Evaluation of a distribution model for a new beer company production site

Abstract

Ambev dominates the beer market in Brazil with a 70% share. The group formed in the 1990s by the merger of the two largest companies in the industry at the time, Brahma and Antarctica. Even with new entrants in the market AmBev kept growing and increasing its participation. One of the biggest challenges to work in the beer market is the distribution strategy. AmBev’s success has, in its distribution strategy, one of the critical factors in reaching this level of market share. The model AmBev has implemented and continues to invest is what Brahma, pre AmBev, adopted as its strategy in the 1990s. This work aims to determine whether, in a company starting its production activities in the same industry, the AmBev distribution model can be applied. Based on the concepts of logistics and supply chain management, the possible concepts of distribution strategies were identified, seeking to understand those underlying the AmBev reference model. With this, a company has been identified and a case study conducted to understand the application of the AmBev model. The main findings of the study point to possibilities for adopting the model, but with restrictions and constant monitoring to control the implementation of the strategy.

Keywords

• Logistics Distribution Models. Supply Chain Management. AmBev.