Concentrates in Uruguay

PROSPECTS

Concentrates hit by constrained spending power among low- and middle-income consumers

In 2019 concentrates demonstrated a weaker performance than in the previous year in volume terms, but a slightly improved performance in current value terms. The volume performance was in line with a general contraction of soft drinks consumption, as economic conditions reduced discretionary spending power among low- and middle-income groups.

Powder concentrate players seek to address unhealthy product perceptions

Powder concentrates represent a cheaper option for consumers than juice products. The majority of powder concentrates offer fruit flavours to compete with juice brands.

Liquid concentrates remain marginal, unlikely to threaten powder products

Liquid concentrates remained a niche category at the end of the review period, suffering from a lack of both new product development and advertising support. Few companies in Uruguay sell liquid concentrates, with the assortment of such products having changed little over the years, and generally attracting the same consumers.

COMPETITIVE LANDSCAPE

Mondelez sees slight value share decline as cheaper products gain appeal

In 2019 Mondelez Uruguay SA led the category with Tang and Clight. However, with constrained consumer spending power in 2019, its value share was slightly eroded by value-priced brands, such as Rindedos, owned by Modinar SA.

Health trend influences product developments

With consumers increasingly looking for healthier soft drinks, concentrate manufacturers have focused on catering for this demand. In powder concentrates, Mondelez launched a range of Clight products with a healthier image, such as sugar-free variants, as well as versions sweetened with stevia.

Modinar gains value share as consumers seek greater value for money

Modinar SA owns the successful brand Rindedos, which is available in 18g sachets, with a 2-litre diluted RTD volume. The company became truly competitive, and continued to outperform other players, gaining market share as a result.

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