Cachaça: Domestic travails see cachaça firms target exports, says IWSR/just-drinks report

BROMSGROVE, England, June 20, 2012 /PRNewswire/ --

A downward trend for cachaça in its home market of Brazil is pushing producers of the white spirit to look abroad for growth, according to a recently-published report from The IWSR and just-drinks.

The report, entitled 'Global market review of Cachaça - forecasts 2016', says that cachaça is the ninth-largest global spirits category at 82.7m nine-litre cases. However, domestic sales, which account for 99% of total sales, are in steady decline, prompting companies to consider export markets.

"The (cachaça) category shed some 21.5m cases over the past ten years (2001 to 2011), representing a compound annual growth rate (CAGR) of -2.3%," the report states.

"At present, 99.02% of cachaca sales are derived from the domestic market - only marginally lower than the 99.7% in 2000," the report states. Furthermore, domestic sales are shown to have had a decline of 6.5% in 2011 over 2010. The report highlights a less than impressive CAGR of only 6.1% between 2005 and 2010.

The slide in sales in Brazil means that cachaça will have to focus on exports for future growth.

There are barriers to heading overseas, however. "Most cachaça producers operate on a regional or very local level," the report continues. "Not many producers have the resources to fund a national push, never mind an export push."

However, with Brazil set to host both the Football World Cup in 2014 and the Summer Olympics in Rio in 2016, "there has possibly never been a better time to build global awareness around the national spirit", the report concludes.

The report contains domestic and export data, analysis by The IWSR and interviews with key industry players.

'Global Market Review of Cachaça - forecasts to 2016' is available now from just-drinks.

Aboutjust-drinks.com
Established in 1999, just-drinks is a leading online resource for global beverage industry, publishing around 20 news articles, analysis features and insights every working day. Under the direction of managing editor Olly Wehring, its experienced team of journalists, consultants and analysts provide a unique and comprehensive blend of reports and interpretation of the beverage industry, including key events, trends, interviews and research that is delivered to over 92,000 business executives per month.

Via its web site, webinars and in-depth management briefings just-drinks offers insight into soft drinks, wine, beer, liqueur and whiskies industry developments and supply-chain trends, brand and corporate strategies, CONSULT research platform, enterprise technologies such as PLM and ERP. Furthermore, just-drinks supplies news on manufacturing developments and how the drinking industry retailers perform around the world.
For details of how just-drinks is helping decision makers make decisions, visit http://www.just-drinks.com.

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SOURCE just-drinks.com