GDP and FMCG remained flat in 2019, with strong declines in Chile and Argentina—the countries impacted most by protests and political uncertainty in the last three months of the year.
Colombia, Bolivia and Central America also saw poor growth, stemming the strong growth from the two biggest economies in the region – Brazil and Mexico – which saw +6.5% and +4.1% growth respectively.
Although still early, the acceleration of e-commerce is now confirmed, whilst the ‘Cash & Carry’ and ‘Drug & Pharma’ channels carried on growing at double-digit rates. It is important not to overlook hypermarkets, which are regaining importance to shoppers and, furthermore, allowing manufacturers to give visibility to innovations.
Oral B, Brazil Oral B, the oral care giant from P&G, saw a strong 2019 performance and is now part of the top 10 most chosen Beauty & Personal care brands in Brazil. The brand grew its CRPs by 18% and added 4.1% penetration points—more than 2.2 million new buyers, to reach 58.4% penetration.
The brand developed a broader portfolio, launching new products and also focusing on its lower priced smaller SKUs. It also increased its presence in the media through TV campaigns and the creation of a Facebook page dedicated to specialists and partnerships with digital influencers such as the YouTube channel “Manual do Mundo”.
The brand also ran “Take More, Pay Less” and “Try it Free” promotions, the latter encouraging trial with a money back guarantee.
Aurora, Brazil Aurora, a Brazilian food brand, is one of the TOP 50 most chosen brands among Fast-moving consumer goods (FMCG). Chosen 139 million times in 2019 (+13% versus 2018), in the last year alone it gained 4% penetration, more than 2.2 MM new buyers.
It launched five products to increase its portfolio and opened the largest pig abattoir in Brazil, doubling its productive capacity in the segment.
It also continued as a sponsor of the Chapecoense team, invested in volunteer work and created the #ASomadeTodosNós campaign to celebrate the brand's 50th anniversary. In addition, the brand ran Christmas campaigns and promotions, such as offering a thermal bag (with the purchase of certain items).
The participation of Brand Ambassador, Guga Kuerten, considered the greatest tennis player in the history of Brazil and one of the best in the world, increased the brand’s popularity.
Pepsi, Mexico Pepsi is now the seventh most chosen FMCG brand in Mexico—up from ninth in 2018. It did this by gaining 0.4 penetration points and increasing trips per household by 2.4—equating to a growth of 29 million CRPs in the latest year.
This growth through more shopping trips per household is contrary to what is happening within the category. Despite the popularity of Carbonated Soft Drinks and cola in Mexico, frequency of purchase has been falling in recent years. However, Pepsi is the only brand which has seen real growth over the last three years.
Pepsi’s growth has been achieved through its original flavour variant, the traditional trade channel and multi-serve formats.
To drive frequency, the brand used “fun times together” and “family meals” messaging in order to associate the brand with food and socialising.
123, Mexico Brand 123 grew CRPs by 24% and managed to rise +3 places in the Home Care ranking. It also gained 9.3% more shoppers in the latest year. The key actions the brand took were:
1- Reached more buyers by gaining more space in Bodega Aurrera and the Traditional Trade, which helped to reach other SELs and shoppers
2- In May 2019, they launched “Aloe Vera” and reached 6.0 penetration points
3- Its strategy focusses on their products’ “value-for-money”, by showing the yield on the package
4- For being “multipurpose”, it competes against other brands and reaches new shoppers
Buendía, Ecuador In 2019, Buendía instant coffee grew 74% in term of CRPs—gaining 6% penetration points and adding 156k new shoppers to the brand. It is now the 15th most chosen brand in Ecuador.
Brand leaders speak: Antonio Novoa, Head of Distribution and Brand Equity, Buendía
What was the key to driving growth? We positioned Buendía in Mom-and-Pop shops with our 10g aluminium SKU. This product appeals to shoppers who want a premium, great tasting coffee that’s affordable—at the magic price of $0.50USD. We’ve seen the purchase frequency of this 10g bag rise from three times a year in 2018, to a whopping seven times a year in 2019. It’s a reflection of our shift in strategy to position the 10g as our main SKU.
Where did the brand see the most growth? Small Mom-and-Pops stores accounted for five of the 6% penetration growth. Some of our rivals, such as Sí Café and Press2, have experienced decreases due to Buendía’s strong performance. Constant activity in smaller cities on the coast and in the highlands – coupled with our cross-category push into Mom and Pops – has been the key to our success.
Alejandrino Moncayo Alvarado, Founder of Lacteos San Antonio
Nutrileche, Ecuador In 2019, Nutri Leche grew 13% in terms of CRPs — reducing the brand’s purchase frequency by one day. It now holds the 4th position in the BFP ranking, going up one place amongst the most successful Ecuadorian brands.
What was the key measure to experience growth? Nutri Leche Milk is Lacteos San Antonio’s brand with more than 40 years’ market experience. It is characterized for being a leading company, generating employment for small producers and producing raw materials in various places of Ecuador. Its continuous innovation and infrastructure guarantee the quality of its milk products. Aspirational emotions and great flavour make the winning match. In 2019, the brand focused its strategy on the Traditional Channel with a 1-litre milk bag to position the brand as affordable, making it a successful year.
Where did the Brand experience the most growth? Nutri Leche represents 55 thousand new homes, which were conquered with the strategy of focusing on the Traditional Channel and distributing an affordable SKU. This increased purchase frequency, reducing brand purchase by one day and encouraging more experiences while drinking milk. A very specific and clear strategy, that made the brand climb one position in the total ranking.
