Sweet Spreads in the Philippines

Euromonitor International
November 2019
SW EET SPREADS IN THE PHILIPPINES Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Still Growing From A Small Base and Boosted by Developments and Growth in Baked Goods,
Sweet Spreads Enjoys Faster Value Growth ............................................................................ 1
Choc-nut Confectionery Brand Partners With Amarise Sweets To Promote the Use of A New
Choc-nut Spread As A Sandwich Spread ................................................................................. 1
Honey Is Mainly Used As A Healthy Sweetener, But New Products Generate Interest in Its
Use As A Spread As Well by Offering Interesting New Flavours .............................................. 2
Competitive Landscape ................................................................................................................ 2
Top Three Players in Sweet Spreads All Operate Exclusively Or Mainly in Nut- and Seed-
based Category, Where Peanut Butter Is the Most Demanded Product ................................... 2
Nutella Uses Fun Packaging Innovations To Boost Sales ........................................................ 2
Newborn Food Boosts Interest in Its Light Peanut Butter With Its “let’s Build A Healthier
World” Campaign To Raise Awareness of the Need for Healthy Eating ................................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Sweet Spreads by Category: Volume 2014-2019........................... 3
Table 2 Sales of Sweet Spreads by Category: Value 2014-2019.............................. 3
Table 3 Sales of Sweet Spreads by Category: % Volume Growth 2014-2019 .......... 3
Table 4 Sales of Sweet Spreads by Category: % Value Growth 2014-2019 ............. 4
Table 5 Sales of Jams and Preserves by Leading Flavours: Rankings 2014-
2019 ............................................................................................................. 4
Table 6 NBO Company Shares of Sweet Spreads: % Value 2015-2019 .................. 4
Table 7 LBN Brand Shares of Sweet Spreads: % Value 2016-2019 ......................... 5
Table 8 Distribution of Sweet Spreads by Format: % Value 2014-2019 .................... 5
Table 9 Forecast Sales of Sweet Spreads by Category: Volume 2019-2024 ............ 6
Table 10 Forecast Sales of Sweet Spreads by Category: Value 2019-2024 ............... 6
Table 11 Forecast Sales of Sweet Spreads by Category: % Volume Growth
2019-2024 .................................................................................................... 6
Table 12 Forecast Sales of Sweet Spreads by Category: % Value Growth
2019-2024 .................................................................................................... 7

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SW EET SPREADS IN THE PHILIPPINES Passport 1

SWEET SPREADS IN THE

PHILIPPINES
HEADLINES
▪ Value and volume sales of sweet spreads rise by 5% and 3%, respectively to reach PHP4.4
billion and 13,400 tonnes in 2019
▪ Interest in and demand for other types of nut-base spreads such as almond spread is grows,
but peanut butter players continues to rule
▪ Chocolate spreads sees the highest value growth of 8% to reach PHP635 million
▪ Average unit price rises by 2% in 2019
▪ Unilever Foods Philippines (CMC) holds the leading value share of 23%
▪ Value sales are set to rise at a current value CAGR of 6% (3% 2019 constant value CAGR)
over the forecast period to reach PHP5.9 billion in 2024

PROSPECTS

Still Growing From A Small Base and Boosted by Developments and

Growth in Baked Goods, Sweet Spreads Enjoys Faster Value Growth
Sweet spreads as a whole posted slightly faster growth in 2019 than it did in 2018, as did all
the categories present within it. The category is expected to continuously benefit from
expansion, as it remains the second largest category within cooking ingredients and meals, and
especially from the developments and growth in baked goods. Gardenia, the leading packaged
leavened bread brand, has two new manufacturing facilities in 2019, which will help improve its
distribution reach. There are also new significant brands in packaged leavened bread such as
Sari Roti (SariMonde Foods, launched in 2018) and Fuwa Fuwa (Nippon Premium Bakery,
launched in 2019. Artisanal bakery outlets that specialise in baking bread are also still on the
rise. In all, complimentary products such as sweet spreads are expected to benefit from the
improved brand options in all categories – and from all the new bread options as well as from
improved distribution of the country’s baked goods.

