Soft Drinks in the Philippines

Euromonitor International's Soft Drinks in the Philippines 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.

Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.

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

Soft drinks growth slows amid tougher economic conditions

Following a vibrant performance in 2007, soft drinks recorded a slowdown in growth, brought about by the less favourable economic conditions in the Philippines. As consumers are altogether hit by the adverse effects of inflation, the weakening of the peso and escalating transportation costs, they inevitably cut back their expenditure on soft drinks and allocate their budget to the purchase of basic necessities. The move of manufacturers to capture a wider consumer base proved futile as the lower-income segment was hit hard by the tougher economic climate. More affordable pricing, particularly in carbonates, RTD tea, fruit/vegetable juice and functional drinks remained ineffective in stimulating demand.

Manufacturers improve market penetration

The review period witnessed the strategy of various manufacturers to penetrate the untapped mass segment primarily through the use of smaller pack sizes. Concentrates further reach out to the low-income strata through the launching of more variants in ‘litro’ packs which allow consumers to make five glasses or one litre of juice or tea through 45 g packs of concentrates. On the other hand, fruit/vegetable juice, Asian still RTD tea, functional drinks and standard low calorie cola utilised returnable glass bottles in order to win custom from carbonates.

The Coca-Cola Export Corp strengthens foothold

With its commitment to make the Philippines one of its top markets in the world, The Coca-Cola Export Corp strengthened its share in 2008 through the use of aggressive marketing strategies. These include a highly competitive pricing strategy in carbonates, releasing Minute Maid in returnable glass bottles to compete in the fast-growing fruit/vegetable juice category, introducing standard low calorie cola in sari-sari stores and utilising point-of-sale displays with the recognition that 70% of its sales are made on impulse.

Traditional grocery stores evolve as a significant distribution channel

The release of more soft drinks products in smaller pack sizes in order to reach out to lower-income groups has heightened the role of traditional grocery stores such as independent small grocers as a significant distribution channel. As opposed to previous years, when sari-sari stores typically sold only carbonates, the introduction and wide acceptance of concentrates litro packs, together with the availability of functional drinks, fruit/vegetable juice and RTD tea in returnable glass bottles, mean that these outlets represent a key channel for the distribution of soft drinks.

Increasing health concerns to drive growth over the forecast period

Increasing health concerns will be the strongest growth driver in the medium term, reflecting Filipinos’ growing awareness of and preference for healthier lifestyles. Consumers are expected to look for healthier drinks in order to complement their more active and balanced lifestyles. In response to this, manufacturers are likely to resort to the provision of naturally healthy products such as fruit/vegetable juice and RTD tea. Additionally, fortification will also become more prevalent as customers seek greater value for their money. Sugar and calorie laden products will lose share to ‘better-for-you’ soft drinks.

Table of contents

SOFT DRINKS IN THE PHILIPPINES : MARKET INSIGHT

EXECUTIVE SUMMARY

Soft drinks growth slows amid tougher economic conditions

Manufacturers improve market penetration

The Coca-Cola Export Corp strengthens foothold

Traditional grocery stores evolve as a significant distribution channel

Increasing health concerns to drive growth over the forecast period

TRENDS AND DEVELOPMENTS

Better-for-you products take centre stage

Manufacturers implement strategies to change consumer habits

Returnable glass bottles increase market penetration

Tougher economic conditions lead to price war

Established manufacturers venture into new sectors

MARKET DATA

Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2003-2008

Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2003-2008

Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2003-2008

Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2003-2008

Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008

Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2008

Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2008

Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2008

Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2003-2008

Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2003-2008

Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2003-2008

Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2003-2008

Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2008

Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2005-2008

Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2008

Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2005-2008

Table 17 Company Shares of Off-trade Soft Drinks by Value 2004-2008

Table 18 Brand Shares of Off-trade Soft Drinks by Value 2005-2008

Table 19 Penetration of Private Label (as sold) by Sector by Volume 2003-2008

Table 20 Penetration of Private Label by Sector by Value 2003-2008

Table 21 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2008

Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2008-2013

Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2008-2013

Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2008-2013

Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2008-2013

Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008-2013

Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2008-2013

Table 28 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2008-2013

Table 29 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2008-2013

APPENDIX

Fountain Sales in The Philippines

DATA

Table 30 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2003-2008

Table 31 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2003-2008

Table 32 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2004-2008

Table 33 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2005-2008

Table 34 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2008

Table 35 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2005-2008

Table 36 Company Shares of Concentrates (RTD) by Off-trade Volume 2004-2008

Table 37 Brand Shares of Concentrates (RTD) by Off-trade Volume 2005-2008

Table 38 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2008-2013

Table 39 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - PHILIPPINES

ASIA BREWERY INC - SOFT DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Asia Brewery Inc: Key Facts

