Table of Contents
Alcoholic Drinks in Colombia - Industry Overview
EXECUTIVE SUMMARY
Recovery in volume sales
Introduction of diverse bottle and pack sizes
Local companies perform well
The off-trade channel accounts for the larger share of volume
Volume sales to see faster growth in the forecast period
KEY TRENDS AND DEVELOPMENTS
Measures to fight smuggling of alcoholic drinks
Women gaining importance as consumers of alcoholic drinks
Diverse packaging formats to attract consumers
Key new product launches
Summary 1 Key New Product Developments 2010-2011
Specialist retailers
Market merger and acquisition activity
MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2006-2010
TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011
Table 5 Selling Margin of a Typical Wine Brand 2011
Table 6 Selling Margin of a Typical Spirits Brand 2011
OPERATING ENVIRONMENT
Contraband/parallel trade
Duty-free
Cross-border/private imports
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016
DEFINITIONS
Published data comparisons
Summary 2 Research Sources
Alcoholic Drinks in Colombia - Company Profiles
Bavaria SA in Alcoholic Drinks (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 5 Bavaria SA: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 6 Bavaria SA: Competitive Position 2011
Empresa de Licores de Cundinamarca SA in Alcoholic Drinks (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Empresa de Licores de Cundinamarca SA: Competitive Position 2011
Fábrica de Licores y Alcoholes de Antioquia in Alcoholic Drinks (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Fábrica de Licores y Alcoholes de Antioquia: Competitive Position 2011
Industria Licorera de Caldas in Alcoholic Drinks (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Industria Licorera de Caldas: Competitive Position 2011
Vinos de la Corte SA in Alcoholic Drinks (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Vinos de la Corte SA: Competitive Position 2011
Beer in Colombia - Category Analysis
HEADLINES
TRENDS
Craft beers are not a significant portion of the market, but are gaining importance in the main Colombian cities, like Bogotá, Medellín and Tunja. Some brands that began with exclusive distribution through pubs are increasing their presence in large retailers, where products from Colón, Apóstol and Bogotá Beer Company can be found. Colón has developed a strategy of putting branded fridges in supermarkets and convenience stores, which gives high visibility to the company. Industry sources indicate that the segment of craft beers is expanding rapidly in the country, with growth rates estimated at between 7% and 10% per year.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Beer continues to be dominated by Bavaria SA, which saw an increase of 5% in volume sales in 2011. Improvements in weather conditions, stability in prices, and new products backed by strong advertising campaigns contributed to the increase in sales compared with the performance of 2010.
PROSPECTS
Off-trade volume sales are predicted to record a CAGR of 6% during the 2011-2016 period, and constant value sales will see an average annual rate of 7%. The bullish forecasts are based on the positive projections for Colombian GDP, which is predicted to grow by between 4% and 5% over the forecast period, as well as the “democratisation” of beer through policies of affordable prices and a strategy oriented to promote frequent consumption. Also, the increasing presence of craft beers at retailers could contribute to dynamism in the market. The further introduction of multipacks and diverse bottle sizes aimed to encourage frequent consumption and strengthen consumption at home will contribute to moderate increases. However, there is always the risk that a prolonged rainy season in any given year might have a negative impact over sales.
CATEGORY BACKGROUND
Lager price band methodology
Summary 19 Lager by Price Band 2011
Table 23 Number of Breweries 2006-2011
CATEGORY DATA
Table 24 Sales of Beer by Category: Total Volume 2006-2011
Table 25 Sales of Beer by Category: Total Value 2006-2011
Table 26 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 27 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 32 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 34 Beer Imports by Country of Origin: Total Value 2005-2010
Table 35 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 36 Beer Exports by Country of Destination: Total Value 2005-2010
Table 37 Company Shares of Beer by National Brand Owner 2007-2011
Table 38 Company Shares of Beer by Global Brand Owner 2007-2011
Table 39 Brand Shares of Beer 2008-2011
Table 40 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 41 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 43 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016
Cider/Perry in Colombia - Category Analysis
HEADLINES
TRENDS
Consumption of cider in the country is very limited and is seeing increasing competition from wine, mostly imported, where the offer of affordable brands is widening. Wine is attracting more and more middle-income consumers, who are increasing their consumption beyond special occasions, hampering sales of cider. As a result, volume sales of cider recorded a slightly slower growth rate during 2011 than the review period average.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Foreign brands dominate cider/perry, led by the Spanish brand Sidra El Gaitero, with 70% of volume sales in 2011.
PROSPECTS
Retail volume sales of cider are predicted to see only see marginal growth during the 2011-2016 period, with an average annual volume growth rate below 1%, thus cider/perry will remain a small niche in the alcoholic drinks market. Strong competition from wine and wine-based RTD’s will constrain further expansion of cider in the country.
