Soft Drinks in Peru

SOFT DRINKS IN PERU Euromonitor International February 2016

SOFT DRINKS IN PERU

Passport

LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Consumption of Healthy Beverages Increases in Peru............................................................. 1 Launch of Smaller Formats To Face Economy Deceleration .................................................... 1 Cbc and AmBev Sign Joint Venture To Manage Activities in Peru ........................................... 1 New Product Developments Focus on Functional and Healthier Beverages ............................ 1 Healthier Beverages Will Lead Growth in the Future ................................................................ 1 Key Trends and Developments .................................................................................................... 1 Awareness of Healthy Beverages Continues in Peru ............................................................... 2 How Companies Face the Economic Deceleration in the Industry ........................................... 2 Local Brands Show Leadership in Carbonates ......................................................................... 2 Market Data .................................................................................................................................. 3 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21

Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015 ....................................................................................... 3 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015 .......................................................................... 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 20102015 ............................................................................................................. 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2010-2015 ....................................................................................... 4 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2015 ................................................................................................ 4 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2015 ................................................................................................ 4 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2015 ........... 5 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2015....... 5 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 20102015 ............................................................................................................. 5 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2010-2015 ....................................................................................... 6 Off-trade Sales of Soft Drinks by Category: Value 2010-2015 ..................... 6 Off-trade Sales of Soft Drinks by Category: % Value Growth 20102015 ............................................................................................................. 6 Total Sales of Soft Drinks by Fountain On-trade: Volume 2010-2015 .......... 6 Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2010-2015 .................................................................................................... 7 NBO Company Shares of Off-trade Soft Drinks (as sold): % Volume 2011-2015 .................................................................................................... 7 LBN Brand Shares of Off-trade Soft Drinks (as sold): % Volume 20122015 ............................................................................................................. 7 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2011-2015 .................................................................................................... 9 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 20122015 ............................................................................................................. 9 NBO Company Shares of Off-trade Soft Drinks: % Value 2011-2015 ........ 11 LBN Brand Shares of Off-trade Soft Drinks: % Value 2012-2015 .............. 11 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2015 .......................................................................................... 12

© Euromonitor International

I

SOFT DRINKS IN PERU

Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Table 29 Table 30 Table 31

Passport

Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2015-2020 ..................................................................... 13 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2015-2020 ..................................................... 14 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2015-2020 ........................................................................................ 14 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2015-2020 ........................................................................... 14 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2015-2020 .................................................................................................. 14 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2015-2020 ........................................................................ 15 Forecast Off-trade Sales of Soft Drinks by Category: Value 20152020 ........................................................................................................... 15 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2015-2020 .................................................................................................. 15 Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2015-2020 .................................................................................................. 16 Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2015-2020 ..................................................................................... 16

Appendix .................................................................................................................................... 16 Fountain Sales in Peru ........................................................................................................... 16 Definitions................................................................................................................................... 16 Sources ...................................................................................................................................... 17 Summary 1

Research Sources ...................................................................................... 17

© Euromonitor International

II

SOFT DRINKS IN PERU

SOFT DRINKS IN PERU EXECUTIVE SUMMARY Consumption of Healthy Beverages Increases in Peru In 2015 Peruvian consumers were evidently choosing healthier beverages, as the consumption of regular carbonates was decreasing compared to the consumption of other options such as bottled water and juice. Peruvian consumers want to take care of their health and overall wellness through better choices of food and drinks.

Launch of Smaller Formats To Face Economy Deceleration Due to the deceleration of the Peruvian economy and the decrease in demand for regular carbonate beverages, companies launched smaller formats in 2015. These smaller formats allow consumers that are concerned about their health to indulge themselves with carbonated beverages from time to time in small doses and also allow consumers that have budget concerns to drink carbonates at an affordable price.

Cbc and AmBev Sign Joint Venture To Manage Activities in Peru The Central American company CBC and the Brazilian AmBev have signed a joint venture for the management of their business activities in Peru. CBC will handle the soft drinks operations and AmBev the beer business in Peru. It should be noted that PepsiCo Inc selected Cia Cervecera Ambev Perú (AmBev) to be in charge of brands such as Pepsi, 7-Up, Evervess, Lipton Ice Tea, San Carlos, Concordia, Triple Kola and Gatorade.

New Product Developments Focus on Functional and Healthier Beverages In 2015, launches in the soft drink industry were focused on functional and healthy beverages. Even though carbonated beverages appeared on the market, the launches of functional beverages such as Frugos Nutri Defensas in the juice category or Cielo Q10, bottled water enriched with the coenzyme Q10, are the ones that captivated consumers. In the last trimester of 2014 Corp Lindley launched La Moradita de Inca Kola, a carbonated beverage flavoured with chicha morada, but unfortunately consumers did not take to the beverage and the company withdrew it from the market six months afterward.

