Heineken Lager Beer battles AB Inbev in Brazil Bar by Bar

SAO PAULO- Thursday, July 5, 2018- Arthur Santi, Sao Paulo bar owner, has ‘served up so long the boatloads of ice-cold Skol which is one of Brazil’s most popular beer brands and a mainstay of brewing giant Ambev’.

Didier Debrosse, the Frenchman who has led Heineken in Brazil for the past five years, said,” You can find cachaça cheaper than beer, which is insane. To reach these consumers, Heineken’s bargain-priced Schin brand, which it acquired from Kirin, has spent an estimated 100 million reais since 2015 sponsoring the famous carnival celebration in Salvador”.

last year, rival Heineken NV offered him which he could not turn down. Santi was launching another saloon in the same working-class neighborhood. The Dutch brewer wanted top billing for its products at the new location.

The company also threw in new refrigerators, tables, and chairs, all emblazoned with its familiar green logo with the red star. Heineken paid around 90,000 reais ($23,000) for a three-year commitment to sell Heineken as its only big-name premium beer.

While beer consumption has stagnated in much of the world, growth is still forecast for Latin America’s largest economy, which is why Brazil has become a key battleground for global brewers. Bar by bar, Heineken is fighting for a bigger share of the world’s third-largest beer market and an end to Ambev’s dominance in Brazil.

Mauricio Giamellaro, Heineken’s vice president of Brazilian sales, “The company is hoping to upgrade brewery in Bahia state, to make a wider range of beers, including its premium Heineken. And it may shrink the size of a bottle in that region to lower prices”.

CEO Jean-Francois van Boxmeer told shareholders earlier this year, “The sales system has to be 100 percent focused on beer. Meanwhile, Heineken continues to woo Brazilian bar owners, whose patrons are responsible for 45 percent of the nation’s beer consumption”.

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