Heineken and Itaipava Grow, and Competition with Ambev Will Intensify Among the Beverage Giants

Written by Flavia Marinho

Published on 03/07/2021 at 10:06

Be the first to react!

Is The Title Of The World’s Largest Brewery Under Threat? Itaipava Is By Far The Fastest Growing Company Among Alcoholic Beverage Producers And Heineken Remains The Old “Stone In The Shoe” Of Ambev

Seeing its market share decline over 13 years, Ambev invested in brand changes and product launches, such as Brahma Duplo Malte, which put the company back on the growth path, and today the brewery holds a 60% share. Even on the right track, the increasing competition in the market with Grupo Petrópolis, owner of the Itaipava brand, and Heineken could become a “stone in the shoe” for Ambev, and the competition will intensify among the giants supplying alcoholic beverages.

Read Also

The alert came from Bank of America in a report sent to clients and obtained by Money Times. According to the bank, Itaipava and Heineken may increase their combined capacity by over 30%, while demand is not expected to keep pace, meaning more competition and less profitability for all brands.

As a result, BofA maintained the recommendation below the market average (underperform), with a target price of R$ 15 for Ambev’s shares.

ARTICLE CONTINUES BELOW

Itaipava Is By Far The Fastest Growing Company Among Breweries

According to the bank, Grupo Petrópolis, owner of the Itaipava brand, is by far the fastest growing company among breweries. Based on statements from group executives, the company produced just 1.4 billion liters in 2011, less than half of the current 3 billion liters in 2020.

In addition, Itaipava announced the development, in two phases, of its factory in Uberaba, which should allow Grupo Petrópolis to increase its capacity to 4.7 billion, against the installed capacity of 3.6 billion liters in 2020.

“We estimate that the total beer market in 2020 was 14 billion liters, of which Petrópolis had a market share of between 15% and 20%,” he states.

Heineken Is The Old “Stone In The Shoe” Of Ambev

The beverage giant Heineken also has an ambitious expansion plan in Brazil: it will build a new factory in the city of Pedro Leopoldo, in Minas Gerais, with investments of R$ 1.8 billion and completion expected by the end of 2022.

“We estimate that this facility could be similar in size to the one in Paraná at around 1 billion liters,” he calculates. Additionally, the Dutch manufacturer is expected to open its factory in Ponta Grossa (Paraná) with 0.3 billion liters, from the current 0.7 billion liters.

“On the other hand, we expect Heineken to operate with lower idle capacity than Petrópolis, as the company recently pointed out that it was unable to increase volumes in 2020 due to capacity constraints,” he says.

The bank expects Heineken to produce 3.5 billion liters in Brazil in 2023, 40% of the expected volume from Ambev.

Heineken and Itaipava Grow, and Competition with Ambev Will Intensify Among the Beverage Giants

Is The Title Of The World’s Largest Brewery Under Threat? Itaipava Is By Far The Fastest Growing Company Among Alcoholic Beverage Producers And Heineken Remains The Old “Stone In The Shoe” Of Ambev

Read Also

Itaipava Is By Far The Fastest Growing Company Among Breweries

Heineken Is The Old “Stone In The Shoe” Of Ambev

Mayor orders wireless network turned off in municipal schools due to fear of electromagnetic radiation in children, replaces connection with Ethernet cables, and transforms small Italian city into a symbol of technological panic.

Goodbye traditional washing machine: Xiaomi surprises and launches an ultra-slim version with 27 programs, 3D water flow, steam sterilization, app control, enlarged drum, and a silent system with double suspension

An entire country within the mountains is selling water to Africa’s largest economy: Lesotho builds dams, tunnels, and bridges at an altitude of 2,000 meters to send more than 1.27 billion m³ per year to Johannesburg

Toyota ends the Diesel era: new Hilux with up to 380 km of urban range brings 196 hp, 59.2 kWh battery, 4×4 traction and 715 kg of load capacity

An unmanned Russian ship has been drifting in the Mediterranean for 57 days with 60,000 tons of gas — the second towing attempt has just failed.

With an 88-meter wingspan, a capacity of 250 tons, six engines, and 32 wheels, the Ukrainian giant became the greatest symbol of extreme air transport and one of the most impressive machines in aviation history.

Drivers from all over Brazil may be required to use a reflective vest during emergency stops on highways, according to a bill that requires new vehicles to leave the factory with the equipment and that Contran regulate criteria and exceptions.

