Breakfast Cereals in Chile

PROSPECTS

Food labelling law affects the category dynamics

The food labelling law, implemented in mid-2016, has changed the way of competing in this category. Most cereals, targeting both adults and children, exceed the limits of calories per 100 grams and thus cannot be free of "high in" labels on their products’ front face.

Companies adapt to the new legislation

Faced with the series of restrictions imposed by the food labelling law, companies and retailers have found various ways to continue marketing their products. Whilst they are prohibited from selling their products in the schools, it is common to see small independent kiosks that sell these products with labels very close to schools, where the prohibition does not apply.

Polarisation of consumption appears in breakfast cereals

During the review period, and as another indirect consequence of the food labelling law, there has been growing polarisation of consumption in the category. Some consumers look for very healthy options, which do not have black labels on their front face, whilst others look for very lenient options, where the black label is irrelevant to them.

COMPETITIVE LANDSCAPE

Nestlé Chile is the undisputed leader

Nestlé Chile continues to be the undisputed leader in the breakfast cereals category in Chile. This company has a portfolio of brands with a high degree of recognition and quality perception amongst Chilean consumers, such as Chocapic, Trix and Zucosos, amongst others.

Important presence of international players

The category has a strong presence of international players such as Nestlé and Evercrisp Snack Products of Chile (which is controlled by PepsiCo). The most important national player is Empresas Carozzi, which currently ranks second in the category.

Private label leverages on the importance of the modern channel in Chile

Private label occupies an important place within breakfast cereals in Chile, being the most important player after the big corporations. Supermarkets and hypermarkets are the main distribution channel for breakfast cereals in Chile, and private label has taken advantage of the important presence of the modern channel in the country to expand its own brands, which most of the times represent a cheaper option compared to the branded ones.

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