Healthier Beverages Will Lead Growth in the Future Bottled water, RTD tea, juices and sports drinks are expected to see the fastest growth over the 2015-2020 forecast period due to the preference of Peruvian consumers for healthier beverages. On the other hand, growth of carbonates in the forecast period is going to be limited, and consumers are expected to favour the low-calorie options despite there still being no offer of beverages sweetened with natural ingredients.

KEY TRENDS AND DEVELOPMENTS

© Euromonitor International

Passport

1

SOFT DRINKS IN PERU

Awareness of Healthy Beverages Continues in Peru The concern of Peruvians for healthy food and beverages is a strong trend and it drives the growth of categories such as bottled water, juices, RTD tea and sports drinks. The high content of sugar of carbonates and their negative impact on health lead consumers to choose healthier beverage options, therefore the growth of carbonates is losing strength over time. Due to the Peruvian government’s concern about the high rate of overweight children it strengthened the law against junk food at schools and is further enforcing the law on companies regarding the correct communication of ingredients of food and beverages, especially to young people. The Ministry of Health promotes healthy eating habits in different campaigns and local municipalities encourage people to practice sports and do more physical activities in order to avoid diseases related to bad eating habits and a sedentary lifestyle. Outlook The industry aligns its offers with consumer demand; the launch of healthier beverage options is the companies’ response to the growing concern about health and wellness, the high consumption of sugar that can lead to diabetes, obesity and other health problems.

How Companies Face the Economic Deceleration in the Industry Peru’s economic deceleration started within the last two years of the 2010-2015 review period due to a decrease in mining production along with low prices and economic crisis in other parts of the world that led Peruvian exports to decrease. This caused a drop in the GDP. Slower Peruvian GDP growth causes internal consumption to stagnate, which makes companies even more concerned about increasing their market share and sales within the industry. The industry reaction to the Peruvian deceleration has been quick, resulting in the launch of smaller formats in carbonates that allow consumers to keep up with their consumption habits but also create more moments to enjoy the carbonated beverages. Companies are promoting the use of family-size returnable glass bottles instead of plastic disposable ones in order to cheapen costs and reuse the bottles but it is also a way to bring consumers their beverages at the right price. Outlook The Peruvian market is expected to keep growing despite the economic deceleration, basically because more individuals are leaving poverty levels to become part of the growing middle class but also due to the fast expansion of retailing channels all over the country. The penetration rate of modern retailers is still low compared to other countries in the region and this will maintain consumption rates high in the next 5-10 years. Companies need to keep up with their product development and marketing efforts in order to increase their market shares. The launch of healthier beverage options as well as formats will be determined by consumer demand.

Local Brands Show Leadership in Carbonates The leadership of Coca-Cola around the world is undeniable, and this phenomenon is experienced also in Latin America; however, Peru’s second-ranked carbonate beverage is still the local brand Inca Kola. In 2015 Inca Kola celebrated its 80 years in the market; the beverage was launched by Corp Lindley, a Peruvian company with over 100 years of activities and one of the most important business groups in the country. In 1999 Corp Lindley signed a joint venture with Coca-Cola Company, which is now the GBO of Inca Kola, and from that moment the brand Inca Kola has generally flourished.

© Euromonitor International

Passport

2

SOFT DRINKS IN PERU

Passport

The success of Inca Kola is the use of the target audience’s identity, making the brand a symbol of Peru but also creating marketing campaigns that are associated with positive aspects of Peru, such as family values in the 1980s, typical Peruvian food in the 1990s and appealing to the Peruvian creativity in the early 2000s; the latest campaigns strive to be more interactive with consumers through social media. Outlook Peruvians are experiencing a time of appreciation for the Peruvian culture: the food, the history, the places to visit and also the beverages. Inca Kola is one example of how Peruvians’ consumption patterns are changing from preferring imported products for their high quality and brand association to preferring Peruvian products for their flavour, identity connotation and history. Chicha morada, a natural beverage made from the boiling of Peruvian purple corn is another example of this trend, even though the chicha morada (flavoured) beverage Corp Lindley introduced in 2014 did not appeal to consumers and was withdrawn only months later. In the future, new product developments will include not only natural products, but functional products that may have been part of the Peruvian culture and history. This will only occur through the initiative of well-established companies with wide coverage on supermarket shelves so consumers can have more options in the beverage aisles.

MARKET DATA Table 1

Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2010-2015

million litres

Off-trade On-trade Total Source: Note:

2010

2011

2012

2013

2014

2015

2,149.1 299.6 2,448.6

2,310.1 315.2 2,625.4

2,429.4 337.2 2,766.6

2,416.5 352.2 2,768.7

2,476.1 360.8 2,836.8

2,616.7 373.1 2,989.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

Table 2

Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2010-2015

% volume growth

Off-trade On-trade Total Source: Note:

2014/15

2010-15 CAGR

2010/15 TOTAL

5.7 3.4 5.4

4.0 4.5 4.1

21.8 24.5 22.1

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

Table 3

Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2010-2015

PEN million 2010

© Euromonitor International

2011

2012

2013

2014

2015

3

SOFT DRINKS IN PERU

Off-trade On-trade Total Source:

