From January to September 2019, foreign purchases of beer in Central America amounted to $170 million, 32% more than reported in the same period in 2018, with Guatemala and El Salvador being the markets that registered the most significant increases in their imports.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
Cervecería Hondureña has announced that it will be investing $25 million in the expansion of its beer production plant in San Pedro Sula.
The company, a member of the business conglomerate AB Inbev, explained that the expansion works will be completed within 10 months, once the process to obtain the necessary permits has been completed.
Despite increased competition caused by the presence of foreign brands, especially in the segment of popular beers, domestic brands have maintained their dominance in the market.
Competition in the beer market is fierce, and more so because of the arrival of the Belgian-Brazilian company InBev, the largest brewer in the world. However, Guatemalans prefer domestic beer, with the Gallo brand being the market leader.
The capital will be used to increase production capacity, strengthen infrastructure and purchase equipment for cooling and packaging.
The brewery will carry out the investment in partnership with Cabcorp (CBC), according to Jean Jereissati, vice president of AmBev.
Eleconomista.net reports that "this amount is the most these companies have invested since they signed an alliance in 2003, when a production plant was installed in Zacapa".
A price war and the entry of new brands, especially beer, have added dynamism to the sector.
"During the period 2011-12 companies launched onto the market products such as Budweiser presented by the company AmBev CentroAmerica, as well as other mixtures made by Cervecería Centro Americana", reported Prensalibre.com.
Sales were also increased by innovative products, such as ready to serve beverages.
Tsingtao Beer, leader in the Chinese market, is now available in Guatemala through Impromo distribution company.
Flor de María Casasola, Impromo’s distribution director, explained they will expand to El Salvador and Honduras in the short term, and in a second phase to Belize, Dominican Republic, Curacao and Puerto Rico.
The product will be available in two formats: 355 and 640 milliliters, priced at $1.37 and $2.25 respectively.
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