Soft Drinks in Chile
Euromonitor International's Soft 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: 122 | 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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
Impressive Performance of Soft Drinks
Soft drinks performed particularly well in 2006, due not only to economic rebound, but also to several trends that favoured sales. Many Chileans achieved a higher standard of living as incomes increased. Lower income consumer segments were incorporated into the market while more affluent consumers increased their consumption. Because of the high penetration of carbonates, its volume sales moved more slowly than other sectors that benefited from the health trend in Chile. However, carbonates did not slip out of the game, as low calorie versions experienced outstanding performance. Trying to maintain their positions, companies invested in product development to capture consumer interest, and contributed to the creation of a climate of dynamism.
It is Time for Bottled Water
Sales of bottled water rocketed during the review period as customers replaced tap water with bottled water. This was a consequence of higher disposable incomes and also, mainly, consumer consciousness of the benefits of increased daily liquid consumption. In addition to a demand shift, manufacturers invested in creating a more attractive offering. Never again would bottled water be synonymous with mineral water. Since 2004, flavoured water, and purified/table and functional water has been introduced in Chile to impressive customer response. Sales increased sharply, creating the incentive for additional product development as well as new players.
Higher Dynamism of Fruit Juices
Just behind bottled water, the demand for fruit juice rose dramatically. Growth was underpinned by increasing consumer wealth, constant new product development, and a trend toward healthy products. Chileans moved to drinks perceived as healthy, especially in the choice of children’s food. It is clear than penetration rates for fruit juice were very low compared with developed countries. However, there has been fast growth since 2004, suggesting that there are many new customers to target and opportunities to expand consumption. Healthy development is expected in fortified juice.
Product Development Stimulates Demand
Manufacturers invested heavily in product development. During the last two years of the review period, Chileans enjoyed the benefits of an ever-broader range of products, flavours and formats that allowed them to consume the drinks of their choice whenever they wanted. Individual and family sizes facilitated consumption, and flavours available increased to provide for all tastes. However, the main changes were associated with the emergence of new product categories, such as fortified/functional drinks, and purified/table or flavoured water. Consumers also gained from the arrival of new players and the introduction of new brands. This increased competition and made products more accessible for a larger number of customers. This was the case with the new brands, Dasani, Powerade and Next.
Alliances Form for Anticipated Competition
Up to the end of the review period, as in a chess game, players kept moving their ‘pieces’ to capture the most valuable prizes. Seniority no longer was warranty for retained leadership. Innovative strategies, such as those implemented for Benedictino in carbonated bottled water and Powerade in energy drinks, challenged the old paradigms. Coca-Cola de Chile SA improved its offering and presented alternatives in most soft drinks sectors. This threatened competitors’ positions in smaller sectors and anticipated that players that developed cross-sector strategies could capture the lion’s share. Coca-Cola’s bottlers created a new company – VASA (Vital Aguas SA) – to exploit non-cola carbonates in early 2006. Soon afterwards, dairy manufacturers, Soprole, entered bottled water. By the end of 2006, rumours emerged announcing the alliance of Soprole with Nestlé, and the latter’s interest in buying out Aguas del Sur (Benedictino, Mont Blanc). Also in 2006, ECUSA – Embotelladoras Chilenas Unidas SA – the second largest player in soft drinks, created a joint venture with Watt’s SA – Promarca – merging their fruit juice businesses. With these movements, it is anticipated that competition will intensify.
Table of contents
SOFT DRINKS IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
Impressive Performance of Soft Drinks
It is Time for Bottled Water
Higher Dynamism of Fruit Juices
Product Development Stimulates Demand
Alliances Form for Anticipated Competition
KEY TRENDS AND DEVELOPMENTS
Economic Improvement Contributes to Expansion of Customer Base
Call for Healthier Drinks
Product Development Explodes
Packaging Innovation Addresses Convenience and Value-pricing
Alliances could Reshape the Competitive Scenario
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2001-2006
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2001-2006
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2001-2006
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2001-2006
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2006
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2006
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2006
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2006
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2001-2006
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2001-2006
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2001-2006
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2001-2006
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2002-2006
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2003-2006
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2002-2006
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2003-2006
Table 17 Company Shares of Off-trade Soft Drinks by Value 2002-2006
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2003-2006
Table 19 Penetration of Private Label (as sold) by Sector by Volume 2002-2006
Table 20 Penetration of Private Label by Sector by Value 2002-2006
Table 21 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2006
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2006-2011
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2006-2011
Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2006-2011
Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2006-2011
Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2006-2011
Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2006-2011
Table 28 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2006-2011
Table 29 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Concentrates Conversions
Table 30 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Institutional Bottled Water Sales
Table 31 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2001-2006
Table 32 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2001-2006
Table 33 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2002-2006
