Brand Footprint Latam 2022 - p
Find out what to expect in this special edition of Brand Footprint, as we analyse ten years of consumer choices.
The most chosen consumer brands
Find out what to expect in this
special edition as we analyse
ten years of consumer choices.
Lessons for success in Latam
Ten years ago, we launched our first edition of Brand Footprint and it’s safe to say that this has been a decade like no other for consumer brands. For Latin America it’s been a topsy turvy period with both good times and challenging times. In this special tenth edition, we identify some of the biggest changes to have occurred, whilst also unearthing important ways that brands can secure their future in this changing world and beyond.
From the outbreak of COVID-19 to digitalisation of shopper habits, there has been a lot of change for the FMCG industry landscape over the last 10 years. And with spiralling inflation, supply chain shortages and a war in Europe that is having global implications, challenges still abound.
Despite this, the biggest brands have remained resilient. For brands at both a local and global level, this is an opportunity to take stock, review the last decade and identify which learnings to take forward.
In this edition of Brand Footprint Latam, we’ll outline the biggest success stories of 2021 as well as highlighting the lessons and experiences acquired over the last 10 years of FMCG progress in our region.
We will release the report in two stages, with the next chapter going live on August 31st. Stay tuned for the full report!
You will discover the huge role that population growth has played in the industry, as the number of households has grown by 21% across our region. This amounts to an increase of 100 million households. While this creates new shoppers it also means that brands must work harder to maintain penetration.
Globally, the average household buys a portfolio of 55 FMCG brands per year. In Latam, this number is 18. The challenge in our region is to be part of that smaller but equally valuable basket.
How CRPs work
For those unfamiliar with this report, we use a unique metric: the Consumer Reach Point (CRP). This measure combines population, penetration, and consumer choice, meaning we’re able to see how many times shoppers have chosen any given brand.
From there, we can rank the most successful brands across markets, giving you a micro and macro view of brand success. All the global, regional, and local market rankings will be available on our dedicated microsite, giving you easy access to the data you need, and enabling you to review your performance across markets and against competitors.
This year, as much as every other year, I would like to thank our partners: Europanel, GfK, IRI, Intage and CTR. Their support makes this report possible and, vitally, it allows us to reach an unmatched depth and scale to make these findings truly stand out.
Brand Footprint is the undisputed guide to finding success in the FMCG market, uncovering key, actionable insights to power your strategy and drive brand growth. So, read on to find out who the top-performing brands are, and what they have done consistently to achieve successful growth.
The complete ranking comprises five FMCG sectors – Beverages, Food, Dairy, Health & Beauty, and Homecare – tracked by consumer purchase panels. Non-barcoded Fresh Food, Batteries and Pet Food are not included in the ranking. All data relates to purchases brought into the home to be used or consumed there.
The data period
The Brand Footprint ranking is based on data collected over the 52-week period between November 2020 to the end of October 2021.
Criteria of eligibility for a brand to appear in the regional ranking
Only regional brands are analysed to create the global Top 50 Ranking. To be considered as regional, a brand must be available in at least two countries within a continent.
Brand Footprint only covers consumer brands; retailers’ own-label brands are not included. Brands listed include all variants, categories and formats that sit within them – for instance Pantene includes all of its shampoo, conditioner, hair treatment, hairspray and hair oil products. Brands sold under different names in different countries are considered as individual brands – for instance Tide and Ace. However, for brands with a name that has been directly translated into a local language, for example Mr Muscle and Mr Músculo, both are counted as the same brand.
The Brand Footprint Latam 2022 report reaches 14 markets covering 80% of the region’s GDP.
in Latam 2021
We reveal the winning brands
in this environment of change.
With 10 of the Top 20 brands
experiencing growth, learn about
the ones that stood out most.
Meet the category winners
and discover their inspiring
stories of success.
The decisive moment for every shopper
There is a decision point in every FMCG purchase; a point at which the shopper decides to buy one brand over another.
The Brand Footprint ranking reveals which brands are winning at that moment of truth. CRPs measure a brand’s strength in terms of the number of times brands are chosen by shoppers.
In 2021 the major winners across Latam were Coca-Cola and Lux. With the former retaining its position as the No. 1 most chosen brand in the region and Lux recording the fastest growth in GRPs. However, among the top five only Coca-Cola and Pepsi grew CRPs in 2021.
While many of the brands in this ranking are global, there are also some local champions, notably Bimbo, which is particularly successful in Mexico and Central America. At No. 6 dairy brand Lala is another regional high-flyer.
Other local success stories in the top 25 include La Moderna, Sadia and Soya.
