Rtds/High-Strength Premixes in Ecuador

PROSPECTS

Spirit-based RTDs compete with beer for consumption moments

Even though on-trade consumption of RTDs/high-strength pre-mixes recovered slightly in 2017, the trend of staying at home in order to save money remained strong. Home entertainment has become more popular, especially among young consumers from the middle socioeconomic levels, which are the core consumers of RTDs.

High-strength premixes being replaced by other spirit options

High-strength premixes recorded total volume declines in 2016 and 2017, driven by price increases after alcoholic drinks taxes were established according to the percentage of alcohol content per litre. Tax increases on these products were higher than on many other alcoholic drinks, given that the alcohol content of high-strength premixes is high.

Wine-based RTDs a small niche targeting women and young adults

Wine-based RTDs is a relatively small category which, however, returned to total volume growth in 2017. The main brands are imported and are largely consumed by women in the middle-income groups and young adults.

COMPETITIVE LANDSCAPE

Azende Corp Cía leads RTDs/high-strength premixes

Azende Corp Cía maintained its leading position in RTDs/high-strength pre-mixes in 2017. The company’s leadership can be attributed to its umbrella brand strategy which covers this category among others within alcoholic drinks, with its Zhumir brand.

Strong below-the-line investment and point-of-sale promotions

Players, especially in spirit-based RTDs, invest heavily in marketing activities in order to maintain volume sales and achieve growth. Event sponsorships, promotions at points of sale, and below-the-line activities are part of their usual activities.

No major innovation in 2017 with companies investing in previous launches

In 2016, Almacenes Juan Eljuri Cía launched Ron Cien Fuegos Rum + Coke. In Ecuador, rum is mainly mixed with coke or similar beverages.

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