Passport

4,988.9 2,371.2 7,360.1

5,402.3 2,556.0 7,958.3

5,752.6 2,801.2 8,553.8

5,948.4 3,020.1 8,968.6

6,268.6 3,159.9 9,428.4

6,721.1 3,337.2 10,058.3

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 4

Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 20102015

% constant value growth

Off-trade On-trade Total Source:

2014/15

2010-15 CAGR

2010/15 TOTAL

7.2 5.6 6.7

6.1 7.1 6.4

34.7 40.7 36.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5

Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2015

million litres

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note:

Table 6

Off-trade

On-trade

TOTAL

598.8 1,443.7 353.4 0.0 68.1 152.8 2,616.7

55.8 306.1 10.3 0.9 373.1

654.6 1,749.8 363.7 0.0 68.1 153.6 2,989.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2015

% volume analysis

Asian Speciality Drinks Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Soft Drinks Sports and Energy Drinks Source:

Off-trade

On-trade

Total

91.5 82.5 97.2 100.0 100.0 87.5 99.4

8.5 17.5 2.8 12.5 0.6

100.0 100.0 100.0 100.0 100.0 100.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

© Euromonitor International

4

SOFT DRINKS IN PERU

Note:

Passport

Excludes powder concentrates

Table 7

Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2015

PEN million

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source:

Off-trade

On-trade

TOTAL

1,139.8 3,352.1 80.5 903.5 0.4 366.8 878.0 6,721.1

248.3 2,885.6 134.6 68.7 3,337.2

1,388.1 6,237.6 80.5 1,038.2 0.4 366.8 946.7 10,058.3

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8

Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2015

% value analysis

Asian Speciality Drinks Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Soft Drinks Sports and Energy Drinks Source:

Off-trade

On-trade

Total

82.1 53.7 100.0 87.0 100.0 100.0 66.8 92.7

17.9 46.3 13.0 33.2 7.3

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9

Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2010-2015

million litres

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note:

2010

2011

2012

2013

2014

2015

305.5 1,441.1 298.4 26.3 77.6 2,149.1

375.6 1,476.2 325.8 32.9 99.6 2,310.1

494.5 1,428.4 351.4 42.1 113.0 2,429.4

506.7 1,396.4 337.2 0.0 50.1 126.0 2,416.5

537.6 1,405.7 336.9 0.0 57.8 138.2 2,476.1

598.8 1,443.7 353.4 0.0 68.1 152.8 2,616.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

© Euromonitor International

5

SOFT DRINKS IN PERU

Table 10

Passport

Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 20102015

% volume growth

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note:

2014/15

2010-15 CAGR

2010/15 Total

11.4 2.7 4.9 7.1 17.8 10.5 5.7

14.4 0.0 3.4 20.9 14.5 4.0

96.0 0.2 18.4 158.4 96.8 21.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

Table 11

Off-trade Sales of Soft Drinks by Category: Value 2010-2015

PEN million

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source:

Table 12

2010

2011

2012

2013

2014

2015

533.2 3,079.9 79.4 718.6 136.8 440.9 4,988.9

665.0 3,165.7 79.1 759.3 170.9 562.2 5,402.3

892.0 3,100.2 79.4 831.2 213.5 636.3 5,752.6

924.1 3,129.4 79.1 846.1 0.3 260.7 708.7 5,948.4

1,002.5 3,232.3 79.3 864.1 0.3 309.8 780.2 6,268.6

1,139.8 3,352.1 80.5 903.5 0.4 366.8 878.0 6,721.1

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Off-trade Sales of Soft Drinks by Category: % Value Growth 2010-2015

% current value growth

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source:

Table 13

2014/15

2010-15 CAGR

2010/15 Total

13.7 3.7 1.5 4.6 9.9 18.4 12.5 7.2

16.4 1.7 0.3 4.7 21.8 14.8 6.1

113.8 8.8 1.4 25.7 168.2 99.1 34.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Total Sales of Soft Drinks by Fountain On-trade: Volume 2010-2015

© Euromonitor International

6

SOFT DRINKS IN PERU

Passport

million litres

Total Fountain On-trade Source:

Table 14

2010

2011

2012

2013

2014

2015

12.6

13.2

13.8

14.6

15.4

16.2

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 20102015

% fountain volume growth

Total Fountain On-trade Source:

Table 15

Table 16

2010/15 TOTAL

5.6

5.1

28.5

NBO Company Shares of Off-trade Soft Drinks (as sold): % Volume 20112015

Corp Lindley SA Ajeper SA Cia Cervecera Ambev Perú SAC Gloria SA, Grupo Embotelladora Don Jorge SA Coca-Cola Co, The Laive SA Industrias San Miguel Unión de Cervecerías Peruanas Backus & Johnston SAA La Cosecha Peruana SAC Inversiones Rind SAC P&D Andina Alimentos SA Trifarma SA Watt's Perú SA Perufarma SA Embotelladora Demesa SA Food Pack SAC Consorcio Bander SA Pepsi-Cola Panamericana Perú SRL Corp José R Lindley SA Others Total

