Yoghurt and Sour Milk Products in Chile

PROSPECTS

Yoghurt players seek to compete by tapping into yoghurt’s inherently healthy image

Yoghurt is one category which has benefited from the 2016 introduction of food labelling regulations that require the manufacturers of designated unhealthy foods to apply labels warning of high levels of sugar, sodium, saturated fat and calories. Furthermore, yoghurt was a notable survivor of the campaign to eliminate unhealthy food from Chile’s schools, with sales of yoghurt expanding to fill the gap left by the prohibition of various products, including high-sugar soft drinks.

Maturity of demand results in a wider range of premium references

Premiumisation remained another important and growing trend in yoghurt in Chile in 2019. The addition of protein, already mentioned, is one major element of some of these new premium references.

Functional drinking yoghurt set to be a major new trend

Functional drinking yoghurt, known locally as leche cultivada, continues to experience strong growth in sales in Chile. With many consumers now automatically preferring natural products that offer protective benefits for their digestive health rather than seeking to medicate their digestive ailments, players are increasingly targeting rising demand for functional drinking yoghurt.

COMPETITIVE LANDSCAPE

Watt’s SA maintains its leadership, focusing on innovation to support rising sales

Watt’s SA remained the leading player in yoghurt and sour milk products in 2019, offering the two leading brands Activia and Loncoleche. With demand for the standard-positioned Activia brand already highly mature, 2019 saw the company invest strongly in the advertising of the new line of high-protein products launched recently under the Loncoleche brand.

Nestlé bets on innovation, premiumisation and indulgence to compete

Nestlé continues to underperform its major rivals in yoghurt in 2019 despite the multinational company’s consistent attempts to attract consumers with interesting new products that promise greater indulgence. 2018 for instance saw Nestlé launch Nube de Leche, an indulgent new product with the consistency of mousse and interesting and refreshing new flavours such as lemon and coconut.

Surlat’s efforts to present a healthy image include an innovative new product range

2019 saw Surlat attempt to counter flagging demand for its yoghurts with the launch of a very innovative new line of yoghurts with a health and wellness positioning. Unlike most new launches in the category in recent times, these new products are denoted not by simple descriptors of their fruity flavours; instead, the names are based on concepts or ideas and include Detox Freshness, Berries Craziness, Fun Summer, Tropical Relax and Sweet Energy.

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