The Immigration Boom of Latin Beer

    The market of Latin American brews in the states continues to grow, both in brand names and volume.
    According to statistics provided by The Beer Institute, between 2005 and 2006, Latin American beers sold to the tune of 10.8 percent of the total U.S. market, demanding to be noticed by even the most conservative bar owner.

Nations of Origin
    One of the hottest sources in the last three years for beer has been Brazil, which has tripled its contribution to the U.S. market from 4,219 gallon barrels in 2004 to 12,222 in 2006. Much of this surge is due to the popularity of the Brahma label, which recently went global to 15 countries.
    Grabbing hold of the profit potential of Brahma shouldn’t be hard;  Brahma is now owned and marketed by Inbev, the supplier  responsible for Stella Artois and Beck’s.
Mexican beer is selling more than ever stateside, with a 12.6 percent increase in volume in 2006 over 2005. Because of its availability and marketability, Mexican beer is a good bet for anchoring an import selection, but it might be wise to look beyond the main two or three brands. Negra Modelo is a good choice and has been gaining significant momentum in the last few years.
    Costa Rican beer has doubled in import volume in the past three years thanks to the Imperial brand, which is also a great addition to any bar menu.
    “Mexican beer is by far and away the biggest import seller registering in our U.S. scanners,” says Nick Lake, V.P., business develpment, with AC Nielsen. Corona and Corona Light are the leaders in import beer sales. Tecate comes in second, followed by Modelo Especial and Pacifica.
    After that group, there is a significant fall-off in sales volume. The next tier of beers includes Dos Equis Lager and Negro Modelo.
“There are others that are beginning to register from further South,” Lake says.

New Horizons
    SAB Miller is in the process of acquiring and optimizing breweries in Colombia, while Heineken and Inbev also are taking advantage of the budding market. Within the next few years, the United States should see even more activity out of South America, with sustained production and exportation from Mexico. 
    Speaking of SAB Miller, its efforts in Colombia and Peru are sure to be of great significance over the coming years. It’s no secret that Miller has been buying breweries, and with a Miller presence in South America, look for the market to open up, especially in the United States.
    “We’re bringing in three brands from Colombia and Peru, and we’ll start them in markets with a strong Colombian and Peruvian presence. You’ll start seeing them in some bigger markets next year,” says Pete Marino, a spokesman for Miller. The brands the company is focusing on are Aguila, Colombia’s No. 1 selling beer brand, and Cusqueño and Cristal from Peru.
    “At Miller we feel there has been a general ‘Latinization’ in the United States, and we’re looking at these three brands as an opportunity to participate in the tremendous growth of Latin culture in the United States,” Marino says.
    Miller began its Latin American pursuits by investing in breweries in El Salvador and Honduras in 2001 and gained full ownership of those country’s breweries in 2005. A large Latin asset before its three newest imports was Bavaria beer, a company SAB Miller merged into in 2005. Some other countries in which Miller has bought interests are Panama and Costa Rica.
    “It’s really an exciting long-term prospect,” Marino says. “There are lots of high volume opportunities in Latin America to shape our brand portfolio, and we are doing our best to take advantage of them.”
    As far as Miller’s plan to compete with Mexican beer and even brands like Brahma, Marino says, “We look at everything that’s going on within that sector of the industry, but we’re really focused on what we can do with our three brands.               NCB