That Would be the B in BRIC

By now, I expect most people have heard of the BRIC countries – Brazil, Russia, India and China – which are cited regularly as the emerging economies that will power the global financial world further into this century. And here’s proof positive that for at least one international brewer, one of those nations is proving to be most vital to its bottom line.

Judging by several reports in the international media, just-drinks.com and the Wall Street Journal included, the global brewing leviathan Anheuser-Busch InBev has strong reason to be grateful to one of their three home markets, Brazil. According to the WSJ story, “a strong performance in Brazil offset weakness in the U.S. and Europe” lead to an increase in third quarter profits for ABIB, prompting optimism also for the fourth quarter. And exactly how strong was that performance? How about a 12.5% growth in volumes?!

Now here’s what interests me about all this. I couldn’t care less how Brahma and Antarctica are doing in Brazil, where ABIB controls an astounding 70% of the market, but I am fascinated with how overall volumes are growing in South America in general and Brazil in particular. Because last summer I discovered that there is a relatively small but thriving craft brewing scene in Brazil and elsewhere in the southern American hemisphere, and my sources there tell me that demand for premium beer is growing as fast or faster than they can manage.

Think about it: A still-growing major brewery market feeding off tremendous economic growth, a small but enthusiastic cadre of craft brewers, and growing demand for beers “outside the norm.” Remind you of anything, like North America a few decades ago?

Okay, so the majors in the 1980’s weren’t posting double digit growth, but still, there are parallels. Exactly to what degree I intend to find out later this month when I travel to Sao Paulo and elsewhere to host a few beer dinners, culminating in an all-Brazil beer festival in Blumenau. I’ll let you all know in December.

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6 Comments

Filed under beer & the web, beer & travel, beer industry, beer news, drinking quality

6 responses to “That Would be the B in BRIC

  1. Stephen, Welcome to Brasil!

  2. Very nice and good post sir! Welcome the brazilian craft beer!
    Regards,

    Henrique Oliveira.
    AcervA Mineira Homebrewing Association.

  3. Pingback: Guess What? The Big Breweries Are Trying to Screw You! « Blogging at World of Beer

  4. Hi Stephen, Im Marco Falcone, the person opening a bottle in the picture. I think that your post is very important for our brazilian beer moviment. Thank you! I invite you to visit us and our microbrewery in Belo Horizonte, be welcome!

    • stephenbeaumont

      You’re very welcome, Marco. And thank you for not busting me on my theft of that pic from Charlie Papazian.

      I’m looking forward to my trip to Brazil and would love to visit your brewery, but I’m not certain there will be time. Marcelo Carneiro da Rocha is helping me organize my trip, sso perhaps you could speak with him or his events co-ordinator, Bia. I know at least I’ll be using your Tripel-Monasterium in two of the beer dinners I’ll be hosting.

  5. Luisane Vieira

    Don´t miss Minas Gerais, the new Belgium.

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