Coconut water and tea ready to drink win space

While the soft drink market shrinks in the country, following the world trend of replacing the drink for healthier options, the categories of tea and coconut water gain space. Euromonitor International consultancy data indicated that in 2015, the coconut water sales grew 11.1 percent in the country in volume, to 171 million liters. Sales of teas ready increased 8.2% to 189.5 million liters. Already the volume of soda sold shrank 5.9 percent, totaling 14.9 billion liters.
Together, tea and coconut water had an increase of 94 million pounds in sales in the country. This volume does not reach 10% of the total sales lost by category of soft drinks, which was 968 million litres in 2015. For manufacturers, the market offers opportunities for expansion, mainly in packaging products little calorific or economic individual consumption.
Coca-Cola Femsa, the largest competitor in teas ready, with 47.4% stake, saw Lion brand''s sales grow 22% last year. Dorian War Cross, Director of marketing for Coca-Cola Femsa, said he hopes to this year an increase of approximately 20%. "The category of teas is booming. The innovations associated with the guarantee of quality and a century-old brand are large differentials for the company, "said war.
Coca-Cola Femsa works with 25 options of teas ready, between mate, black tea and green tea, regular versions, low calorie diet, and packaging glass, pet of 300 ml and 1.5 litre pet. The company recently strengthened the Lion Fuze line, blending green tea and fruit. Guerra said that green tea has gained more importance in the country in recent years, which led the company to strengthen the supply lines with this tea.
Nestlé is the runner-up in the tea market ready, Nestea brand, which accounts for 22.7% of sales in the country. Sought, the company reported that it had no spokesperson to talk about sales.
Third placed with 14.4% stake, the Wow Nutrition, owner of the brand Feel Good, was also favored by the expansion of green tea consumption. "A few years ago, there was the paradigm of that green tea was for sophisticated consumers. Now if you notice an increase in consumption in classes B and C, "said Ricardo Machado, Vice President of operations for Wow.
According to the Executive, sales of the brand Feel Good grew in line with the market in 2015. For this year, predicting a growth of the order of 8%. "The macroeconomic scenario is quite complicated, the expectation of slowing sales due to this," added Machado. The Executive also said the company has strengthened the lines of teas in cans and box for individual consumption, which has grown more in sales than the bottles for family consumption.
The search for healthier products increases primarily among young consumers (from 21 to 34 years). Lucas Bellacosa, market analyst from Nielsen, noted that categories considered superfluous (coconut, cappuccino, makeup, among other growing 9.1 percent annually but, for this generation, the increase is of 12.1%. "For this group, these items are essential products," said the analyst.
Pepsico, which owns the brand Coco-category-leading Kero with 51.3 percent of the market-and the Lipton tea brand, ready more sold on country, reported that sales of tea and coconut water grew by double digits in 2015. For 2016, the prospect is for growth in sales, even with the deepening economic crisis. The company, however, does not disclose the projection for the year.
The Ebba, owner of trademark teas Maguary and pure coconut water coconut, reported that has reinforced the two product lines, leveraging the heated demand. Without citing numbers, Fábio Levalessi, commercial Director of Ebba, says his sales of teas grew 20% in 2015 and the coconut water has grown over 10%. The company gave no projection to 2016.
The Food Ducoco, second in the market of coconut water with 15.6% stake, reported that sales rose 20% in 2015, with the majority of sales concentrated in 1 litre cartons, sold in supermarkets. Flavio Fernandes, Director-General of Ducoco, said that the company works in this year to broaden the distribution in cafeterias, restaurants and other establishments, where the sale of packages of 200 ml and 330 ml is stronger.
"Consumers are looking for healthier beverage option. Surely the young audience pulls this demand. But the elderly audience also has increased the consumption of coconut water, even for medical advice, "said Fernandes. He said the company is working to double its production until 2020, attaining market leadership. Last year, Ducoco received a sum of 85 million R$ BRZ Investimentos. The resource has been invested in the farms and factories of the group.
The Sococo is the third-largest competitor in the category, with 12.8% market share. The company did not answer the request for an interview.
The Euromonitor estimates that the market for coconut water will grow, on average, 9.2% annually in volume until 2020, reaching 65.5 million liters. In value, the estimated growth is 10.7 percent a year, rising from 2.04 billion in 2015 for R$ R$ 3.39 billion in 2020. For the market of teas ready, Euromonitor projects average growth of 6.2% per year, reaching 255.8 million liters. In revenue, the estimated growth is 7.5% per year from 2015 to 424.6 million in R$ R$ 1.32 billion until 2020.