Brazil Beer Industry Essay
This report displays the various possible Investment opportunities and Strategic choices for a Scottish Alcohol Company to enter and trade within the South American country of the Federative Republic of Brazil.
Documented and analysed are the concept of the overall environment of both the European and South American regions, detailing the many facets and characteristics present that may help or hinder possible market penetration into the area.
Furthermore, also displayed is the potential engagement of both countries through am alcohol based product. Additionally, shown, is the culture of both countries and the preferences and opinions towards alcohol and their effects.
The Investment and Strategic for an …show more content…
In 2002, Molson Coors bought Brazil's second largest brewery Kaiser. In 2006, the Mexican FEMSA Cerveza acquired 68% of Kaiser Brewery from Molson Coors. Molson Coors still holds 15% of Kaiser brewery shares, and Heineken holds the remaining 17%. In 2006, FEMSA Cerveza released the Mexican brand Sol in the Brazilian market to compete to the biggest Inbev brands with poor results. In 2010, Heineken bought all FEMSA's brewery including the Brazilian unit.
AmBev is the leading beer brewer in Latin America and the largest producer of beer in Brazil. It was formed after a merger of the two largest beer producers of Brazil: Brahma and Antarctica. In the company’s product mix there are various brands of beer, soft drinks, bottled water, iced tea and isotonic beverages. AmBev has a very good distribution structure. In 2004 there was a merger between AmBev and Interbrew. This merger created InBev, which was later acquired by Anheuser-Busch and is now its subsidiary.
The four largest breweries by market share (Fens, Ambev, Cervejaria Petrópolis and Schincariol Group) in 2008 collectively produced 95% of the beer sold in Brazil
Beer is the most competitive sector of the alcoholic market in Brazil, and global beer companies InBev and FEMSA predominantly compete for market share.
The top five participants in the market (by