Bolivia: Bolivian market outlook – most alcoholic drinks sold illicitly besides beer

Bolivia has an extensive informal trade in alcoholic drinks, informs the outlook by Research and Market as of April 2008.

Legal producers and distributors all agree that informal alcoholic drinks is nurtured by the price difference that the Specific Consumption Tax creates between legal products and illicit trade. The extent of this gap was dependent on the product.

In 2007, illicit trade was estimated to account for a huge volume share of domestic alcoholic drinks, excluding beer. Bolivian consumers increased their purchases due to the economic improvement in the country. This purchasing increase benefited illicit trade more than the legal established players.

Traditional alcoholic drinks, such as beer, chicha and singani, remained significant volume makers in domestic alcoholic drinks. Beer was dominated by Cervecería Boliviana Nacional SA (CBN). It is part of the Inbev Group and holds majority share. There were other smaller breweries in Bolivia, but none had the investment possibilities and distribution strength of CBN.

MECOVI (Mejoramiento de las Encuentas y Medición de Condiciones de Vida), Bolivian alcohol statistics registered no decrease in consumption for all economic levels in 2007, it is reported.

The only variation this study found was the type and frequency of consumption. Poorer consumers preferred the more affordable beer and chicha.

12 August, 2008