Vivo, Chile Vivo is an important brand for Carozzi—one of the largest Chilean manufacturers. It plays in over 14 categories, with powdered juices being its core.
Promoting healthier lifestyles, Vivo continues to grow and is now present in 80% of Chilean households. It has continued innovating in 2019, mainly through launches in oats and jams—which added 440,000 new shoppers.
The brand is positioned to mainly attract higher income households, but its development in oats and jams categories helped attract a wider spectrum of shoppers.
Ina, Central America INA is a brand of pasta recognised for its quality and variety. It operates in El Salvador, Honduras and Nicaragua, and is the leader in Guatemala. Ina won more than 100,000 buyers, which is 3% penetration points more than the previous year.
Manufacturer Molinos Modernos (a division of Corporación Multi Inversiones) is dedicated to the production and marketing of cereal products in Central America and the Dominican Republic.
Growth has come through the "INA with Guate flavour“ campaign, encouraging the use of pasta in local dishes that are usually accompanied with rice.
Gama, Central America Gama has intensified their communication to promote more moments of consumption for their cookies. They launched the campaign “Como se te dé la GAMA”, meaning “As you want it (with GAMA)”, adding 411K new shoppers (+10%) and +18% CRP growth. Along with price strategies, the brand won new buyers.
Nosotras, Bolivia Nosotras grew its CRPs by 13%, with more than 60% market share in the Femcare category. It gained 3.8% penetration points—remarkable
considering it already had over 70% penetration. Known for its feminine pads, growth has also come from daily protectors, feminine wipes and intimate soap. Nosotras remains close to its users across social networks and has a detailed website with a help centre for gynaecologists and psychologists. The brand has benefits from the quality of its product and its diverse portfolio through constant innovation.
Pura Vida, Bolivia In 2019, the brand consolidated its leadership in the juice category. Although Pura Vida is found in categories such as yogurt, milk and water, it is juices that generate growth.
Its growth lever would be to become a healthy alternative to soft drinks or flavoured juices. The brand also has a diversified portfolio of flavours, including local fruits such as “tumbo”. Innovations: the brand launched its Tetra Pak® format in 2019, in addition to its version without added sugar. We will see if 2020 will have an impact, with the continual innovation of the brand’s portfolio. In 2020, it has launched Pura Vida Agua Frutss, entering the flavoured water category.
Ramo, Colombia Ramo is a traditional Colombian brand in Cakes, Snacks & Cookies. Despite being one of the best-known brands in Colombia, it was losing shoppers to new value and private label brands.
To combat this, Ramo focussed on new product launches in 2019—with more than 60 new SKUs and entering new segments such as Potato Chips, Cake with Filling (‘Cohete’), plus a range of healthier products. This helped Ramo win more than 322k incremental buyers. Alongside this innovation, the brand gained additional distribution through more affordable pack sizes.
3D, Colombia Colombia is the country where discounters have grown the most in the past few years (worldwide); in 2019, they represented 20% of the shopper spending on FMCG. In this context, Home Care manufacturers have been struggling for shoppers (Discounters overdeveloped in Home Care). Unilever made a big decision for the laundry category and tried to grow through innovation.
3D can be considered one of the most successful launches in Colombia, and even in LATAM: it has reached 43pp in Colombia in its first 12 months, and right now, in 2020, is the top penetration brand in laundry (powder only).
In 2020 (MAT February), 1 in 2 Colombian shoppers bought it, which was the key for UL’s growth in a complex and volatile environment.
It gained: 1- More presence due to its high distribution in Traditional Trade 2- More targets due to its focus on BOP in communication, affordability and distribution.
3- More moments due to its multi-benefit platform (3D stands for 3 benefits: degreasing, stain removal & deep cleaning) 4- More targets due to its consumer language communication by region
San Fernando, Peru Peruvian meat brand San Fernando has been present for over 70 years. In 2019, it was chosen 62 million times by urban Peruvian households—the 13th most chosen FMCG brand in Peru.
It gained 1.7% penetration points, reaching 84.4% of households—an impressive feat given only two other brands in the top 20 saw an increase in shoppers.
The product line where San Fernando gained the most was sausages. It focussed on the traditional channel, gaining traction with middle income households, whilst also growing in modern trade through higher income households.
The brand continued to be the market leader in most categories in which it participates and consolidated this position in 2019.
Marcella, Peru Marsella is a local Home Care brand. In 2019, it was chosen 55 million times by Peruvian households, gaining 1.6% penetration points and adding 80k new homes to the brand. Marsella is currently the 20th most chosen FMCG brand in Peru.
The brand developed a broader portfolio, entering a new category (dishwashing); however, detergents is the product line where Marsella is the most important. It focused on the traditional trade, gaining space with middle-income households.
flexibility and fundamentals
2019 was another year of decline in FMCG for Argentina (-6% vs. 2018) where high inflation rates have eroded consumers purchasing power and real income for at least three years in a row. In this scenario, it is local brands in basic categories that have found white space to thrive.
That is the case of Arcor (Masterbrand), which now ranks as the fourth most chosen FMCG brand, as well as Ilolay which has reached new households and increased penetration. In this same trend, La Serenísima, a traditional local dairy brand, continues to lead the market and now reaches 84.1% of households.
Consumers have constantly shifted channel, brand and category mixes, getting the most out of their eroding disposable income in fewer shopping trips.
Local brands have found the flexibility and speed to adapt their portfolio and pricing strategies to continue to connect with consumers. Using different channels to attract different shoppers – traditional and proximity trade for the less well-off, convenience and modern trade for those with more income – has led to success.
