AmBev expects beer production to increase 15 percent
AmBev Peru, the brewer of Brahma beer, forecasts that in 2007 more than 10 million hl of beer will be consumed in the Andean state, bringing average consumption up to 34 litres per person.
The increase in consumption has been attributed to the fact that there is now more competition on the beer market because of the increase in brands. At the end of August, the Ajegroup, introduced a new beer to Peru, Franca.
According to news agency reports Backus (owned by SABMiller) controls 92 percent of the market, AmBev 8 percent.
 | Franca is taking the market by storm. |
All brewers are currently promoting multi-servings. Cristal’s offer comprises three 650 ml bottles for 9 soles and 50 cents, while Brahma is selling four 650 ml bottles for 9 soles and 50 cents. Franca has entered the market selling three 700 ml bottles for 8 soles.
Due to increased competition, by the end of the year, beer prices will have decreased by 10 percent when compared to 2006.
Although the Ajegroup’s original scheme foresaw launching a beer in a PET bottle, the soft drinks producer-turned-brewer has decided to shelf these plans for the time being and bottle its beer in glass only. The company spokesperson Alfredo Paredes says that at the moment Franca is taking on the capital Lima. However, by year-end the Ajegroup hopes to have a nationwide distribution in place.
 |
| On a clear day …the Ajegroup’s new brewery in Peru. Photo: Ajegroup |
Meanwhile Backus started a PR blitz, revealing a USD 250 million investment plan for the next year during a special ceremony attended by Peru’s President Alan Garcia.
Robert Priday, the President of Backus, announced that the brewer plans to invest a quarter billion dollars in new plant and machinery in an effort to increase capacity and improve logistics so that its products reach the market in an optimum state.
Priday reported that the beer production plant in Motupe, Lambayeque, Peru alone would receive over USD 11 million, an investment which would increase capacity by 50 percent and allow the plant to produce over 2 million hl of beer annually.
