Other Hot Drinks in Peru

PROSPECTS

Decline in milk consumption fuels sales of chocolate-based flavoured powder drinks

The effects of the Pura Vida scandal in 2017 extended into 2018, negatively impacting not only milk consumption but other categories as well. In 2017, Panama banned the sale of Pura Vida due to problems with the labelling, which indicated that the product was evaporated milk when in fact it was a mixture of cow's milk, soy and other ingredients.

Growth of malt-based hot drinks accelerates

Malt-based hot drinks recorded a strong performance in 2018, due to good results by the key Milo and Ecco brands. Barley is becoming more popular in Peruvian households as it is considered more natural than other options.

Peruvian taste preferences favour other hot drinks

Peruvian cuisine is known worldwide due to its variety of dishes and flavours. However, within the abundance of flavours and food diversity, Peruvians prefer sweet tastes and, therefore, favour other hot drinks, which usually have a “chocolatey” flavour and added sugar.

COMPETITIVE LANDSCAPE

Nestlé Perú leads other hot drinks

Despite its declining retail value share over the review period, Nestlé Perú remained the leader in other hot drinks in 2018. Constant investment in advertising, promotions and new products and varieties, together with its well-known brands, support its success.

Nestlé Perú quick to adapt to new trends

The company is also quick to adapt to consumer trends, which also helps it to maintain its lead. An example of this was the launch of Milo RTD, a product in Tetra Pack and which is particularly focused on children as a part of their school lunch.

Incasur strengthens its position

Industrias Alimenticias Cusco recorded strong retail value growth in 2018 due to its innovation and focus on local and ancient ingredients. Its success is also based on high levels of brand recognition, as its products are deemed natural and are produced locally by a Peruvian company.

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