Brazil – market opportunity for the Wine and Spirits sector

Focus on alcoholic drinks

• Beer is still the most consumed alcohol in Brazil, with an average 55 litres per capita consumption.
• In the case of spirits, the annual consumption has reached 1.5 billion litres (predominantly a local drink known as cachaça), but there is also a trend towards other spirits such as vodka, which is particularly popular among the young wealthy classes.

It is worth noting that the aperitif (or pre-dinner drinks or cocktail) is an important event for Brazilians, more so in fact than the meal itself. Brazilians like to get together for a drink and make the most of this time for socialising and exchange.

The wine market

Brazil is the 2^nd  largest consumer of wine in Latin America after Argentina, and imports around 60 billion litres of wine each year, which represents less than 20% of the total wine volume consumed (340 million litres). Annual per capita consumption is barely 2l, even if we take into consideration significant local differences (4.8l in Rio de Janeiro compared to only 1l in Bahia). Brazil does not have a winedrinking culture and wine is associated predominantly with special occasions and is used to improve one’s personal standing or as a symbol of social status. Consumption is however increasing and it can also be noted that seasonal peaks in consumption are becoming less marked.

• Brazilians prefer red wine (80%); the main grape varieties are Cabernet Sauvignon, Merlot and Zinfandel
• Sparkling wines and Champagne are also very popular (= sign of sophistication), and are generally served on ice (chilled)

Today, good quality wines can be found around R$ 12 and R$18 (5-8 euros), but the average price in major distribution circuits is situated around 4 euros. Brazilian consumers are not sophisticated wine drinkers and the key buying trigger remains value for money. It is therefore the wines from Chile, Argentina, Italy and Portugal that continue to be the most successful.  There are however significant barriers to entry for imported products from Europe, including duty, administration and high taxation.

Finally, in addition to wine drinking, new areas are starting to develop and grow related to wine, including careers in wine, such as sommelier, winemaking courses and publications (books, information guides and magazines), all linked to wine and its consumption.