Note:

2010-15 CAGR

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

% off-trade volume Company

Source:

2014/15

2011

2012

2013

2014

2015

50.1 24.0 10.2

48.9 25.3 9.5

48.9 25.5 9.5

48.9 25.7 9.3

48.3 26.3 9.2

2.8 2.3

2.9 2.2

2.7 2.4

2.8 2.4

2.9 2.4

0.3 0.3 2.3

0.0 0.3 0.3 2.3

0.0 0.3 0.3 2.2

0.0 0.3 0.3 2.2

1.9 0.3 0.3 0.3

0.3 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.1

0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.0 0.0 -

0.2 0.2 0.2 0.1 0.1 0.1 0.0 -

0.2 0.2 0.2 0.1 0.1 0.1 0.0 -

0.2 0.2 0.2 0.1 0.1 0.1 0.0 0.0 -

6.7 100.0

7.2 100.0

7.3 100.0

7.1 100.0

7.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

LBN Brand Shares of Off-trade Soft Drinks (as sold): % Volume 2012-2015

© Euromonitor International

7

SOFT DRINKS IN PERU

% off-trade volume Brand (GBO) Coca-Cola (CocaCola Co, The) Inca Kola (CocaCola Co, The) Cielo (Aje Group) San Luis (Coca-Cola Co, The) Kola Real (Aje Group) Pepsi (PepsiCo Inc) Cifrut (Aje Group) Inca Kola Light (Coca-Cola Co, The) Sprite (Coca-Cola Co, The) Sporade (Aje Group) Frugos (Coca-Cola Co, The) Gloria Gatorade (PepsiCo Inc) 7-Up (PepsiCo Inc) Powerade (Coca-Cola Co, The) Pulp (Aje Group) Big Cola (Aje Group) Aquarius (Coca-Cola Co, The) Peru Cola Vida Isaac Kola Guaraná Backus Free Tea (Aje Group) Fanta (Coca-Cola Co, The) San Mateo Coca-Cola Zero (Coca-Cola Co, The) Fanta Kola Inglesa (Coca-Cola Co, The) Lipton Ice Tea (Unilever Group) Tampico (Houchens Industries Inc) Oro (Aje Group) Guaraná Backus (SABMiller Plc) San Mateo (SABMiller Plc) Kola Inglesa (CocaCola Co, The) Others Total

© Euromonitor International

Passport

Company (NBO)

2012

2013

2014

2015

Corp Lindley SA

15.5

15.3

15.0

14.7

Corp Lindley SA

13.4

13.1

12.9

12.4

Ajeper SA Corp Lindley SA

8.0 7.8

8.4 8.2

8.9 8.7

9.5 9.2

Ajeper SA Cia Cervecera Ambev Perú SAC Ajeper SA Corp Lindley SA

7.6 4.9

7.4 4.7

7.3 4.6

7.1 4.5

4.4 3.3

4.1 3.3

3.8 3.2

3.8 3.1

Corp Lindley SA

2.4

2.3

2.3

2.2

Ajeper SA Corp Lindley SA

1.6 2.0

1.8 2.1

1.9 2.1

2.0 2.0

Gloria SA, Grupo Cia Cervecera Ambev Perú SAC Cia Cervecera Ambev Perú SAC Corp Lindley SA

2.1 1.4

1.8 1.5

1.8 1.6

1.9 1.7

1.6

1.5

1.5

1.5

1.1

1.2

1.4

1.4

Ajeper SA Ajeper SA Corp Lindley SA

1.2 1.0 0.9

1.3 1.1 0.9

1.3 1.1 0.9

1.2 1.0 0.9

Embotelladora Don Jorge SA Embotelladora Don Jorge SA Embotelladora Don Jorge SA Coca-Cola Co, The Ajeper SA Corp Lindley SA

0.9 0.5 0.8 0.6 0.7

0.9 0.7 0.8 0.6 0.7

0.9 0.7 0.8 0.7 0.7

0.9 0.8 0.7 0.7 0.7 0.7

Coca-Cola Co, The Corp Lindley SA

0.6

0.6

0.6

0.6 0.6

-

0.5

0.5

0.5

Cia Cervecera Ambev Perú SAC Gloria SA, Grupo

0.4

0.4

0.5

0.5

0.4

0.4

0.4

0.4

Ajeper SA Unión de Cervecerías Peruanas Backus & Johnston SAA Unión de Cervecerías Peruanas Backus & Johnston SAA Corp Lindley SA

0.4 0.8

0.4 0.8

0.4 0.8

0.4 -

0.6

0.6

0.6

-

0.5

-

-

-

12.5 100.0

12.7 100.0

12.4 100.0

12.4 100.0

Corp Lindley SA

Others Total

8

SOFT DRINKS IN PERU

Source: Note:

