Food and Drink Internet Retailing in Brazil

PROSPECTS

New consumer habits favour future category growth

Internet retailing as an industry is rapidly gaining relevance in Brazil, as year after year the retail channel grows dynamically and consumers are attracted to digital commerce. Food and drink retailing is no exception, with data and market trends pointing to the same positive direction, albeit at a slower pace than in other product areas.

Cultural aspects may hinder growth in some categories

Brazilians are very tactile, being through personal interactions or through their shopping experience. It is a very important aspect of grocery retailing in fact, with food purchases being heavily sensorial.

Brands position themselves on Rappi even if it does not result in profit

The presence of the Colombian delivery app Rappi in Brazil has shaken up the food and drink internet retailing category, with many players looking to join up and increase their digital presence, even those that have their own app or site. Companies have surrendered themselves to the deliver-it-all platform Rappi, with businesses ranging from supermarkets, such as Pão de Açucar´s convenience store brand, Minuto Pão de Açucar, to food and drink companies such as Coca-Cola and Nestlé, for example.

COMPETITIVE LANDSCAPE

Supermarket retailer Grupo Pão de Açucar sees growth in app users

With both the Pão de Açucar Mais and Clube Extra apps, French group Casino Guichard-Perrachon is seeing significant online growth in each quarter. There is an increasing focus on digitalisation within the company´s business strategy, with it investing heavily in the online user experience and developing usability and in-store rewards for users through app usage.

Alcoholic drinks company Diageo positions itself online

Although the online channel is not as relevant as the physical one in terms of sales, Diageo has positioned itself online through its “thebar” website. There, consumers can purchase their alcohol brands, and accessories such as special glass cups, and special drinking kits.

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