When it comes to beverages, Brazilians have a taste for both traditional and modern drinks. Amongst the traditional drinks, the Caipirinha is the most famous. Made from cachaça, lime, sugar, and ice, this cocktail has become an integral part of Brazilian culture. Apart from this, Brazilians have a tendency to prefer refreshing drinks. They enjoy fruity, light, and crisp beverages perfect for the sweltering Brazilian weather. On the other hand, darker beverages, such as coffee and beer, are a must-have for many.
Speaking of beer, it is the most popular alcoholic beverage in Brazil. The taste preferences vary from region to region, but generally, Brazilians like beer with a light, refreshing taste, low bitterness, and a smooth finish. Most Brazilian beers are lagers, and they are served very cold.
Skol, Nova Schin, Antarctica, and Itaipava are amongst the top-selling Brazilian beer brands worldwide. Skol has been the market leader for the past few years, with over 30% of the market share. Skol’s success can be attributed to its marketing strategy, which positioned it as a local beer. The brand was created in the 1960s and initially targeted working-class men. But in the 1980s, Skol shifted its target audience to include everyone, with the slogan “a beer that unites people.” Skol, for example, is known for its catchy advertising campaigns and sponsorships of major sports events.
Nova Schin, on the other hand, is a relatively new brand, and it has a unique selling point – its tropical flavor. This was a significant shift away from the traditional taste of Brazilian beer. Nova Schin gained popularity by offering affordable and good-tasting beer.
Popular brands like Antarctica and Itaipava have been able to maintain their position in the market due to their long-standing presence in it, differentiated taste, and excellent distribution networks. Antarctica became famous for its creative packaging and promotion of cultural events. Itaipava is known for its catchy jingles and focus on beach culture.
Several foreign beer producers sell their beer in Brazil, including Heineken, AB InBev, Carlsberg, Stella Artois, and Budweiser Americas and Ambev. These brands have been successful in Brazil mainly due to their global reputation and branding. Heineken, for example, has leveraged its status as a premium brand to penetrate the market. Its advertising campaigns have focused on luxury and exclusivity, positioning it as a beer for the rich and sophisticated.
However, foreign companies have also faced numerous challenges while operating in Brazil, such as navigating complex regulations and dealing with stiff competition from domestic brands. To succeed, foreign beer producing companies need to understand the unique taste preferences of Brazilian consumers and tailor their products accordingly.
In specifics, to enter and penetrate the Brazilian market, foreign beer producing companies need to:
- Understand the local culture and the cultural nuances of the Brazilian market
- Conduct market research and developing products that suit local tastes
- Create a market strategy including local brand identity and image
- Price your product competitively
- Have a robust distribution network
- Be environmentally sustainable
- Entertain Brazilian consumers through social media and sponsorship of local events.
- Establish partnerships with local breweries and distribution companies
The mentioned above points will help streamline supply chains and ensure smooth entry into the market.
In summary, operating in Brazil is not a cakewalk, but with the right strategy and approach, foreign beer producers can make significant inroads into the Brazilian beverage market.