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 from beernexus.com |
Edited by Jim Attacap
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| Beyonce Balks Over Beer A Brooklyn-based brewery was hit with a cease and desist letter for selling beer inspired by the entertainer Beyonce .Lineup Brewing began selling a pilsner called “Bïeryoncé” last November and rit quickly sold out. They brewed another batch and it too sold out. 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 owner , 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. |
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| New Tax Law Good For Booze Makers of craft beer, artisanal spirits, hard cider and mead are 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. The 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. Small 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. |