Table 17

Passport

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Excludes powder concentrates

NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2011-2015

% off-trade volume Company Corp Lindley SA Ajeper SA Cia Cervecera Ambev Perú SAC Gloria SA, Grupo Embotelladora Don Jorge SA Coca-Cola Co, The Laive SA Industrias San Miguel Unión de Cervecerías Peruanas Backus & Johnston SAA La Cosecha Peruana SAC Inversiones Rind SAC P&D Andina Alimentos SA Trifarma SA Watt's Perú SA Perufarma SA Embotelladora Demesa SA Food Pack SAC Alicorp SAA Kraft Foods Perú SA Corporación Tres Montes Perú SA Productos Extragel Universal SAC Consorcio Bander SA Pepsi-Cola Panamericana Perú SRL Corp José R Lindley SA Others Total Source:

Table 18

2011

2012

2013

2014

2015

46.7 22.4 9.5

45.4 23.5 8.8

45.0 23.5 8.7

45.2 23.8 8.6

45.0 24.5 8.6

2.6 2.2

2.7 2.1

2.5 2.2

2.6 2.2

2.7 2.2

0.3 0.3 2.1

0.0 0.3 0.3 2.1

0.0 0.3 0.3 2.1

0.0 0.3 0.3 2.0

1.8 0.3 0.3 0.3

0.3 0.1 0.1 0.1 0.1 0.1 0.1 0.0 3.0 0.6 2.8

0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 3.3 0.5 2.9

0.2 0.1 0.2 0.1 0.1 0.1 0.0 3.4 0.5 3.5

0.2 0.2 0.2 0.1 0.1 0.1 0.0 3.3 0.5 0.3

0.2 0.2 0.2 0.1 0.1 0.1 0.0 0.0 -

0.1

0.1

0.1

0.1

-

0.0 0.1

0.0 -

-

-

-

6.5 100.0

7.0 100.0

7.1 100.0

9.9 100.0

13.4 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2012-2015

% off-trade volume Brand (GBO) Coca-Cola (CocaCola Co, The) Inca Kola (CocaCola Co, The) Cielo (Aje Group) San Luis (Coca-Cola Co, The) Kola Real (Aje Group)

© Euromonitor International

Company (NBO)

2012

2013

2014

2015

Corp Lindley SA

14.4

14.1

13.9

13.7

Corp Lindley SA

12.5

12.1

11.9

11.5

Ajeper SA Corp Lindley SA

7.4 7.3

7.8 7.6

8.2 8.0

8.8 8.5

Ajeper SA

7.1

6.8

6.7

6.6

9

SOFT DRINKS IN PERU

Pepsi (PepsiCo Inc) Cifrut (Aje Group) Inca Kola Light (Coca-Cola Co, The) Sprite (Coca-Cola Co, The) Sporade (Aje Group) Frugos (Coca-Cola Co, The) Gloria Gatorade (PepsiCo Inc) 7-Up (PepsiCo Inc) Powerade (Coca-Cola Co, The) Pulp (Aje Group) Big Cola (Aje Group) Aquarius (Coca-Cola Co, The) Peru Cola Vida Isaac Kola Guaraná Backus Free Tea (Aje Group) Fanta (Coca-Cola Co, The) San Mateo Coca-Cola Zero (Coca-Cola Co, The) Fanta Kola Inglesa (Coca-Cola Co, The) Lipton Ice Tea (Unilever Group) Tampico (Houchens Industries Inc) Oro (Aje Group) Negrita Kanú Guaraná Backus (SABMiller Plc) San Mateo (SABMiller Plc) Clight (Mondelez International Inc) Yaps Kiribá Zuko (Tresmontes Lucchetti SA) Kola Inglesa (CocaCola Co, The) Others Total Source:

Passport

Cia Cervecera Ambev Perú SAC Ajeper SA Corp Lindley SA

4.5

4.3

4.3

4.1

4.1 3.1

3.8 3.0

3.5 3.0

3.6 2.9

Corp Lindley SA

2.2

2.1

2.1

2.1

Ajeper SA Corp Lindley SA

1.4 1.9

1.6 1.9

1.7 1.9

1.8 1.8

Gloria SA, Grupo Cia Cervecera Ambev Perú SAC Cia Cervecera Ambev Perú SAC Corp Lindley SA

1.9 1.3

1.6 1.4

1.7 1.5

1.7 1.6

1.4

1.4

1.4

1.4

1.0

1.1

1.3

1.3

Ajeper SA Ajeper SA Corp Lindley SA

1.1 0.9 0.8

1.2 1.0 0.8

1.2 1.0 0.9

1.1 1.0 0.9

Embotelladora Don Jorge SA Embotelladora Don Jorge SA Embotelladora Don Jorge SA Coca-Cola Co, The Ajeper SA Corp Lindley SA