Choc-nut Confectionery Brand Partners With Amarise Sweets To

Promote the Use of A New Choc-nut Spread As A Sandwich Spread
Chocolate spreads, the third largest category of sweet spreads, continued to see the highest
value growth in 2019, as it did throughout the review period, and its sales growth in 2019 was a
slight improvement over what it was in the previous year. It is expected to sustain its present
level of growth over the forecast period as well, since it is versatile and can also be used as a
topping for cupcakes, as a chocolate dip and spread on pancakes, etc. Now it is being offered
as a new option in the form of Choc-Nut spread, which Amarise Sweets, a confectionery
specialist, launched in 2018. Choc-Nut is a popular local brand of chocolate confectionery that
normally comes in a brick-like shape, and Choc-Nut spread has long been sold through food
bazaars. However, currently Amarise Sweets is selling the product on through its Facebook
online store and partnering with the Choc-Nut brand to promote and distribute Choc-Nut as a
sandwich spread.

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Honey Is Mainly Used As A Healthy Sweetener, But New Products

Generate Interest in Its Use As A Spread As Well by Offering Interesting
New Flavours
Value growth of honey, the smallest sweet spreads category, rose slightly but steadily
throughout the review period up through 2019. Honey, which continues to be used more as an
alternative healthy sweetener than as a spread in Philippines, is benefitting incrementally from
increased health consciousness in the country. However, new honey products with a wider
variety of flavours are also boosting sales of honey used as spreads. In 2018, the imported
brand Al Shifa Honey from Saudi Arabia generated interest when it introduced honey in three
flavours: Al Shifa Honey in Natural, Black Forest and Acacia. All three of these products are now
available through Robinsons Supermarket. Most honey products in the Philippines are from
imported brands; the two leading brands, Sue Bee and Aunt Sue come from Sioux Honey
Association based in Sioux City, Iowa.

COMPETITIVE LANDSCAPE

Top Three Players in Sweet Spreads All Operate Exclusively Or Mainly

in Nut- and Seed-based Category, Where Peanut Butter Is the Most
Demanded Product
Within sweet spreads, the top three companies remained the same in 2019. The first two
players – Unilever Foods Philippines (CMC) and Newborn Food Products – derive their strength
entirely from their leadership in nut- and seed-based spreads, the largest sweet spreads
category in the Philippines. The third-ranked sweet spreads player, Samuya, operates in both
nut- and seed-based spreads, where it ranks third, and jams and preserves, where it ranks
second. Despite deriving their value shares solely from nut- and seed-based spreads, Unilever
and Newborn Food continue to maintain their top two positions in sweet spreads because
peanut butter is the most popular product in the entire sweet spreads category.
Given the low barrier for entering sweet spreads in the Philippines, the number of competitors
is expected to steadily increase over the forecast period. To maintain its leadership Unilever will
need to adapt to changes in consumer trends, for while peanut butter has long been the most
popular type of nut spread, alternatives such as almond butter and cashew butter, which still
come from smaller brands, are making inroads. Loyal consumers of nut spreads looking for
variety as well as people seeking healthier alternatives are likely to be attracted to these and
other types of nut spreads and companies that cannot adapt to these developments are likely to
lose share.

Nutella Uses Fun Packaging Innovations To Boost Sales

Nutella, the second-ranked chocolate spread brand in the Philippines, continues to use
packaging to renew consumer interest in its brand and it received a slight uptick in its value
growth in 2019 for the second consecutive year. In December 2018, it released its chocolate
spread in glow-in-the dark, Christmas-themed glass jars featuring a carrot-nosed snowman near
a frosty-looking tree. This followed another innovative promotion the brand owners conducted in
July-August 2018, whereby it offered buyers an opportunity to customise the front label of 350g
jars of Nutella with personalised messages. The company highly promotes Nutella on
Facebook, where it regularly features its new launches, often in conjunction with festive
seasons, on brightly designed, very inviting pages.

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Newborn Food Boosts Interest in Its Light Peanut Butter With Its “let’s
Build A Healthier World” Campaign To Raise Awareness of the Need for
Healthy Eating
In 2019, Newborn Food Products (owner of Lily’s Peanut Butter brand) organised a “Let’s
Build a Healthier World” campaign to raise awareness of the need for healthy eating. Lily’s is
one of only a few peanut butter brands that offer a light variant; its version, called Lily’s Peanut
Spread Lite, is sweetened with stevia. The promotional campaign involved the brand owner’s
hosting a series of events in different elementary schools in Metro Manila, where among other
things, the hosts appointed 10 pre-schoolers and students in Grades 1-3, along with their moms,
to be “Lily’s Mom and Me Health Ambassadors”. The campaign was apparently successful, as
Lily’s saw both its value share and value sales increase slightly in 2019 over the growth it
recorded in the previous year.

