Alcoholic drinks continues to display healthy growth
In 2013, volume sales of alcoholic drinks continued to show strong growth, although marginally off the booming pace of the review period as the market further emerged from the slowdown in growth from 2008-2010. Growth in 2013 was consistently driven by the emergent Colombian urban middle class that have flocked to new products in a number of categories, from craft beer to speciality wines to limited edition spirits. These categories were positively affected by the entry into force of the Free Trade Agreements with the US and the European Union, which occurred in May 2012 and August 2013, respectively.
Craft beer and imported brands pace premium beer
During 2013, craft beer showed exceptional growth, though from a very low base. These products are oriented mainly to premium segments, but are now very visible through modern grocery channels, for example through freezers provided by leading producer Bogota Beer Company. This entrance in such channels was met with increased interest, as consumers are correspondingly searching for new and higher-quality products. This demand for newer products also helped import brands’ increasing presence, such as in the case of Miller Genuine Draft and Heineken. Bavaria, the leading local beer producer, adapted to these scenarios with speciality products, such as the launch in 2013 of Club Colombia Negra (dark beer), which was present only as limited edition.
Alcoholic drinks still dominated by local companies
Despite the increasing availability of international brands in Colombia, local producers continued to dominate total volume sales in 2013. Bavaria SA, a subsidiary of SABMiller Plc, was the overwhelming leader, benefitting from the introduction of Miller Lite in the Colombian market in 2013 and the ongoing popularity of its flagship lager brands, Agila, Poker and Club Colombia. Similarly, the second and third ranked companies, Fábrica de Licores y Alcoholes de Antioquia and Empresa de Licores de Cundinamarca, both are local companies as well, though both saw flagging sales growth in 2013.
Independent small grocers remains a force in distribution
In 2013, alcoholic drinks continued to be distributed mostly through off-trade channels, the most significant being independent small grocers. This was largely the result of the extreme dominance of beer within alcoholic drinks in Colombia, as Bavaria SA’s strong distribution allowed it to be present in even the most remote independent small grocers across the country. Despite the pervasive influence of independent small grocers in alcoholic drinks, supermarkets and hypermarkets remained important options as well, as they have expanded areas for the exhibition of alcoholic drinks and have benefited from the increased interest in international and speciality drinks. Within on-trade, craft breweries are entering at a rapid rate to collect the remaining consumer demand for more localised and unique beer offerings.
Volume sales to grow apace over the forecast period
The positive growth of 2013 is expected to continue over the forecast period, although lower than the review period average. All alcoholic drinks categories are expected to continue to benefit from the free trade agreements with the US and the EU, as many categories will be marked by strong innovation in flavours, formulations and packaging. Expected continued strong GDP growth will help buoy this growth, as Colombian disposable incomes will increase and the middle class with further stretch its economic influence across 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.