Brazilian Beer Brand Itaipava Shakes Up The Billion-Dollar Canned Cocktail Market
Date
10/25/2024 5:00:13 AM
(MENAFN- The Rio Times) Itaipava, the popular Brazilian beer brand, is making waves in the booming ready-to-drink cocktail market. This move marks a significant shift for the Petrópolis Group, which has been a beer-only company for three decades. The decision comes as the canned cocktail industry experiences rapid growth worldwide.
The ready-to-drink market has evolved from budget-friendly options for college students to premium offerings from renowned brands. Industry giants like Johnnie Walker and Tanqueray now offer canned versions of their cocktails. This sector grew by 10% in 2023 and is expected to reach 8% of the alcoholic beverage market by 2025.
Itaipava's new canned cocktails come in two flavors: sake with vodka and gin and tonic. Both drinks have an alcohol content of 7.9% and contain no beer, despite the brand's association with the beverage. This strategy mirrors Ambev's approach with Skol's Beats Senses line.
The mainstream beer market, which includes Itaipava , has seen a 1% decline in volume over the past year. However, Itaipava has outperformed its competitors, growing by 6% during this period. The brand sells an impressive 288,000 600ml bottles and 8 million cans daily.
Cristiane Rosa, head of marketing at Petrópolis Group , explains the move: "We need to target new trends to stay relevant. Our goal is to rejuvenate the brand and add more value." The company aims to attract consumers aged 18 to 30 with these new products.
Brazilian Beer Brand Itaipava Shakes Up the Billion-Dollar Canned Cocktail Market
Market research influenced the decision to use the established Itaipava name rather than create a new brand. Rosa notes, "Most consumers prefer to try new drinks from familiar brands." The company has also refreshed Itaipava's traditional packaging to celebrate its 30th anniversary.
The Petrópolis Group, currently undergoing judicial recovery, plans to increase its market share from 12.3% to 15%. The company is balancing debt repayment of over R$ 5 billion ($892.8 million) with significant marketing investments to boost sales and strengthen its market presence.
As the ready-to-drink market continues to expand, Itaipava's entry into this sector represents a strategic move. It allows the brand to diversify its offerings and tap into a growing consumer trend, potentially securing its position in the evolving beverage industry.
Brazilian Beer Brand Itaipava Shakes Up the Billion-Dollar Canned Cocktail Market
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