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DRIED PROCESSED FOOD IN

COLOMBIA
Euromonitor International
February 2013

DRIED PROCESSED FOOD IN COLOMBIA

LIST OF CONTENTS AND TABLES


Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11

Sales of Dried Processed Food by Category: Volume 2007-2012 ............... 3


Sales of Dried Processed Food by Category: Value 2007-2012 .................. 4
Sales of Dried Processed Food by Category: % Volume Growth 20072012 ............................................................................................................. 4
Sales of Dried Processed Food by Category: % Value Growth 20072012 ............................................................................................................. 5
Dried Processed Food Company Shares 2008-2012 ................................... 5
Dried Processed Food Brand Shares 2009-2012 ......................................... 6
Sales of Dried Processed Food by Distribution Format: % Analysis
2007-2012 .................................................................................................... 7
Forecast Sales of Dried Processed Food by Category: Volume 20122017 ............................................................................................................. 7
Forecast Sales of Dried Processed Food by Category: Value 20122017 ............................................................................................................. 8
Forecast Sales of Dried Processed Food by Category: % Volume
Growth 2012-2017 ....................................................................................... 8
Forecast Sales of Dried Processed Food by Category: % Value
Growth 2012-2017 ....................................................................................... 8

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DRIED PROCESSED FOOD IN COLOMBIA

DRIED PROCESSED FOOD IN


COLOMBIA
HEADLINES
Dried processed food increases by 4% in current value and 1% in volume terms in 2012
Larger quantities of rice imported from Andean countries and the US as a preventative
measure against a dry summer and possible strong rainy season in 2012
Average unit prices increase by 3%
Molinos Roa remains the leading dried processed food company with a 16% value share
Dried processed food value sales are expected to grow at a CAGR of 2% over the forecast
period

TRENDS
In 2012, the Colombian government increased imports of rice by 35,000 tonnes from
neighbouring Andean countries and 79,000 tonnes from the US. The imports are part of a
plan to prevent rice shortages due to low output from domestic crops that may be impacted by
a drier than usual summer and a long rainy season in 2012. Thanks to free trade agreements,
this may lower the price of rice in the short term.
New dried processed food products are entering the country thanks to increased imports at
lower prices. Some, like microwaveable instant noodles, are making an immediate impact
because of their convenience and low prices. Others may take longer to gain acceptance, as
is the case with the cakes, pancakes and waffles brands like Betty Crocker and Ghirardelli
among others.
Dried processed food posted a 1% increase in retail volume and 4% increase in current value
sales which was lower than the growth seen in the review period. Rice increased by 4% in
sales at current prices and 1% by volume in 2012. In 2012, growth decelerated due to
recommendations by nutritionists to moderate the consumption of carbohydrates in order to
control body weight.
Instant noodles posted the highest growth of 20% and 16% in value and volume terms
respectively in 2012. Instant noodles are still relatively niche in Colombia, allowing the product
ample room to grow over the review period and in 2012. Instant noodles respond to the needs
of workers and students who eat lunch away from home and have limited resources for lunch.
Microwaveable instant noodles can be purchased at supermarkets and convenience stores
for less than a standard takeaway lunch.
According to the National Survey of the Nutritional Situation in Colombia (ENSIN), 99.6% of
Colombians consume rice, making it a fundamental food in Colombian cuisine. Rice is widely
used to accompany a significant number of typical Colombian dishes and it is even served as
an accompaniment in some traditional local soups, such as ajiaco and sancocho (a traditional
soup made with meat, plantain, potato and yuca). Domestic production of rice is spread over
the country (in Tolima, Espinal Ambalema, Suarez, Valle and Llanos).
According to the latest available figures from the Fedearroz - Federacin Nacional de
Arroceros (National Federation of Rice Growers), in 2011, rice production fell nearly 10% to
reach 2 million tonnes, due to a harsh winter in 2011 and fungus that affected the plants.
Fedearroz projects that rice production will recuperate in 2012, with a harvest closer to 2.7

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DRIED PROCESSED FOOD IN COLOMBIA

million tonnes. Despite this recovery, the government has approved imports of rice from
Andean countries and the US to prevent any potential product shortage due to another low
yield in 2012.
The price of rice increased by 3% in current terms, proportional to general rates of inflation.
Because of the importance of rice in the diet of Colombians, the national government
frequently monitors prices and availability, and price increases are generally modest to allow
wide access to this staple.
The bulk sale of rice in Colombia accounts for roughly 25% of total rice consumption and is
important as the large low-income population commonly buys rice in bulk at independent
small grocers. At these retailers, people can buy small quantities of rice on a daily basis.

