Spirits in Latin America

July 2021

Spirits sales took a battering from Coronavirus (COVID-19) in 2020, particularly in the on-trade, where closures and restrictions placed a dampener on this channel’s performance. While Latin American countries tended to see better performances in the off-trade, even here sales were negatively affected by the pandemic’s economic impact. Positive annual growth rates are expected over the forecast period, although sales will not return to pre-pandemic levels before the end of 2020-2025.

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This report comes in PPT.

Key findings

Economic problems hamper sales

In the years prior to 2020, falling sales in recession-hit Argentina were having a negative impact on the regional performance. With Chile, Colombia, Uruguay and Venezuela also seeing declining sales in 2019, this tipped the Latin American performance into decline in this year, compared to the stagnation seen in 2018.

Pandemic sees collapse in on-trade performance

On-trade sales collapsed in 2020 with the arrival of COVID-19 in the region. With on-trade outlets closed or facing shorter opening hours and other restrictions for extended periods, this naturally hit sales through these establishments. While some on-trade drinking may have moved into people’s homes via the off-trade, even off-trade sales will have been impacted by the economic consequences of the measures implemented to try and contain the spread of COVID-19.

E-commerce records strong growth in 2020

E-commerce saw explosive growth in a number of countries during the pandemic, including Argentina, Colombia, Ecuador and Peru. With consumers forced to stay at home during lockdowns, following social distancing measures and trying to minimise time spent outside their own households, home delivery sales soared. The main alcoholic drinks producers and modern grocery retailers enhanced their e-commerce platforms and improved their logistics, with e-commerce seen as an ideal way to reach existing consumers as well as attract new customers.

Positive growth forecast for 2020-2025

A relatively strong rebound is expected for spirits sales in 2021, with positive annual growth rates throughout the forecast period. The on-trade will be particularly dynamic in the immediate post-2020 period, not least because it has so much ground to make up from its lost sales during the pandemic. However, having lost so much ground in 2019 and 2020, sales are not expected to reach pre-pandemic levels in Latin American spirits before the end of the forecast period.

Key findings
Latin America records the worst regional performance in 2020
Recovery expected to get underway immediately in 2021
Brazil sees a major loss of sales in the 2015-2020 period
Decline in cachaça sales in Brazil shapes the overall performance
Colombian aguardiente suffers in part from a lack of innovation
Pandemic sends spirits sales into a tailspin in 2020
Traditional grocery retailers still dominate sales of spirits…
…but e-commerce makes great strides in 2020
Off-trade makes major share gains during the pandemic
Concentrated competitive landscapes at a national level
Diageo cements its lead in 2020
Brazil the main market for more than half the top 10 players
Cachaça brands head up the regional rankings
Positive growth expected from 2021…
…but sales will not return to pre-pandemic levels in 2020-2025
Soft drivers will provide the main growth impetus in spirits
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Bolivia: Market Context
Bolivia: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Costa Rica: Market Context
Costa Rica: Competitive and Retail Landscape
Dominican Republic: Market Context
Dominican Republic: Competitive and Retail Landscape
Ecuador: Market Context
Ecuador: Competitive and Retail Landscape
Guatemala: Market Context
Guatemala: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape
Uruguay: Market Context
Uruguay: Competitive and Retail Landscape

Alcoholic Drinks

Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.

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