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El Salvador beer market: Dominated by La Constancia (SABMiller) since 2005
El Salvador Beer Market Insights 2013 - a new market research report on 2014-04-22 02:21:03
The El Salvador beer market had some innovations in 2012, as some imported beers began competing with national market leaders in the mainstream, premium, and super premium segments. Although beer consumption in El Salvador is very low compared with other countries, new launches boosted this category and buffered falls in consumption.
The brewing industry is dominated by La Constancia, owned by SABMiller since 2005. This is the country´s only brewery and it is also a strong player in the soft drinks industry as it distributes Coca-Cola products.
The fiscal reform approved in 2011 was implemented 2012. Some of the main changes will apply to alcoholic beverage, tobacco, juice and energy drinks and gasoline. All alcoholic beverages will have to pay an additional tax of 5% over the sale price, also a differentiated tax will be applied to each of the beverages according to its Abv%.
The beer market experienced an extraordinary year with a growth of over 11%, the main source of the market dynamism is the affordability strategy, undertaken by La Constancia, in which the brewer has been measuring the affordability index, which measures how many working hours it takes a Salvadoran to buy a beer.
There is wide variety of imported premium brands, which are experiencing a growth as there is a niche in the consumer base which is interested in tasting unique beers.
La Constancia experienced an important growth rate during 2012, driven by brands such as Regia with 24%, Golden Light with 15% and Pilsener with 12%. This growth was mainly driven by having a favorable price point.
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