Table 34 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2003-2006
Table 35 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2002-2006
Table 36 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2003-2006
Table 37 Company Shares of Concentrates (RTD) by Off-trade Volume 2002-2006
Table 38 Brand Shares of Concentrates (RTD) by Off-trade Volume 2003-2006
Table 39 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2006-2011
Table 40 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2006-2011
Table 41 Sales of Bottled Water to Institutional Channel 2001-2006
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - CHILE
COCA-COLA EMBONOR SA - SOFT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Coca-Cola Embonor SA: Key Facts
Summary 2 Coca-Cola Embonor SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Coca-Cola Embonor SA: Production Statistics 2006
COMPETITIVE POSITIONING
EMBOTELLADORA ANDINA SA - SOFT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Embotelladora Andina SA: Key Facts
Summary 5 Embotelladora Andina SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 Embotelladora Andina SA: Production Statistics 2006
COMPETITIVE POSITIONING
EMBOTELLADORAS CHILENAS UNIDAS SA - SOFT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Embotelladoras Chilenas Unidas SA: Key Facts
Summary 8 Embotelladoras Chilenas Unidas SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Embotelladoras Chilenas Unidas SA: Production Statistics 2006
COMPETITIVE POSITIONING
WATT´S SA - SOFT DRINKS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Watt’s SA: Key Facts
Summary 11 Watt’s SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Watt’s SA: Production Statistics 2006
COMPETITIVE POSITIONING
CARBONATES IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 On-trade vs Off-trade Sales of Carbonates: Volume 2001-2006
Table 43 On-trade vs Off-trade Sales of Carbonates: Value 2001-2006
Table 44 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2001-2006
Table 45 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2001-2006
Table 46 Off-trade Sales of Carbonates by Subsector: Volume 2001-2006
Table 47 Off-trade Sales of Carbonates by Subsector: Value 2001-2006
Table 48 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2001-2006
Table 49 Off-trade Sales of Carbonates by Subsector: % Value Growth 2001-2006
Table 50 Low Calorie Carbonates by Subsector
Table 51 Company Shares of Carbonates by Off-trade Volume 2002-2006
Table 52 Brand Shares of Carbonates by Off-trade Volume 2003-2006
Table 53 Company Shares of Carbonates by Off-trade Value 2002-2006
Table 54 Brand Shares of Carbonates by Off-trade Value 2003-2006
Table 55 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2006-2011
Table 56 Forecast Off-trade Sales of Carbonates by Subsector: Value 2006-2011
Table 57 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2006-2011
Table 58 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2006-2011
FRUIT/VEGETABLE JUICE IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 59 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2001-2006
Table 60 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2001-2006
Table 61 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2001-2006
Table 62 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2001-2006
Table 63 Leading Flavours for 100% Juice: %Volume Breakdown 2003-2006
Table 64 Leading Flavours for Nectars (25-99% Juice): %Volume Breakdown 2003-2006
Table 65 Leading Flavours for Juice Drinks (up to 24% Juice): %Volume Breakdown 2003-2006
Table 66 Leading Flavours for Fruit-flavoured Drinks (No Juice Content): %Volume Breakdown 2003-2006
Table 67 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2006
Table 68 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2002-2006
Table 69 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2003-2006
Table 70 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2002-2006
Table 71 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2003-2006
Table 72 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2006-2011
Table 73 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2006-2011
Table 74 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2006-2011
Table 75 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2006-2011
BOTTLED WATER IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 76 Off-trade Sales of Bottled Water: Volume 2001-2006
Table 77 Off-trade Sales of Bottled Water: Value 2001-2006
Table 78 Off-trade Sales of Bottled Water: % Volume Growth 2001-2006
Table 79 Off-trade Sales of Bottled Water: % Value Growth 2001-2006
Table 80 Company Shares of Bottled Water by Off-trade Volume 2002-2006
Table 81 Brand Shares of Bottled Water by Off-trade Volume 2003-2006
Table 82 Company Shares of Bottled Water by Off-trade Value 2002-2006
Table 83 Brand Shares of Bottled Water by Off-trade Value 2003-2006
Table 84 Forecast Off-trade Sales of Bottled Water: Volume 2006-2011
Table 85 Forecast Off-trade Sales of Bottled Water: Value 2006-2011
Table 86 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2006-2011
Table 87 Forecast Off-trade Sales of Bottled Water: % Value Growth 2006-2011
FUNCTIONAL DRINKS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 88 Off-trade Sales of Functional Drinks by Subsector: Volume 2001-2006
Table 89 Off-trade Sales of Functional Drinks by Subsector: Value 2001-2006
Table 90 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2001-2006
Table 91 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2001-2006
Table 92 Still vs Carbonated Functional Drinks % Off-Trade Volume 2005-2006
Table 93 Company Shares of Functional Drinks by Off-trade Volume 2002-2006
Table 94 Brand Shares of Functional Drinks by Off-trade Volume 2003-2006
Table 95 Company Shares of Functional Drinks by Off-trade Value 2002-2006
Table 96 Brand Shares of Functional Drinks by Off-trade Value 2003-2006
Table 97 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2006-2011
Table 98 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2006-2011
Table 99 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2006-2011
Table 100 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2006-2011
CONCENTRATES IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 101 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2001-2006
Table 102 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2001-2006
Table 103 Off-trade Sales of Concentrates by Subsector: Value 2001-2006
Table 104 Off-trade Sales of Concentrates by Subsector: % Value Growth 2001-2006
Table 105 Company Shares of Concentrates by Off-trade Value 2002-2006
Table 106 Brand Shares of Concentrates by Off-trade Value 2003-2006
Table 107 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2006-2011
Table 108 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2006-2011
Table 109 Forecast Off-trade Sales of Concentrates by Subsector: Value 2006-2011
Table 110 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2006-2011
RTD TEA IN CHILE
OVERVIEW
RTD COFFEE IN CHILE
OVERVIEW