CATEGORY DATA
Table 1 Sales of Sweet Spreads by Category: Volume 2014-2019

tonnes
2014 2015 2016 2017 2018 2019

Honey 303.9 310.9 317.7 325.3 333.8 343.1

Chocolate Spreads 1,347.8 1,404.4 1,460.6 1,520.5 1,584.3 1,652.5
Jams and Preserves 3,291.1 3,287.8 3,386.5 3,494.8 3,610.1 3,736.5
Nut and Seed Based 7,005.5 7,131.6 7,245.7 7,376.1 7,516.3 7,674.1
Spreads
Sweet Spreads 11,948.3 12,134.7 12,410.5 12,716.8 13,044.6 13,406.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Sweet Spreads by Category: Value 2014-2019

PHP million
2014 2015 2016 2017 2018 2019

Honey 290.0 299.8 310.3 321.8 334.3 348.0

Chocolate Spreads 445.2 478.1 512.5 550.0 590.6 634.9
Jams and Preserves 844.1 837.3 870.8 907.4 947.3 990.9
Nut and Seed Based 1,999.1 2,069.1 2,137.3 2,212.2 2,294.0 2,383.5
Spreads
Sweet Spreads 3,578.3 3,684.3 3,831.0 3,991.3 4,166.3 4,357.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Sweet Spreads by Category: % Volume Growth 2014-2019

% volume growth
2018/19 2014-19 CAGR 2014/19 Total

Honey 2.8 2.5 12.9

Chocolate Spreads 4.3 4.2 22.6
Jams and Preserves 3.5 2.6 13.5
Nut and Seed Based Spreads 2.1 1.8 9.5

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Sweet Spreads 2.8 2.3 12.2

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

Table 4 Sales of Sweet Spreads by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Honey 4.1 3.7 20.0

Chocolate Spreads 7.5 7.4 42.6
Jams and Preserves 4.6 3.3 17.4
Nut and Seed Based Spreads 3.9 3.6 19.2
Sweet Spreads 4.6 4.0 21.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Jams and Preserves by Leading Flavours: Rankings 2014-2019

ranking
2014 2015 2016 2017 2018 2019

Strawberry 1 1 1 1 1 1
Coconut 2 2 2 2 2 2
Pineapple 3 3 3 3 3 3
Mango 6 4 4 4 4 4
Orange 4 5 5 5 5 5
Guava 5 6 6 6 6 6
Grape Jelly 7 7 7 7 7 7
Calamansi 8 8 8 8 8 8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 NBO Company Shares of Sweet Spreads: % Value 2015-2019

% retail value rsp

Company 2015 2016 2017 2018 2019

Unilever Foods 23.4 23.3 23.1 23.0 23.0

Philippines (CMC)
Newborn Food Products Inc 13.5 13.6 13.6 13.7 13.7
Samuya Food Mfg Inc 13.4 13.3 13.2 13.2 13.1
Sioux Honey Association 7.2 7.2 7.1 7.1 7.1
All Crump NV 5.7 5.7 5.8 5.8 5.8
Sysu International Inc 4.7 4.9 5.1 5.3 5.5
Unilever Group 4.3 4.2 4.2 4.2 4.1
Ferrero & related parties 2.6 2.8 3.0 3.2 3.4
JM Smucker Co, The 1.8 1.9 1.9 2.0 2.0
Brinkersfood BV 1.4 1.4 1.5 1.5 1.6
ConAgra Brands Inc - 0.7 0.7 0.7 0.7
Alliance Global Brands 0.7 0.7 0.5 0.2 -
Inc
ConAgra Foods Inc 0.7 - - - -
Welch Foods Inc - - - - -
Magnolia Inc - - - - -

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Others 20.5 20.3 20.2 20.2 20.1

Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 LBN Brand Shares of Sweet Spreads: % Value 2016-2019

% retail value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Lady's Choice Unilever Foods 23.3 23.1 23.0 23.0

