Concentrates in Peru

Concentrates in Peru
Euromonitor International
January 2020
CONCENTRATES IN PERU Passport i
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Concentrates Offer Convenience and Economy for Lower-income Consumers ....................... 1
Concentrates Represent Convenient, Value-for-money Alternative To Fresh Fruit Juices ....... 1
Reduced Sugar Concentrates Start To Gain Traction .............................................................. 1
Competitive Landscape ................................................................................................................ 1
Alicorp Focuses on Negrita and Kanú Brands .......................................................................... 2
Alicorp Extends Life Brand With New Flavours ........................................................................ 2
Clight Leads Light Offerings, But Suffers As A Result of Alicorp’s Extensions ......................... 2
Category Data .............................................................................................................................. 2
Concentrates Conversions ....................................................................................................... 2
Summary 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format ........... 2
Table 1 Off-trade Sales of Concentrates (RTD) by Category: Volume 2014-
2019 ............................................................................................................. 2
Table 2 Off-trade Sales of Concentrates (RTD) by Category: % Volume
Growth 2014-2019 ....................................................................................... 3
Table 3 Off-trade Sales of Concentrates by Category: Value 2014-2019 ................. 3
Table 4 Off-trade Sales of Concentrates by Category: % Value Growth 2014-
2019 ............................................................................................................. 3
Table 5 Leading Flavours for Off-trade Liquid Concentrates: % Volume 2014-
2019 ............................................................................................................. 3
Table 6 Leading Flavours for Off-trade Powder Concentrates: % Volume
2014-2019 .................................................................................................... 3
Table 7 NBO Company Shares of Off-trade Concentrates (RTD): % Volume
2015-2019 .................................................................................................... 4
Table 8 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2016-
2019 ............................................................................................................. 4
Table 9 NBO Company Shares of Off-trade Concentrates: % Value 2015-
2019 ............................................................................................................. 4
Table 10 LBN Brand Shares of Off-trade Concentrates: % Value 2016-2019 ............. 5
Table 11 NBO Company Shares of Off-trade Powder Concentrates (RTD): %
Volume 2015-2019 ....................................................................................... 5
Table 12 LBN Brand Shares of Off-trade Powder Concentrates (RTD): %
Volume 2016-2019 ....................................................................................... 6
Table 13 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume
2019-2024 .................................................................................................... 6
Table 14 Forecast Off-trade Sales of Concentrates (RTD) by Category: %
Volume Growth 2019-2024 .......................................................................... 7
Table 15 Forecast Off-trade Sales of Concentrates by Category: Value 2019-
2024 ............................................................................................................. 7
Table 16 Forecast Off-trade Sales of Concentrates by Category: % Value
Growth 2019-2024 ....................................................................................... 7
© Euromonitor International
CONCENTRATES IN PERU Passport 1
CONCENTRATES IN PERU
HEADLINES
▪ Concentrates category sees off-trade current value growth of 7% to PEN90 million in 2019,
and off-trade RTD volume growth of 2% to reach 201 million litres
▪ Economy positioning underpins continued popularity of concentrates in Peru, particularly
among lower-income consumers
▪ Concentrates available only in off-trade outlets in Peru
▪ Concentrates environment is static in 2019, led by Alicorp SAA with off-trade value share of
53%
▪ Forecast period set to see off-trade current value CAGR of 7% (4% constant value CAGR),
with expected off-trade RTD volume CAGR of 1%
PROSPECTS
Concentrates Offer Convenience and Economy for Lower-income

Consumers
Concentrates saw an improved performance in 2019 compared with the previous year.
Preferred by low- and middle-income households because of their affordability and practicality,
these products represent a quick option for beverages in the household. Other benefits include
their long shelf life and the lack of special storage requirements. Furthermore, volume and yield
is another advantage, coupled with the ability to extend consumption through increased dilution.
Concentrates Represent Convenient, Value-for-money Alternative To

Fresh Fruit Juices
The health and wellness trend, which is increasingly prevalent among Peruvian consumers,
has also led to a change in consumer perceptions of concentrates. Some prefer to prepare
natural refreshments at home with oranges or limes. Even so, concentrates remain popular,
especially among low- and middle-income households, where available time is limited and fresh
options are considered more expensive. Concentrates provide a convenient alternative to
homemade beverages, offering a variety of flavours for children.
Reduced Sugar Concentrates Start To Gain Traction

Regarding consumers’ healthy eating habits and the wellness trend, Peruvians are
increasingly considering lighter versions. In addition, they are migrating to less artificial
products and offerings with low fruit content. In this context, homemade alternatives or even
bottled water represent increasingly attractive competition to concentrates, especially in more
affluent households. Reduced sugar concentrates remain niche products, but growth in line with
the health and wellness trend is becoming evident. In this context, this could again attract
consumers towards this category. Consequently, brands are starting to deliver added value,
offering more added fruit.
COMPETITIVE LANDSCAPE
Alicorp Focuses on Negrita and Kanú Brands

