Brazil Beer Industry

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Executive Summary

This report displays the various possible Investment opportunities and Strategic choices for a Scottish Alcohol Company to enter and trade within the South American country of the Federative Republic of Brazil.

Documented and analysed are the concept of the overall environment of both the European and South American regions, detailing the many facets and characteristics present that may help or hinder possible market penetration into the area.

Furthermore, also displayed is the potential engagement of both countries through am alcohol based product. Additionally, shown, is the culture of both countries and the preferences and opinions towards alcohol and their effects.

The Investment and Strategic for an organisation such as a Scottish Beer Company is to recognise the strengths and weaknesses of the company and understand their Capabilities and Competences, before contemplating entering new business territories.

Similarly, by looking at the many forces and factors within the company’s initial environment, within their own country, an organisation can then adapt these feasible successful components onto a more global, international scale.

Conclusions from this report include that, although Brazil is a booming and fast growing economic and business environment, the intense and highly experienced competition within the region may prohibit a new or unseen company appearing in the country for the first time. Possible solutions to this obvious problem include securing potential hospitality contracts, selling branded products in more niche, non-domestic markets.

Contents Page

Introduction1
Report Objectives1

Beer Industry in Brazil1
Timeline of Industry1
The Brazilian Environment1
2.3 Economic Analysis1
2.4 Government and Legal Implications1
2.5 Infrastructure and Technology Available1
2.6 Social and Cultural Dynamics1

Strategy for Scottish Company1
3.1 Entry/Exit Strategy – Pros and Cons (SWOT/VRIN Analysis) (Porters 5 Forces) (Strategic Capabilities)1 3.2 International (PESTEL) (McKinsey Model)1

Financial Budgeting (£2 million investment)1
4.1 Investment Appraisal (Cost/Benefit)1
4.2 Potential Products (275ml, Lager, Ale and Alcohol Free)1 4.3 Competition/Consumer Behaviour1

Conclusions1
5.1 Key strategies for operations mentioned1
5.2 Likelihood of Success? 1

References1
6.1 Bibliography1
6.2 Journal Articles1
6.3 Internet Sources1
6.4 Image Source1

Introduction

This report aims to document the Alcohol Industry, specifically Beer, within the South American country of Brazil, with the possibility of a business from another country or even continent contemplating entering the country’s market. Here, it is specifically examining a company originating from Scotland.

Detailed is the environment within the country and the market within which the industry has thrived into at least the 4th largest Beer market in the world.

1.1Report Objectives:

To determine the background of the Beer Industry within Brazil and the attributes that display how successful it has been over the years.

Uncover the possible pros and cons for entering the South American country and pursuing operations internationally.

Detail the various Strategies that are available for a UK company, specifically Scottish, to enter and thrive within the Brazilian market.

Analyse the organisations potential investments and ongoing objectives within the country.

Beer Industry in Brazil

2.1Timeline of Industry

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(CabecaDeCuia, 2012) According to the National Union of Brewing, Brazil ranks fourth in the ranking of world production of Beer, with 10.34 billion...
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