Sports Drinks in Argentina

PROSPECTS

Steep declines for sports drinks as consumers continue to rein in their spending

Sports drinks again witnessed steep declines in consumption in 2019 as consumer incomes continued to fall and many low- and middle-income earners avoided purchasing these relatively expensive drinks. Sports drinks is a niche in Argentina and therefore steep percentage declines in consumption can be the result if a relatively small number of consumers avoid these products.

Reduced sugar sports drinks the highlight in 2019

One promising aspect of sports drinks was the strong performance of reduced sugar variants, despite the ongoing economic crisis at the end of the review period. Consumers of sports drinks tend to be health conscious and avoid excessive consumption of sugar.

Product and packaging innovation aim to attract new customers

Product and packaging innovation was used by many players to try to shore up sales in a declining category at the end of the review period and this is expected to contribute to the expected return to retail volume growth over the forecast period. Reduced sugar was an important topic, given the health-conscious target audience of sports drinks.

COMPETITIVE LANDSCAPE

Powerade continues to narrow the gap on the leader

Gatorade, which is distributed Cervecería y Maltería Quilmes SAICAyG, has firmly cemented its leading position in sports drinks with an extensive distribution network. However, since the entry of Powerade in 2008, which benefits from Coca-Cola Argentina’s distribution strength, Gatorade has lost significant ground.

Aguas Danone de Argentina continues to improve its small share

Aguas Danone de Argentina entered sports drinks in 2018 with its Levite Sport, a brand extension of Villa del Sur Levité, the leading brand in flavoured bottled water. Following the health and wellness trend, Levite Sport is only available in a reduced sugar option, which is attractive to health-conscious, active Argentinians.

Private label continues to establish a presence

Hard discount stores continued to expand at the end of the review period, driven by the economic instability reflected in continued double-digit inflation. Purchasing power has declined significantly, and consumers increasingly prefer small grocery or discount stores in an attempt to reduce their bills.

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