South American beer focus

15 July 2010 By db staff writer

“standfirst”>Sticking fruit in unusual places doesn’t always work out. Just ask that MP who liked oranges a bit too much. But when, in 1989, a wedge of lime was placed in the neck of a Sol bottle, it was a marketing masterstroke.

The brainchild of Harry Drnec, a former US pilot who fought in Vietnam, it took the beer market by storm at a time when nobody was really drinking Mexican beers. By furnishing Sol with fruit, Drnec successfully differentiated it from a wave of other imported beers flooding the market and sales of Sol soared.

By 1991, Brits were drinking more than 1.8 million cases of Sol a year and Drnec went on to launch a drink called Red Bull. You may have heard of it.  

While sipping a bottle of Sol with a lime wedge may be considered a bit old sombrero by some, the Central/South American beer sector has bounced back from a mid 1990s slump and now represents a significant slice of the genuine imported beer market.
In the on-trade, the overall premium beer sector is suffering a 6% decline but Central/South American beer, served almost entirely in bottles, enjoyed annual growth of 1.4% up to May 2010.

Corona Extra, imported from Mexico City and distributed by Wells & Youngs, is the market leader. Owned by Grupo Modelo and brewed with corn, malt and rice, Corona enjoys a 64% share of the on-trade market but, in recent years, it’s been taken on by both a rejuvenated Sol and Brahma from Brazil – distributed by Molson Coors and AB InBev respectively.

The latest contender is Quilmes from Argentina. Brewed using Patagonian hops and with a history dating back to 1888, it’s one of the biggest beers in South America and while it’s been available in the UK for some time, hanging around with princes at posh polo parties, it’s recently been taken under the wing of the Morgenrot Group who have gained listings in Tesco and top-end bars such as Floridita and Guanabara.

Graham Archibald, Morgenrot’s senior national account manager, said: “South American beers always perform well in the UK especially during the summer months due to their easy drinking style but I wouldn’t say the region is a particular trend region at present. There are so many new international beers launching in the UK from all four corners of the world that I think trend regions are becoming a thing of the past.

“Instead, I think the real trend is for beers that are brewed at source as opposed to brands which are brewed under licence.

"Consumers are increasingly taking an interest in the provenance, authenticity, heritage and the taste profile of a beer and I think these are the current trends which are driving both the South American and world beer category.”  

Let’s not beat about the bush here – desire for these beers is driven principally by drinkability. They’re clean, they’re crisp, they quench, they don’t ask difficult questions and they’re popular among those who want something different – but not too different.

But it’d be daft to dismiss Central and South American beers as mere thirst-bashing summer sips. Central and South America has a rich beer heritage and history and there’s much to explore for adventurous imbibers.

Long before the Europeans arrived and began building breweries, the Aztecs whipped up beverages akin to ales using corn and beans. Known as izquiate or tesgüino, it’s still made in rural parts of Mexico but it’s unlikely to catch on in bars in the UK.

In Brazil, meanwhile, young Amazonian virgins (lasses rather than lads) brewed a black beer by masticating malt and fermenting it using their own saliva as far back as 1557. Historians have questioned this but, well, it’s a good story and one which a brewery in Rio breathed life back in the mid-1980s. Based on the findings of historical beer boffin Alan Eames, famed for unearthing unusual beers like some kind of elbow-bending Dr Livingstone character, Xingu (pronounced Shin-goo) was launched in 1988 and is now available over here.

Sadly, it’s not made with virgin saliva anymore but is opaque black and silky with a tight tan head and a hint of liquorice. It is worth seeking out – especially if you like the fuller-bodied dark beers of Germany.

The Germanic influence is prevalent throughout much of South and Central American brewing, but especially in Mexico where, during the mid-to-late 1800s, there was a huge influx of German immigrants and the country briefly (and rather absurdly) fell under Austrian-Germanic rule.

One of the few things Emperor Maximilian I got right during his reign was appointing a “royal” brewer who introduced a beer style called “Vienna Red” to the region. Fuller of body and darker in hue than pilsner lagers, they were brewed using richer kilned malts and with a more pronounced hop bitterness.

The Austrian/Germanic liquid legacy can be seen in the likes of Negra Modelo, a delicious dark beer with a hint of bitter chocolate, and Dos Equis Ambar, a nutty Vienna-style lager first brewed by a German and one that could easily be mistaken for an American amber ale.

Wells & Youngs have seeded both Negra Modelo and Modelo Especial, a light lager currently growing at 30% per annum, across its estate and beyond while Dos Equis Ambar, alongside its lighter drinking sibling Dos Equis, is looked after by the Different World Drinks Company – the speciality beer arm of Molson Coors which also looks after Worthington White Shield, Blue Moon and Kasteel Cru.

Another Mexican beer gaining a great deal of traction in the upper echelons of the bar trade as well as restaurants is Bohemia, a rich pilsner from the Moctezuma brewery in Monterrey where it’s brewed using Saaz hops from the Czech Republic.

Under the guidance of Inspirit Brands, the London-based distributor and brand development agency which specialises in boutique spirits and beers, Bohemia has become a bit of a “bartender’s favourite” according to Inspirit sales and marketing director Stuart Ekins.

“We took on Bohemia as it was a great Mexican beer that has a real point of difference in a (Central/South American) market that, on the whole, is reasonably bland,” said Stuart. “People are surprised by the taste as Mexican beers have a reputation for being a little tasteless. Bohemia looks the part and the name is good which, with beers, is very important”.

Bohemia has been taken on by London’s top Tequila and Mexican bars including Green & Red as well as Café Pacifico and it’s positioned slightly more premium than Modelo at around £3.75 for a 35.5cl bottle.

Inspirit Brands were recently amalgamated with Global Brands, a company blessed with plenty of beer marketing experience and the new joint venture is looking to place greater emphasis on its beer division.  

And lest we forget, there’s the brew from Peru. Cusqueña, brewed using water sourced from the Andes, is owned by SABMiller but marketed and distributed by Chilli Marketing in the UK.

Again, it’s gained a strong following among the bar community – especially in Manchester and Leeds – and the brand recently strengthened its arm in the market with a concerted push of its Cusqueña Dark, a stronger, darker yet similarly refreshing version brewed with roasted malts.

Ben McFarland, 16.07.2010