Latin America has been greatly impacted by the Coronavirus (COVID-19) pandemic, in large part due to the closure of on-trade establishments and the percentage of consumers living on daily incomes. This briefing examines the expected reaction of consumers to their consumption of spirits in the region and ideas of how brands can position themselves to adapt to changing consumer behaviour post-COVID-19.
This report comes in PPT.
Historically, in times of economic struggle, consumers in Latin America reverted to drinking local spirits, which were more affordable and widely available; this behaviour is expected to repeat as a result of the pandemic.
Latin America already had a growing illicit market before the pandemic. It is likely that the situation will worsen as supply constraints and dry laws affect the region.
Categories with large share of sales in on-trade will be most affected by the closure of bars and restaurants. Migration towards the home will be an impact strategy to offset this.
As a result of both growing national sentiment towards local industry and appreciating currencies, these spirits brands will gain in share, offering opportunities for both economic and premium development.
The large influx of tourists, primarily in Central American countries, year on year has boosted many industries, particularly alcoholic drinks, and so its recovery depends in great part on reopened borders.
This is the aggregation of whisk(e)y, brandy and Cognac, white spirits, rum, tequila, liqueurs and other spirits.See All of Our Definitions
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