Brazil Is a Hot Country Term Paper

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Less obvious is the threat the merger of Brahma and Antarctica poses to Coke. Because Brazilians are unusual in their cultural approach to beer -- that it's a soft drink that just happens to be alcoholic -- the most successful beverage sellers here are those that distribute soda and suds together. That is something, critics say, the image-conscious Coke has failed to grasp fully, at the cost of market share.

Many believe Coke has the ability to meet the AmBev threat. However, to do so, some analysts say, it will need to fight fire with beer. That strategy is already working with great success for Coke bottler Spaipa SA in the southern Brazilian city of Curitiba. There, Spaipa has fought to win a more than 50% market share for Kaiser. That success has allowed it to avoid having to offer the kind of discounts for Coke products seen elsewhere in the country.

Coke bottler Andina, meantime, has backed away from beer in Rio de Janeiro, where Kaiser's share has fallen to about 2% from 13% in 1994. In turn, Coke products have found the sledding in Rio particularly rough.

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"I am very supportive of those bottlers who have driven their business with beer," says Mr. Cross. "But we are equally comfortable with Andina's decision not to build that business."

Endnotes

MarshalI, Matt. In Brazil, Coke Sells Foam as Well as Fizz - Bottlers' Beer Venture Blossoms With U.S. Firm's Help. Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 28, 1997. pg. a.12

Cohen. Roger. Pepsi Aims to Liberate Big Market in Brazil from Coke's Domination. Wall Street Journal. (Eastern edition). New York, N.Y.: Nov 30, 1988. pg. 1

Moffett, Matt and Nikhil Deogun. Brazilians Like Coke, but What They Love to Drink Is Guarana - it, Too, Offers a Caffeine Boost, but Does it Pack a Wallop of a Rather Different Sort?. Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 8, 1999. pg. a.1

Curtis, James Coke's Brazilian sales pitch. Marketing. London: May 7, 1998. 39,

Marshall, a.12

Cohen,.. 1

Fritsch. Peter Fritsch a Beverage War Is Brewing in Brazil Over Planned Big Merger….....

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