COMPETITIVE LANDSCAPE
Molinos Roa remains the leader in dried processed food with a 16% value share thanks to its
wide coverage across the country and its competitive prices.
Arroz Diana saw some of the fastest growth in 2011 and 2012. The company increased has
its value share by four percentage points since 2010 to achieve a share of 15% in 2012. It is
the preferred brand of socioeconomic strata 1 and 2 and is always available in small
neighbourhood stores. Homemakers feel that the company offers good value for money.
Inversiones Arroz Caribe developed a strategy for segmented products by price, thus
presenting different options for each socioeconomic stratum of the population. The company
has economy-priced products in small presentations at small stores, standard rice at
hypermarkets and supermarkets and premium rice with functional ingredients for high-income
shoppers. Additionally, to become a greater competitor with leading companies, Inversiones
Arroz Caribe has made strategic moves to reach regions of the country where brands are
traditionally not as important.
Domestic companies control dried processed food, mostly due to their dominance in rice (rice
accounts for 88% of dried processed foods retail volume sales in 2012). In addition, in
dessert mixes, local companies such as Quala and Levapan also achieve a good level of
acceptance thanks to the affordable prices of their products and the fact that they offer mixes
based on traditional Colombian desserts such as arroz con leche (milk with rice dessert). The
multinational Kraft Foods Group (under the local company name Nabisco Royal Colombiana)
has a good level of penetration in dessert mixes through its Royal brand, which is widely
available and strongly supported by advertisements.
In 2012, the brand La Mueca ??by Harinera del Valle introduced cannelloni pasta in
response to the increasing popularity of Italian food in Colombian homes, especially in the
middle socioeconomic strata.
Rice manufacturers promote their brands using point-of-sale advertising in neighbourhood
stores, radio spots and television commercials. Point-of-sale investment typically includes
placing brand images on store awnings and on posters inside of stores. Productos
Alimenticios Doria is noteworthy for its advertising investment to celebrate its 60 years.
No significant packaging innovations were observed in 2012.
Each price segment competes differently and has its own target price. Economy brands
commonly try to lure consumers with offers of a larger pack size for the same price. On the
other hand, premium brands target middle- and upper income-consumers with added
nutrients and functional benefits.

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Private labels market share increased from 9% in 2007 to 14% in 2012 thanks to low prices
and good quality. Some private label, such as Carulla, extends its portfolio with different
flavours of rice such as chicken, paella, oriental and milk/creamy.

PROSPECTS
Dried processed food is expected to post a retail volume CAGR of 1% over the forecast
period, down from the 2% CAGR seen in the review period. While retail volume growth of
dessert mixes is likely to pick up over the forecast due to increased penetration of this niche
product, rice growth is likely to slow down. Despite the already high per capita consumption of
packaged rice (retail) at 24 kg per person, there is still potential for this number to grow as
low-income consumers switch from bulk to packaged rice. However, the struggle against
poverty and inequality in Colombia is only improving very slowly and it is unlikely that the
large population of poor consumers will switch to packaged rice in any meaningful way over
the forecast period. At the same time, the trend of reducing carbohydrate consumption in
order to control body weight is also likely to bring lower volume growth rates over the forecast
period compared with the review period.
Instant noodles are set to post the fastest retail volume growth over the forecast period, at a
CAGR of 17%. These niche products are growing from a low base and will continue to gain
acceptance from on-the-go workers and young people looking for a convenient meal solution.
The continued expansion of convenience stores like xito Express and OXXO will also favour
the growth of instant noodles.
Dehydrated soup is likely to see the next best performance with a forecast retail volume
CAGR of 3%. Growth will continue to be strong thanks to recent and future launches of
natural and preservative free presentations.
It is expected that the consumption of high fibre rice will increase at a fast rate due to
increasing health concerns, especially amongst upper-income consumers that can afford
value added and nutritionally superior packaged food.
It is expected that constant average unit prices will increase at a CAGR of 1% over the
forecast period. Free trade agreements will support the supply of rice in case there is difficulty
in domestic production due to weather problems. It is expected that companies will absorb
price volatility, keeping price rises close to the general rate of inflation.
No large scale changes are expected in the distribution of dried processed food, with
independent small grocers leading the way thanks to their proximity to consumers.
Convenience stores are likely to become more important for dried ready meals, but will have
an overall negligible presence in dried processed food given the small size of these products.
It is expected that leading companies of rice in the mid-priced segment will develop formulas
with benefits for the heart, with more fibre and higher in iron. The final price will determine
whether they are received or rejected by the consumer. Local companies active in dessert
mixes are expected to launch more products based on traditional Colombian desserts in an
effort to better meet Colombians tastes.

