Sweet Spreads in Argentina

PROSPECTS

Volume sales fall however sweet spreads may grow over the forecast period

Sweet spreads, like many packaged foods, recorded a decline in retail volume sales in 2019. As consumers are reducing their spending on non-essential items, sweet spreads has suffered – particularly as it competes with healthy alternatives such as spreadable cheese.

Despite Argentina being a leading producer of honey, consumption remains low

Consumption of honey in Argentina remained low in 2019, with the situation unlikely to improve over the forecast period. There is no tradition for eating honey at breakfast or as a snack in Argentina, even though the country is one of the leading producers of honey in the world.

The health and wellness trend encourages new product launches in sweet spreads

Arcor and Dulcor have launched new health and wellness options to tap into Argentinian consumers who have become more aware of healthy lifestyles. Arcor has jams and preserves with 47% reduced calories and launched a ‘no added sugar’ range including consumer favourites strawberry and peach.

COMPETITIVE LANDSCAPE

Discounts and promotions kept Arcor in the top spot

Arcor remained the clear leader in sweet spreads in 2019, thanks to offering a variety of brands in different price brackets. La Campagnola is positioned in the high-priced bracket and Arcor is mid-priced, while Noel and Dulciora have an economy positioning.

Duclor acquires Orieta whilst running the factories of Industrias Alimenticias Mendocinas SA

In 2019 Dulcor acquired Orieta, a manufacturer of jams and preserves as well as tinned fruits, sweets and cookies. With established sugar-free versions, this allowed Dulcor to add to its range of jams and preserves.

Imported brands face a challenging future as consumers look for cheaper alternatives

With the removal of obstacles to imports since 2016, imported brands such as Chantaine and St Dalfour began to be sold in Argentina again, having previously been scares. However, the sharp devaluation of the local currency and a fall in real wages had a significantly adverse effect on imported brands.

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