Franca exported to Spain
You have to give it to Peru’s Ajegroup: its owners waste no time. When their plans to build a brewery in Mexico were thwarted by Mexico’s duopoly brewers FEMSA and Grupo Modelo pulling strings, they changed their minds quickly and set up a 300,000 hl brewery in their homeland of Peru instead.
That was in 2007. Soon after they launched their economy beer brand Franca as they tried to woo consumers with an affordable quality beer product.
Peru’s beer market may be enjoying a rapid growth, yet it is dominated by two global brewers SABMiller and AmBev, which claim a market share of 86 percent and 10 percent each (2008).
The “beer war” was the main feature of the alcoholic drinks market during 2008, says Datamonitor. The two major competing companies – Companía Cervecera AmBev Perú (AB-InBev) and Unión de Cervecerías Peruanas Backus & Johnston (SABMiller) not only launched new products into the market but also looked to establish new marketing strategies through special promotions and discounts. A new segment arose in the beer sector with economy beer brands by the Ajegroup.
Datamonitor admits that thanks to the Ajegroup launching Caral in 2008 and Franca in 2007, beer consumption has notably increased to 41 litres, but that the price war will continue as the Ajegroup undercuts the market with larger presentations of quality locally-brewed beer at lower prices.
As could have been expected, the major brewers have been retaliating in kind and with force, yet the Ajegroup’s spokesperson Alfredo Paredes says his company is on track to secure itself a 10 percent share of the beer market.
Having had Franca endorsed by Peru’s celebrity chef Gaston Acurio, whose restaurant franchises (Astrid & Gaston, La Mar Cevicheria) have already arrived in the U.S. and in Spain, the Ajegroup decided to capitalise on the growing popularity of Peruvian cuisine and arranged for Franca to be exported.
As of January 2010 Franca will be available in several restaurants in Madrid and Barcelona in 360 ml disposable glass bottles.
The Ajegroup, a Peruvian company dedicated to the manufacture, distribution and sale of beers and non-alcoholic beverages, has operations in most Latin-American countries and in Thailand. Its major market is Mexico. The Ajegroup is known for its flagship products Kola Real and Big Cola. The company is privately-owned and run by the Añaños-Jerí family from Ayacucho, Peru.
