Breakfast Cereals in Chile

PROSPECTS

Food labelling laws negative for the image of breakfast cereals

Several recent studies show that the introduction of the Food Labelling Law in 2016 has a seriously detrimental to the image of breakfast cereals. According to this legislation, products with high levels of fat, calories, sugar or sodium must highlight this on a black label printed on the front of the packaging.

Demand for muesli and granola declines due to concerns over high sugar content

Muesli and granola registered negative retail volume growth in 2019. The main reason for this is the growing concern among consumers over the high sugar content of these products.

Modern grocery retailing channels continue to dominate sales of breakfast cereals

2019 saw supermarkets and hypermarkets remain the most important retail distribution channels for breakfast cereals in Chile. Breakfast cereals are products that form an important part of the weekly or monthly grocery shopping baskets of most Chilean consumers.

COMPETITIVE LANDSCAPE

Nestlé focuses on healthy products to support sales growth

The health and wellness trend continues to develop in Chile and this has not gone unnoticed among the leading players in practice cereals. Nestlé for instance recently launched three new types of breakfast cereal that stand out for their high fibre content: Chocapic and two varieties of its female-oriented Fitness brand: Fitness Crunchy and Fitness Crunchy Cocoa.

Category players respond to food labelling laws

After the 2018 introduction of the Food Labelling Law, many of the companies present in breakfast cereals made changes to the ingredient lists of their products. This was done to avoid being forced to attach labels such as “high in sugar” and “high in calories” to the front of their product packaging.

Quaker Avena trades heavily on the healthy image of hot cereals

With the healthy living trend still showing no sign of abating, 2019 saw PepsiCo’s category leading hot cereals brand Quaker Avena launch a campaign promoting good eating habits under the strapline “Qué edad tienes?” “How old are you?”. This accompanied the launch of a line of hot cereals under the Quaker Multisemilla sub-brand.

Marketing campaigns are adjusted to reflect the new post-labelling law reality

Promotional campaigns in breakfast cereals changed drastically over the course the review period. The main influence on this was the introduction of the new food labelling laws, which entered into force in 2016.

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