Naturally Healthy Beverages in the Philippines

PROSPECTS

NH beverages dips as NH RTD tea declines

As incumbent players in NH beverages, particularly the bulk of the category, NH RTD tea, were negatively affected by the seasonal effects of the 2016 elections, the category declined in 2017. Moreover, as RTD tea matures, RTD tea products face a challenge to sustain growth.

Foodservice influences premiumisation in NH hot drinks

While there has been increasing awareness of the benefits of tea, NH hot drinks recorded strong growth in 2017 as foodservice further bolsters the tea culture in the Philippines. Specifically, foodservice provides an avenue for tea brands to increase consumer awareness of these brands, and this resulted in value gains for incumbent players like Celestial Seasonings and Twinings.

COMPETITIVE LANDSCAPE

Universal Robina Corp remains the leader

Universal Robina Corp leads the category despite its double-digit retail value decline in 2017. With a wide range of SKUs, particularly the fast-moving SKU 230ml PET bottle called C2 Solo, the company’s penetration of modern and traditional retailers remained unmatched.

Category continues to be dominated by local players

While there is a rising middle class, price remains a key driver in NH beverages, particularly in NH RTD tea. In 2017, Universal Robina Corp, Ginebra San Miguel and Gilamar Enterprises Inc, which are all domestic players, led value sales in the category.

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