A New Brewery ?
Submitted by carina_cisneros on Wed, 2004/12/22 - 01:27.
Does anyone know if it is against the law (or downright dangerous) to brew (make) beer in Nicaragua - beer made for sale as opposed for general -for sale- consumption? I know of some real horror stories in Guateamala & Honduras, but am no expert on this aspect of Nica business. Any advice apprecaited. Thanks.
New Beer, Sort of...
I am not sure when it debuted (last time I checked, it is not even on the official website), but there is another beer in Nicaragua now. Quite good, actually, and better than anything else they offer, and possibly as good if not better than the various Honduran beers (all of which have a deserved reputation as being really quite good). According to the label, “desde 1926”, it is hardly a new beer, so I can only assume the brewery dropped it from the line-up a while back or a long while back, and now for whatever reason reinstated it (maybe it was in answer to beer complaints posted on Nicaliving? O.K., maybe not...).
It is strong in comparison to other Nica beers at 5+%, and as of early April, 2005, it was the cheapest of their beers, at least in the pulperias and taverns I found in the Northern and Western parts of the country. At the border near Danli, Honduras, it was an incredibly cheap 20C per liter. The beer is called “Bufalo”, and comes complete with, yes, a big fat (Nicaraguan?) buffalo on the label. It is a product of “Compania Cervecera de Nicaragua, S.A.”.
I heard rumors that it was introduced in an attempt to better compete with other beers expected to be pushed in Nicaragua, like “Imperial” (from the Honduran capital), and also the new “Bahia” (the Honduran answer to Corona from Mexico, which is half the cost of Corona, and better). But, as is the case with rumors in general, I have no way of knowing if this is true, but I did see Honduran trucks and signs and bar-logos near Esteli and some surrounding places, and this is, as far as I know, the first time Honduran beer products have really been introduced in other Central American countries (the Honduran national brewery is now owned by a South African company; I do not know who owns the Nicaraguan brewery - but I did notice that both breweries have recently switched from enamel-labeled bottles to paper labels, and both might have just upgraded their bottling lines).
"Brava"
On the "North Atlantic Coast "; I was told by the "Victoria" people that "Bufalo" was introduced to compete with "Brava" imported into Nicaragua from "made in Guatemala".
The "Bufalo" is pretty good and the Nicaraguan women on their posters are much prettier than the competition.
The last survey, that I saw, lists "Victoria" & "Tona" with 90% of the market and "Premium", "Bufalo", "Brava" and "Heiniken" share the remaining 10%. _____________________________________________________________________
Some Pre-Bufalo Beer "Stats"?
I was given these numbers by a journalist in Nicaragua, as they related to some research a friend was then doing. They are not dated, but are identified in a footnote as being done recently, and just prior to the release of Bufalo (why it nothing is actually dated, is sort of a mystery). The numbers appear to come from sales records, which relate to some sort of tax which is paid on beer production, or perhaps on beer sales (not sure which).
74% = Victoria. 20% = Tonja 4% = Premium. 2% = Other (but noted as mostly Corona and Heineken).
If the 2% is partly Brava (or part of the 10% from your data), then what you were told seems not be the whole story; same thing, regarding what I was told. Brava and/or Corona and/or Bahia alone or even together do not have a big enough market share to merit the production costs of a new beer. Since the national brewery is the official imp/dist. for Heinekin, what share this has would not concern them all that much. Brava is originally a Brazilian beer (not very good, but that is just my two cents worth), now made many places. It sells o.k., I assume due to the fact that it is often the cheapest beer on the menu or in the cooler. Since the national brewery switched from the old to the new bottles (paper labels) they probably also made other huge investments. My guess, and it is only a guess, is that there is some sort of "beer war" brewing.
As for the "bufalo women", I didnt see much advertising when I was there (perhaps as the beer was apparently absolutely new then). Many places had it listed on the menu, but none in the cooler. Just curious, but are the "bufalo women" all white? I notice in most of Central America that most advertising is done using women who look more like they are from San Diego or somewhere, as opposed to somewhere in the Latin world!
Now that I Think!
Mike--After seeing your post, I did more thinking and that is the exact survey that I think I saw around January in LaPrensa. "Bufalo" and "Brava" were not included; because now, I remember thinking at the time; why should the historical beer company of Nicaragua even be concerned about "Brava" and introducing "Bufalo" in the market if even "Premimum" manages only a 4% market share.
I checked two different "Bufalo" posters this afternoon and the women are very white Latin women. I have never been to San Diego and I can't comment on that subject.
I beieve that your May 04 post on this subject is incorrect regarding the 1926 date's connection with Bufalo. I believe this date is the origination date of "Compania Cervecera De Nicaragua S.A.". The 1926 date is directly above the name of the national company at the bottom of the label. The date is nowhere near any "Bufalo" logo.
