August 28, 2008

A Market Analysis of Beer in Mexico: Learn About Key Trends and Developments, the Competitive Landscape and Prospects

Research and Markets ( has announced the addition of the "Beer in Mexico" report to their offering.

Beer in Mexico market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Sol Cero, the first domestic non-alcoholic beer was launched by Cerveceria Cuauhtemoc Moctezuma SA de CV in early 2007. The company expects to leverage the excellent position of its standard brand, Sol, to attract consumers looking to drink a non-alcoholic beer during working hours. Up to April 2007, the non-alcoholic beer segment was dominated by imported labels O'Douls and Old Milwaukee from the US and River Zero from Spain. The market for non-alcoholic beer is estimated at 1.78 million litres and Mx$55.4 million, of which Sol Cero is expected to gain 25% towards the end of 2007.

2007 saw a slowdown in the consumption of beer in Mexico. This was due to the post-World Cup effect, where sales tend to slump the year after the World Cup, an event in which beer usually reports high consumption rates. In addition, the weather conditions in 2007 brought longer periods of cooler temperatures, thus decreasing beer consumption, especially in the north of Mexico. The increase in unit prices resulting from rising global prices of grain negatively affected sales. Grupo Modelo SA de CV and Cerveceria Cuauhtemoc Moctezuma SA de CV signed an agreement to secure the supply of 400,000 tonnes of barley for the production of beer in the next three years, according to the Confederacion Nacional Campesina, the National Confederation of Farmers.

Domestic standard lager accounted for 97% of total volume sales of beer in 2007. Most Mexicans perceive domestic standard lager to be of excellent quality and flavour, at an affordable price. Thus, there is no strong incentive to gear consumers towards premium or imported labels. Therefore, premium and imported labels have a difficult time competing for volume share in Mexico, and their consumption is limited to beer connoisseurs.

Domestic premium lager represents a small proportion of volume sales, with estimated consumption of 15 million litres, so any growth in this category appears to be a strong jump. There is a stronger presence of European premium beer on the shelves of upscale supermarkets/hypermarkets in large urban areas such as Mexico City, Guadalajara and Monterrey. Domestic premium lager is also found at micro-breweries such as Beer Factory (Grupo Menaba SA de CV), Cerveceria Minerva, and Cerveceria Tijuana. These micro-breweries offer a restaurant where consumers can savour speciality premium lager during their meal.

On-trade volume sales of beer accounted for 21% of the category in 2007. Latin American full-service restaurants and fast food outlets are the most common outlets for the consumption of beer. Popular versions include standard domestic lager, and beer drinks known as Michelada, with lime and salt, and Chelada with lime, salt, tabasco sauce and Maggi Sauce, otherwise also known as Cubana. The greatest on-trade consumption of beer takes place at night or during the weekend, when Mexicans are more relaxed and enjoy a leisurely drink.

Off-trade consumption of beer is common in areas of warm weather where consumers, especially men, seek to quench their thirst by drinking beer. Cubetas, or buckets of small chilled 120ml bottles, remain popular in the north of Mexico. Home-delivery and express services expanded operations in 2007. Convenience stores, specialists and independent food stores represented 82% of off-trade volume sales in 2007. In a surprising move, Grupo Modelo announced the closing of an estimated 1,000 Extra convenience stores at the end of 2007, as it cannot effectively compete against the Oxxo chain, owned by FEMSA Comercio, the sister company of Cerveceria Cuauhtemoc Moctezuma. Instead, Grupo Modelo will concentrate on small independent and specialist channels.

The alcohol content of domestic lager ranges from 3% in economy brands such as Tropical to 5% in premium brands such as Casta. Some European imported beers have a 7% alcohol content, and some varieties from domestic producer Grupo Menaba SA de CV reach up to 9% alcohol content.

Why buy this report?

- Get insight into trends in market performance

- Pinpoint growth sectors and identify factors driving change

- Identify market and brand leaders and understand the competitive environment

Product coverage:

- Dark beer

- Lager by origin

- Lager by price platform

- Low/non-alcohol beer

- Stout

Key Topics Covered:

- Key Trends And Developments

- Market Background

- Legislation

- Taxation And Duty Levies

- Operating Environment

- Market Indicators

- Market Data

- Definitions

- Local Company Profiles - Mexico

- Headlines

- Trends

- Competitive Landscape

- Prospects

- Sector Background

- List Of Tables

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Source: Euromonitor International