PETpla.net Insider 01+02 / 2014

EDITOUR REPORTS 12 PET planet insider Vol. 15 No. 01+02/14 www.petpla.net Drinks market Just as diverse as the tropical fruits of Brazil is its bev- erages market. Here we find more than 150 drinks bottlers and brewery operations, ranging from family businesses to mega-corporations, from regional brands to global super- stars. Coca Cola and Pepsi Co are naturally enough the front-runners but there are significant numbers of smaller, usually family-run businesses, predominantly engaged in bottling mineral water. The Brazilian market is so large it can accommodate them all comfortably. The result of this diversity is an enormous variety of bottle geometries and sizes (from 0.25 to 3.3l content) all with very different specification. A brands, B brands and mineral waters bottled in every imaginable quality. Growth rates in the past have been of the order of 6-7%, with the exception of 2012, with a growth rate of just of 2%. 2013 is looking up and the drinks industry is once again anticipat- ing growth rates in excess of 5%. For a representative cross-section of the beverage market the following interview partners were selected: Mineracao Campo Branco represents the large number of mineral water bottlers. They are family-run businesses who bottle mineral water directly from source into PET bottles. Genuina Lindoyra, Industria Zugliani and Hugo Cini are among the bottlers of juices and energy drinks in PET bot- tles. They have their own flavours and bottle geometries. They are usually family businesses with a sales area cov- erage of up to 300km. Coca Cola Brasil and Ambev are the two largest soft drink bottlers in Brazil. They belong to multinational groups. Andina Coca Cola is a typical multi-national soft drink bot- tling plant and a franchise operator of Coca Cola. Logoplaste Shefa is a pioneer in bottling Brazilian milk in PET bottles. Döhler is a manufacturer of fruit concen- trates and formulations for the beverage industry. Amcor, supplier of preforms and a PET bottles converter for the beverage industry, operates on a multinational scale. Beri- cap do Brasil and Grupo Ravi represent manufacturers for caps using two manufacturing processes, injection mould- ing (Bericap) and compression moulding (Grupo Ravi). Naturally our market overview does not fail to include machinery manufacturers: Krauss Maffei / Netstal, Husky and Hofstetter. Finally, we also visited a processor of PET recycling material. Ecoplaca processes PET recycling material into useful objects and worries about the availability of the material. Beverage consumption: figures and trends 2012 The consumption data and market evaluation used here stem from various interviews with Brazilian interview part- ners. The data were collated, summarised and rounded off. Orders of magnitude only have been given. Soft drinks:  consumption more than 16billion litres/year  rising trend  As far as the soft drinks sector is concerned, the 2l non- returnable PET bottle dominates. This is the so-called family size bottle consumed predominantly at home. Sales mainly through the supermarkets. Bottled mineral water  consumption more than 6billion litres/year.  Rising trend 0.6billion litres per year. Still drinks  consumption more than 1.5billion litres/year.  rising trend Tea Drinks, Sport Drinks, Energy Drinks  consumption more than 0.4billion litres per year.  double digit growth rate Packaged milk drinks  consumption more than 10billion litres/year.  rising trend  packaging in cartons dominates. But growth is still evi- dent in UHT milk drinks in PET bottles. Beer  consumption more than 13billion litres/year  rising trend  Brazilian beer industry today is the third largest in the world. Packaging for beverages In the beverage packaging sector, the number of PET bottles and containers is gathering pace at the expense of glass and metal cans. The strong growth a few years ago in metal beverage cans is now in decline. Glass bottles also are growing at a rate of barely 2%. Significant growth rates, Beverage Packaging (million) 2008 2009 2010 2011 2012 2013 Metal beverage cans 6.822,90 7.815,10 9.178,80 9.739,60 10.374,20 10.739,40 PET bottles 9.724,60 10.382,80 11.310,00 11.813,50 12.442,20 13.104,60 Glass bottles 6.168,00 6.145,40 6.448,40 6.853,50 7.008,00 7.137,50 Brick liquid cartons 1.142,60 1.232,10 1.348,50 1.484,00 1.659,30 1.803,20 Beverage Packaging Brazil: consumption figures and history (Source: Euromonitor International)