Post on 28-Jun-2020
Brazilian Soft Drinks Market, Opportunities in Juices and Nectars
June 11
Luciano Anavi Latin America Research Manager Canadean Limited luciano.anavi@canadean.com
The leading global beverage research company
Complete channel and segments analysis
Independent view, 35 years of experience
Industrial research, bottlers + allied industries + distributors
About Canadean
What’s the context and current status of the
juice & nectar category.
Future of the category. Opportunities and threats for
the short and medium term.
Content
Soft Drinks Consumption in Brazil 2010
400 cm3 of Soft Drinks per day per capita
53.3%
19.3%
19.8%
4.8% 1.7%
CSD, 50% of those non fruit flavoured
Water, 0% juice content
Non RTD, fruit flavoured
Fruit Based Drinks, less than 10% fruit content
Juice and Nectars
Soft Drinks Consumption in Brazil historical and
Forecast
Total Incremental Volume 10-15: 9.4 Blts
3.5% from J&N
3.5% from J&N
Total Incremental Volume 05-10: 6.4 Blts
70 222 432 600
1.462
3.461
Iced/RTD Tea Drinks
Squash/Syrups Energy Drinks Sports Drinks J&N Fruit Powders Still Drinks Packaged Water
Carbonates
284 327 624 846 1.621
5.382
Iced/RTD Tea Drinks
Sports Drinks Energy Drinks Squash/Syrups J&N Fruit Powders Still Drinks Packaged Water
Carbonates
J&N Performance and 2015 Scenario
1,6 1,8
2,0 2,2
2,4 2,6
2,8
3,1
3,4
3,7
4,0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Brazil J&N per capita consumption - LPC
TCCC /
Del Valle
Schincariol
launched
Fruthos
TCCC /
SucosMais
Brazil J&N Scenario
5,0
2,6
14,7
0,9
8,1
17,0
0,0
4,0
8,0
12,0
16,0
Argentina Brazil Chile Colombia Mexico Venezuela
Juice & Nectars Per Capita Consumption 10
Litre
s p
er
capita
Average
per capita
5.2 LPC
Latam
2.5 LPC
Packaged and branded consumption
J&N Distribution Channels
J&N All Other Soft Drinks
Away from
Home
Tradit.
Retail Modern
Retail Away from
Home
Tradit.
Retail Modern
Retail
16% 61% 23% 26% 47% 27%
Underdeveloped On Premise channel for the packaged / branded J&N
The Branded, Packed Market
Juice & Nectars Market
TCCC
Wow
58% of total
market
The Unbranded, Unpacked Market
Unbranded Consumption
X 5
Branded
Consumption
Traditional
formats
21 15 16
$ / litre
Mexico – Case Example
Premium
launch
Low price
still drink
R$ / litre
Brazil – Case Example
3 5
Mainstream
Soy
based
4
Low fruit
content
Kapo by
Del Valle
$ / litre
Argentina – Case Example
1
4 5 8 Diluted
format
Added
value
Traditional
format Cepita by
Cipolleti
License – In / Outs
Flavoured
water
extension
R$ / litre
Brazil – Su Fresh
3 5 4
Soy based
Superpremium
Coconut water
Premium
Light
Mainstream
J&N Segments in Brazil
2.30 $/lt Ambient: 96%
Chilled: 4%
Orange: 27%
Peach: 15%
Passion fruit.:12%
Grape: 12%
2.6 LPC
NFC: 1%
FC: 99%
Grape Juice in the World and in Brazil
Grape Flavour Soft Drinks per Capita and Volume Top 10
countries
6,2
5,0 4,9 4,3
2,2 2,0 1,8 1,7 1,5 1,4
Czech Republic
Slovak Republic
Brazil Mexico Japan Hungary United States of America
Colombia Latvia Romania
Grape Juice Per Capita Top 10 countries
972
555 468
327 317 312 277 202 82 82
Grape Juice consumption in MM Litres Top 10 countries/regions
Top Five Grape Flavour Soft Drinks brands
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
100
30
70
100 99
1
100
Fanta Welch`s Kangshifu Uni-President Tang
Brands by Category %
Carbonates Juice Still Drinks Nectars Fruit Powders
Grape Soft Drinks Brand by Country: Fanta
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
China 2%
Japan 44%
Romania
5%
Brazil 48%
Chile 1%
Fanta
Grape Soft Drinks Brand by Country: Welch’s
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
China 1%
Japan 1% Mexico
0%
United States
of America
98%
Welch’s
Grape Soft Drinks Brand by Country: Kangshifu
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
China 100%
Kangshifu
Grape Soft Drinks Brand by Country: Uni-President
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
China 100%
Uni-President
Grape Soft Drinks Brand by Country: Tang
515
324 316
200 198
Fanta Welch`s Kangshifu Uni-President Tang
Top 5 Grape Brands in the World, all Soft Drinks in MM L
China 1% Brazil
18%
Chile 0%
Mexico 70%
United States
of America
0% Philippi
nes 11%
Tang
Soft Drinks Grape Flavour Categories in Brazil
2010
66%
17%
7%
6%
1,7%
Carbonates Fruit Powders Squash/Syrups Still Drinks Nectars Sports Drinks Iced/RTD Tea Drinks Juice Energy Drinks
32%
26%
26%
10%
6%
0%
Soft Drinks Mix 2010 all Flavours Soft Drinks Mix 2010 Grape Flavour
Analyzing Soft Drinks Attributes
refresh functional
indulgence
wellbeing
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional
indulgence
wellbeing
Market volume
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD
energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional
indulgence
wellbeing
Consumption occasions
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD
energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional
indulgence
wellbeing
1.800
1.200
Fruit juice utilization
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD
energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional
indulgence
wellbeing
Retail price
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD
energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional
wellbeing
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
refresh functional in
du
lgen
ce
wel
lbei
ng
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
Amplify fruits’ functionality vs. soy and dairy drinks
Better informed consumers
Next step:: liquid food
Value Added Segments
refresh functional
wellbeing
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
Juice brands as an umbrella
refresh functional
ind
ulg
ence
w
ellb
ein
g
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
Broaden consumption occasions and juice content Case example: Aguas Frescas vs Flavored Waters
refresh functional
wellbeing
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
refresh
functional
ind
ulg
ence
w
ellb
ein
g
energy drinks iced coffee
juice and nectars soy based dairy based
packaged water flavoured water
sports drinks tea based
Juice content as a product differentiation
refresh functional
wellbeing
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD energy drinks iced coffee
juice and nectars soy based dairy based
Juice meets energy
refresh functional
ind
ulg
ence
wel
lbei
ng
juice and nectars soy based dairy based
packaged water flavoured water
sports drinks tea based
carbonates fruit based
non RTD
Conclusions – Summing Up
Low packaged J&N consumption
Immature traditional retail and on premise channels
Juice brands as an umbrella
Value Added Segments
Obrigado
Luciano Anavi Latin America Research Manager Canadean Limited T +54-11-4314-1043 M +549-11-6219-5966 luciano.anavi@canadean.com