Black+Decker aims for the end of the traditional iron with the 1400-watt VacuSteam steamer, which combines suction, steam, and a heated plate to remove wrinkles in a single pass and promises results up to 45% faster without an ironing board.

Humanity may be entering a demographic collapse: studies warn of a brutal drop in birth rates, smaller populations in the coming decades, and an increasingly older Brazil.

The aircraft carrier Giuseppe Garibaldi, a symbol of the Italian Navy for almost 40 years, will be transferred free of charge to Indonesia by the end of 2026 — saving approximately €18.7 million on the dismantling of the vessel.

China transformed the historical trauma of famine into government policy that combines rural-to-urban subsidies, regulatory stockpiles, drones in agriculture, and real-time price control to feed almost 20% of the world’s population with cheap food.

Heineken and Itaipava Grow, and Competition with Ambev Will Intensify Among the Beverage Giants

Is The Title Of The World’s Largest Brewery Under Threat? Itaipava Is By Far The Fastest Growing Company Among Alcoholic Beverage Producers And Heineken Remains The Old “Stone In The Shoe” Of Ambev

Read Also

Itaipava Is By Far The Fastest Growing Company Among Breweries

Heineken Is The Old “Stone In The Shoe” Of Ambev

Mayor orders wireless network turned off in municipal schools due to fear of electromagnetic radiation in children, replaces connection with Ethernet cables, and transforms small Italian city into a symbol of technological panic.

Goodbye traditional washing machine: Xiaomi surprises and launches an ultra-slim version with 27 programs, 3D water flow, steam sterilization, app control, enlarged drum, and a silent system with double suspension

An entire country within the mountains is selling water to Africa’s largest economy: Lesotho builds dams, tunnels, and bridges at an altitude of 2,000 meters to send more than 1.27 billion m³ per year to Johannesburg

Toyota ends the Diesel era: new Hilux with up to 380 km of urban range brings 196 hp, 59.2 kWh battery, 4×4 traction and 715 kg of load capacity

An unmanned Russian ship has been drifting in the Mediterranean for 57 days with 60,000 tons of gas — the second towing attempt has just failed.

With an 88-meter wingspan, a capacity of 250 tons, six engines, and 32 wheels, the Ukrainian giant became the greatest symbol of extreme air transport and one of the most impressive machines in aviation history.

China is building 5 cascade dams for $167 billion in Tibet — and the Motuo Project will have 70 GW of capacity, three times more than the world’s current largest power plant.

Saudi Arabia will build a US$ 490 million cultural mega-project in Diriyah, with a 45,000 m² modern art museum in the historical cradle of the Kingdom to transform the city into a global showcase of art and architecture.

The R$ 19 million project for the BR-282 overpass in SC reaches 80% completion with delivery scheduled for July 2026, according to DNIT, but the highway that cuts across Santa Catarina from the coast to the West needs more.

São Paulo’s first smart highway will be 45 km long, with Wi-Fi, electric charging, support for autonomous cars, and asphalt made with recycled tires: learn about the SP-123 and how it inaugurates a new era in Brazilian infrastructure.

Buenos Aires began construction in February 2026 on a ring-shaped bridge with a diameter of 140 meters, a 540-meter tunnel, and a viewpoint with panoramic views of the planes — and the deadline is just 20 months.

Drivers from all over Brazil may be required to use a reflective vest during emergency stops on highways, according to a bill that requires new vehicles to leave the factory with the equipment and that Contran regulate criteria and exceptions.

Black+Decker aims for the end of the traditional iron with the 1400-watt VacuSteam steamer, which combines suction, steam, and a heated plate to remove wrinkles in a single pass and promises results up to 45% faster without an ironing board.

Humanity may be entering a demographic collapse: studies warn of a brutal drop in birth rates, smaller populations in the coming decades, and an increasingly older Brazil.

The aircraft carrier Giuseppe Garibaldi, a symbol of the Italian Navy for almost 40 years, will be transferred free of charge to Indonesia by the end of 2026 — saving approximately €18.7 million on the dismantling of the vessel.

China transformed the historical trauma of famine into government policy that combines rural-to-urban subsidies, regulatory stockpiles, drones in agriculture, and real-time price control to feed almost 20% of the world’s population with cheap food.