CATEGORY DATA
Table 1

Sales of Dried Processed Food by Category: Volume 2007-2012

'000 tonnes
2007

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2008

2009

2010

2011

2012

DRIED PROCESSED FOOD IN COLOMBIA

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

Passport

2.4
5.2
139.0
0.6
0.8
0.0

2.5
5.3
130.7
0.6
0.8
0.1

2.6
5.2
134.2
0.6
0.8
0.1

2.6
5.3
133.5
0.6
0.8
0.1

2.7
5.4
140.8
0.7
0.9
0.1

2.8
5.5
144.2
0.7
1.1
0.1

0.7
1,026.7
1,174.6

0.7
1,055.4
1,195.2

0.7
1,078.6
1,222.0

0.7
1,094.8
1,237.7

0.8
1,109.9
1,260.4

1.0
1,123.2
1,277.5

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2

Sales of Dried Processed Food by Category: Value 2007-2012

Col$ billion

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

2007

2008

2009

2010

2011

2012

47.0
130.3
403.9
10.0
8.3
1.0

54.0
138.2
411.6
11.1
9.6
1.3

55.6
140.3
451.7
12.1
10.2
1.6

58.1
147.1
452.7
13.1
10.9
1.9

59.8
155.3
486.5
14.0
12.6
2.3

60.0
162.9
514.9
14.6
15.2
2.8

7.3
1,926.2
2,525.8

8.3
2,837.6
3,462.0

8.6
2,745.7
3,415.7

9.0
2,814.8
3,496.7

10.3
3,096.5
3,824.7

12.4
3,227.2
3,994.9

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3

Sales of Dried Processed Food by Category: % Volume Growth 2007-2012

% volume growth

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

2011/12

2007-12 CAGR

2007/12 Total

2.6
1.9
2.4
0.9
16.2
18.1
16.0
1.2
1.4

2.7
1.2
0.7
3.3
7.2
18.2
6.4
1.8
1.7

14.2
6.3
3.8
17.7
41.5
130.4
36.1
9.4
8.8

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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DRIED PROCESSED FOOD IN COLOMBIA

Table 4

Passport

Sales of Dried Processed Food by Category: % Value Growth 2007-2012

% current value growth

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

2011/12

2007-12 CAGR

2007/12 Total

0.3
4.9
5.8
4.5
20.4
22.2
20.0
4.2
4.4

5.0
4.6
5.0
7.8
12.8
23.4
11.1
10.9
9.6

27.6
25.1
27.5
45.7
83.0
186.2
69.0
67.5
58.2

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5

Dried Processed Food Company Shares 2008-2012

% retail value rsp


Company
Molinos Roa SA
Arroz Diana SA
Molino Florhuila SA
Productos Alimenticios
Doria SA
Inversiones Arroz
Caribe SA
Procearroz SA
Uniarroz SA
Harinera del Valle SA
Nabisco Royal
Colombiana SA
Quala SA
Levapan SA
Nestl de Colombia SA
Alimentos Kraft de
Colombia
Productos Alimenticios
Rialto SA
Alimentos Polar de
Colombia SA
Corticella SpA
Unilever Andina
Colombia SA
Productos Alimenticios
Konfyt Ltda
Lista Alimenticia SA
Union Foods Inc
Alimentos Napoli SA
Almacenes xito SA
Star - Stabilimento
Alimentare SpA
Comapn SA
Pastas San Marcos
Pastas Comarrico SA

