Skip to main content

Among the Competition, Customers Win!

By: Gustavo Kramer
First-Year Brewmaster Student

In Brazil, behavior towards beer consumption has been changing. Prior to the 2000s, there were almost no options for people to consume different types of beer as the market was dominated by big corporations producing American Lager’s brewed with adjuncts. Those who wanted to drink something different had to seek out the very few establishments selling expensive imported beers. However, the new millennium saw a boom in craft brewery options meaning customers are now able to discover a multitude of styles, including the formerly unknown 100% malt-based beer.

As customers started to seek out this particular beer style, the biggest corporation in the world AmBev, subsidiary of Anheuser-Bush InBev in Brazil, saw an opportunity involving malt-based beers and the potential for a niche market. AmBev invested years of research in developing a 100% malt-based recipe and in 2018 they launched two new brands in Brazil made with 100% malt: Skol and Brahma, both of which are responsible for 67% of total beer sales in Brazil (Flanders, 2015). Besides the traditional Brahma Pilsen, made with adjuncts, they launched three beers using 100% malt: Brahma Extra Lager, Brahma Extra Red Lager, and Brahma Extra Weiss. Skol also launched two 100% malt-based beers: Skol Hops and Skol Puro Malte (Skol Pure Malt). Moreover, the AmBev’s brand Serramalte, a Premium American Lager, traditionally brewed with adjuncts, migrated to the 100% malt-based recipe.

The production of 100% malt-based beer by AmBev was a reaction against Heineken gaining ground in Brazil, as well as other smaller brands such as Eisenbahn, and craft beers. Who is the winner in this war to gain market dominance? The customers! As automakers spend billions of dollars every single year, developing better cars and trying to overcome competitors, it is not so different in the brewing industry. It is an excellent lesson for craft breweries: either please the customers and develop better products, or the brewery shuts down. If a craft brewery wants to thrive, being complacent is never allowed. As the market is very dynamic, competitors will be so. Craft breweries need to take research, development, improvements, optimization, and quality seriously. It means hard work outside of their comfort zone. But moreover, the customers win.


Gustavo Kramer is a first-year brewmaster student in the 6th cohort, and was born in Porto Alegro, Brazil. He worked in a brewery for one year during his academic pursuit as a food engineer and is now looking to continue his brewery experience here in Canada. 





Reference:
Flanders Investment & Trade Market Survey. (2015). The Beer Sector in Brazil. Sao Paulo: Flanders Investment & Trade.




Popular posts from this blog

Beer Review: Okami Kasu Japanese Ale

By: Anthony Page Second-year Brewmaster Student I found myself in the nearest specialty liquor supplier, scavenging for the newest, most hop intense, bittersweet and fruity thing I could possibly find when I saw it sitting there.  This was not the style I usually go for, but something about it drew me in.  As I usually go about on my Saturday afternoons in Calgary, I like to grab some beer prior to my once a week family dinner.  My brother in law will be there, and my father will crack a brew with us.  It’s always been a bit of a mission to broaden their horizons with new and interesting ales and lagers.  Of course, I have embarked on studying the art of brewing beer, so I should at least justify my path in schooling by wowing them with something remarkable.  There on the shelf were two six packs of beer I had heard about but had never strongly considered purchasing.  The brewery was fairly new in town, the previous style I had tried from them...

Beer Review: Sasquatch Stout

By: Kyle Mueller Second-year Brewmaster Student While most hipster craft beer advocates out there seem to jump on board any new beer trend that comes around lately, its always reassuring to go back to a classic beer style that screams “simpler times”. Old Yale Brewing, a legend in the Chilliwack, BC craft beer scene, has just that very beer. Since the start of Old Yale’s existence, they have tried to stay close to their Fraser Valley roots. Using Canada’s best drinking water and all-natural ingredients, they aim to achieve the same balance as the environment around them. Sasquatch, being one of their best sellers and winner of “Best Beer in Canada” 2014, is no different. Brewed with Pale malt as their base malt, supported by Oat, crystal, roasted and Chocolate malts and hopped with Magnum, this beer comes out swinging. Best served in a Guinness-style pint glass, aromatics of chocolate, coffee, vanilla and just a hint of caramel should be detectable. With a creamy full-bodie...

A Summer in Germany

By: Ben Christian Former Olds College Brewmaster Student Berlin: the capital city of Germany. A city with a distinct history and a unique culture; there really is nowhere else like it on earth. Of the forty-one countries and countless cities I have visited, Berlin stands alone as my favourite city on the planet. It was a no-brainer to commit to spending my summer there. The E3 Berlin program offers three opportunities and allows students to pick and choose what they would like to do. The first option is a German language course, the second is an internship, and the third and final option is an academic course.  Being bilingual, the chance to begin learning another language, was alluring. In fact, the German language course was the main reason I participated in the E3 program. The course was incredible! Our teacher, Helga, was an energetic, engaging, frizzy-haired marvel! Perhaps the best teacher that I have ever had. The days learning German were long ...