E-Malt.com News article: Latin America: Brewers turn their products to younger clients which are sensitive to global brands and trends

Talking on Latin America’s drinking habits and most recent trends in the local brewing sector, The Latin Business Chronicle published November 20 that beverages with long-standing traditions, such as lagers and spirits like brandy, aguardiente and cachaça, will likely maintain their strong positions within the region, but lighter drinks and new flavors are catching on with younger consumers influenced by global brands and trends. In 2005, 18-34 year-olds accounted for 29 percent of the population in Latin America and the Caribbean, and as a percentage of the total population for the region is expected to hold steady through 2015.

Beer, a refreshing favorite in hot climates, is forecast to show the strongest growth by 2011 with volumes expected to soar 20 percent. Lower prices compared with wine and spirits are behind the surge, but regional and local brewers are also working to expand beer’s appeal across age groups and both genders. Brews with lower calories, smoother taste and lighter flavors have become commonplace in Latin America since the 1990s. Brewers are taking the light beer concept further, repackaging their products with a younger image. Grupo Modelo in Mexico has taken this approach with its Modelo Light Azul brand, changing from a white to blue bottle and targeting younger consumers through novelty through the slogan, “Beer like you’ve never imagined it.”

Global beer industry mergers have not left Latin American markets unscathed. SABMiller’s fusion with Colombia’s Bavaria in 2005 may pave the way for more international brands to enter the region. Peroni Nastro Azurro was the first international brand to be launched in Colombia post-merger, backed by a strong marketing campaign that included a fashion show featuring Italian designers. Stella Artois, was launched in Brazil and Argentina in 2005 as part of InBev’s ongoing expansion in Latin America after buying out Brazil-based AmBev. The introduction of Stella Artois in Argentina was particularly notable because of the use of non-returnable bottles, which makes the import more accessible to cost-conscious drinkers.

Latin American brewers have gone on the offensive to defend their market share from imports and premium brands. While lagers claim the lion’s share of the beer market in Latin America, brewers are experimenting with other beer formats, introducing the local palate to European varieties that formerly had a marginal presence in the region. Ales are quickly carving out a niche in Chile through Compañía Cervecerías Unidas’s creation of the Cristal Red Ale brand in 2006. Cristal Red Ale’s price point is considerably lower than imported ales, and benefits from the strength of CCU’s distribution network and nationwide promotions. Femsa Cerveja Brasil launched Kaiser Gold in 2006, positioning it as a premium-beer with a lower price than the company’s Bavaria Premium.


22 November, 2006