Sports drinks registered a two-digit volume decline in 2017 for the fifth year in a row. Although not as large as the fall observed in 2016, product shortages and demand constraints continue to be the main factors behind the adverse performance of sport drinks.
Sports drinks are highly demanded by people practising sports, and given their functionality the category faces competition from substitute beverages. In relative terms, 100% juice is twice as expensive as sports drinks, while carbonates and nectars are 46% and 39% cheaper.
The sports drinks category is projected to decline at a slow pace over the forecast period, with a performance that will largely depend on an improved supply of major raw materials and inputs, as firms seek to guarantee a steady product offering. Apart from shortages in raw materials, a low improvement in population purchasing power is a potential threat to the category, because in the face of budget constraints, consumers will not hesitate to reduce purchases of non-priority consumption goods.
Pepsi-Cola Venezuela CA is the leading company in sport drinks thanks to the strong positioning of Gatorade – after many years of investment in marketing activities – which has resulted in a quasi-monopolistic status. Ajeven CA ranked second, owing to its Sporade brand.
Given that a single brand generates a high portion of sales, sports drinks is highly susceptible to supply problems. In this regard, when Gatorade’s production is adversely impacted, the entire category is negatively affected as other players are not able to replenish the void left.
After a tough 2016, Industria Láctea Venezolana CA (INDULAC) – a state-owned company that is part of Groupe Lactalis – continued in fourth position in the category, although showing a slightly positive trend in 2017. INDULAC markets Santàl Active, a non-added sugar variant of the international brand that leads reduced sugar nectars in 2017.
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Discover the latest market trends and uncover sources of future market growth for the Sports Drinks industry in Venezuela with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Soft Drinks market research database.