Carbonates in Guatemala

PROSPECTS

Ongoing price promotions and traditional consumer popularity keeps growth strong

Carbonates saw steady current value and volume growth in both on-trade and off-trade terms in 2019. Volume growth was slower than in 2018, when sales were boosted by strong price competition.

Price competition strives to help the category compete with healthier options

Low prices continue to boost sales in carbonates, with unit prices seeing little off-trade current value growth since 2017, with a small decline in unit prices in on-trade channels in the 2018-2019 period. This is boosting the popularity of carbonates over juice with some consumers, based on the lower prices.

Trend for low sugar options is not impacting volume or sales in carbonates, due to high unit prices for healthy premium products

A trend towards more natural beverages, with low sugar and with no additives, for example, is being seen among mid- to high-income consumers. However, this is not significantly affecting sales or volume, as the trend is only affecting a niche group of more health conscious consumers who are seeking more premium products.

COMPETITIVE LANDSCAPE

Pepsicola and Coca-Cola lead thanks to strong marketing and promotions campaigns, alongside global recognition

Pepsicola Interamericana de Guatemala SA remains in the lead in company share in 2019, closely followed by Coca-Cola de Guatemala SA. Both Pepsicola and Coca-Cola owe their success to their globally recognised brands, strong distribution networks, and variety of pack sizes and options available including no/low sugar options.

Coca-Cola wins brand value share in 2019 thanks to rebranding into Spanish language

Coca-Cola has increased its brand value share in Guatemala in 2019. This can be attributed to the company’s rebranding of cola carbonates in Guatemala in 2018, to make them more accessible to local consumers.

Domestic player La Fortuna opens local factory, offering a wide variety of flavours at low prices

In 2019, domestic player Embotelladora La Fortuna invested around USD3.3 million in launching a factory in Masagua, Escuintla, with an installed capacity of 100 million litres per year.

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