Hot Drinks in Chile
Euromonitor International's Hot Drinks in Chile market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 57 | Publication date: Jul 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Premiumisation drives value growth
In Chile in 2006, a continuously increasing number of consumers demanded best quality coffee, and tried different recipes to prepare coffee instead of using traditional instant coffee. Chileans also purchased many different brands, and different grains and flavours to savour variety in the non-alcoholic beverages they drank during the day. Consumer knowledge about coffee increased, and this generated new business opportunities, such as specialty coffee shops, to cater to these increasingly informed consumers seeking variety. The demand shift not only favoured fresh coffee, but specialist coffees, such as cappuccino and flavoured products, increased sales. In the same way, sales of products related to coffee, such as cups, mugs and coffee machines, or creams and syrups, also rocketed.
Healthy trend drives sales of tea and other hot drinks
The trend towards healthier lifestyles in Chile affected most food and drinks sectors, and hot drinks was not an exception. Chileans concerned about dietary habits preferred healthy products, especially those that contributed to preventing or relieving diseases. Advice on dieting appeared in local printed press and on TV, and usually included recommendations to increase tea consumption, especially the green and red varieties. Other teas also benefit from the health trend because of its antioxidant properties. Fruit/herbal tea was promoted for its medicinal benefits, and this made many Chileans return to the old tradition of drinking herbal tea after lunch. Other hot drinks were also impacted positively. Sales of malt-based products were reinvigorated, as parents tried to avoid child obesity. Nestlé SA's Milo was the leader.
Emergence of a tea culture
Tea is a mature sector in Chile. The penetration rate is almost 100%, and opportunities to improve sales are limited as the population is not seeing rapid growth. However, at the end of the review period, a tea culture had emerged that stimulated sales of tea blends other than black specialty tea. Abundant information about tea benefits for health and the positioning of a concept of entertainment associated with tea drinking drove this renewed interest in tea. A large group of consumers was exceptionally conscious and aware of the quality of the tea they drank. Manufacturers and importers invested heavily in product development, introduced new blends and flavours, and made changes in packaging to allow clients to adopt value added products and increase consumption occasions. Green tea, red tea and fruit/herbal tea contributed to increased consumption occasions, as they were positioned as an infusion for specific purposes other than traditional usage. On the other hand, the introduction of paper wrap allowed consumers to carry favourite flavours of tea to drink out of the home.
Coffee shops' success fuels national expansion: international chains arrive
The environment was highly favourable in Chile, as drinking coffee became a social activity. An increased number of consumers, especially young adults, relocated their work meetings or enjoyed meeting friends for coffee in one of the modern coffee shops that emerged in the country. As more consumers visited cafeterias, more of them desired to reproduce the experience at home, and this stimulated off-trade sales. This behaviour formed a virtual cycle, because clients learned to appreciate good coffee and then were compelled to return to the coffee shops.
The success of coffee shops not only provided the incentive for opening units nationwide, but also attracted international players to Chile. Some of them are just starting international expansion and are using Chile as a tester. Juan Valdes and Palo Alto are in the short list of international players that want to expand operations in the country. Both opened their coffee shops and retailed their coffee to them through specialist retailers and main supermarkets/hypermarkets.
Chained retailers concentrate sales
Supermarkets/hypermarkets is the preferred format for consumers to buy food in Chile and, in the case of hot drinks, it is also true. The majority of sales are performed through this channel. The impact of the chains goes beyond the traditional rules of the relationship between manufacturers and retailers – the chains invest heavily to take advantage of the coffee and tea culture in Chile. Supermarkets/hypermarkets is developing premium product labels and importing directly premium brands to expand its offerings. It is also opening cafeterias in all its outlets, imitating the offerings of specialist coffee shops, at an excellent price quality relation.
Table of contents
HOT DRINKS IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
Premiumisation drives value growth
Healthy trend drives sales of tea and other hot drinks
Emergence of a tea culture
Coffee shops' success fuels national expansion: international chains arrive
Chained retailers concentrate sales
KEY TRENDS AND DEVELOPMENTS
Economy improvement stimulates sales of premium products
Rising obesity rate changes hot drinks' habits
Specialist coffee shops emerges nationwide
Wine culture, coffee culture, and now tea culture
International players searching for opportunities to enter
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 9 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports
Table 14 Imports/Exports of Hot Drinks by Sector 2001-2006
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - CHILE
ASESORIAS E INVERSIONES SANTA VICTORIA LTDA - HOT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Asesorias e Inversiones Santa Victoria Ltda: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CAMBIASO HERMANOS SAC - HOT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Cambiaso Hermanos SAC: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Cambiaso Hermanos SAC: Production Statistics 2006
COMPETITIVE POSITIONING
CORPORA TRES MONTES SA - HOT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Corpora Tres Montes SA: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 Corpora Tres Montes SA: Production Statistics 2006
COMPETITIVE POSITIONING
ICB SA - HOT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 6 ICB SA: Key Facts
Summary 7 ICB SA: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 8 ICB SA: Production Statistics 2006
COMPETITIVE POSITIONING
COFFEE IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 15 Sales of Coffee by Type: Volume 2001-2006
Table 16 Sales of Coffee by Type: Value 2001-2006
Table 17 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 18 Sales of Coffee by Type: % Value Growth 2001-2006
Table 19 Standard vs Coffee Pods 2004-2006
Table 20 Instant Coffee by Speciality Type: Off-trade Volume 2004-2006
Table 21 Instant Coffee by Speciality Type: Off-trade Value 2004-2006
Table 22 Coffee Company Shares 2002-2006
Table 23 Coffee Brand Shares 2003-2006
Table 24 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 25 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 26 Forecast Sales of Coffee by Type: Value 2006-2011
Table 27 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 28 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 29 Sales of Tea by Subsector: Volume 2001-2006
Table 30 Sales of Tea by Subsector: Value 2001-2006
Table 31 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 32 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 33 Fruit/Herbal Tea by Type 2005-2006: Off-trade Volume
Table 34 Tea Company Shares 2002-2006
Table 35 Tea Brand Shares 2003-2006
Table 36 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 37 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 38 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 39 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 42 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 43 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 44 Other Hot Drinks Company Shares 2002-2006
Table 45 Other Hot Drinks Brand Shares 2003-2006
Table 46 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 48 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 49 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011