Yoghurt and Sour Milk Products in Argentina

PROSPECTS

Fall in consumption before strong price increases

During 2017, the prices of yoghurt and sour milk products increased well above general inflation as companies focused primarily on improving profitability, mainly leading companies such as Danone Argentina SA. Given this scenario, consumption decreased sharply in retail volume terms in 2017, and although at a lower rate, it also decreased in 2018.

Consumption sensitive to economic situation

Yoghurt and sour milk products is one of the most volatile and sensitive categories to price variations within dairy products in Argentina. Despite the efforts of leading companies over the review period to position it as an alternative to milk at breakfast, Argentinians continue to consider yoghurt as a dessert.

Sales of FF probiotic yoghurt plummet

Consumption of FF probiotic yoghurt continues to contract strongly in retail volume terms at double-digit rates in both 2017 and 2018. The level of consumption of FF probiotic yoghurt is at very low levels and far from the volumes recorded in the first years of the review period.

COMPETITIVE LANDSCAPE

SanCor crisis impacts Alimentos Refrigerados SA

In 2016, SanCor Cooperativas Unidas Ltda sold its yoghurt business to Alimentos Refrigerados SA. Despite the sale, production and distribution was still in the hands of SanCor.

Small companies take advantage of the SanCor crisis

The crisis facing SanCor Cooperativas Unidas Ltda had an important impact not only on sales but also on changes in the composition of the market. In the absence of brands such as Yogs and Yogs Light by SanCor, consumers chose brands from small companies with a much lower price than brands such as Ser and Yogurisimo from Danone Argentina SA.

Important launches aimed at H&W to boost sales

Despite the sharp fall in sales in retail volume terms, companies continue to make important launches to try to soften the fall in sales. In the first months of 2018, SanCor Cooperativas Unidas Ltda launched SanCor Vida without sugar and reduced in lactose in drinking yoghurt and flavoured yoghurt.

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