0.8 0.5 0.8 0.6 0.7

0.8 0.6 0.7 0.5 0.6

0.8 0.7 0.7 0.6 0.6

0.8 0.7 0.7 0.7 0.7 0.6

Coca-Cola Co, The Corp Lindley SA

0.6

0.6

0.6

0.6 0.5

-

0.5

0.5

0.5

Cia Cervecera Ambev Perú SAC Gloria SA, Grupo

0.4

0.4

0.4

0.5

0.4

0.4

0.4

0.4

Ajeper SA Alicorp SAA Alicorp SAA Unión de Cervecerías Peruanas Backus & Johnston SAA Unión de Cervecerías Peruanas Backus & Johnston SAA Kraft Foods Perú SA

0.4 1.8 0.8 0.7

0.3 1.9 0.8 0.7

0.3 1.8 0.8 0.7

0.3 -

0.5

0.5

0.6

-

0.5

0.5

0.5

-

Alicorp SAA Alicorp SAA Corporación Tres Montes Perú SA Corp Lindley SA

0.4 0.3 2.9

0.4 0.4 -

0.4 0.3 -

-

0.5

-

-

-

12.1 100.0

15.7 100.0

15.3 100.0

18.5 100.0

Corp Lindley SA

Others Total

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

© Euromonitor International

10

SOFT DRINKS IN PERU

Table 19

Passport

NBO Company Shares of Off-trade Soft Drinks: % Value 2011-2015

% off-trade value rsp Company Corp Lindley SA Ajeper SA Cia Cervecera Ambev Perú SAC Gloria SA, Grupo Embotelladora Don Jorge SA Coca-Cola Co, The Perufarma SA La Cosecha Peruana SAC Alicorp SAA Laive SA Inversiones Rind SAC P&D Andina Alimentos SA Trifarma SA Kraft Foods Perú SA Corporación Tres Montes Perú SA Industrias San Miguel Watt's Perú SA Unión de Cervecerías Peruanas Backus & Johnston SAA Food Pack SAC Embotelladora Demesa SA Productos Extragel Universal SAC Consorcio Bander SA Pepsi-Cola Panamericana Perú SRL Corp José R Lindley SA Others Total Source:

2011

2012

2013

2014

2015

49.2 20.7 12.0

47.7 22.1 11.7

47.8 22.3 11.7

47.4 22.7 11.7

46.7 23.3 11.7

2.7 1.7

2.9 1.7

2.6 1.9

2.7 1.9

2.8 1.9

1.0 0.7 0.8 0.5 0.1 0.2 0.2 0.3 0.3

0.0 1.0 0.6 0.8 0.5 0.3 0.3 0.2 0.3 0.3

0.0 1.0 0.6 0.7 0.6 0.3 0.3 0.2 0.3 0.3

0.0 1.1 0.6 0.7 0.5 0.3 0.3 0.3 0.3 0.2

1.6 1.1 0.7 0.7 0.5 0.3 0.3 0.3 0.3 0.2

0.3 0.2 1.9

0.3 0.2 1.9

0.2 0.2 1.8

0.2 0.2 1.8

0.2 0.2 0.2

0.1 0.1 0.0

0.1 0.1 0.0

0.1 0.0

0.1 0.0

0.1 0.0 0.0

0.0 0.1

0.0 -

-

-

-

6.8 100.0

7.2 100.0

7.1 100.0

6.9 100.0

6.7 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 20

LBN Brand Shares of Off-trade Soft Drinks: % Value 2012-2015

% off-trade value rsp Brand (GBO) Coca-Cola (CocaCola Co, The) Inca Kola (CocaCola Co, The) Cielo (Aje Group) San Luis (Coca-Cola Co, The) Kola Real (Aje Group) Gatorade (PepsiCo Inc) Pepsi (PepsiCo Inc) Inca Kola Light

© Euromonitor International

Company (NBO)

2012

2013

2014

2015

Corp Lindley SA

14.4

14.3

14.0

13.6

Corp Lindley SA

13.1

12.6

12.4

11.9

Ajeper SA Corp Lindley SA

5.9 5.8

6.0 6.0

6.3 6.2

6.8 6.6

Ajeper SA Cia Cervecera Ambev Perú SAC Cia Cervecera Ambev Perú SAC Corp Lindley SA

6.0 4.2

5.6 4.4

5.6 4.5

5.4 4.7

4.1

3.8

3.7

3.6

3.2

3.3

3.2

3.1

11

SOFT DRINKS IN PERU

(Coca-Cola Co, The) Sporade (Aje Group) Frugos (Coca-Cola Co, The) Powerade (Coca-Cola Co, The) Cifrut (Aje Group) Sprite (Coca-Cola Co, The) Pulp (Aje Group) Gloria Free Tea (Aje Group) Lipton Ice Tea (Unilever Group) 7-Up (PepsiCo Inc) Red Bull (Red Bull GmbH) Aquarius (Coca-Cola Co, The) Coca-Cola Zero (Coca-Cola Co, The) Big Cola (Aje Group) Peru Cola Fanta (Coca-Cola Co, The) Vida Beberash Free Tea Light (Aje Group) Guaraná Backus San Mateo Sporade Light (Aje Group) Guaraná Backus (SABMiller Plc) Others Total Source:

