I was poking through the various Ec. newspapers looking for items about ARU when I found this story on microbrewers. It's an interesting example of the kind of business opportunity that exists in Ecuador.

Much of what holds back small to mid-sized companies there is the unavailability of capital - banks simply aren't willing to lend to small enterprise, and private investment just isn't that well established, or wants too big a bite to be worth considering.

A person could probably do OK down in Ecuador by simply seeking out small enterprises like this, and offering them financing on reasonable terms, perhaps including a small equity stake? It can't be any more risky than mining stocks...LOL... and as with miners, you'd spread your risk among several ventures, with the added advantage of having them in different sectors, as opposed to all one industry.

It's the kind of thing you could do in retirement to support yourself living in Ecuador. You don't have to get heavily involved - just identify people with good business plans and help them out.

Anyway, read the article and see what you think:

(sorry, it's all googley, but I just don't have the time)

Guayaquil, 01 August 2008
The Telegraph | News
Solidarity Economy

Taken from the print edition of July 23, 2008

The craft beer seeks more space

The association of Brewers Artisan of Ecuador gives courses product development.

In Quito: There are bars that make and sell craft beer in Quito. The hotel bar Savoin; bar Santa foam, and the English Bar in the Amazon.

The producers of this drink have trouble getting raw materials and bottles. We are grouping.

The craft beer producers in the country looking for a space through this activity become microentrepreneurs. Therefore, the Association of Brewers Craft Industry of Ecuador (CAE), currently with 8 members, teaches the development of the product to 80 people and hopes to reach 400, to create an industry representative.

But consider that craft brewers are disadvantages in relation to industrial brewers. Fabian Gorostiaga, representative of CAE-with 15 years experience in this activity, said that while more people learn their preparation, will be cheaper to import inputs.

He pointed out that the country is devoid of raw materials for their preparation. There are currently importing the malta (transformed barley), which costs $ 8 a kilo; hops (ground that gives the bitter taste), which costs $ 50 grams 5; yeast and especially for beer which costs about $ 6 .

Ecuador 20 years ago ceased to sow barley beer because the industry began to import because the costs were similar and were assured supply, while domestic production was unpredictable, it depended on the weather.

The packaging is another problem, because getting glass bottles is difficult. "If you wanted to put a handicraft factory and my beer bottle could not, because the glassware Cridesa Guayaquil, manufactures packaging and Brahma pilsener, and registered".

For glassware manufactured itself a model for craft beer, you should buy, minimum, 10 million bottles per year, which for small industry represents an investment high.

He explained that Ecuador is the only country where there have been bottles. The model uses pilsener, said, is free use in the world, but because it is registered in the country "could not import it."

For a company craft to begin its work with an output of 30 thousand liters of beer, 100,000 bottles require less than half a litre, bringing the market price of each unit would be 90 cents.

Another impediment is a regulation that says you can not make beer more than 5 or 5.5 degrees alcohol and beer craft arrives at times to 12 degrees. "With this law craft beer would be illegal," explained Gorostiaga.

In the world there are 400 varieties of craft beer, with varying degrees of alcohol, which reach 15.

The lids of bottles also can be produced in the country, but you have to buy in large quantities. "We leaves import cheaper to buy a factory in Guayaquil," he said.

Wilfredo Ruiz, representative of the National Chamber of Micro, said that Ecuador would not be closed to a nascent micro-craft, if the company achieves low production costs.

"As business needs to be done and propose accounts, the House is open to the project. We could help with the import of equipment for the process, "said Ruiz.

This would be a market for future risks that the public accepts it or not, but it could have accepted, "as happened with the shawarma and pipes, which happened a while until people knew him and accepted," he said.

According to the CAE, one of the advantages of craft beer in front of the industrial chemical is not used as antioxidants, preservatives or stabilizers, which gives long life. The craft takes six months maximum.

The association also noted that the quality of craftsmanship is better in taste and purity of their ingredients, as the leading industrial rice and maize, and this helps to lower costs and make it softer.

The variety of taste is another benefit to be derived, as in Ecuador is sold only two kinds of beer industry.

Interested analyze investment
The ambateño Jose Moya travelled to Quito on Saturday to follow the course, two months ago, and three friends found the exact spot of the flavor of beer. "It was a great success, other relatives and friends recommended we produce for sale." Develop the 17 half-liter bottles of beer consumed in a night cost them between 60 and 70 dollars.

Although seduces them the possibility of opening a bar where they can sell their craft beer in Ambato, the lack of providers, as well as ignorance that people have against this product, returns to reality, its sole supplier is the CAE.

"It's very craft should implement processing equipment largest search bottles, raw material… would still be very expensive, but not impossible, in the future," he said.

Figures from 2007 indicate that industrial consumption of beer per capita was between 25 and 30 litres per year. There is no official figure for production of the goods and artisanal producers also do not find the flavors they could paste in the Ecuadorian market.

Alejandra Carrion
acarrion@telegrafo.com.ec
Reporter - Quito