Other Hot Drinks in Uruguay

PROSPECTS

Anticipated economic improvement set to see a rebound in flavoured powder drinks

Retail volume sales of other plant-based hot drinks (yerba maté) continue to rebound in 2019, despite the category approaching maturity. Volume sales are supported by yerba maté’s low average unit price, compared with alternative hot drinks in Uruguay.

Deep-rooted culture of consumption maintains demand for yerba mate

Yerba maté is a traditional other plant-based hot drink consumed by the masses in Uruguay. Therefore, the overall performance of the category, and hot drinks, is heavily influenced by that of other plant-based hot drinks.

Lower prices offset competition from RTD drinks to limit decline in flavoured powder drinks

In terms of flavoured powder drinks, Uruguayan consumers continue to prefer chocolate-based products to malt-based and non-chocolate-based variants. However, flavoured powder drinks, in general, does not have a strong impact on the performance of other hot drinks due to the overwhelming dominance of yerba maté.

COMPETITIVE LANDSCAPE

Wide distribution and advertising keep Yerba Canarias top-of-mind among yerba maté drinkers

Canarias dominates retail value sales of other hot drinks in 2019. The company’s products are recognised by the majority of Uruguayans, as Canarias offers the main yerba maté brand, Yerba Canarias, which is available in almost every retail store.

Nestlé leverages wide offer by recognised brand names to dominate flavoured powder drinks

The key player in flavoured powder drinks, Nestlé del Uruguay, is ranked second overall in retail value share terms in 2019. While absent from other plant-based hot drinks, the company benefits from its offer of a wide variety of brands, especially in chocolate-based flavoured powder drinks.

Instituto Botánico and Soldo ride rebound in yerba maté to consolidate positions

Instituto Botánico La Selva La Selva) and Soldo Hnos (Armiño) derive their category sales entirely from yerba maté. However, they find it difficult to mount a serious challenge to the leader, Canarias, as local consumers are very loyal to their preferred brand.

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