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.
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.
Buen Día, Ecuador In 2019, Buen Día 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.
Antonio Novoa, Head of Distribution and Brand Equity, Buen Día
What was the key to driving growth? We positioned Buen Día 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 Buen Día’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.
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.
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.
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.
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.
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 less purchase 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.
