This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Premium Beers Set To Drive Growth In The Off Trade Brazilian Beer Market, Reports Mintel

CHICAGO, Nov. 26, 2012 /PRNewswire/ --While the appeal of standard beer for consumers in Brazil is far from flat with local beer brands now accounting for 19 out of every 20 beers sold in Brazil, new research from Mintel reveals that the premium end of the market may be instigating a change in taste for Brazilian consumers. Indeed, while volumes of standard beer decreased by 2% year on year to 2011, volumes of strong and premium beer grew an impressive 18%.


The off trade strong and premium beer market was valued at R$ 5.29 billion in 2011. Showing just how popular these beers are becoming, in 2011 this segment managed to gain a 0.6% share from the standard segment in value, rising from 11.4% market share in 2010 to 12% in 2011. In contrast, the standard beer segment lost market share, going from 87.6% in 2010 to 87% in 2011.

The report also reveals the appeal that international brands have for consumers in Brazil, especially young and upper-class adults. Today, a quarter (25%) of upper-class Brazilians (AB) claim to drink international brands, compared to 18% in the C1 group, 11% in the C2 group and 7% in the D and E social segments. Similarly, international brands have also been successful among a younger audience in Brazil, with 26% of those aged 18-24 claiming to drink them. This number continues to be high among adults aged 25-34 (23%) but sees a marked decline for those aged 35 or older: with 13% of those aged 35-44 drinking them, 12% of those aged 45-54 and just 7% of those aged over 55. 

Sebastian Concha, research director, Latin America at Mintel, said:

"The fact that premium beers are gaining more market share from the standard beer sector highlights the changing consumer mindset in Brazil and how beverage habits relate to this. Huge opportunities lie with Brazil's hosting of key live sports events in the coming years. With a strong sporting prowess in Brazil and a product closely linked with sporting culture, beer manufacturers who can capitalize on local enthusiasm and blend this to ensure a premium product positioning stand to benefit."

"International beer brands also hold great potential for growth in the next year in Brazil. They enjoy the glamour of a cosmopolitan allure, have strong marketing prowess and can help this high volume market achieve much more lucrative profit margins," Sebastian Concha continues.

With volume sales of 12.7 billion liters in 2011 (equivalent to 67 liters per capita) up 22% from 10.4 billion liters in 2007—Brazil is the third largest market in the world in terms of volume consumption, with only China and the US ahead. This year the market is set to break the 13 billion mark to reach 13.3 billion liters. And the appeal of beer appears set to continue in Brazil, as Mintel forecasts volume growth of 15% over the next five years to reach 15.3 billion liters in 2017. With a retail value of $23 billion USD in 2012, up from $13.7 billion USD in 2007 the future also looks positive with total retail value set to hit $33 billion USD by 2017. 

"The premiumization of the industry will be a key driver for market growth over the next five years - representing significant opportunities for the sector," Sebastian Concha continues.

Mintel's report also reveals that low temperature is a key selling point of beer in Brazil. While in many countries, cold beer suffices to quench consumer thirst, super cold beers are a must for almost all Brazilians. Some 95% of beer drinkers claim to only like their beer served very cold, with 84% of consumers strongly agreeing with this statement. 

"The high level of consumer demand for super cold beers has led to innovation in NPD in the market, including color-changing packaging and cold filtering. Some brands have launched a 4-litre barrel-shaped pack with a temperature gauge that indicates when a beer is ready to be consumed. Another brand has introduced packaging with a color-changing label that turns blue when the beer gets cold," Sebastian Concha notes.

Meanwhile, the gender gap within beer consumption is still apparent in the Brazilian market place. Mintel's research shows that in Brazil, 65% of men drink beer, compared to 38% of women. And while manufacturers have invested in trying to re-address this balance, it appears that perceived gender related attributes will not be the way to success. Indeed, Mintel's research reveals that women have only limited interest in low-calorie formulations. While 27% of women that consume beer say they try to avoid it because it makes you gain weight, it is not a significant difference from the 23% of men claiming the same. In addition, women seem to be more conservative in the types of beer they are drinking. While 57% of male beer drinkers claim to like trying new types of beer, this number reduces to 45% when the question is asked to women. 

"The most successful strategies to attract more women will be the ones that appeal to universal tastes and stress key selling points of the beer itself. International beer brands in particular are in a great position to redefine beer as a genderless category, having an especially receptive segment among younger and wealthier women," Sebastian Concha concludes.

About MintelMintel is a leading global supplier of consumer, product and media intelligence. For 40 years, Mintel has provided insight into key worldwide trends, offering exclusive data and analysis that directly impacts client success. With offices in Chicago, New York, London, Sydney, Shanghai, Tokyo, and now India, Malaysia and Singapore, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit

Follow Mintel on Twitter, LinkedIn, or catch up with the latest news, views and information from the team behind Mintel on The Mintel Blog. You can also like Mintel on Facebook.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs