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Learn moreSep 2017
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Availability of products remained unsteady, in particular for the margarine and spreads category because it continued to be under price regulation in 2017. Price adjustments occur in a discontinuous manner, so when final prices become obsolete due to the high inflation in Venezuela, manufacturers halt production and the product disappears from the shelves. The opposite occurs after the government makes a price correction, since the climb is usually large, shocking consumers, who leave the product on the shelves until they decide on their priorities and preferences.
Lactuario de Maracay maintained its leadership in butter and margarine with a 13% value share, thanks to its strong leadership in butter, where it accounted for 61% of the retail value sales in 2017. The company commercialises two brands of butter: Lactuario de Maracay and Maravilla, which took value shares of 45% and 15%, respectively in the total butter category. This company enjoys an excellent reputation, a traditional and reliable image and good distribution.
Butter and margarine is expected to grow at constant value CAGR of 4% supported by a 3% CAGR for volume sales. The value CAGR will be an improvement over the 1% constant value CAGR seen over the review period. It is reasonable to believe that the category will be driven by a stronger – although discontinuous – presence of margarine, leaving behind its negative volume growth rates observed during the review period.
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