Naturally Healthy Beverages in Argentina

PROSPECTS

Yerba mate key to the success of NH other hot drinks

NH beverages struggled during 2019 with many consumers cutting back on their consumption of these products due to their relatively higher price compared to other drinks options. Nevertheless, the one category that did manage to record retail volume growth in 2019 was NH other hot drinks.

Consumers forced to economise when it comes to water

NH bottled water is by far the largest category within NH beverages in retail volume terms. However, the category saw a decline in retail volume terms in 2019 for the second year running.

NH 100% juice sees sales stall due to high prices but future looks bright

NH 100% juice saw growth stall in retail volume terms in 2019 as consumers switched to more affordable alternatives such as juice drinks (up to 24% juice), powder concentrates and purified water. Nevertheless, some players looked to restrict price increases below inflation in order to prevent a more significant decline in retail volume terms.

COMPETITIVE LANDSCAPE

Aguas Danone de Argentina SA sees lead eroded due to economic crisis

Aguas Danone de Argentina SA retained the lead in NH beverages in 2019, but the company lost value share for the third year running partly due to declining demand for NH bottled water. The company offers the Villavicencio and Villa del Sur brands in NH natural mineral water with it benefiting from one of the widest distribution reaches, including in both modern and traditional grocery retailers.

Low-priced brands of yerba mate see among the strongest performances

Driven by the strong performance of NH other hot drinks, some of the most dynamic players in 2019 were those offering yerba mate. For example, category leader Establecimiento Las Marías SACIFA with its Taragüi and Mañanita brands, and 10 Hermanos Hreñuk SA with its second-ranked Rosamonte brand both increased their value share in 2019.

El Carmen dominates NH100% juice but faces challenges

El Carmen SA maintained its dominance in NH 100% juice in 2019, but it continued to lose share. The company merged with Livsmart (owned by CBC Group based in Guatemala) during the review period and this helped it to expand its distribution.

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