Passport

Ajeper SA Corp Lindley SA

2.5 3.2

2.8 3.4

2.9 3.3

3.1 3.1

Corp Lindley SA

2.1

2.4

2.6

2.7

Ajeper SA Corp Lindley SA

2.6 2.2

2.4 2.1

2.3 2.1

2.3 2.0

Ajeper SA Gloria SA, Grupo Ajeper SA Cia Cervecera Ambev Perú SAC Cia Cervecera Ambev Perú SAC Perufarma SA

1.9 2.1 1.3 0.9

2.0 1.7 1.3 1.1

2.0 1.8 1.5 1.2

1.9 1.8 1.6 1.3

1.2

1.1

1.1

1.1

1.0

1.0

1.1

1.1

Corp Lindley SA

0.9

0.9

0.9

0.9

Corp Lindley SA

0.9

0.9

0.9

0.9

Ajeper SA Embotelladora Don Jorge SA Corp Lindley SA

0.8 0.7 0.7

0.8 0.7 0.7

0.8 0.7 0.7

0.8 0.7 0.7

Embotelladora Don Jorge SA La Cosecha Peruana SAC Ajeper SA

0.4 0.6 0.5

0.6 0.6 0.6

0.7 0.6 0.6

0.7 0.7 0.7

Coca-Cola Co, The Coca-Cola Co, The Ajeper SA

0.4

0.5

0.5

0.6 0.6 0.5

Unión de Cervecerías Peruanas Backus & Johnston SAA Others Total

0.6

0.6

0.6

-

15.7 100.0

15.8 100.0

15.4 100.0

14.7 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 21

Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2015

% off-trade

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets -- Traditional Grocery Retailers

© Euromonitor International

BW

C

CON

J

RTD C

RTD T

92.3 92.3 15.5

100.0 100.0 14.8

0.0 0.0 0.0

100.0 100.0 22.1

100.0 100.0 11.3

100.0 100.0 11.3

0.0 0.0 0.2 8.6 6.7 76.8

0.0 0.0 0.2 8.0 6.6 85.2

0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.3 11.9 9.8 77.9

0.0 0.0 0.0 6.2 5.1 88.7

0.0 0.0 0.0 6.2 5.1 88.7

12

SOFT DRINKS IN PERU

--- Food/drink/tobacco specialists --- Independent Small Grocers --- Other Grocery Retailers - Mixed Retailers - Non-Grocery Specialists Non-Store Retailing - Vending - Homeshopping - Internet Retailing - Direct Selling Total

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets -- Traditional Grocery Retailers --- Food/drink/tobacco specialists --- Independent Small Grocers --- Other Grocery Retailers - Mixed Retailers - Non-Grocery Specialists Non-Store Retailing - Vending - Homeshopping - Internet Retailing - Direct Selling Total Source: Key: Note:

Passport

0.0

0.0

0.0

0.0

0.0

0.0

58.0

72.2

0.0

61.5

71.0

71.0

18.8

13.0

0.0

16.4

17.7

17.7

0.0 0.0 7.8 0.0 0.0 0.0 7.8 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0

SED

ASD

100.0 100.0 14.9

0.0 0.0 0.0

0.0 0.0 0.0 8.3 6.6 85.1

0.0 0.0 0.0 0.0 0.0 0.0

0.0

0.0

61.8

0.0

23.3

0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BW = bottled water; C = carbonates; CON = concentrates; J = juice; RTD C = RTD coffee; RTD T = RTD tea; SED = sports and energy drinks; ASD = Asian speciality drinks Excludes powder concentrates

Table 22

Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2015-2020

million litres

Off-trade On-trade Total Source:

2015

2016

2017

2018

2019

2020

2,616.7 373.1 2,989.8

2,728.6 384.0 3,112.6

2,823.2 394.1 3,217.4

2,929.2 405.1 3,334.3

3,041.4 416.8 3,458.1

3,163.8 429.0 3,592.8

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

© Euromonitor International

13

SOFT DRINKS IN PERU

Note:

Passport

Excludes powder concentrates

Table 23

Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2015-2020

% volume growth

Off-trade On-trade Total Source: Note:

2015/16

2015-20 CAGR

2015/20 TOTAL

4.3 2.9 4.1

3.9 2.8 3.7

20.9 15.0 20.2

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates

Table 24

Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 20152020

PEN million

Off-trade On-trade Total Source:

2015

2016

2017

2018

2019

2020

6,721.1 3,337.2 10,058.3

7,050.3 3,452.9 10,503.2

7,343.4 3,564.2 10,907.5

7,666.8 3,686.2 11,353.1

8,316.6 3,817.8 12,134.4

8,691.2 3,956.8 12,648.0

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 25

Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2015-2020

% constant value growth

Off-trade On-trade Total Source:

