TENDENCIAS: Latin American Market Report published by InfoAmericas

IN THIS ISSUE...
INDUSTRY ANALYSIS: Latin America’s Beverage Market – Branding vs. Distribution
REGIONAL TRENDS: Is Latin America once again a Colony? 
ECONOMIC OUTLOOK: Latin America’s Economy in 2002 - Divided by Confidence
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INDUSTRY ANALYSIS

Latin America’s Beverage Market – Branding vs. Distribution

American beverage manufacturers — which live and die by brand strength in their own market — are often befuddled by the challenges of distribution in Latin America. In many cases, distribution is so important that it trumps brand recognition, giving local distributors considerable power in negotiating with foreign manufacturers. This is not to deny the power of brand history in certain beverage categories, most notably beer, where major international brewers have failed to overwhelm local brands to achieve substantial penetration of regional markets. Branding is also important for liquor, wine, traditional fruit-drink flavors and bottled water. Since branding and distribution both drain beverage companies of scarce resources, the viability of a new market entry often hinges on finding the right formula between the two. Lessons learned from expensive mistakes have led companies to develop best practices that increasingly guide new product launches.

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This report on beverage branding and distribution issues was written by Oscar Gonzalez, Director of InfoAmericas' Food & Beverage Industry Practice. For questions concerning market research and intelligence needs in the food and beverage sector, contact:

Oscar Gonzalez
Food and Beverage Director

305.569.9133 x205




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REGIONAL TRENDS

Is Latin America once again a Colony?

Latin America made great strides during the 1990’s to democratize its political structure and leave behind an ugly history of dictatorships. With the end of the cold war, the United States withdrew its support for brutal and incompetent leaders across the region, ushering in a new era of political independence. The US, under both Democrat and Republican administrations, has for the most part adopted a non-interventionist approach in its own back yard. Politically, the region is maturing. But Latin America’s economic environment is a different story. While presently in a state of shock, the region’s thinkers are beginning to question the decade of economic reform that set the stage for today’s mess. Many nationalists see these developments as an economic re-colonization of Latin America. Regardless of the technical merit of that argument, if political leaders adopt this idea, they will increasingly embrace economic isolationism. This raises many questions about the resulting impacts on foreign investment, trade and business regulations over the next few years.

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AMD
AMEX
Avery Dennison
BBDO 
Blackstone
Booz, Allen & Hamilton 
Citicorp International 
Computer Sciences Corp.
Conagra

For more click here ....

 

ECONOMIC OUTLOOK

Latin America’s Economy in 2002 -
Divided by Confidence

Latin America, at least South America, is having an awful year. Notwithstanding the IMF’s 11th hour rescue of Brazil, the southern continent suffers from a crisis of confidence which is driving damaging divestment. Latin America as a whole will grow only barely this year. Looking at South America and Central America (including Mexico) separately, we see two different stories. Mexico, although suffering from export malaise because of sluggish demand from the US, is still capturing more than $10 billion annually in FDI thanks to its NAFTA membership and resulting de-linking from the rest of the region. Central America, in spite of some off-color political leadership, has proved surprisingly stable over the last five years. In South America, on the other hand, slow growth and political risk — resulting from a host of contributing factors — is hurting the region as a destination for global corporate resources. Companies are focusing their expansion efforts on Asia, Europe and Canada, all of which are outgrowing Latin America and the US.

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