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02 October 2013

Blame it on the economy

Have those drop-dead-gorgeous chicas that dominate Venezuelan beer marketing lost their ability to make men salivate for a beer? During 2012, beer production was flat over 2011 at 21.6 million hl, while per capita consumption dropped to 71.7 litres from 73 litres, sources say.

Had it not been for the scantly-dressed ladies, per capita decline would have even been steeper. Venezuelan men may have lusted after a few more beers, but one glance into their empty wallets would have been enough to make them go for tap water. According to Euromonitor, two main factors continued to impact the beer category in 2012: the deterioration of consumer spending power and rapid price increases. Venezuela is an oil-rich country, but years of economic mismanagement under President Chavez, have taken their toll.

The beer market changed drastically after AmBev, which had ranked third, bowed out and entered into a joint venture with brewer Regional in 2010. Now two companies control almost the whole market. Empresas Polar is the leading brewer, accounting for a 79 percent volume share in 2012. Polar Light and Polar Ice rank in first and second place and hold a combined 64 percent of beer volume sales, says Euromonitor.

Earlier this year, AmBev ceased production at its plant in the northwestern Venezuelan city of Barquisimeto, after it had seen its market share tumble to 0.9 percent from 9 percent seven years ago, and it no longer saw investment into its local facility as feasible.

However, AmBev stressed that it would continue marketing its products in Venezuela.

The outlook for 2013 isn’t all that bright either. Media have reported massive price increases on beer throughout the first six months, which could send per capita consumption of beer down to 70 litres.

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