Concentrates in Brazil

PROSPECTS

Concentrates sales not expected to recover in the forecast period

Even though concentrates registered a brief period of growth during the economic crisis, in 2018 category registered a decline in volume, and is not expected to recover in the forecast period. Concentrates are perceived by many consumers as low-added value and not healthy, and manufacturers still rely significantly on pricing strategies to compete with ready-to-drink categories.

Competition increases from juices, health supplements and fresh fruit

The pursuit of a healthier lifestyles is increasingly common among Brazilians from all income levels, and categories like ready-to-drink juices and teas, health supplements and fresh fruit are increasingly purchased by consumers. Highly sugared beverages are tending to be replaced as Brazilians look for products with a clear health benefit rather than just affordable options – even if that requires saving money in other categories.

COMPETITIVE LANDSCAPE

Mondelez Brasil remains the category leader, with Tang

Mondelez has a clear leader in the concentrates category with the powder concentrate brand Tang, which is sometimes considered as synonymous with powder concentrates. In the latter part of the review period, the brand saw the launch of new flavours and changes in its visual identity via its packaging.

Coca-Cola launches liquid concentrate in 2018

Coca-Cola continues to expand across soft drinks categories, and has launched a liquid concentrate product under the brand Del Valle. It is available in 500ml PET bottles, with the flavours cashew, passion fruit, mango and orange.

Small and regional players have lost share

Small and regional players combined account for a significant share of sales of concentrates in Brazil, but have seen their share decline, owing to fierce competition from the major players. Consumers expect concentrates to have low unit prices, but during the review period, and particularly in 2017 and 2018, the category has been extremely competitive in this regard.

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