Sauces, Dressings and Condiments in Argentina

PROSPECTS

Sales supported by promotional activities

Despite the ongoing economic crisis, sauces, dressings and condiments recorded an increase in retail volume sales in 2018. There were two reasons for this, with the first being a significant number of promotions and discounts in the main supermarket and hypermarket chains, such as Coto, Jumbo and Carrefour, with these retailers running offers such as “two for the price of one” and “get a second pack with a 70% discount”.

Consumers opting for other grocery retailers

The economic crisis has changed the buying habits of Argentinian consumers. Over the review period many consumers switched to the wholesale channel, which falls under other grocery retailers according to Euromonitor International definitions, due to it offering better value for money.

A promising future for health and wellness products

Argentinian consumers are becoming increasingly aware of the health benefits of natural products and products which have a reduced salt or fat content. Recognising this trend, companies like Unilever are running campaigns to highlight the fact that their products are made from natural ingredients, while others like Nestlé have launched alternatives without salt in categories such as stock cubes and powders.

COMPETITIVE LANDSCAPE

Heinz brand now manufactured in the country

Mid-2018 saw the well-known Heinz brand start to be manufactured within the country. Kraft Heinz Argentina decided to start producing locally given the strength of the brand and the heavy consumption of mayonnaise in the country, positioning the Heinz brand at a price similar to Unilever’s Hellmann's, the leading brand in the category.

Unilever remains the clear category leader

Unilever de Argentina remained the clear leader in sauces, dressings and condiments in 2018. The company’s position can be attributed to the strength of brands such as Hellmann's, Knorr, La Campagnola and Savora, which in many cases act as a barrier to entry for other manufacturers.

Advertising used to boost the consumption of table sauces

Advertisements to drive the usage of table sauces play a key role in mature categories such as mayonnaise. Over the review period Unilever invested in a high number of advertisements in mass media channels such as radio and television to encourage consumers to use Hellmann's mayonnaise in more of their meals.

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