Other Hot Drinks in Peru

PROSPECTS

New regulations aimed at reducing the sugar intake of consumers influence other hot drinks

Towards the end of the review period, the Peruvian government took action to curb sugar intake among its population, with the focus of these actions falling mainly on children. 2018 saw the introduction of a 25% tax on beverages that contain 6g or more of added sugar per 100ml, with a 17% tax levied on products with lower levels of added sugar.

Sales of other plant-based hot drinks boosted by the rising popularity of barley

Other plant-based hot drinks is a significant category in Peru. This can be attributed mainly to the traditional popularity of a wide variety of plant-based hot drinks in the country and the rise of the health and wellness trend.

Preference for sweet products continues to determine consumer tastes

Peruvians generally prefer sweet tastes and this means that the most popular types of other hot drinks are usually those with a “chocolatey” flavour and high levels of added sugar. Producers in the category usually focus on targeting children, teenagers and young adults and this are also the consumer groups which are the most health-conscious.

COMPETITIVE LANDSCAPE

Industrias Alimenticias Cusco benefits from the status of its products as traditional favourites

At the end of the review period, Industrias Alimenticias Cusco remained the leading player in other hot drinks with its iconic local brands Kiwigen and Sol de Cusco. The company’s success can be attributed mainly to rising demand for products that contain natural ingredients and the cost efficiencies that the company’s local production affords them.

Nestlé focuses on nutritional factors, positions Milo as a healthy product

During 2019, Nestlé sought to close the narrow gap between its leading brand of malt-based drinks Milo and the leading name in other hot drinks, Kiwigen by Industrias Alimenticias Cusco. In order to avoid falling further behind its main rival in the category rankings, Nestlé has sought to emphasize the nutritional element of Milo in the brands advertising.

Eco responds to the robust demand for barley-based other hot drinks

As consumer demand for other hot drinks based on barley continue to increase in 2019, Eco Andino SAC focused on the introduction of its new barley-based hot drink. This new product is marketed as containing only 100% natural ingredients.

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