Alicorp SAA consolidated its dominant position in concentrates in 2019, being present in the
category for many years. It has removed the brands Yaps and Kiribá, allowing the company to
focus its efforts on its main brands, Negrita and Kanú, supporting its overall position.
Alicorp Extends Life Brand With New Flavours

Alicorp bought Cereal Alimentos in 2018. Over the past last months it has launched a brand
extension of Life (originally in the breakfast cereals category) offering a variety of flavours:
passion fruit, maracuja, and berries. This product seems in line with the extended tendency of
looking for more and more natural products
Clight Leads Light Offerings, But Suffers As A Result of Alicorp’s

Extensions
Clight from Mondelez Peru continued to lead light versions, and continued to have the highest
share among reduced sugar products in 2019. However, its value share declined slightly on the
previous year. This was because Alicorp, with Negrita, developed local flavours such as Chicha
Morada, and introduced more natural versions with its product Frutisimos; this is a lighter
version with stevia, and has higher fruit content. Its main competitor, Zuko, has also developed
products using local fruit and flavours, such as chicha morada, aguaymanto, camu camu,
Peruvian lemonade, emoliente and carambola.
CATEGORY DATA
Concentrates Conversions
The conversions for powder concentrates vary according to the brand. On average, the size
of an individual package of powder concentrate is between 9g and 30g, and has a yield of one
to three litres. From 1kg of powder concentrate consumers could possibly get approximately 132
litres of liquid. There is no presence of liquid concentrates in Peru.
Summary 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format

Conversion factors
Powder concentrates 1kg = 132 litres
Liquid concentrates n/a
Source: Euromonitor International
Table 1 Off-trade Sales of Concentrates (RTD) by Category: Volume 2014-2019
million litres
2014 2015 2016 2017 2018 2019
Liquid Concentrates - - - - - -
Powder Concentrates 220.0 212.0 204.4 197.4 196.5 200.5
Concentrates 220.0 212.0 204.4 197.4 196.5 200.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2014-

2019
% volume growth
2018/19 2014-19 CAGR 2014/19 Total
Liquid Concentrates - - -
Powder Concentrates 2.0 -1.8 -8.9
Concentrates 2.0 -1.8 -8.9
Table 3 Off-trade Sales of Concentrates by Category: Value 2014-2019
PEN million
2014 2015 2016 2017 2018 2019
Concentrates 79.3 79.5 78.2 79.3 83.6 89.6
Table 4 Off-trade Sales of Concentrates by Category: % Value Growth 2014-2019
% current value growth

2018/19 2014-19 CAGR 2014/19 Total
Powder Concentrates 7.2 2.5 13.0
Concentrates 7.2 2.5 13.0
Table 5 Leading Flavours for Off-trade Liquid Concentrates: % Volume 2014-2019
2014 2015 2016 2017 2018 2019
Table 6 Leading Flavours for Off-trade Powder Concentrates: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
Grape 2.4 2.5 2.5 2.5 2.6 2.6

Orange 46.2 46.1 46.0 46.0 46.0 45.9
Other Flavours 14.5 14.5 14.4 14.4 14.4 14.3
Passion Fruit 6.2 6.2 6.3 6.4 6.5 6.6
Pear 4.6 4.5 4.5 4.4 4.4 4.3
Pineapple 12.0 12.1 12.1 12.2 12.2 12.2
Strawberry 14.1 14.1 14.1 14.0 14.0 14.0

Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 7 NBO Company Shares of Off-trade Concentrates (RTD): % Volume 2015-2019
% off-trade volume
Company 2015 2016 2017 2018 2019
Corporación Tres Montes 37.8 39.6 43.3 45.3 46.1

Perú SA
Alicorp SAA 36.9 35.5 35.2 35.0 35.9
Mondelez Perú SA 4.8 5.1 5.5 5.8 5.9
Productos Extragel 1.6 1.7 1.8 1.8 1.8
Universal SAC
Kraft Foods Perú SA - - - - -
Others 18.9 18.1 14.2 12.1 10.3
Total 100.0 100.0 100.0 100.0 100.0
Table 8 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2016-2019
% off-trade volume
Brand (GBO) Company (NBO) 2016 2017 2018 2019
Zuko (Grupo Nutresa Corporación Tres Montes 39.6 43.3 45.3 46.1
SA) Perú SA
Negrita Alicorp SAA 26.2 28.5 30.1 30.9
Clight (Mondelez Mondelez Perú SA 4.5 4.9 5.1 5.3
International Inc)
Kanú Alicorp SAA 4.6 4.8 4.9 4.9
Universal Productos Extragel 1.7 1.8 1.8 1.8
Universal SAC
Tang (Mondelez Mondelez Perú SA 0.6 0.7 0.7 0.7
International Inc)
Kiribá Alicorp SAA 2.4 1.1 - -
Yaps Alicorp SAA 2.3 0.9 - -
Zuko (Tresmontes Corporación Tres Montes - - - -
Lucchetti SA) Perú SA
Clight (Kraft Foods Kraft Foods Perú SA - - - -
Inc)
Clight (Mondelez Kraft Foods Perú SA - - - -
International Inc)
Tang (Kraft Foods Kraft Foods Perú SA - - - -
Inc)
Tang (Mondelez Kraft Foods Perú SA - - - -
International Inc)
Others Others 18.1 14.2 12.1 10.3
Total Total 100.0 100.0 100.0 100.0
Table 9 NBO Company Shares of Off-trade Concentrates: % Value 2015-2019
% off-trade value rsp