Lux was the big winner in 2021, boosting CRPs by 14% and moving up nine positions in the ranking. Brands can grow by reaching more consumers and/or increasing purchase frequency. With the exception of Downy and Sprite, all other brands have grown primarily by boosting frequency. In addition, Fanta, Guarana Antarctica and Nestlé have also reached more consumers.
The movers and shakers
within Latam’s FMCG categories
Levers for Growth
We demonstrated the vital role that growing penetration plays in achieving growth – both in the short and long term.
For each case study in this chapter, we have identified the combination of growth levers each brand has used. Here’s a quick reminder of the five levers.
Bimbo retains No. 1 spot
Bimbo retained its No. 1 spot in the food category with nearly 590(m) CRPs, significantly ahead of Maggi and Knorr at No. 2 and No. 3 respectively.
In a fairly static ranking for 2021, the only movement came from a couple of position swaps with Sadia moving above Hellmann’s to take the No. 5 position and snacks Cheetos rising above spice brand McCormick’s to become the new No. 8. Oat brand Quaker also moves into the top 10.
Pringles pops with success
Pringles has stormed up the rankings in 2021, gaining more than 30 positions, thanks to a 59% rise in CRPs built on a combination of frequency (14.4%) and penetration (up 2.6 points to 9.5%) gains.
A particular hotspot was Brazil, where it boosted investment in media to support a rebrand, new packaging and new flavours. This was combined with the opening of a new local factory, which enabled it to become more price competitive and attract more buyers. While still a premium product, it now indexes 340 against the category compared to 402 in 2019.
Coca-Cola stays on top
Much like the food sector, the beverages category has been relatively static at the top of the table. Coca-Cola is No. 1, with nearly six times as many CRPs as arch-rival Pepsi at No. 2.
What changes there are happened at the bottom of the Top 10 with Antarctica Guaraná overtaking Nescau to gain the No. 7 place and Sprite beating Brahma beer to the No. 9 spot.
Corona overcomes the virus
Corona faced potential disaster in 2020 as COVID-19 engulfed the world in a pandemic. While bars, pubs and restaurants were closed due to lockdowns, it was reported that consumers were busy Googling ‘beer virus’ and ‘corona beer virus’. The share price fell as investors panicked.
The real story, however, was very different. The strength of Corona beer’s non-viral associations – sun, sand, a slice of lime – allowed it to become so much more than just its name.
In Mexico, for example, a jump in grocery and liquor store sales had more than covered the 50% drop in restaurant sales.
Across Latam, in 2021 we saw a significant rise in CRPs – up 17.5% – thanks to a boost in both penetration and frequency, with the latter rising 8% year-on-year.
Heineken’s long-term success
Heineken has grown brand equity over the past decade to lead the beer category in Brazil, displacing local giants Skol, Brahma, Bohemia and Antarctica.
Heineken has used its status as an imported premium beer to win leadership in a category dominated by Anheuser-Busch InBev’s local brands by focusing on its premium malt ingredient. While ABI focused on pushing its own premium global brands Budweiser and Stella Artois,
Heineken made itself both different and desirable through an association with night-time bars, the brand’s rich green colour and aspirational lifestyle.
Brazil is now Heineken’s biggest market globally.
Home Care shake up
as Nova triumphs
Home Care has seen more movement than other categories with Clorox and Ala both climbing two positions to No. 3 and No. 4 respectively.
The big winner, however, was paper towel brand Nova, which boosted its CRPs by 27% and rose seven positions to No. 24. Nova has taken on rival Elite by targeting the C and D socioeconomic levels, which had previously seen paper towels as a luxury.
The result is that Nova has displaced the ubiquitous yellow cloth as a cleaning tool. It’s also gained as consumers gathered post pandemic to celebrate various holidays with family and friends at home, helping it reach all demographic groups.
Dove flies to No. 2 as Listerine cleans up
The success of Dove's Real Beauty campaign has helped drive overall category growth, as Dove rises three places. However, Colgate remains No. 1 in 2021. Natura and Oral B are also big winners.
Listerine was the fastest growing brand by CRPs in Health and Beauty, with a rise of 16%, moving up six places to take the No. 36 spot in the category.
Growth was driven by a combination of more buyers and more occasions. In Peru for example, Listerine has successfully reached more shoppers for the third consecutive year.
Lala top as Kraft
Local Latam champion Lala tops the category with 478 (m) CRPs, well ahead of rival Nido/Ninho in No. 2.It's been a year of no change in the Top 10, however Kraft nearly doubled (+92%) its CRPs to move up to No. 44 in the category, mostly thanks to a rise in frequency (up 14.3%).
In Chile, penetration has reached close to six in 10 homes (59.5%) in one of the brand’s most impressive performances in the region. Cream cheese, in particular, was key to driving more moments for consumers to reach for the brand in 2021.
of the decade
A roller-coaster ride for FMCG
A unique economic climate
We all know that Latam is not like the rest of the world. And when it comes to our economy, it is more varied and performance more fluctuating.
