Special Report
Molson targets Brazil

By Anita Salomão



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Cold beer (and “choppe”) has conquered Brazilians once and for all. Consumption has increased to such an extent that among the 100 most popular manufactured products, beer went from position Nº 41 in 1979, to position Nº 4 in 1999, according to the Brazilian Census Bureau (IBGE). IBGE's assessment also showed that only heavyweight competitors, i.e. the trio diesel oil, cars and gasoline, which occupied the first positions in the 1999 industry survey, top beer.

According to Molson's website, (...) "Brazil continued to be the main target of its international growth strategy in fiscal 2003. Expected to surpass Germany by 2007 as the third largest beer market in the world, Brazil has an eight-year average growth rate of more than 7% and 86 million hectoliters of production annually. To exploit this tremendous growth opportunity, Molson acquired Kaiser in March 2002, the second largest brewer in Brazil. The Kaiser acquisition increased Molson's market share in Brazil from 3.1% to 17.8%, firmly positioning Molson as the second largest brewer in Brazil. Kaiser is the world's 13th single largest beer brand. The Kaiser acquisition, combined with the Corporation's purchase of Bavaria in December 2000, provides Molson the scale it needs to become a true global brewer".

A Snapshot of Molson in Brazil:
Company: Cervejarias Kaiser
Brands: Kaiser Pilsen, Santa Cerva, Kaiser Summer Draft, Xingu, Kaiser Bock, Heineken (under license), Bavaria Pilsen, Bavaria Premium
Employees: 2,300
Facilities: 10 Brewing plants
Volume: Approximately 86 million hectolitres (roughly 4 times Canadian volume)
Market Position: Second Largest in Brazil
Market Share: 17.8% national market share
To learn more about Kaiser in Brazil, click here: www.Kaiser.com.br


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