Carbonates in Costa Rica

PROSPECTS

Carbonates players use discounts to maintain sales with price-sensitive consumers

Carbonates saw steady growth in both current value and volume terms in 2019, in both on-trade and off-trade channels. However, carbonates has seen little product innovation in 2019, in terms of new products or new packaging sizes.

Eye-catching packaging and promotions needed for smaller players to be seen

Despite a lack of product innovation, players have been developing new packaging and offering a number of promotional strategies to help incentivise demand. In order to compete in such a mature category, all players are required to engage in constant promotional dynamics in order to maintain stable volume sales, across all packaging sizes.

Healthier options boost carbonates’ image to higher-income consumers

Cola carbonates continues to be the largest sub-category in current value and volume terms in 2019, and sugar-free alternatives, such as Diet Coke and Pepsi Black, keep gaining availability in Costa Rica. This is improving carbonates’ image across a broader range of consumers.

COMPETITIVE LANDSCAPE

Shelf space remains dominates by Coca-Cola and Pepsi due to global recognition

Coca-Cola continues to dominate carbonates in both current value and volume terms. Coca-Cola’s brands and Florida Bebidas’ Pepsi continue to hold the most shelf space across modern and traditional grocery retailers.

Value-focused promotions help Florida Bebidas to keep gaining share

Brands from second-ranked Florida Bebidas SA, such as Milory, Pepsi, and 7-Up, remain very active with regards to value-focused promotions, with a particular focus on economy family-size packaging. This is helping the company to continue to gain off-trade current value and volume shares in 2019.

Wal-Mart’s Great Value range gains wider penetration thanks to economy options

Wal-Mart’s Great Value have a growing presence in Costa Rica, such as Great Value Ginger Ale and Twist Up. Multipacks and value packs are not only increasingly offered by leading brands but also by lower-priced brands and private label too and these products are gaining presence across modern grocery outlets.

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