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Beervana and the
Chilean Beer Industry
Peter Haldis
Eric Markley
Yoichiro Hayakawa
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History
• Beer came with the Europeans
• Beer arrived shortly after Independence.
• First Chilean brewery "La Chimba" began in 1822 in
Santiago.
• Germans arrived mid-19th century → Mass production of
beer
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History
Cervecerías
born in beer
1889. was consumed all over
• •ByCompania
the end
of the Unidas
19th was
century,
• In 2002 thCompania Cervecerías Unidas was born in 1889.
the country.
•
•
• In 2002 the Association of Beer Producers of Chile AG (ACECHI) was
founded.Compania Cervecerías Unidas was born in 1889.
•Compania
In 2002 the Association
Cervecerías
of Beer
Unidas
Producers
(CCU)
of Chile
born
AG (ACECHI)
in 1889.was
founded.Compania Cervecerías Unidas was born in 1889.
• In 2002 the Association of Beer Producers of Chile AG (ACECHI) was
Association of Beer Producers of Chile AG founded 2002,
founded.e Association of Beer Producers of Chile AG (ACECHI) was
founded.
.
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Unique “beers” of Chile
Pisco
Colorless or yellowish grape brandy produced in
winemaking regions of Peru and Chile. Made from
only certain varieties of grapes.
Chicha
• Several varieties, some non-alcoholic
• Maize, manioc root, grape, apple or other fruits.
• Classified as corn beer by foreigners
★
Beer in Chile
Market Size
• Chilean beer consumption low compared to the rest of the South America
• Beer is the most consumed alcoholic beverage and takes 60% of the total market
share for alcoholic drinks.
There has been slow but steady growth in the sales of lager, pale ale from local
microbreweries and imported pale lager.
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Beer Consumption
Per capita
consumption:
Canada: 99 L
USA: 78 L
Brazil: 65 L
Argentina: 49 L
Japan: 45 L
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Place of Consumption
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Market Shares
Major players
• CCU 80% market share in 2012.
• Cervecería Chile, Chilean unit of InBev, 14%
Craft beer
•
•
•
•
Craft beer market born in late 90s
From 2008-2012, craft beers sold rise from 125 to 400
Premium beers 18% share of total market, highest share in the region
Growing demand for imports, especially full-flavor European-style
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Beer Industry Analysis
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Year
Average Price
Per Liter (peso)
Growth Rate
Average Price Per Liter
2010
2011
2012
550.65
574.29
581.71
2.4%
4.2%
1.3%
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Beervana
Ben Wood and Perry Hirsch
Demand for imported beer among Chileans,
plus 25,000 American expats/tourists.
Combined, importer, distributor and retailer
• Only Chilean importer of American craft brews
• Distribute to bars & restaurants
• 750 sq. ft. store (eventual plan 100+ labels).
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Beervana
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Beervana -- Setting up
• Setting up distributorship and retail much cheaper than in U.S.
-- Personal savings and 2 U.S. silent investors.
• Licensing and regulations similar to U.S.
• Minimal government involvement
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Beervana Pricing
Current Market
• Local Drafts $1000 CP
• Imported bottles $1500 CP
Beervana
• Local Crafts $1000 CP
• US Imports $2000 CP
• International imports $3-4000 CP
• Extra large bottles $5-7,500 CP
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Beervana SWOT
Strengths
• Experience in distribution
• First mover
• Location (Providencia/Santiago)
Weaknesses
• Pricing
• Unproven Market
Opportunities
• Growing market segment
• Two ways to succeed – retail and
distribution
Threats
• Chilean craft beers
• Craft beer just a fad?
• Craft beer becomes very popular,
and CCU or InBev get in.
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Questions?