(Unilever Group) Philippines (CMC)
Lily's Newborn Food Products Inc 13.6 13.6 13.7 13.7
Ludy's Samuya Food Mfg Inc 12.3 12.2 12.2 12.1
Crumpy All Crump NV 5.7 5.8 5.8 5.8
Clara Olé Sysu International Inc 4.9 5.1 5.3 5.5
Sue Bee Sioux Honey Association 4.5 4.6 4.6 4.6
Skippy (Hormel Unilever Group 4.2 4.2 4.2 4.1
Foods Corp)
Nutella Ferrero & related parties 2.8 3.0 3.2 3.4
Aunt Sue Sioux Honey Association 2.7 2.6 2.5 2.5
Smucker's JM Smucker Co, The 1.9 1.9 2.0 2.0
Nusica Brinkersfood BV 1.4 1.5 1.5 1.6
Yummy Samuya Food Mfg Inc 1.0 1.0 1.0 0.9
Peter Pan ConAgra Brands Inc 0.7 0.7 0.7 0.7
McKester's Alliance Global Brands 0.7 0.5 0.2 -
(Alliance Global Inc
Group Inc)
Peter Pan ConAgra Foods Inc - - - -
Magnolia (San Magnolia Inc - - - -
Miguel Corp)
Skippy Unilever Group - - - -
Welch's (National Welch Foods Inc - - - -
Grape Co-operative
Association Inc)
Others Others 20.3 20.2 20.2 20.1
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Distribution of Sweet Spreads by Format: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0
-- Modern Grocery 60.2 60.6 61.0 61.4 61.8 62.2
Retailers
--- Convenience Stores 1.0 1.0 1.0 1.0 1.0 1.0
--- Discounters - - - - - -
--- Forecourt Retailers 0.9 0.9 0.9 0.9 0.9 0.9
--- Hypermarkets 7.5 7.7 7.9 8.1 8.3 8.5
--- Supermarkets 50.8 51.0 51.2 51.4 51.6 51.8
-- Traditional Grocery 39.8 39.4 39.0 38.6 38.2 37.8
Retailers
--- Food/drink/tobacco - - - - - -

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specialists
--- Independent Small 16.2 16.0 15.8 15.6 15.4 15.2
Grocers
--- Other Grocery 23.6 23.4 23.2 23.0 22.8 22.6
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing - - - - - -
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Sales of Sweet Spreads by Category: Volume 2019-2024

tonnes
2019 2020 2021 2022 2023 2024

Honey 343.1 357.0 373.0 390.3 408.9 428.8

Chocolate Spreads 1,652.5 1,720.2 1,790.0 1,863.6 1,942.2 2,025.2
Jams and Preserves 3,736.5 3,878.5 4,036.3 4,206.7 4,388.4 4,582.8
Nut and Seed Based 7,674.1 7,866.0 8,098.5 8,382.2 8,717.5 9,104.5
Spreads
Sweet Spreads 13,406.2 13,821.7 14,297.8 14,842.8 15,456.9 16,141.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Sweet Spreads by Category: Value 2019-2024

PHP million
2019 2020 2021 2022 2023 2024

Honey 348.0 357.5 369.3 383.2 398.8 416.0

Chocolate Spreads 634.9 661.6 689.1 717.9 748.5 780.8
Jams and Preserves 990.9 1,011.8 1,037.0 1,065.5 1,096.4 1,131.3
Nut and Seed Based 2,383.5 2,419.9 2,471.4 2,540.1 2,623.5 2,722.5
Spreads
Sweet Spreads 4,357.4 4,450.8 4,566.8 4,706.7 4,867.2 5,050.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Sweet Spreads by Category: % Volume Growth 2019-2024

% volume growth
2019/20 2019-24 CAGR 2019/24 Total

Honey 4.0 4.6 25.0

Chocolate Spreads 4.1 4.2 22.6

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Jams and Preserves 3.8 4.2 22.6

Nut and Seed Based Spreads 2.5 3.5 18.6
Sweet Spreads 3.1 3.8 20.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Sweet Spreads by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Honey 2.7 3.6 19.5

Chocolate Spreads 4.2 4.2 23.0
Jams and Preserves 2.1 2.7 14.2
Nut and Seed Based Spreads 1.5 2.7 14.2
Sweet Spreads 2.1 3.0 15.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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