BTN News: The Colombian beer market is experiencing a period of significant growth, marking an exciting phase for the industry. Not only is beer production thriving, estimated at 30.2 million hectoliters, but consumers are also investing a staggering 22 trillion pesos annually in this popular beverage. This surge in both production and consumption highlights the thriving nature of this industry, which, despite being dominated by a few key players, is seeing fresh competition and innovation. Felipe MejÃa, the general manager of Central Cervecera, a prominent player celebrating the fifth anniversary of its flagship product, Andina, sheds light on the challenges and opportunities in gaining a foothold in this lucrative market.
Establishing a position in Colombia’s competitive beer industry has been no small feat. According to MejÃa, the market, historically dominated by a few entities, is now growing at an average annual rate of 4.3%, up from 2.5% before the entry of new competitors like Central Cervecera. This uptick is largely attributed to the introduction of new brands, packaging, and experiences, which have revitalized consumer interest and expanded market options. Central Cervecera’s presence has contributed to a dynamic shift in the industry, making it an attractive space not just for large corporations but also for smaller, artisanal breweries.
Since its inception five years ago with the launch of Andina, Central Cervecera has been making notable strides. The company’s growth is reflected in the overall expansion of the Colombian beer market, which has increased from 25.5 million hectoliters to 30.2 million hectoliters within the same period. Remarkably, Central Cervecera accounts for nearly 40% of this growth, a clear indication that its brands are resonating with a growing number of consumers. This success underscores the effectiveness of their strategic positioning across different price segments.
Price segmentation plays a crucial role in Central Cervecera’s market strategy. The company has successfully positioned itself across three major price categories: premium, mid-range, and budget. In the premium segment, brands like Heineken and Sol lead the charge, while Andina dominates the mid-range market. The company has also innovated in the budget category by introducing Tecate in a 330ml returnable bottle, priced at just 1,500 pesos. This move has not only made high-quality beer accessible to a broader audience but also tripled the size of the budget beer segment, which now constitutes about 15% of the market.
Central Cervecera’s efforts extend beyond mass-market beers to support the burgeoning craft beer scene in Colombia. Through its association with Tres Cordilleras, a brand with a strong artisanal heritage, the company has significantly boosted the craft segment, multiplying its sales fivefold. Moreover, Central Cervecera actively supports other artisanal brewers by providing them with platforms to showcase their products, such as beer festivals, where the company even sponsors stands to help smaller brewers participate.
The company’s production capabilities are equally impressive. Central Cervecera operates one of the most modern breweries in Latin America, with a capacity of 4 million hectoliters. The facility in Sesquilé is not only state-of-the-art but also highly sustainable, utilizing solar panels to generate 25-30% of its energy needs and sourcing the remaining energy from certified renewable sources. The brewery’s commitment to environmental stewardship is further demonstrated through its advanced water and waste management systems, as well as its efforts to create a gender-inclusive workforce, with women making up over 30% of its operational staff.
Sales figures for 2024 indicate a continuation of the company’s upward trajectory, with double-digit growth and increasing market share. The beer market in Colombia, valued at approximately 22 trillion pesos, plays a significant role in the economy, supporting retailers, funding public services like health and education through taxes, and contributing to the overall economic fabric of the country.
Colombians are avid beer consumers, with a per capita consumption of around 58 liters per year, making Colombia the third-largest beer market in Latin America, trailing only Mexico and Brazil. With consumption rates in these leading markets at 77 and 76 liters per capita, respectively, there is still room for growth in Colombia, offering further opportunities for the beer industry to expand.
In conclusion, Central Cervecera’s journey over the past five years has not only carved out a significant share of the Colombian beer market but also contributed to its overall dynamism and diversity. By offering a wide range of products across different price points and supporting the craft beer movement, the company has positioned itself as a key player in the ongoing evolution of Colombia’s beer industry. As the market continues to grow, driven by innovation, sustainability, and consumer engagement, Central Cervecera is poised to play a leading role in shaping the future of beer in Colombia.
