Fortified/Functional Packaged Food in Argentina

PROSPECTS

Development of category due to Affordable Prices programme

At the beginning of the review period, there were a large number of new product launches within fortified/functional packaged food for basic products such as milk and yoghurt, although it should be noted that these new products were not the result of consumers’ higher awareness of their benefits. Instead, the development was due to the previous government’s Precios Cuidados (“Affordable Prices”) programme.

Strong contraction of consumption due to lack of interest in FF Milk

Fortified/functional packaged food recorded a significant contraction in retail volume terms in 2019. This poor performance was partly due to the ongoing recession in Argentina, with consumers looking to stretch their budget further.

FF sweet biscuits grow in popularity thanks to convenience trend

FF sweet biscuits was one of the few areas of FF packaged food to see growth in retail volume terms in 2019. These products are growing from a low base but they have become popular as a quick and convenient breakfast option for busy workers, being suitable for consumption on the go or with a hot drink at your desk.

COMPETITIVE LANDSCAPE

Dairy companies dominate fortified/functional packaged food

Mastellone Hnos SA retained its lead of fortified/functional packaged food in 2019 due largely to its dominant position in FF milk, the largest and most important category. The company offers the brand La Serenísima, although its affordable brand Armonía saw a large increase in its value share at the end of review period as a result of the unstable economy.

Economic crisis creates opportunity for more affordable local brands

The financial crisis has had a significant impact on sales of FF packaged food with those products carrying higher prices struggling. Some players such as SanCor Cooperativas Unidas Ltda saw their share decimated as they were forced to restrict their production due to mounting debts.

SanCor collapses as recession hits

At the beginning of the review period SanCor Cooperativas Unidas Ltda was ranked third in FF packaged food with its Sancor and Yogs brands holding strong positions in FF milk and FF yoghurt respectively. However, by 2019 the company had filed for bankruptcy and the Yogs brand had been withdrawn from the market.

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