Symbol of class C, yogurt loses space in shopping basket

The stretching of the economic crisis in the country has led consumers to cut consumption of yogurt-product considered a symbol of the rising purchasing power of the population. According to the consulting firm Kantar Worldpanel: consumer, the yogurt market shrank 5.7% in sales volume last year and continues at the same pace this year.
The categories and Greek yogurt drink (to drink) are exceptions, with growth of 3.7% and 2.7%, respectively. In the segment of high value-added, consumption of light lines retreated 14.8% in 2015. The versions with fruit pulp also presented fall of 15.5%. Functional labels have suffered greater reduction: of 21.2%.
"Before consumers still kept the consumption of premium products. Now cut these lines. In General, the Brazilians begin to give up their achievements of consumption ", said Christine Parker, Director of Kantar, adding that this also happens in other product categories.
The French Danone-owner of the brands Activia, Danone and Paulista-leads the Brazilian market of yoghurts, with 37.3% share, according to Euromonitor International.
In the first quarter of this year, Danone reported on its balance sheet to its performance in Brazil was hampered by the rapid devaluation of the real against the euro and the environment of instability in the country. The company also stated that, despite the negative result in yogurts, there was double-digit growth in sales in the area of nutrition for babies and medical nutrition segment. Overall, sales fell 3 percent from January to March, for € 5.3 billion.
The fact that Danone had bought yesterday the American WhiteWave Foods, which manufactures organic food and drinks, shows that the French giant is betting on a new sector to grow back. (See story on page B8)
In Brazil, the companies try to adapt to the new time, reinforcing lines still advance, like Greek yogurt, and putting on the market economic packaging.
For Lactalis Group, owner of the Batavo brand and a 5.1 percent market share, has launched a larger version, from 500 grams to your Greek yogurt. "With a more economical package, the company offers the possibility of consuming the Greek yogurt with best cost benefit in relation to individual packages [of 120 grams]," said William Paul, Director of institutional relations for Lactalis Group from Brazil.
In the first half, for Lactalis has also released "family size" packaging for its yogurt liquids and light. In the second half, the company reshapes the petit suisse. The company does not disclose data about its performance in Brazil. Portella said only that the national market of yoghurts has been shown to be "challenging, but the positive performance in some categories, like Greek yoghurt and milk desserts, has helped to balance the performance".
The force of the JBS group, also bet on the Greek yogurt and increase the distribution of its products to grow in the country. Anne Napoli, marketing director of the Force, said sales of the company grew by 5.3% in the period from January to may, while the market as a whole shrank 5 percent in the same interval. The Force is the sixth largest brand in the industry, with 1.6% stake.
"It''s a combination of factors. The company expands sales in several regions, before played very concentrated in Sao Paulo. Another point is the innovation with the introduction of Greek yogurt, infant products and economic packaging that helps in the composition of growth, "said Anne.
Two weeks ago, the Force opened a factory in Barra do Piraí (RJ), fruit R$ 130,000,000 investment, for production of long-life milk, yogurts and items for restaurant chains. The unit will meet Rio de Janeiro, Minas Gerais and Espírito Santo. Anne said that the Force intends to put new lines of products in retail this semester.
Nestlé, runner-up in the yogurt market, with 20.8% stake, reported that invested in new releases, with rows of yogurts dairy for children and adult, Greek yogurt in light versions and a petit suisse of flavored milk. Owner of brands such as Chamyto, Molico and Nest, Nestlé reported that follows with growth in sales of the main categories of the market, but did not mention numbers. The company also noted that the focus of the advertising will be on the lines of Greek yogurt.
Despite the reduction in sales volume, the Brazilian market of yogurt still registered revenue increase last year. According to data from Euromonitor International, high in value was 7.8% in 2015, totaling R$ 14.64 billion. For the period 2015 to 2020, Euromonitor estimates that this market will grow, on average, 4.2% a year in revenue, nearing the end of the period to R$ 17.95 billion.
The difficult scenario does not have prevented companies from other segments to invest in this market. Coca-Cola announced the purchase in December, the manufacturer of Green dairy field. In the same month, General Mills acquired the Yogurt Maker paranaense Carolina.