Carbonates in Peru

PROSPECTS

Carbonates suffer from unhealthy perceptions, players need to reformulate products to remain attractive

Carbonates saw a slightly improved performance in 2019 compared with 2018, albeit with weak growth in current value terms and a continued decline in volume. An increasing number of Peruvians are concerned about their health and overall wellness.

Labelling Law highlights carbonates’ unhealthy attributes

The Labelling Law was again under discussion due to the differences between the positions of the government, which seeks to use black octagons to summarise nutritional information, and congress, which advocates the use of a nutritional semaphore. This reinforces consumer concerns regarding carbonates, and their potentially harmful impact on health.

Shifts in distribution evident, on-trade less affected by health trend than off-trade sales

The growth of convenience and discount stores in recent years will also require manufacturers to adopt new packaging and product offers designed for these channels. Likewise, such stores are relevant for social consumption, as cross-selling becomes relevant in this channel.

COMPETITIVE LANDSCAPE

Arca to encourage use of returnable containers, places interactive screens in stores

Arca Continental Lindley SA remained the leader of the carbonates category in 2019, albeit with a slight decline in value share. The company is leading the revival of returnable containers, making it possible to exchange bottles of different brands and sizes, in addition to maintaining affordable prices in this format.

Keen pricing strategy underpins Ajeper’s position in carbonates

Ajeper SA took advantage of the consumer shift towards healthier products. February 2019 saw the company launch Bio camu camu y aguaje – a new option for consumers seeking healthier options.

Smaller companies gain share as lower-income consumers face financial pressure

Companies have focussed their efforts on promoting consumption of carbonates. These efforts have included not only the development of low-sugar versions and reducing the calorie content of regular offerings, but also reducing prices for these products through promotional strategies.

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