Market Overview

AmBev Beer Market in Brazil Booming

Share:

Companhia de Bebidas das Americas (NYSE: ABV) or AmBev, the largest brewer of beer in Latin America and the fourth largest on the planet, is finding themselves in the business of logistics instead of beer sales, according to Marcel Motta, a Sao Paulo researcher for Euromonitor International and Investors.com

The problem in Brazil is that even though there are 200 million consumers with a thirst for beer and money in their pockets, the infrastructure of the country is so poorly developed outside of major cities that many other companies face challenges getting their beer into the hands of their consumers.

This has not phased the Brazilian consumers though, as last year when rising raw materials costs cut into profits and the global beer market struggled, Brazil's market grew 7%, according to EI, says Investors.com.

AmBev is majority owned by Anheuser-Busch InBev (NYSE: BUD), so according to HSBC beer and spirits analyst Lauren Torres, "By buying AB-InBev, you're buying AmBev."

Company sales climbed 40% in the first quarter to $3.4 billion, and AmBev us expected to release second quarter earnings on August 12.

 

Related Articles (ABV + BUD)

View Comments and Join the Discussion!

Posted-In: AmBev Anheuser-Busch Beer brazil Budweiser Companhia de Bebidas das AmericasNews Markets