Summary 3 Asia Brewery Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 Asia Brewery Inc: Competitive Position 2008

DEL MONTE PHILIPPINES INC - SOFT DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Del Monte Philippines Inc: Key Facts

Summary 6 Del Monte Philippines Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 7 Del Monte Philippines Inc: Competitive Position 2008

RFM CORP - SOFT DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 8 RFM Corp: Key Facts

Summary 9 RFM Corp: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 10 RFM Corp: Competitive Position 2008

SAN MIGUEL BEVERAGES INC - SOFT DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 11 San Miguel Beverages Inc: Key Facts

Summary 12 San Miguel Beverages Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 13 San Miguel Beverages Inc: Competitive Position 2008

ZEST-O CORP - SOFT DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 14 Zest-O Corp: Key Facts

Summary 15 Zest-O Corp: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 16 Zest-O Corp: Competitive Position 2008

CARBONATES IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 40 Low Calorie Carbonates by Subsector

Table 41 Off-trade Sales of Carbonates by Subsector: Volume 2003-2008

Table 42 Off-trade Sales of Carbonates by Subsector: Value 2003-2008

Table 43 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2003-2008

Table 44 Off-trade Sales of Carbonates by Subsector: % Value Growth 2003-2008

Table 45 On-trade vs Off-trade Sales of Carbonates: Volume 2003-2008

Table 46 On-trade vs Off-trade Sales of Carbonates: Value 2003-2008

Table 47 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2003-2008

Table 48 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2003-2008

Table 49 Company Shares of Carbonates by Off-trade Volume 2004-2008

Table 50 Brand Shares of Carbonates by Off-trade Volume 2005-2008

Table 51 Company Shares of Carbonates by Off-trade Value 2004-2008

Table 52 Brand Shares of Carbonates by Off-trade Value 2005-2008

Table 53 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2008-2013

Table 54 Forecast Off-trade Sales of Carbonates by Subsector: Value 2008-2013

Table 55 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2008-2013

Table 56 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2008-2013

FRUIT/VEGETABLE JUICE IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 57 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2003-2008

Table 58 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2003-2008

Table 59 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2003-2008

Table 60 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2003-2008

Table 61 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2008

Table 62 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2008

Table 63 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2008

Table 64 Leading Flavours for Fruit-flavoured Drinks (No Juice Content): % Volume Breakdown 2003-2008

Table 65 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2008

Table 66 Chilled Vs Ambient Reconstituted 100% Juice: % Analysis 2003-2008

Table 67 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2008

Table 68 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2005-2008

Table 69 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2008

Table 70 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2005-2008

Table 71 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2008-2013

Table 72 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2008-2013

Table 73 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2008-2013

Table 74 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2008-2013

BOTTLED WATER IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Institutional Bottled Water Sales

Table 75 Sales of Bottled Water to Institutional Channel 2004-2008

Table 76 Off-trade Sales of Bottled Water: Volume 2003-2008

Table 77 Off-trade Sales of Bottled Water: Value 2003-2008

Table 78 Off-trade Sales of Bottled Water: % Volume Growth 2003-2008

Table 79 Off-trade Sales of Bottled Water: % Value Growth 2003-2008

Table 80 Company Shares of Bottled Water by Off-trade Volume 2004-2008

Table 81 Brand Shares of Bottled Water by Off-trade Volume 2005-2008

Table 82 Company Shares of Bottled Water by Off-trade Value 2004-2008

Table 83 Brand Shares of Bottled Water by Off-trade Value 2005-2008

Table 84 Forecast Off-trade Sales of Bottled Water: Volume 2008-2013

Table 85 Forecast Off-trade Sales of Bottled Water: Value 2008-2013

Table 86 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2008-2013

Table 87 Forecast Off-trade Sales of Bottled Water: % Value Growth 2008-2013

FUNCTIONAL DRINKS IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 88 Still vs Carbonated Functional Drinks % Off-trade Volume 2005-2008

