billion liters by 2005.
With nearly 70% of the Brazilian beer market in its grasp, AmBev is in the best
seat to benefit.

Brazilian drinks market (billion liters), by category, 2001-05
2001
2005
Beer
8.23
8.95
Bottled Water
2.89
3.65
Carbonates
11.28
13.73
Source: Datamonitor, 2001

(c) 2001 Datamonitor. All rights reserved. Republication or
redistribution, including by framing or similar means, is expressly prohibited
without prior written consent. Datamonitor shall not be liable for errors or
delays in the content, or for any actions taken in reliance thereon.

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