Alcoholic Drinks Consumption Habits - Brazil - October 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Challenges
Category has been losing space among Brazilian consumers
Figure 1: Consumption changes – Brazil, July 2019
Health concerns are one of the main reasons why consumers are drinking less of certain types of alcoholic drinks
Bars, pubs and breweries have the challenge of encouraging consumers to go out on smaller occasions instead of staying at home
Opportunities
Natural options and low calories content can attract Brazilians with health concerns
Delivery apps and purchase of alcoholic drinks via eCommerce can affect consumption habits at home
Non-flavored spirits without a mixer with an attractive appearance can expand their presence among Generation Z
Wine ranks second among the most consumed alcoholic drinks and can invest in options aimed at younger consumers
What we think
MARKET DRIVERS
Price of alcoholic drinks impacts consumption
Figure 2: Brazil’s IPCA – Monthly variation, year to date accumulation, 12 months accumulation, and monthly weight for the overall index and subgroups (beer and other alcoholic drinks), products and services items and sub-items – June 2018 to June 2019
Health concerns are a barrier to the consumption of alcoholic drinks
Aging of the population
Delivery apps and purchase of alcoholic drinks via e-commerce can affect consumption habits at home
KEY PLAYERS – WHAT YOU NEED TO KNOW
Ambev promotes conscious consumption of alcoholic drinks
Category of alcoholic drinks can invest in functional options
Johnnie Walker’s Game of Thrones edition is a sales success
MARKETING CAMPAIGNS AND ACTIONS
Ambev promotes conscious consumption of alcoholic drinks
Figure 3: Ambev campaign
São Paulo City Council performs campaign to warn about alcohol consumption among young people
Figure 4: São Paulo City Council campaign
eCommerce platform associates wine with barbecue
Figure 5: Clube Wine campaign
Bob’s milkshake with Amarula, specially designed for the Pride, is part of the brand’s strategy to expand consumption forms
Figure 6: Bob’s Amarula Milk Shake
Figure 7: Rei do Mate Amarula Cappuccino
Figure 8: Fran’s Cafe products with Amarula
Johnnie Walker launches a collection of clothes in partnership with RSV+
Figure 9: RSV+ and Johnnie Walker collection
WHO’S INNOVATING?
Options with herbs and spices can appeal to Brazilians
Figure 10: Percentage of launches by “fruits & vegetables” and “herbs & spices” flavors – Top five countries in launches of alcoholic drinks and Brazil, January 2016 to June 2019
Figure 11: Mix of herbs and spices for the preparation of gin-based cocktails – BeGIN
Figure 12: Sparkling Tea – Copenhagen Sparkling Tea Company
Category of alcoholic drinks can invest in functional options
Figure 13: Percentage of global launches by type of functionality within the category of non-alcoholic drinks, January 2016 to June 2019
CASE STUDIES
Johnnie Walker’s Game of Thrones edition is a sales success
Flavored option of vodka-based products gains space among young consumers and increases sales of Corote in 40%
Figure 14: Corote campaign
THE CONSUMER – WHAT YOU NEED TO KNOW
Generation Z stands out when it comes to non-flavored spirits without a mixer
Category can add value to products with more natural ingredients and production processes
Low cost motivates C consumers to drink alcoholic beverages at home
High-quality special editions can encourage AB consumers to try a new drink
Kits to prepare non-alcoholic cocktails can attract women aged 18-24
Higher consumption of alcoholic drinks at home can be an opportunity for delivery services
ALCOHOLIC DRINKS CONSUMPTION
National beer is the most consumed alcoholic drink in Brazil
Figure 15: Alcoholic drinks consumption – Brazil, July 2019
Generation Z stands out when it comes to non-flavored spirits without a mixer
Figure 16: Alcoholic drinks consumption, by generation – Brazil, July 2019
Figure 17: Geranium & Mallow – The Old Curiosity’s Color Changing Gin
CONSUMPTION CHANGES
Category can add value to products with more natural ingredients and production processes
Figure 18: Consumption changes – Brazil, July 2019
Replacement for non-alcoholic drinks is greater than the exchange between categories
Figure 19: Less consumption motivation – Brazil, July 2019
Figure 20: O.Vine Wine Water Essence Water Chardonnay & Cabernet Sauvignon
Wine is the second most consumed alcoholic drink and has the potential to grow
Figure 21: Consumption changes, wine, by age group – Brazil, July 2019
CONSUMPTION AT HOME VS OUT OF HOME 
Immersive experiences can encourage consumers to visit bars, pubs and breweries in small occasions
Figure 22: Consumption at home vs out of home – Brazil, July 2019
Figure 23: ESPN NBA House campaign
Low cost motivates C12 consumers to drink alcoholic beverages at home
Figure 24: Reasons for drinking at home, by socioeconomic group – Brazil, July 2019
Exclusive options can encourage women to consume more alcoholic drinks out of home
Figure 25: Consumption at home vs out of home, by gender – Brazil, July 2019
Figure 26: Prosecco House cocktail menu
REASONS FOR TRYING A NEW ALCOHOLIC DRINK
Well-known brands of spirits can invest in innovative flavors
Figure 27: Reasons for trying a new alcoholic drink, by consumption of spirits – Brazil, July 2019
High-quality special editions can encourage AB consumers to try a new drink
Figure 28: Reasons for trying a new alcoholic drink, by socioeconomic group – Brazil, July 2019
Bartender’s top picks can have a decisive role in the choice of those who are migrating to other alcoholic or non-alcoholic beverages
Figure 29: Reasons for trying a new alcoholic drink, by those who have drunk less of any alcoholic drink – Brazil, July 2019
INTEREST IN INNOVATION 
Consumers, in general, have an interest in alcoholic drinks low calories
Figure 30: Interest in innovation – Brazil, July 2019
Figure 31: La Pizka Sour
Kits to prepare non-alcoholic cocktails can attract women aged 18-24
Figure 32: Interest in innovation, by gender and age group – Brazil, April 2019
Figure 33: Tipple Box Espresso Tonic and Berry Sour mocktail set (non-alcoholic)
Options for special diets appeal to consumers aged 18-34
Figure 34: Interest in innovation, by age group – Brazil, July 2019
Figure 35: Ananias gluten-free wine
Figure 36: Video explaining the Daura  production process
ATTITUDES AND OPINIONS 
Higher consumption of alcoholic drinks at home can be an opportunity for delivery services
Figure 37: Consumption at home vs out of home, by attitudes and opinions – Brazil, July 2019
Figure 38: Yoki Rappi Hour
Flavored spirits can boost consumption by focusing on cocktails
Figure 39: Attitudes and opinions, by consumption of flavored spirits without a mixer – Brazil, July 2019
AB consumers are more likely to associate alcoholic drinks they consume with their lifestyle
Figure 40: Attitudes and opinions, by socioeconomic group – Brazil, July 2019
Figure 41: Alcoholic drinks consumption, by socioeconomic group – Brazil, July 2019
Figure 42: Heineken TV campaign
APPENDIX – ABBREVIATIONS
Abbreviations