Table 89 Off-trade Sales of Functional Drinks by Subsector: Volume 2003-2008

Table 90 Off-trade Sales of Functional Drinks by Subsector: Value 2003-2008

Table 91 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2003-2008

Table 92 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2003-2008

Table 93 Company Shares of Functional Drinks by Off-trade Volume 2004-2008

Table 94 Brand Shares of Functional Drinks by Off-trade Volume 2005-2008

Table 95 Company Shares of Functional Drinks by Off-trade Value 2004-2008

Table 96 Brand Shares of Functional Drinks by Off-trade Value 2005-2008

Table 97 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2008-2013

Table 98 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2008-2013

Table 99 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2008-2013

Table 100 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2008-2013

CONCENTRATES IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Concentrates Conversions

Table 101 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format

Table 102 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2003-2008

Table 103 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2003-2008

Table 104 Off-trade Sales of Concentrates by Subsector: Value 2003-2008

Table 105 Off-trade Sales of Concentrates by Subsector: % Value Growth 2003-2008

Table 106 Company Shares of Concentrates by Off-trade Value 2004-2008

Table 107 Brand Shares of Concentrates by Off-trade Value 2005-2008

Table 108 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2008-2013

Table 109 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2008-2013

Table 110 Forecast Off-trade Sales of Concentrates by Subsector: Value 2008-2013

Table 111 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2008-2013

RTD TEA IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 112 Off-trade Sales of RTD Tea by Subsector: Volume 2003-2008

Table 113 Off-trade Sales of RTD Tea by Subsector: Value 2003-2008

Table 114 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2003-2008

Table 115 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2003-2008

Table 116 Leading Flavours for RTD Tea: % Volume Breakdown 2005-2008

Table 117 Company Shares of RTD Tea by Off-trade Volume 2004-2008

Table 118 Brand Shares of RTD Tea by Off-trade Volume 2005-2008

Table 119 Company Shares of RTD Tea by Off-trade Value 2004-2008

Table 120 Brand Shares of RTD Tea by Off-trade Value 2005-2008

Table 121 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2008-2013

Table 122 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2008-2013

Table 123 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2008-2013

Table 124 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2008-2013

RTD COFFEE IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 125 Off-trade Sales of RTD Coffee: Volume 2003-2008

Table 126 Off-trade Sales of RTD Coffee: Value 2003-2008

Table 127 Off-trade Sales of RTD Coffee: % Volume Growth 2003-2008

Table 128 Off-trade Sales of RTD Coffee: % Value Growth 2003-2008

Table 129 Company Shares of RTD Coffee by Off-trade Volume 2004-2008

Table 130 Brand Shares of RTD Coffee by Off-trade Volume 2005-2008

Table 131 Company Shares of RTD Coffee by Off-trade Value 2004-2008

Table 132 Brand Shares of RTD Coffee by Off-trade Value 2005-2008

Table 133 Forecast Off-trade Sales of RTD Coffee: Volume 2008-2013

Table 134 Forecast Off-trade Sales of RTD Coffee: Value 2008-2013

Table 135 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2008-2013

Table 136 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2008-2013

ASIAN SPECIALITY DRINKS IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 137 Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2003-2008

Table 138 Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2003-2008

Table 139 Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2003-2008

Table 140 Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2003-2008

Table 141 Company Shares of Asian Speciality Drinks by Off-trade Volume 2004-2008

Table 142 Brand Shares of Asian Speciality Drinks by Off-trade Volume 2005-2008

Table 143 Company Shares of Asian Speciality Drinks by Off-trade Value 2004-2008

Table 144 Brand Shares of Asian Speciality Drinks by Off-trade Value 2005-2008

Table 145 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2008-2013

Table 146 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2008-2013

Table 147 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2008-2013

Table 148 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2008-2013