Good results for the alcoholic drinks industry
During 2012 volume sales of alcoholic drinks fared better compared to the review period, driven by the entrance of new products as well as moderate price increases. Products, such as beer, still light grape wine, whiskies, tequila and cream-based liqueurs, were the categories which saw the fastest growth rates. On the other hand, rum, mainly local rum, continued on a negative path, influenced particularly by increased competition of imported spirits.
Premiumisation continues to gain ground
Premium products continue gaining share in almost all categories of alcoholic drinks. Colombia is becoming an important market for the development of luxury goods, and alcoholic drinks is no exception. Consumers are looking for high quality products given their rising purchasing power and increasingly sophisticated tastes. Moreover, in some cases price gaps between standard and premium brands are not significant. This trend is observed more often in spirits, and both local and importer companies are directing their efforts towards launching premium lines.
Local and foreign brands register positive results
Beer producer Bavaria, a subsidiary of SABMiller, is the undisputed leader in alcoholic drinks in Colombia and during 2012 saw positive growth both in its mainstream and premium brands. Fábrica de Licores y Alcoholes de Antioquia ranked second and fared well, driven by its increasing national presence and premium lines. Importer companies, such as Diageo, fared well, benefiting from the growing sophistication of consumer tastes which contributed to the growth in sales of whiskies, the most important of the company’s categories.
Independent small grocers remains the largest channel for alcoholic drinks
The off-trade channel remains by far the most important in the distribution of alcoholic drinks. Within this channel, the strong share of independent small grocers was mainly due to beer, which accounts for the majority of alcoholic drinks sales. Supermarkets and hypermarkets remain in an important position, supported mostly by wine sales and expanded areas for the exhibition of alcoholic drinks. Specialist retailers are also increasing their presence on the market. On the other hand, the gastronomic boom that Colombia is experiencing contributed to an increase in on-trade sales of alcoholic drinks and became a platform for the launch of premium products.
Growth perspectives are optimistic
The forecast period is predicted to witness positive growth, faring better than the review period in all categories of alcoholic drinks. Beer is expected to continue growing supported by strategies designed to widen the consumer base. Local spirits will experience an intensification in the competitive landscape with imported spirits, with the latter likely to have a major presence as result of the Free Trade Agreements (FTAs) Colombia has with the US and the expected FTA with the EU that is predicted to start in 2013. Wine will continue expanding as the wine culture is reaching evermore consumers and will also be benefited by the FTAs. On the other hand, threats that may lead to lower growth in sales of alcoholic drinks could be a deceleration in the Colombian economy. There were signs of this in the third quarter of 2012, when GDP growth was 2.1% according to DANE, and which could have a negative effect on demand for alcoholic drinks.
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Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Colombia with research from Euromonitor's team of in-country analysts.
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The Alcoholic Drinks in Colombia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Alcoholic Drinks in Colombia?
- What are the major brands in Colombia?
- Have there been any alcoholic drinks legislative changes over the past 12 months?
- How is the alcoholic drinks industry affected by the recession?
- What is consumed more; beer, wine or spirits?
- What have been the key trends seen in new product developments?
- Do alcoholic drinks consumers want value for money or added value?
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This industry report originates from Passport, our Alcoholic Drinks market research database.