Artisanal production or the use of uncommon ingredients attract Canadians
By Silvia Pimentel
The increase in wine and spirits consumption by Canadians and the expansion of imports to meet domestic demand open business opportunities for Brazil. Sales of red wine, for instance, reached 4.28 billion Canadian dollars in 2022. There is a growing trend in these numbers due to the decline in beer sales volume, whose consumption in the North American country has decreased by 10% since 2010.
The space left by Brazil’s most popular drink—which represents 35% of the total alcoholic beverages market in Canada—also boosts the sales of spirits and Ready To Drink (RDT) beverages. These currently occupy 26% and 8% of the market, respectively, and have been growing at a rate of 11% and 175% since 2010.
Wines
In 2022, per capita wine consumption by Canadians reached 15.8 liters. Around 46% of sales are of red wine, which is becoming increasingly popular in the country. White wine, mostly consumed in the summer, dominates 38% of the market, while sparkling wines account for 16% of sales. Regarding imports, there was a 4.49% increase in purchases of Brazilian products between 2021 and 2022.
According to Canada’s national statistics agency, StatCan, “premiumization” is one of the most important factors driving the alcoholic beverages market in the country. Some of the strategies pointed out by the agency to gain market share in Canada include offering more competitive prices for premium brands or targeting wealthier consumers with more expensive drinks, emphasizing handcrafted production or the use of uncommon ingredients.
In this context, Brazilian cachaça also presents good business opportunities. The drink, already internationally recognized for its quality, is exported to more than 70 countries, according to Ibrac (Brazilian Institute of Cachaça). In 2023, the list of top destination countries includes the United States, Germany, Portugal, and Italy. In this context, Canada emerges as a strategic and promising market for Brazilian cachaça. With a market that values high-quality artisanal products, the country offers ideal conditions to boost beverage exports. Additionally, Canada can position itself as an important gateway to the North American market, opening up new business opportunities in both the country and the United States.
Top Importing Provinces
The demand for alcoholic beverages in Canada is primarily driven by frequent alcohol consumption in metropolitan cities, especially in the provinces of Quebec, Alberta, Saskatchewan, and Ontario, which are home to a large population of expatriates residing in the country.
Regarding spirits, there is a variety of popular products such as whiskey, vodka, rum, gin, among others. Not surprisingly, to meet domestic demand, the country is a major importer of this category of products, ranking 9th globally in 2023, behind the United States, China, Singapore, Germany, France, the United Kingdom, the Netherlands, and Spain. The products imported by the country are consumed directly or used by the beverage industry for mixing and bottling.
The Canadian province that imports the most spirits is Ontario, accounting for 44.35% of total imports, surpassing US$ 520 million in 2022. Next are Alberta with 24.64% of the market, British Columbia (13.86%), and Quebec (12.44%). The top 10 suppliers in 2022 were the United States, France, Mexico, Ireland, Italy, Sweden, China, New Zealand, and Germany.
Spirits Market
The global spirits market presents impressive figures. In 2021, for example, it generated around US$ 340 billion with a wide variety of beverages such as whiskey, vodka, rum, gin, among others.
In addition to being an importer, Canada is also a significant producer, with whiskey as the flagship, alongside rum, vodka, gin, liqueurs, soft drinks, and basic ethyl alcohol.
On a smaller scale compared to major markets like the United States and other European countries, Brazil’s spirits market was estimated at US$ 4 billion in 2019.
Differences and Similarities
The diversity in alcoholic beverage consumption reflects local preferences, product availability, and cultural habits, both in Canada and Brazil. In Canada, whiskey, with its world-renowned varieties and brands, plays a prominent role, being widely produced and appreciated. In Brazil, cachaça reigns, supporting a rich tradition of consumption and cultural identity.
There are also differences in alcohol control policies. In Brazil, regulations are more permissive compared to other countries and vary depending on the state where the beverages are consumed. In Canada, however, regulations on the sale, distribution, and advertising of alcoholic beverages are stricter. Additionally, the Canadian government invests more in initiatives to prevent excessive consumption and in awareness campaigns about health risks.
The Chamber of Commerce Brazil-Canada (CCBC) offers specialized support for companies looking to expand their businesses between the two countries. With a dedicated team and business missions organized to Canada, CCBC facilitates direct access to the Canadian market. Over the course of a week, Brazilian entrepreneurs explore various provinces, participate in technical visits to points of sale, hold meetings with potential buyers, and present their products at exclusive tasting events. This immersion provides valuable insights and concrete business opportunities. Follow CCBC’s mission calendar here.
