Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Spirits - Brazil - April 2016

“Brazilian consumers are drinking fewer alcoholic beverages, including spirits. Brands need to get creative to convince consumers to get on board and start drinking (or drinking more). Apart from the economic crisis, which affects their pockets, consumers are worried about health issues. Providing more information about drinking responsibly as well as nutritional information could be a way to circumvent such issues.
Spirits must taste good neat, therefore brands innovating with flavor should make sure this does not compromise the taste (ie, not too sweet) or consumers might turn away.”

– Andre Euphrasio, Research Analyst

This report looks at the following areas:

  • Increasing consumption among DE consumers
  • Using the economic downturn to boost RTD sales

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know 
      • Products covered in this Report
      • Executive Summary

          • The Market
            • While value sales of spirits keep on rising, volume sales are falling
              • Figure 1: Forecast of Brazil retail sales of spirits, by value, 2010-20
            • Market drivers
              • Change of spirits taxation system
                • Consumers are drinking less alcohol
                  • Key Players
                    • Diageo is the market leader with 35.1% in market share by value
                      • Figure 2: Value shares in the spirits retail market, 2013 and 2014
                    • Boosting sales and popularity with the Olympic Games
                      • New design for Muller’s RTD 51 Ice
                        • Diageo is expanding its cachaça label
                          • The Consumer
                            • 44% of Brazilians have consumed at least one type of spirit
                              • Figure 3: Usage of spirits, February 2016
                            • Consumers are worried about their health
                              • Figure 4: Reasons for not drinking spirits, February 2016
                            • Top notch ingredients and heritage are essential in premium spirits
                              • Figure 5: Premium spirits attributes, February 2016
                            • Spirits must taste good neat and be affordable
                              • Figure 6: Influencing factors when purchasing spirits, February 2016
                            • Consumers demand drunk driving prevention and nutritional information
                              • Figure 7: Attitudes and behaviors toward spirits, February 2016
                            • What we think
                            • Issues and Insights

                              • Increasing consumption among DE consumers
                                • The facts
                                  • The implications
                                    • Using the economic downturn to boost RTD sales
                                      • The facts
                                        • The implications
                                          • Figure 8: RTD spirit products featuring local flavors, Brazil
                                          • Figure 9: RTD spirit products featuring coconut water
                                          • Figure 10: Skinnygirl RTD products, US
                                      • The Market – What You Need to Know

                                        • Value sales of spirits keep on rising
                                          • Tax on spirits has increased
                                            • Brazilian consumers are cutting back on alcohol
                                            • Market Size and Forecast

                                              • Worldwide spirits market
                                                  • Figure 11: Worldwide spirits markets of selected countries, CAGR (Compound Annual Growth Rate) retail value and consumption per capita
                                                • Market performance
                                                  • Figure 12: Retail sales of spirits in Brazil, by value, 2010-14
                                                  • Figure 13: Retail sales of spirits in Brazil, by volume (in million liters), 2010-14
                                                • Segment performance
                                                  • Figure 14: Retail value sales of spirits, in R$ million, 2012-14
                                                  • Figure 15: Retail volume sales of spirits, in million liters, 2012-14
                                                • Forecast for the spirits market
                                                  • Figure 16: Forecast of Brazil retail sales of spirits, by value, 2010-20
                                                  • Figure 17: Forecast of Brazil retail sales of spirits, by volume, 2010-20
                                              • Market Drivers

                                                • Higher tax on spirits
                                                  • Mexico recognized cachaça as a genuine Brazilian spirit
                                                    • Aging population
                                                      • Brazilian consumers are cutting back on alcohol
                                                        • The Brazilian economy is struggling
                                                          • Inflation is diminishing consumers’ spending power
                                                            • Figure 18: IPCA monthly change, by percentage, January 2014-February 2016
                                                          • Unemployment rate keeps increasing
                                                            • Figure 19: PME’s monthly unemployment rate, Brazil, 2015-16
                                                          • Fall in average earnings
                                                          • Key Players – What You Need to Know

                                                            • Diageo is the market leader with 35.1% in market share by value
                                                              • The Olympic Games is a chance to increase sales
                                                                • Muller’s RTD 51 Ice gets revamped
                                                                  • Diageo expands its cachaça brand
                                                                  • Market Share

                                                                    • Diageo is the market leader with 35.1% in market share by value
                                                                        • Figure 20: Value shares in the spirits retail market, 2013 and 2014
                                                                        • Figure 21: Volume shares in the spirits retail market, 2013 and 2014
                                                                      • Pernod Ricard promotes “Dia D #Vodcalizar” (day to “vodkalize”) in Brazil
                                                                        • New advertising campaign changes Cia Muller’s cachaça 51
                                                                          • Using the Olympics to boost sales
                                                                            • Absolut launched a pop-up bar in Recife
                                                                            • Who’s Innovating?