Inflation in 2021 was 4.3%, its highest level since 2011, although regional GDP has soared after a major dip due to COVID-19 in 2020. The expectation for 2022 is for economic deceleration , with the prospect that FMCG could be hit.
Each year of the decade has brought challenges, be they political, economic or social in countries across the region. The pandemic has also been an additional economic strain.
Such challenges mean the FMCG industry has seen periods of growth and periods of consolidation. When we track the sales of the Top 50 brands across our Latam markets, we see expansion in 2014 to 2016 coupled with decreases in 2019 to 2021.
Across the decade, sales value has declined 3% when indexed against 2012. This compares with the overall global performance of a 33% boost (worth $650 billion in additional sales).
A market transformed
A decade is a long time and the Latam of 2012 is very different to the Latam of today. For a start there are now more shoppers to target. The number of households has risen from 102m to 124m, a rise of 22m, regionally.
Overall, in Latam, brands were able to grow CRPs leading to a more competitive landscape. Add to this equation the number of regional and local brands, making it even harder to consistently remain on the ranking.
The number of brands being bought per household, however, has stayed pretty consistent. It has stayed at 18 in eight out of the 10 years. In 2014 and 2015, it hit 19.
Where do you find growth?
For individual brands, the growth story has changed from year to year.
In 2021, more than half the growth (52%) came from boosting penetration but the previous year, 47% had been down to frequency alone and 53% to a combination of both frequency and penetration. Penetration alone is rarely the major driver for brand growth, although it did hit similar heights as 2021 in 2014.
Penetration and frequency
When we analyze the performance of growing brands in our Top 50s for every market, we find that successful brands typically grow penetration by 1.1 points in a market every year. That means that our growing brands, which had a cumulative reach of 102 billion households in 2012, reached 124 billion in 2021.
Frequency averages also tell a story, one that is different for small and large brands (those with more than 30% penetration). Analysis of all the Top 50 brands we’ve been tracking found that frequency has dropped from 7.8 in 2012 to 6.5 in 2021 overall. That may not sound much but across Latam’s billion plus households it represents a huge opportunity.
The story is also more challenging for larger brands, which have declined from 6.8 in 2012 to 5.4 in 2021. The story is still one of decline for smaller brands, but frequency is higher – 8.8 in 2021 compared to 9.6 in 2012.
Room for growth
Some of the biggest brands in Latam have lost frequency – Coca-Cola is down from 32.4 to 25, Colgate has fallen from 8.5 to 7.1 and Bimbo has dropped from 22.4 to 14.7.
Some brands have bucked the trend, however. Oreo has boosted frequency from 2.7 to 2.9 since 2017, similarly Lux recorded 3.2 in 2021, up from 3.1 in 2017.
There are huge opportunities around both penetration and frequency. The average penetration among our top 50 brands in all 14 markets is 32%. And the truth is that while some brands are beating the average, many are not.
Lala scores 23 on frequency, for example, compared to a regional average for the top 50 of 6.5, but is much lower when it comes to penetration – scoring just 17.4, compared to an average of 36.3.
Only the region’s No. 1 brand – Coca Cola – beats the average for both by some distance. For all brands there is huge scope for growth.
Global x Latam :
Consistency in Different Circumstances equals growth
Global change happens differently in Latin America for brands as well. The timescale for consumer response and customer base expansion is different. One example is Dove. The brand has been one of the global success stories of the last decade, achieving constant growth. In Latin America, however, the growth of the brand has taken longer, accelerating mainly in the last few years.
10 years of continuous growth: a global and
Latam success story
Around the world Dove has recorded 10 years of growth by consistently finding more shoppers. Its ‘Real Beauty’ purpose and advertising stands out by creating an emotional bond and helping expansion into new categories.
That global success is echoed in Latam where it recorded its best-ever results with 67m shoppers, up 41%, and 55% penetration.
Dove continuously invests in innovation through new categories or new targets, such as male grooming. This helps it reach more shoppers in Latam, where it grew its CRP by attracting more buyers to its existing customer base.
It’s No. 13
in our Latam ranking.
from 10 years
Ten years is enough time for many
events to impact the consumer
environment. What challenges
and opportunities are brands
dealing with now?
the most chosen brands in 2021
Identifying the winners across
all 14 countries covered in Latam
Food for Thought
Explore our in-depth publications
and discover how we help brands grow.
Global Brand Footprint 2022
The Evolving Beauty consumer
Latam Consumer Insights
Latam Who Cares, Who Does?
Watch the webinar
The Most Chosen Latam FMCG Brands 2021 and Brand Success Stories
Watch the webinar
10 Years of Consumer Choices and Learnings