Sauces, Dressings and Condiments in Venezuela

PROSPECTS

Ketchup and mayonnaise remain the most popular products

Table sauces accounted for more than half of the wider category’s retail value sales in 2018. Ketchup and mayonnaise are the most popular products as they tend to be consumed with pasta, which enjoys strong penetration among low-income households.

Although supplies are stabilising, consumers cannot afford popular products

Most of the brands competing in sauces, dressings and condiments are regarded as standard offerings, with competition mostly based on pricing and distribution. When it comes to cooking sauces, Venezuelans tend to choose products purely on price, with there being little differentiation between brands.

Government intervention at the root of market distortions

Market imbalances and distorted prices are the result of price regulations on ketchup, which have taken away the incentive for farmers to grow tomatoes, instead shifting towards more profitable crops like onions and peppers. The domestic production of mayonnaise has been adversely affected by shortages of soy oil, which is not manufactured in the country and is imported at the black market exchange rate.

COMPETITIVE LANDSCAPE

Three companies generally control the category

Nestlé Venezuela, Alimentos Heinz and Alimentos Polar together continued to lead sauces, dressings and condiments in 2018. The strong share of Alimentos Polar can be attributed to the combined sales of its ketchup and mayonnaise brands, Pampero and Mavesa, respectively.

Alimentos Heinz has the strongest portfolio in 2018

The position of Alimentos Heinz in sauces, dressings and condiments can be partly attributed to the fact that it offers two brands in different price segments. Tiquire Flores targets lower-income households while Heinz has a more upmarket positioning.

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