Latin American Beer Report

Latin America's emerging craft beer industry is growing in the hands of entrepreneurs. In Brazil
there are 650 craft breweries; in Mexico, 630; in Chile, 350; and in Colombia, about 45. And these
numbers keep soaring, according to data from local associations.

Escola Superior de Cerveja e Malte, a Brazilian university catering to the brewing industry, says
both Anheuser-Busch InBev and Heineken, as well as financial investors, are actively scouring the
Latin American market for potential acquisition targets.AB InBev has been shopping around.

Last year, it completed the acquisition of four breweries in Mexico through its local subsidiary
Grupo Modelo. In Brazil, the beer giant bought Cervejaria

Heineken, in turn, acquired control of a wide portfolio of Brazilian craft beer brands, including
Baden Baden and Eisenbahn, following the February acquisition of Brasil Kirin, a local subsidiary of
Kirin Holdings Company for $664 million euros.By the end of 2017, Brazil reached 700 craft
breweries, a number that may increase by up to 40%  next year,

In 2017, Mexico produced 108,723 hectoliters of craft beer. The sector, which accounts for only
0.1% of local production, caught the attention of Modelo, the country’s largest brewer. Last year,
Modelo completed the acquisitions of the breweries Cucapa, Tijuana, Bocanegra and Mexicali.
The four breweries together represented over 50% of Mexico’s 2016 production of craft beer,

The total value of Mexico’s craft brewery industry is around $50 million. This figure is expected to
rise to at least $250 million in the next three years,

In Chile, the craft beer industry represents 1.3% of Chile's beer market and
reached annual revenues of around $82 million,
Feature News  
Edited by Jim Attacap
the crossroads of the beer world
Beyonce Balks Over Beer

A Brooklyn-based brewery was hit with a cease
and desist letter for selling beer inspired by

.Lineup Brewing began selling a pilsner called
“Bïeryoncé” last N
ovember and rit quickly sold
out.  They brewed another batch and it too sold
 It seems that many Beyonce fans were
pumped about the beer
but also believed she
was one of its creators and brewery owner.

The Lineup owner said "Beyonce should be
flattered. When I
got the cease and desist letter
I was bummed. As a Hispanic, female  business
, I am very inspired by her so I thought I’d
pay homage. We’re disappointed she didn’t take
it as a compliment,
Now we have to stop.

This isn’t the first time a beer company has
gotten in trouble for ripping off a brand. Earlier
this year, Minnesota-based Modist Brewing
Company received a cease and desist letter for
naming one of their brews “Dilly Dilly,” after the
popular Bud Light catch phrase.
New Tax Law Good For Booze

Makers of craft beer, artisanal spirits, hard cider
and mead a
re happy with the sweeping new tax
overhaul just passed
by Congress. It sharply
lowered excise taxes on  alcoholic beverages
made by small producers.
One provision also set
up the first statutory definition of mead, an
alcoholic beverage madeof fermented honey, or
tax purposes, it defines alcoholic ciders as wine
and widens the flavors that cideries can use.
new law lowers the tax to 7 cents a gallon from
$1 for small producers. Cider had been taxed
depending on what kind of fruit was used.
wine producers also get a tax break as did
makers of sparkling wines.
Small producers of
distilled spirits
will pay $2.70 a gallon in tax on
the first 100,000 gallons made compared with
$13.34 a gallon levied above that level.

Craft beermakers will pay tax of $3.50 a barrel
on the first 60,000 barrels brewed. Big producers
of more than 6 million barrels will pay $18 a
barrel, the current level for beer. A beer barrel is
set at 31 gallons (117 liters).The reduction is not
expected to result
in lower consumer prices.