Brazil Wine Market Report JBC EMP July 2011 - California Wine ...

Shift to Off-Trade Spurs Sales In Supermarkets/Hypermarkets
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Brazilian Wine Market Report
The shift in consumption of alcoholic drinks from the on-trade to off-trade channels was very positive
for supermarkets and hypermarkets which increased shelf space given over to alcoholic drinks,
particularly beer. Additionally, investment by manufacturers in diversifying packaging sizes of beers
such as 1-litre glass bottles, 473ml/269ml/210ml metal beverage cans and 5-litre kegs to cater to
consumers’ different needs also contributed to spur sales in grocery retailers.
Optimistic Outlook for Alcoholic Drinks
Alcoholic drinks is expected to show significant growth over the forecast period as disposable incomes
will continue to improve among socioeconomic groups 6 C, D and E and unemployment rates will
remain steady. Beer will continue to sustain growth of alcoholic drinks in the near future but it is
estimated that wine, driven by still light grape wine and sparkling wine, and spirits such as whiskies
and vodka will experience strong growth from 2010 to 2015 as Brazilian consumers expand their
consumption habits in alcoholic drinks. 7
Economical Segments 2008
Source: http://www.propertybrazil.com/news/the-emerging-middle-class-in-brazil-25
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The Brazilian economical classes are segmented according to monthly household income levels as follows:
Class A&B: + 4807 R$
Class C : 1116 - 4807 R$
Class D: 804 - 1115 R$
Class E: Under 804 R$
As can be seen, class A & B make up the upper income classes; class C is the "official" middle class; class D
constitutes the lower middle class and class E is the lowest income segment.
7 Source: Euro Monitor