1/13/2006

Brazilian Cachaça Exports




2005 seem to be the year when the cachaça´s growth trend became really solid both in Europe and America. In the old continent, 51´s marketing actions in Portugal lead the sales to USD 1,5 million, 25% higher than previous year. In Germany, the biggest foreign market for cachaça, the sales growth was almost 32%, with USD 2,5 million exported in 2005. In France, 2005 was the so called ?brazilian year? , with several event promoting both the country´s culture and products : as a result, exports of cachaça rose 3 times. A negative note in Europe was UK, where despite the significant marketing investment made by ?Sagatiba?, sales did not improve at all. In USA, cachaça sales are steadily growing, the country imported USD 1.3 million , representing a jump of 300% in the past five years. Interest for cachaça in USA is still limited to few players, mainly those ones with massive brazilian presence such as Florida, New Jersey, Massachussets and Connecticut. At the distribution level, cachaça is still only a possibility, most of the big licensed wholesalers have not been touched by the cachaça moves. The brazilian BBQ restaurants mainstream sounds to be stronger than ever, mainly in the midsouthern US, what will certainly keep pushing cachaça demand up.

Internally, lots of achievements have been noted since the Cachaça Industry Council (?Câmara Setorial da Cachaça?) - an official body working under the Agriculture Ministery with the support of the most important players of the private sector (companies, associations) ? was formed a couple of years ago. In 2005 negotiations with US ATF´s officials were resumed and it seems cachaça may be finally recognized as a distinctive product, no longer considered as ?rum?. Also, by an initiative of the Council, a group of top professionals of the trade, marketing, industry and legal affairs was formed with the purpose to outline a strategic plan for the cachaça industry.

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