2015/16

2015-20 CAGR

2015/20 TOTAL

4.9 3.5 4.4

5.3 3.5 4.7

29.3 18.6 25.7

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 26

Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 20152020

million litres

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks

© Euromonitor International

2015

2016

2017

2018

2019

2020

598.8 1,443.7 353.4 0.0 68.1 152.8 2,616.7

657.5 1,461.7 363.2 0.0 78.9 167.3 2,728.6

715.1 1,466.1 369.5 0.0 90.6 181.9 2,823.2

774.5 1,478.8 376.5 0.0 102.6 196.7 2,929.2

836.5 1,498.2 384.3 0.0 114.9 207.4 3,041.4

901.7 1,523.4 392.9 0.0 127.4 218.3 3,163.8

14

SOFT DRINKS IN PERU

Source: Note:

Passport

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates

Table 27

Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2015-2020

% volume growth

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source: Note:

2015/16

2015-20 CAGR

2015/20 Total

9.8 1.2 2.8 5.5 16.0 9.5 4.3

8.5 1.1 2.1 4.5 13.4 7.4 3.9

50.6 5.5 11.2 24.7 87.2 42.9 20.9

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Excludes powder concentrates

Table 28

Forecast Off-trade Sales of Soft Drinks by Category: Value 2015-2020

PEN million

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks Source:

Table 29

2015

2016

2017

2018

2019

2020

1,139.8 3,352.1 80.5 903.5 0.4 366.8 878.0 6,721.1

1,252.0 3,399.8 80.7 930.9 0.4 425.9 960.7 7,050.3

1,362.4 3,417.6 80.6 948.8 0.4 489.7 1,043.9 7,343.4

1,476.6 3,455.3 80.7 969.8 0.4 555.3 1,128.7 7,666.8

1,595.8 3,508.8 81.2 994.0 0.4 622.5 1,513.8 8,316.6

1,721.3 3,576.0 81.9 1,021.4 0.5 691.3 1,598.9 8,691.2

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 20152020

% constant value growth

Bottled Water Carbonates Concentrates Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks Soft Drinks

© Euromonitor International

2015/2016

2015-20 CAGR

2015/20 TOTAL

9.8 1.4 0.3 3.0 6.1 16.1 9.4 4.9

8.6 1.3 0.3 2.5 5.4 13.5 12.7 5.3

51.0 6.7 1.7 13.0 29.9 88.4 82.1 29.3

15

SOFT DRINKS IN PERU

Source:

Passport

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 30

Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2015-2020

million litres

Total Fountain On-trade Source:

2015

2016

2017

2018

2019

2020

16.2

17.2

18.1

19.1

20.1

21.1

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 31

Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2015-2020

% fountain volume growth

Total Fountain On-trade Source:

2015/16

2015-20 CAGR

2015/20 TOTAL

5.7

5.3

29.7

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

APPENDIX Fountain Sales in Peru Trends  Total fountain on-trade volume grew by 6% in 2015, a similar rate to that seen in 2014, and sales amounted to 16.2 million litres. Fountain sales in the country are only available through on-trade sales, and carbonates is the only category where fountain beverages are available.  Growth in fountain sales is driven by growth of the consumer foodservice industry in the country. Even the sales of carbonates are growing at a slower pace on the off-trade channel. The on-trade channel is more dynamic, as growth of the purchasing power of Peruvians allows them to eat out more at lunch or dinner time.  The leading soft drink companies in Peru are Corp Lindley with worldwide brands such as Coca Cola, Sprite and Fanta but also the local leader brand, Inca Kola. However, other franchises have joined with PepsiCo to dispense the brands Pepsi, 7-Up and Concordia.  Growth of fountain drinks is expected to continue over the forecast period, driven by the increase of Peruvians’ purchasing power and their preference for eating out. Fast food chains are the main distribution point for fountain drinks and they are expected to grow, mostly in provinces outside Lima through mall openings. It is also expected that consumers will demand, even at fast food chains, healthier beverage choices and therefore there should be an increase in demand for low-calorie carbonates and the addition of more options such as RTD tea or water.

DEFINITIONS Explanations of words and/or terminology used in this report are as follows:

© Euromonitor International

16

SOFT DRINKS IN PERU

Passport

 Chicha morada: Drink made from the Peruvian purple corn, mixed with pineapple and spices  Emoliente: Local beverage prepared with toasted barley, flax seeds and lime. Sometimes it can also include other traditional medicinal herbs such as horsetail, boldo, stonebreaker, cat’s claw and aloe vera.  Pisco: A Peruvian grape-based white spirit

SOURCES Sources used during the research included the following: Summary 1 Research Sources Official Sources

Conasev Instituto Nacional de Estadística e Informática MINAG Produce.gob.pe Radio Programas del Peru

Trade Press

América Economía Andina Avance Económico Correo El Comercio El Peruano Expreso Gestion La República Semana Económica

Source:

Euromonitor International

© Euromonitor International

17