Company 2015 2016 2017 2018 2019
Alicorp SAA 56.5 54.8 53.0 52.4 52.6

Mondelez Perú SA 21.4 22.3 23.3 23.4 23.2
Perú SA
Universal SAC
Others 1.8 1.8 1.9 2.0 2.0
Total 100.0 100.0 100.0 100.0 100.0
Table 10 LBN Brand Shares of Off-trade Concentrates: % Value 2016-2019
% off-trade value rsp


International Inc)
SA) Perú SA
Kanú Alicorp SAA 14.5 14.4 14.4 14.2
Universal SAC
International Inc)
Inc)
International Inc)
Inc)
International Inc)
Others Others 1.8 1.9 2.0 2.0
Total Total 100.0 100.0 100.0 100.0
Table 11 NBO Company Shares of Off-trade Powder Concentrates (RTD): % Volume

2015-2019
% off-trade volume
Company 2015 2016 2017 2018 2019

Perú SA
Alicorp SAA 36.9 35.5 35.2 35.0 35.9
Mondelez Perú SA 4.8 5.1 5.5 5.8 5.9

Universal SAC
Others 18.9 18.1 14.2 12.1 10.3
Total 100.0 100.0 100.0 100.0 100.0
Table 12 LBN Brand Shares of Off-trade Powder Concentrates (RTD): % Volume 2016-
2019
% off-trade volume
SA) Perú SA
International Inc)
Kanú Alicorp SAA 4.6 4.8 4.9 4.9
Universal SAC
International Inc)
Inc)
International Inc)
Inc)
International Inc)
Others Others 18.1 14.2 12.1 10.3
Total Total 100.0 100.0 100.0 100.0
Table 13 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2019-

2024
million litres
2019 2020 2021 2022 2023 2024
Concentrates 200.5 203.9 207.0 209.7 212.1 214.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 14 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth

2019-2024
% volume growth
2019/20 2019-24 CAGR 2019/24 Total
trade sources
Table 15 Forecast Off-trade Sales of Concentrates by Category: Value 2019-2024
PEN million
2019 2020 2021 2022 2023 2024
Concentrates 89.6 93.8 98.0 102.3 106.6 110.8
trade sources
Table 16 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2019-

2024
% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total
trade sources

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Concentrates in Peru

LIST OF CONTENTS AND TABLES

Concentrates Offer Convenience and Economy for Lower-income

Concentrates Represent Convenient, Value-for-money Alternative To

Reduced Sugar Concentrates Start To Gain Traction

Alicorp Focuses on Negrita and Kanú Brands

Alicorp Extends Life Brand With New Flavours

Clight Leads Light Offerings, But Suffers As A Result of Alicorp’s

Summary 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format

Powder concentrates 1kg = 132 litres

Liquid concentrates n/a

Source: Euromonitor International

Table 1 Off-trade Sales of Concentrates (RTD) by Category: Volume 2014-2019

Table 2 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2014-

Table 3 Off-trade Sales of Concentrates by Category: Value 2014-2019

Table 4 Off-trade Sales of Concentrates by Category: % Value Growth 2014-2019

% current value growth

Table 5 Leading Flavours for Off-trade Liquid Concentrates: % Volume 2014-2019

2014 2015 2016 2017 2018 2019

Table 6 Leading Flavours for Off-trade Powder Concentrates: % Volume 2014-2019

Grape 2.4 2.5 2.5 2.5 2.6 2.6

Strawberry 14.1 14.1 14.1 14.0 14.0 14.0

Table 7 NBO Company Shares of Off-trade Concentrates (RTD): % Volume 2015-2019

Corporación Tres Montes 37.8 39.6 43.3 45.3 46.1

Table 8 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2016-2019

Table 9 NBO Company Shares of Off-trade Concentrates: % Value 2015-2019

% off-trade value rsp

Alicorp SAA 56.5 54.8 53.0 52.4 52.6

Table 10 LBN Brand Shares of Off-trade Concentrates: % Value 2016-2019

% off-trade value rsp

Negrita Alicorp SAA 35.5 36.8 38.0 38.4

Table 11 NBO Company Shares of Off-trade Powder Concentrates (RTD): % Volume

Corporación Tres Montes 37.8 39.6 43.3 45.3 46.1

Mondelez Perú SA 4.8 5.1 5.5 5.8 5.9

Table 13 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2019-

Table 14 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth

Table 15 Forecast Off-trade Sales of Concentrates by Category: Value 2019-2024

Table 16 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2019-

% constant value growth

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