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2008

2009

2010

2011

2012

17.4
11.2
11.3
5.8

16.3
11.1
10.2
6.6

16.9
11.4
10.8
6.6

15.8
12.5
10.9
6.3

15.8
14.5
10.9
6.4

1.9

3.5

5.1

5.4

6.1

5.6
4.4
3.4
1.3

5.5
4.4
3.6
1.4

5.2
4.5
3.6
1.4

5.3
4.5
3.7
1.3

5.2
4.4
3.8
1.3

1.2
0.6
0.6
0.4

1.3
0.6
0.6
0.4

1.3
0.6
0.7
0.4

1.2
0.6
0.6
0.4

1.1
0.6
0.6
0.4

0.4

0.4

0.4

0.4

0.4

0.3

0.3

0.3

0.3

0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.2

0.2

0.2

0.2

0.2

0.2
0.2
0.2
0.2

0.2
0.2
0.2
0.2

0.2
0.2
0.2
0.0
0.2

0.2
0.2
0.1
0.1
0.2

0.2
0.2
0.2
0.2
0.2

0.2
0.1
-

0.2
0.2
-

0.2
0.1
-

0.1
0.1
-

0.1
0.1
-

DRIED PROCESSED FOOD IN COLOMBIA

Private Label
Others
Total
Source:

Passport

11.6
21.0
100.0

12.4
19.5
100.0

11.9
17.0
100.0

13.0
15.9
100.0

13.9
12.1
100.0

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store checks, trade interviews, trade sources

Table 6

Dried Processed Food Brand Shares 2009-2012

% retail value rsp


Brand
Roa
Diana del Tolima
Flor Huila
Carolina
Doria
Supremo
Caribe
La Mueca
Castellano
Comarrico
Royal
Gel' Hada
Maggi
Batilado
Quaker
Corticella
Kraft
La Sopera
Knorr
Monticello
Hogarea
Konfyt
Lista
Rialto
Smack
Napoli
Betty Crocker
Barilla
Grand Italia
Comapn
Doa Torta
San Marcos
Clight
Conzazoni

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Company

2009

2010

2011

2012

Molinos Roa SA
Arroz Diana SA
Molino Florhuila SA
Procearroz SA
Productos Alimenticios
Doria SA
Uniarroz SA
Inversiones Arroz
Caribe SA
Harinera del Valle SA
Inversiones Arroz
Caribe SA
Productos Alimenticios
Doria SA
Nabisco Royal
Colombiana SA
Levapan SA
Nestl de Colombia SA
Quala SA
Alimentos Polar de
Colombia SA
Corticella SpA
Alimentos Kraft de
Colombia
Quala SA
Unilever Andina
Colombia SA
Productos Alimenticios
Doria SA
Quala SA
Productos Alimenticios
Konfyt Ltda
Lista Alimenticia SA
Productos Alimenticios
Rialto SA
Union Foods Inc
Alimentos Napoli SA
Almacenes xito SA
Productos Alimenticios
Rialto SA
Star - Stabilimento
Alimentare SpA
Comapn SA
Harinera del Valle SA
Pastas San Marcos
Alimentos Kraft de
Colombia
Harinera del Valle SA

16.3
11.1
10.2
5.5
4.9

16.9
11.4
10.8
5.2
5.0

15.8
12.5
10.9
5.3
4.5

15.8
14.5
10.9
5.2
4.6

4.4
1.6

4.5
3.1

4.5
3.3

4.4
3.9

3.3
1.9

3.3
2.0

3.5
2.1

3.5
2.3

1.6

1.5

1.5

1.5

1.4

1.4

1.3

1.3

0.6
0.6
0.6
0.3

0.6
0.6
0.6
0.3

0.6
0.6
0.6
0.3

0.6
0.6
0.5
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.1

0.2

0.2

0.3

0.3
0.2

0.3
0.2

0.3
0.2

0.3
0.2

0.2
0.2

0.2
0.2

0.2
0.2

0.2
0.2

0.2
0.2
0.2

0.2
0.2
0.0
0.2

0.2
0.1
0.1
0.2

0.2
0.2
0.2
0.2

0.2

0.2

0.2

0.2

0.2
0.1
0.2
0.1

0.2
0.1
0.1
0.1

0.1
0.1
0.1
0.1

0.1
0.1
0.1
0.1

0.1

0.1

0.1

0.1

DRIED PROCESSED FOOD IN COLOMBIA

Comarrico
Private label
Others
Total
Source:

