Overall, alcoholic drinks in Ecuador registered a decline in volume sales in 2024, though there was a slight increase through off-trade channels. Multiple domestic factors impacted overall consumption. Rising insecurity, unprecedented in the country’s history, led to the declaration of a state of emergency, with curfews declared during parts of the year. This insecurity deterred consumers from visiting nightlife venues such as bars, clubs, and restaurants, resulting in a sharp drop in on-trade sales and shifting behaviour towards home consumption.
Beer continued to account for most volume sales. However, due to the factors mentioned above, it faced significant challenges in 2024. Compounding this, the Special Consumption Tax (ICE) on beer was raised on January 1, 2024, from $13.08 to $13.28 per litre of pure alcohol. This increase left the industry with little choice but to pass on the added cost to consumers, significantly raising retail prices. As a result, beer has become less appealing to price-sensitive consumers, leading to a decline in demand. This dual impact of higher VAT and ICE placed considerable strain on beer.
The leading company in Ecuador’s alcoholic drinks continued to be Cervecería Nacional, a subsidiary of AB InBev. Dominating beer, the company benefits from its extensive portfolio of well-established brands such as Pilsener and Club. It also recently widened its returns policy to include premium offerings and this has proved very popular. The company also invests in effective marketing tailored to local preferences that focuses on highlighting the pride of being Ecuadorian. Additionally, its affiliation with AB InBev also allows the company to cater to more premium consumers, with imported offerings such as Corona and Budweiser.
Small local grocers, followed by food/drink/tobacco specialists, continued to be the main retail channel for alcohol in Ecuador. However, 2024 was a tough year, with security issues forcing many outlets to reduce their operating hours, limiting consumer access and sales opportunities. Additionally, frequent blackouts caused by the country’s energy crisis disrupted refrigeration, making it difficult for retailers to sell cooled products, which is particularly important for beer and RTDs. These obstacles pushed some consumers toward modern grocery retailers, which generally had their own generators for backup during blackouts.
On-trade channels were particularly impacted by the challenging socio-economic context. Insecurity has led to decreased consumer confidence, discouraging people from frequenting restaurants, bars, and clubs, which are central to on-trade sales. Additionally, the energy crisis, marked by frequent blackouts, disrupted the operations of venues, particularly hindering their ability to serve chilled alcoholic beverages. As such, there was a notable decline in volume sales. Also coastal regions were particularly impacted by security issues. This included provinces such as Guayas, Manabi, Esmeraldas, Los Rios and Santo Domingo. This environment forced brands to adapt, with a shift in focus to off-trade channels.
The outlook is positive over the forecast period, with overall volume sales predicted to increase. With the energy crisis expected to abate, there will be less blackouts. Additionally, as security issues hopefully also lessen, foot traffic in on-trade establishments like bars and restaurants will increase. Although inflationary pressures and tax hikes may continue to have an impact, the overall outlook looks positive as economic conditions improve, leading to a gradual recovery in alcoholic drink sales.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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