Naturally Healthy Beverages in the Philippines

PROSPECTS

Sugar tax causes price hikes in NH soft drinks

While RTD green tea products are perceived to be naturally healthy, and accounted for the bulk of the category in NH RTD tea, the average unit price increased significantly, attributable to the sugar tax. This resulted in NH RTD tea being the fastest declining category of NH beverages in retail volume terms.

NH hot drinks rides on health and premiumisation trends

Besides not being affected by the sugar tax, NH hot drinks continued to benefit from health consciousness and premiumisation of the category. With players such as Unilever Philippines and Gilamar Enterprises further expanding the availability of their NH tea variants, particularly in green tea and other fruit/herbal tea, consumers are able to easily access these beverages in retail outlets.

COMPETITIVE LANDSCAPE

Universal Robina Corp leads NH beverages

Universal Robina Corp’s C2 brand in NH RTD tea accounted for the majority of retail value sales within NH beverages in 2018, notwithstanding the company has been facing a challenge to increase volume sales for the last two years. To highlight its core benefits of being a product with “natural goodness of green tea” and “bottled and brewed on the same day,” the company revitalised C2’s packaging in the first quarter of 2018.

Local players reign in the category

With Universal Robina Corp accounting for over two thirds of the category’s retail value sales, local players continued to outsell international players in NH beverages. Other companies such as Ginebra San Miguel Inc and Gilamar Enterprises Inc maintained their category positions in 2018.

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