Passport

Pastas Comarrico SA
Private Label

12.4
19.6
100.0

11.9
17.1
100.0

13.0
16.0
100.0

13.9
12.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7

Sales of Dried Processed Food by Distribution Format: % Analysis 2007-2012

% retail value rsp

Store-Based Retailing
- Grocery Retailers
-- Supermarkets
-- Hypermarkets
-- Discounters
-- Small Grocery
Retailers
--- Convenience Stores
--- Independent Small
Grocers
--- Forecourt Retailers
-- Other Grocery
Retailers
- Non-Grocery Retailers
-- Health and Beauty
Retailers
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:

2007

2008

2009

2010

2011

2012

100.0
99.2
19.2
15.4
0.1
64.2

100.0
99.1
18.1
16.7
0.0
64.1

100.0
99.1
16.7
17.7
0.0
64.4

100.0
99.1
16.6
18.1
0.0
64.1

100.0
99.3
16.4
18.5
0.0
64.0

100.0
99.9
17.2
18.7
63.7

64.2

0.0
64.0

0.1
64.3

0.1
64.1

0.1
63.9

0.1
63.6

0.3

0.3

0.3

0.3

0.3

0.3

0.8
-

0.8
-

0.9
-

0.8
-

0.7
-

0.1
-

0.8

0.8

0.9

0.8

0.7

0.1

0.0
0.0
100.0

0.0
0.0
0.0
100.0

0.0
0.0
0.0
100.0

0.0
0.0
0.0
100.0

0.0
0.0
0.0
100.0

0.0
0.0
0.0
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8

Forecast Sales of Dried Processed Food by Category: Volume 2012-2017

'000 tonnes

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food

Euromonitor International

2012

2013

2014

2015

2016

2017

2.8
5.5
144.2
0.7
1.1
0.1

2.8
5.6
147.7
0.7
1.2
0.1

2.9
5.7
151.1
0.7
1.4
0.1

3.0
5.9
154.6
0.7
1.5
0.2

3.1
6.0
158.1
0.7
1.7
0.2

3.2
6.1
161.9
0.7
2.0
0.2

1.0
1,123.2
1,277.5

1.1
1,136.5
1,294.5

1.2
1,149.7
1,311.5

1.4
1,162.8
1,328.4

1.6
1,175.8
1,345.4

1.7
1,188.6
1,362.5

DRIED PROCESSED FOOD IN COLOMBIA

Source:

Passport

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9

Forecast Sales of Dried Processed Food by Category: Value 2012-2017

Col$ billion

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

2012

2013

2014

2015

2016

2017

60.0
162.9
514.9
14.6
15.2
2.8

61.9
169.5
530.1
14.9
17.3
3.3

63.9
176.5
545.2
15.1
19.7
3.9

65.9
183.5
559.9
15.5
22.4
4.6

68.0
191.1
574.7
15.8
25.4
5.4

70.1
197.8
590.1
16.2
28.7
6.2

12.4
3,227.2
3,994.9

14.0
3,287.6
4,081.3

15.8
3,348.4
4,168.9

17.8
3,406.9
4,254.1

20.0
3,464.3
4,339.3

22.5
3,523.6
4,426.6

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10

Forecast Sales of Dried Processed Food by Category: % Volume Growth


2012-2017

% volume growth

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant Noodles
- Pouch Instant Noodles
Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

Table 11

2016/17

2012-17 CAGR

2012/17 Total

2.9
2.0
2.4
1.4
12.6
15.8
12.2
1.1
1.3

2.8
2.2
2.3
1.2
12.8
16.8
12.4
1.1
1.3

14.8
11.4
12.2
6.1
82.8
117.2
79.3
5.8
6.7

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Forecast Sales of Dried Processed Food by Category: % Value Growth 20122017

% constant value growth

Dehydrated Soup
Dessert Mixes
Dried Pasta
Dried Ready Meals
Instant Noodles
- Cups/Bowl Instant Noodles
- Pouch Instant Noodles

Euromonitor International

2012-17 CAGR

2012/17 TOTAL

3.2
4.0
2.8
2.1
13.6
17.1
12.7

16.9
21.4
14.6
10.8
88.8
120.1
81.7

DRIED PROCESSED FOOD IN COLOMBIA

Instant Soup
Plain Noodles
Rice
Dried Processed Food
Source:

Passport

1.8
2.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Euromonitor International

9.2
10.8