Naturally Healthy Beverages in the Philippines

PROSPECTS

Naturally healthy beverages benefits from the introduction of the sugar tax

2019 was a good year for naturally healthy beverages in the Philippines as health-conscious consumers continued to flock to the category. Among the main motivations for purchasing and consuming naturally healthy beverages was the higher prices charged for sugar-laden soft drinks after the government of the Philippines introduced a tax on sugary beverages during 2018.

NH tea experiences a dramatic increase in consumer interest

Despite the Philippines not traditionally being a tea drinking nation, the recent growth seen in the country’s consumer foodservice industry has boosted interest in NH tea. In particular, the rise of full-service restaurants has played a major role in encouraging higher levels of tea consumption.

NH positioning is adopted by a wider range of tea brands

Tea has long been considered a refreshing beverage in the Philippines. However, it is only relatively recently that the category’s leading brands have sought to explicitly position their products as naturally healthy.

COMPETITIVE LANDSCAPE

Universal Robin Corp leads category sales via its C2 brand, the leader in RTD tea

2019 saw Universal Robina Corp maintain its leading position in sales of naturally healthy beverages. While most of the products offered under Universal Robina Corp’s RTD tea brand C2 contain high levels of sugar, the company remains the leader in NH beverages via C2 Apple Sugar Free, one of the most popular variants of the C2 umbrella brand.

Marketing campaigns remain largely below-the-line

Towards the end of the review period, major NH hot drinks players such AB Food & Beverage and Gilamar Enterprises chose not to embark on aggressive above-the-line marketing campaigns. These companies are instead focusing on consistently increasing the visibility of their brands on the shelves of modern grocery retailers.

Expanding distribution remains a key strategy in NH juice

During 2019, NH juice saw numerous companies and brands focus heavily on expanding the distribution of their products as a way of improving consumer recognition and boosting sales growth. Key category players such as Dole Philippines, Ginebra San Miguel Philippines and Hermann Pfanner Getränke GmbH focused the expansion of their products’ distribution on modern grocery retailers.

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