"The market is different". Heineken's plan to recover volume in Brazil

For years, Maurício Giamellaro, the CEO of Heineken in Brazil, had to repeat the same explanation to clients: the company didn't have enough beer to meet demand. That problem ended after the company invested more than R$ 6 billion in new factories and expansions. With the inauguration of the Passos factory in Minas Gerais and the expansion of the Ponta Grossa and Igarassu units, Heineken's total production capacity in Brazil can increase by more than 50% in the coming years.

Now, there's another problem: this extra capacity arrived at a time when beer consumption lost momentum in the country. In the first half, the Brazilian market fell by about 5%, after already shrinking by almost 5% in 2025, according to BTG estimates.

"The market is no longer difficult. It's different," Giamellaro told Brazil Journal. The video of the interview is on Brazil Journal's YouTube channel. Heineken itself suffered from this scenario. In the first half-year results, the company reported that its beer volume in Brazil fell by a mid-single digit compared to the previous year, while net revenue grew by a low single digit, supported by price increases and a more favorable product and channel mix.

As the company doesn't disclose quarterly numbers for the country, BTG estimates that in the second quarter alone, the volume fell by about 8%, while revenue remained practically stable. Giamellaro says the scenario is now more positive. "Since we're gaining market share, even if the market decreases, we get a bigger slice of the cake and feel less pressure from the volume," the CEO said.

To return to growth, the company is betting mainly on three fronts: expanding Amstel, defending its leadership in the premium segment, and developing a portfolio of beers with less alcohol, zero alcohol, fewer calories, or gluten-free. Heineken says it continues to lead the premium segment. According to Giamellaro, the zero-alcohol version already accounts for almost 10% of Heineken's sales in the country.

Banks, however, see more difficult competition for the company when considering the market as a whole. BTG believes Ambev is recovering market share in revenue and finds the competitive environment more favorable than in recent years. The Bank of America states that Ambev's market share is close to record levels, although it may be pressured again if Heineken accelerates.

Giamellaro disputes this reading. The executive says the company continues to gain market share and that the Heineken brand remains the absolute leader in the premium segment.

Anyway, recovering volume in Brazil gains even more importance because the country has become Heineken's largest operation in volume worldwide – and the largest market in revenue for the Heineken and Amstel brands.

The relevance of Brazil also gained additional symbolism with the choice of Rafael Oliveira to lead the company from October. The executive will arrive amid the execution of Evergreen 2030, the strategic plan with which Heineken intends to concentrate investments in 18 priority markets – including Brazil – and in five global brands.

Is the beer market more difficult?

The last two years were challenging for the category, basically due to climate issues and a more complex macroeconomic scenario. This affected beer and several other consumer categories. The good news is that the category is starting to stabilize and even show some growth.

I don't think the market is necessarily more complex or more difficult. It's different. We'll need to use different tools than we used before. Innovation, connection with the consumer, and quality communication become more important.

The volume sold by Heineken has also been falling.

The company suffered from the category's volume decline. But we're a challenger, with a market share close to 30%. Those who suffer more from the market decline are those with more than 50%.

Since we're gaining market share, even if the market decreases, we get a bigger slice of the cake and feel less pressure from the volume.

Analysts estimate that Ambev is outperforming Heineken. Has the competition become tougher?

Competition has always been tough. We're in a market with a competitor that has a very large market share. But we went from a market share of less than 5% and today we're close to 30%. It's possible to grow when working with consistency.

For Heineken, the way we do things is as important as what we do. We work with good liquid, good communication, and offer consumers products they expect – and sometimes products that surprise them.

Ambev says it has regained leadership in the premium market, and you deny that this has happened. Why?

This information is not correct because the premium segment is defined by the price index. Everything above 120 on this index is considered premium. In this segment, we're absolute leaders with the Heineken brand.

The premium segment was never our destination; it was our starting point. When we started this work in Brazil, the segment represented approximately 2% of the market. Today it represents around 20%.

The growth of other brands comes, in part, from products classified by companies as premium but not sold at a premium price.

The value of 100 is a reference for mainstream. Amstel, for example, is close to 105 and is considered upper mainstream. Only beers above 120 are considered premium, a range that includes Heineken, Eisenbahn, and Sol, for example.

What happens is that the competitor puts some beers in this account, using the price charged in bars but not necessarily in supermarkets – where most of the volume is.