SAO PAULO – The Spanish brewery Hijos de Rivera, owner of the Estrella Galicia brand, announced this Thursday an investment of R$ 2 billion in its Brazilian operation, which includes the construction of a brewery in the municipality of Araraquara, in the interior of São Paulo. Paul.
It will be the company’s second factory in the world and the first in Brazil. The beer, which arrived on the Brazilian market in 2008, wants to have its own production in the country with an eye on developing the market for premium labels, with greater value.
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Currently, the group manufactures part of what it sells in the country in a leased factory in São Paulo, but still imports 35% of the beers.
In an interview with GLOBO, Fabio Rodrigues, president of Estrella Galicia in Latin America, says that it took the company five years to find the ideal place to install its factory. And reveals that the production of Estrella Galicia takes 30 days.
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See the main excerpts from the interview below.
Why did Estrella Galicia’s manufacturer decide to open a factory in Brazil?
We arrived in Brazil in 2008, initially through a partnership with Pão de Açúcar, importing beer directly to supermarkets.
After four years, we opened a branch in the country, when the beer market was emerging premium in Brazil. Since then, market demand has been showing good signs of strength.
We consolidated our operation in a small space, concentrated in the Southeast due to (limitation of) distribution.
The factory in Araraquara will greatly meet the qualitative need we have to control production well and with a much more competitive business.
The gentlemen even signed a protocol of intentions to install the factory in Minas Gerais.
It’s been five years since we started looking for places to set up a factory in Brazil.
In the search for the area, the most important factor was the quality of the water, and marrying that with infrastructure and logistics. We looked for locations in three states.
We came to be very close to being in Poços de Caldas, but for strategic reasons we didn’t close the deal. Since then, the beer market premium grown up.
What will be the importance of the factory for the operation in Brazil?
For the beer segment premium, the factory will be one of the largest in the world.
Our sale is still considered artisanal, it doesn’t compare with the biggest ones in the market, we are focused on the segment premium and Estrella Galicia is our flagship.
Will producing locally reduce prices?
Our average price is similar to our competitors and we have to be there. The 1906 is priced a little higher because it takes 40 days to make. The competition takes ten days.
We do Estrella Galicia in 30 days to prioritize quality. Some of the hops we use are actually planted in Galicia.
The brands have very concentrated sales today in the Southeast. What are the challenges to nationalize the distribution of Estrella Galicia?
It is a decisive factor for the business. In the operation, we are already looking for alternatives to be in markets that have scale. We got to have more than 60 distributors for the market of food service (dining away from home) in 20 states.
More recently, we signed a long-term contract with the Coca-Cola system, which will give us muscle nationwide in all sales channels (bars, restaurants, supermarkets, etc.). All capitals in Brazil are in demand.