Hot Drinks in Uruguay
Euromonitor International's Hot Drinks in Uruguay 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: 60 | Publication date: Apr 2009
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
Hot drinks volume growth slows down
Hot drinks in Uruguay in 2008 posted a slower growth rate in constant value than the average registered for the review period. Yerba mate consumption continued to increase in volume during the year but with a flattening growth curve. Companies in the category maintaining 2007 prices impacted adversely on the overall growth of hot drinks. Coffee suffered a decline in volume growth rate in 2008. However, in this case, it was compensated by the premiumisation of the category, and this contributed to increased value sales. Better than average volume and value sales growth in tea were not large enough to overcome the impact on hot drinks.
Yerba mate consumption hits historic high
During 2008, yerba mate consumption shattered its old time consumption record dating back to the 1950s. Mate drinking is a cultural trend that identifies Uruguayans all over the world and eliminates social and income level barriers. However, while approaching this peak, the growth curve began to flatten in the latter years of the review period. Increasing sales of new herbal value-added varieties of yerba mate continued to fuel the already high per capita consumption.
Competitive environment remains unchanged
Nestlé del Uruguay SA continued as the undisputed leader in coffee and chocolate-based flavoured powder drinks. Canarias SA, comfortably leading other plant-based hot drinks, again ranked second in hot drinks in 2008. The premiumisation of instant coffee, brought about by Nestlé, allowed Nestlé to increase its overall corporate retail value share despite declining volume growth rates. Canarias sustained its fending off of smaller competitors: it reacted quickly to herbal yerba mate and packaging innovations from other players with its own new products and packs. José Aldao maintained its leadership in tea during 2008. With a widening product portfolio, it answered consumer demand and ranked fourth overall in hot drinks value sales. José Aldao was surpassed by Instituto Botánico La Selva SRL that added an influential volume of herbal yerba mate to its traditional sales of herbal and red teas.
The yerba mate two-pronged distortion
Yerba mate volume sales accounted for a large proportion of total hot drinks volume in Uruguay in 2008 – and sales were performed exclusively off-trade. This totally distorted the distribution breakdown when analysing hot drinks as a whole and (more so) ‘other hot drinks’, absolutely minimising on-trade sales. Considering yerba mate off-trade sales alone, the large number of available brands, different flavours and herbal alternatives within each brand as well as the huge range of pack sizes produced a second distortion. Small independent retailers could not stock a large number of yerba mate options and had to limit their inventories to the best selling brands and pack sizes. This situation benefited the leading companies, as they gained wider coverage throughout the country. In addition, on the distribution side, supermarkets/hypermarkets had the resources, logistics and shelf space to handle a greater number of brands – if not all – in their different alternatives.
Only moderate growth is expected
The two largest categories within hot drinks – coffee and other plant-based hot drinks – are forecast to post slower volume growth rates than those registered during the review years, though not entirely for the same reasons. Coffee volume growth is expected to suffer from the trend towards the consumption of healthier products. With an increasing number of consumers switching to other hot drinks, decaffeinated coffee will be unable to compensate for the decline. The slowing of the country’s economy should work against the current premiumisation trend in coffee, affecting future value sales. Other plant-based hot drinks will see volume growth rates continuing to slow down as yerba mate volume approaches its upper limit. It is not foreseen that a worsening of the economic environment will affect yerba mate sales. It is not an expensive product and it successfully navigated through the 2002 crisis. Forecast tea volume growth should benefit from consumers switching from coffee to healthier alternatives.
Table of contents
HOT DRINKS IN URUGUAY : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks volume growth slows down
Yerba mate consumption hits historic high
Competitive environment remains unchanged
The yerba mate two-pronged distortion
Only moderate growth is expected
MARKET DATA
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 2 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 5 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 6 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 7 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 8 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 9 Hot Drinks Company Shares by Value 2004-2008
Table 10 Hot Drinks Brand Shares by Value 2005-2008
Table 11 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 12 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 13 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 14 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 15 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 16 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 19 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 20 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 22 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
DEFINITIONS
Table 23 Summary
Summary 1 Research Sources
COFFEE IN URUGUAY
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 24 Retail Sales of Coffee by Type: Volume 2003-2008
Table 25 Retail Sales of Coffee by Type: Value 2003-2008
Table 26 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 27 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 28 Coffee Company Shares 2004-2008
Table 29 Coffee Brand Shares 2005-2008
Table 30 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 31 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 32 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 33 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN URUGUAY
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 34 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 35 Other Tea by Type: % Off-trade Volume 2005-2008
Table 36 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 37 Retail Sales of Tea by Subsector: Value 2003-2008
Table 38 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 39 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 40 Tea Company Shares 2004-2008
Table 41 Tea Brand Shares 2005-2008
Table 42 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 43 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 44 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 45 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN URUGUAY
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 46 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 47 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 48 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 49 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 50 Other Hot Drinks Company Shares 2004-2008
Table 51 Other Hot Drinks Brand Shares 2005-2008
Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013
CANARIAS SA
Strategic Direction
Key Facts
Summary 2 Canarias SA: Key Facts
Company Background
Production
Competitive Positioning
Summary 3 Canarias SA: Competitive Position 2008
JOSÉ ALDAO
Strategic Direction
Key Facts
Summary 4 José Aldao: Key Facts
Company Background
Production
Competitive Positioning
Summary 5 José Aldao: Competitive Position 2008