1926
You might well be right about this date thing (c1926). I have never seen the canned beer, nor the 12oz bootle, so I am unsure how/where the "desde 1926" is on those items. All I saw were the 1-liter bottles. When I wrote the "new beer" post here on nicaliving, I worked off a piece of memoribilia or advertising that my friend was given when we received the beer stats. It is a plasticky, refrigerator magnet sort of thing, which I asumed is exactly like the label from the 1-liter bottle, because to me it looked like the same exact thing I saw on the bottle (now that I am out of Nicaragua and havent a bottle I cant make a comparison). Anyway, on the magnet-thing we have, the "desde 1926" is in large letters, directly under the huge font "Bufalo Cerveza", then is rather small letters a few iches down at the bottom is the "Compania Cervecera De Nicaragua S.A.". Now, the more I think about it, it is probably a completely new beer, because it is hard to believe there wouldn't be some mention of bringing it back (they still do not have it on the website though...). The date thing through me off, that and the fact that it is sometimes rather trendy for brewers to bring back older recipes (and enter them in world-wide beer festivals), especially now with the competition from the microbrew places.
No distribution, No Problems
There wouldnt/shouldnt be any problems. A relative once made beer in Managua. It was sold only to friends and one hotel (kegged beer only, no bottling). He dies a few years ago, but never experienced any problems, and the hotel and friends both sold Coke products and Coke new of this - and some of the truck-drivers for pop and beer were his customers. I do not think you have any worry if you do not attempt to compete with the national beer, and that would require much more money than anyone on this site has access to.
Beer in Nicaragua
There's a micro brewery in Managua at a place called El Establo. I don't think you'll have any problems with a micro brewery...as long as you get the required license and/or permits for the business.
That's the best idea so far - a toast to new beer in Nica!!
I started to get excited when Premium came out. You know, the more you drink Tona and Victoria, the better it tastes and the better looking the girls get...
Please make a new beer...Please...
God bless you if you make and sell a decent beer in Nicaragua! The only thing worse than the price (o.k., but overpriced for the economy), is the taste (or lack thereof) of that Pilsner crap they pump out. They do, often, sell in liter or larger bottles (unlike Honduras, but like Guatemala), but that can not save them as the alcohol content and lack of, well, everything, is the killer on this so-called National product. They might have the worst beers in the Americas (Guatemala could give them a run for the money, but they win out in that they make a dark beer, Moza)!
Your plans?
Are you seriously considering making beer in Nicaragua? If so, do you have a business plan, or a city where you think you might do this? If you do not want to discuss this second question, I understand. I might be able to connect you with someone in Leon who could help sell a new product like this, and his grandmother owns a large tavern, and would definitely sell the new product if you wanted a test market or just general advice from someone who has operated a business like this for more than 20 years. You can email me directly if you were interested in any of this.
Possibly
This is a possibility. Right now, a friend is looking at Nicaragua, as an alternative to the cigar town Santa Rosa de Copan, in Honduras. He is also considering making root beer, in addition to beer. He does not like Managua (and, who could blaim him?), and might not sell outside the city in which it is made, so since he wants some sort of population base, this might mean Leon comes to the forefront. I will email you later, if my friend is interested in your offer. We will not be together in Managua until June (my friend does not speak Spanish, though that would not be a problem if you were with your associate in Leon).
Nicaragua Crawl
Thats a great Idea! a different beer for every town. That could be a tourist attraction. Got to every city of Nicaragua and try the local beer
I can not speak to the actual
I can not speak to the actual laws there in Nicaragua, but the problems in Guatemala were older and connected to other illegal activities, and involved distribution rights and a dozen lesser problems. There was a time when trying to get a truckload of Bud, or Coors, or whatever, to Guate City would get you death threats - and the truck, driver and beer usually went missing, and were never seen again. Today, the companies responsible for the old "disappearances" distribute Bud and Corona. As for Honduras, those problems too might be over, and the "beer problem" there was connected to a coke-pepsi war (literally, people died). The Honduran monopoly on beer now has a new owner from South Africa, and things have changed. If someone made a micro brew for sale in a restaruant, or for sale in a single city, I doubt there would be any problem. Distribution brings the problems. And, since there is almost no keg beer sales in most of Latin America, distribution prespupposes a bottlling line which is insanely expensive, and the national monopoly wouldn't handle it without a giant cut of the profits. There is a French guy in Antigua who used to make beer for his place, without incident. And, a year or two ago a guy in or near Ojoa Lake in Honduras opened a micro brewery making 4 beers. I have not heard of any problems there either. He is probably in the travel books like "Lonely Planet" and others if you wanted to contact him. I have seen an article on him in "Honduras Tips" magazine. He is from Oregon, and owns a little hotel-cafe in Honduras, and the beer is only sold at his place. If he can make a go at it in Honduras -a place with good, cheap beer- someone certianly should be able to in Nicaragua, where the beer is far less good, and less cheap.
You make the Beer I put the Cigars :-0
Before thinking on starting ANY busyness it is advised to check with the Local Goverment,to avoid getting in trouble,I know for a fact that Making Cuzuza(A cousin of Moonshine lol) it is and it has always been Elegal. Dunno about beer,unless it is done the legal way. That's my .50 cents on the subjet. P.S In case You Do make the Beer and the crawl I got the Cigars :-).
Nica Answers
CigarMan, often the problem in Nicaragua is, depending upon who you ask in "Government" often results in completely different answers. This is very common, so who do you believe?