                                                                              • New packaging for Muller’s RTD 51 Ice
                                                                                • Figure 22: 51 Ice new packaging, Brazil
                                                                              • Diageo expands its cachaça brand
                                                                                • Figure 23: RTD Ypióca sabores do Brasil honey and lemon flavored, Diageo
                                                                              • Pernod Ricard Brazil adopts green plastic caps
                                                                                • Ambev launches Skol Beats Spirit
                                                                                  • Figure 24: Skol Beats Spirit, Brazil
                                                                                • New innovations in flavors in RTD
                                                                                  • Innovations around the globe
                                                                                    • Smirnoff launches vodka made with real fruit juice
                                                                                      • Figure 25: Smirnoff Sourced, Diageo, US
                                                                                  • The Consumer – What You Need to Know

                                                                                    • 44% of Brazilians have consumed at least one type of spirit
                                                                                      • Consumers are worried about their health
                                                                                        • High-quality ingredients are essential in premium spirits
                                                                                          • Good taste, recommendations, and price are essential
                                                                                            • Consumers want brands to prevent drunk driving and provide nutritional information on the labels
                                                                                            • Usage of Spirits

                                                                                              • Spirits are drunk by 44% of consumers
                                                                                                • Vodka is the main spirit consumed
                                                                                                  • Figure 26: Usage of vodka and RTD, by age, February 2016
                                                                                                • Consumption of spirits presents an upscale skew
                                                                                                  • Figure 27: Usage of spirits, by socioeconomic group, February 2016
                                                                                                  • Figure 28: Usage of spirits, February 2016
                                                                                              • Reasons for not Drinking Spirits

                                                                                                • Health concerns are the main reason for not drinking
                                                                                                  • Medical reasons are also an impediment
                                                                                                    • Spirits face competition from other alcoholic drinks
                                                                                                      • Figure 29: Reasons for not drinking spirits, February 2016
                                                                                                  • Premium Spirits Attributes

                                                                                                    • Premium spirits are most associated with high-quality ingredients
                                                                                                      • Aging is “more premium” than filtering
                                                                                                        • High-quality ingredients convey exclusivity
                                                                                                          • Figure 30: NPD highlighting ingredients used, worldwide
                                                                                                        • Heritage is key for those aged 35-44
                                                                                                          • Using packaging to stand out
                                                                                                            • Figure 31: NPD featuring unusual packaging, worldwide
                                                                                                          • Craft spirits struggling to be seen as premium
                                                                                                              • Figure 32: Premium spirits attributes, February 2016
                                                                                                          • Influencing Factors When Purchasing Spirits

                                                                                                            • A good taste is essential in the category
                                                                                                              • Figure 33: Influencing factors when purchasing spirits, by age, February 2016
                                                                                                            • Flavor is important to 16% of consumers
                                                                                                              • Brands should invest in word of mouth to promote products
                                                                                                                • Domestic brands need to stand out against international ones
                                                                                                                  • Using advertising to bring in more young customers
                                                                                                                    • Figure 34: Influencing factors when purchasing spirits, by gender and age, February 2016
                                                                                                                  • Price is important but not as much as taste
                                                                                                                    • Figure 35: Influencing factors when purchasing spirits, February 2016
                                                                                                                • Attitudes and Behaviors toward Spirits

                                                                                                                  • Consumers want brands to prevent drunk driving
                                                                                                                    • Nutritional information on packaging is appealing to spirit drinkers
                                                                                                                      • Diageo revamps its responsible drinking website
                                                                                                                        • Experimenting with typical spirits from other countries
                                                                                                                          • Figure 36: Diageo’s Jinzu
                                                                                                                          • Figure 37: RTD Pisco products, Peru
                                                                                                                        • Craft spirits
                                                                                                                          • Craft pioneers innovate around more complex spirits
                                                                                                                            • Figure 38: NPD featuring heritage and provenance, worldwide
                                                                                                                          • Spreading craft cachaça
                                                                                                                            • Figure 39: Attitudes and behaviors toward spirits, February 2016
                                                                                                                        • Appendix: Market Size and Forecast

                                                                                                                            • Figure 40: Value sales for spirits, Brazil, 2010-2020
                                                                                                                            • Figure 41: Volume sales for spirits, Brazil, 2010-2020
                                                                                                                        • Appendix: Methodology and Definitions

                                                                                                                          • Fan chart forecast
                                                                                                                            • Abbreviations

                                                                                                                            Companies Covered

                                                                                                                            To learn more about the companies covered in this report please contact us.

                                                                                                                            Spirits - Brazil - April 2016

                                                                                                                            £3,199.84 (Excl.Tax)