CATEGORY DATA
Table 44 Sales of Cider/Perry: Total Volume 2006-2011
Table 45 Sales of Cider/Perry: Total Value 2006-2011
Table 46 Sales of Cider/Perry: % Total Volume Growth 2006-2011
Table 47 Sales of Cider/Perry: % Total Value Growth 2006-2011
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Volume 2006-2011
Table 49 On-trade vs Off-trade Sales of Cider/Perry: Value 2006-2011
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2006-2011
Table 51 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2006-2011
Table 52 Company Shares of Cider/Perry by National Brand Owner 2007-2011
Table 53 Company Shares of Cider/Perry by Global Brand Owner 2007-2011
Table 54 Brand Shares of Cider/Perry 2008-2011
Table 55 Forecast Sales of Cider/Perry: Total Volume 2011-2016
Table 56 Forecast Sales of Cider/Perry: Total Value 2011-2016
Table 57 Forecast Sales of Cider/Perry: % Total Volume Growth 2011-2016
Table 58 Forecast Sales of Cider/Perry: % Total Value Growth 2011-2016
RTDs/High-Strength Premixes in Colombia - Category Analysis
HEADLINES
TRENDS
Between 2007 and 2010, spirits-based and wine-based RTDs exhibited a declining trend, but in 2011 these categories returned to growth, with more brands and presentations available on retailers’ shelves. In wine-based products, besides the traditional sangria, brands like Arbor Mist, Boones, Suá and Frenesí emerged, attracting mainly female drinkers. In spirits-based RTDs, besides the traditional personal presentations, local companies are introducing PET bottles of 1.7 litres. An example is Freepops, from Vinos de la Corte SA, the affordable prices of which have made it a popular option for drinking when meeting with friends, particularly among the younger people.
COMPETITIVE LANDSCAPE
Cola y Pola, from Bavaria SA, continues to lead sales of RTD’s/high-strength premixes, with a 74% share of total volume sales in 2011. The brand has been working to strengthen its position by increasing advertising campaigns that encourage consumption with typical Colombian dishes, and has also been undertaking activities like the Paseo Dominguero (a company sponsored festival with music, food and drinks) in different cities to increase the visibility of the brand among the population in the low and middle income segments. Among imported products, the spirits-based RTD Smirnoff Ice leads the category, with a 72% share of spirits-based RTD sales in 2011. Volume sales increased by 2% in 2011, due to the renewed interest of young people in these products.
PROSPECTS
In 2011, RTDs/high-strength premixes showed more activity than in the recent past, with an increasing presence of new RTDs, mainly imported. However, it is not expected that this, one of the smallest categories within alcoholic drinks, will post rapid growth rates during the forecast period. It is predicted that off-trade volume sales will grow at a CAGR of 2%, slower when compared to the review period, as there is no reason to expect a significant change in consumer habits in the upcoming years, as RTD sales depend largely on fads. Malt-based RTDs will continue leading growth over the forecast period.
CATEGORY DATA
Table 59 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 60 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 61 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 62 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 66 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 67 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 68 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 69 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 70 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 71 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 72 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 73 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016
Spirits in Colombia - Category Analysis
HEADLINES
TRENDS
Colombian licoreras have been working towards the development of high quality products, in order to compete with imported spirits. As part of the strategy to gain recognition, companies have been participating in international contests like Monde Selection, where they have won awards. In 2011, Fábrica de Licores y Alcoholes de Antioquia received the Grand Gold Quality award for its Ron Medellín Extra Añejo 8 years and Gran Reserva 12 years. The Gold Quality award was gained by Ron Medellín Añejo 3 years, Aguardiente Real 1493, Aguardiente Antioqueño Sin Azúcar y Tradicional and Vodka Montesskaya, among others. Empresa de Licores de Cundinamarca obtained the Gold Quality award for Aguardiente Nectar Rojo, Aguardiente Nectar Azul sin Azúcar, Aguardiente 180°, Ron Añejo Santa Fe 4 years and Ron Santa Fe 8 years Exclusive Reserve. These awards affect the categories in a positive way since they encourage producers to maintain and improve quality standards, as well as to innovate to cater to the tastes of consumers who are looking for more sophisticated products.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Three state licoreras are the leading companies within the spirits category. Ranked in first place, with 53% of total volume, is Fábrica de Licores y Alcoholes de Antioquia, followed by Empresa de Licores de Cundinamarca SA with 16% and by Industria Licorera de Caldas with 12%. Fábrica de Licores y Alcoholes de Antioquia showed the strongest performance, growing by 34% in volume sales, supported by advertising campaigns all over the country on billboards, as well as a presence at diverse events and fairs, like the traditional Feria de las Flores in Medellín, Colombiamoda and different concerts aimed to strengthen the positioning of its brands in the standard and premium segments.
PROSPECTS
The forecast period will witness faster rates both in volume and in constant value compared to the period 2006-2011, with CAGRs of 7% in both volume and value, versus the 3% rate in volume and 2% in value recorded in the review period. Growth will be supported by the positive outlook for the economy, which is predicted to post annual GDP growth rates of between 4% and 5% during the 2011-2016 period, and alcoholic drinks consumption is directly linked with economic performance. Also, the positive scenario for aguardiente, which accounts for 75% of volume sales of spirits, will drive sales.
CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky Price band methodology
Summary 20 Benchmark Brands 2011
CATEGORY DATA
Table 74 Sales of Spirits by Category: Total Volume 2006-2011
Table 75 Sales of Spirits by Category: Total Value 2006-2011
Table 76 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 77 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 78 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 79 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 80 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 81 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 82 Sales of Gin by Price Platform 2006-2011
Table 83 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 84 Sales of Vodka by Price Platform 2006-2011
Table 85 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 86 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 87 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 88 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 89 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 90 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 91 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 92 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 93 Liqueurs Production, Imports and Exports: Total Volume 2005-2010
Table 94 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 95 Tequila Production, Imports and Exports: Total Volume 2005-2010
Table 96 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 97 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 98 Company Shares of Spirits by National Brand Owner 2007-2011
Table 99 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 100 Brand Shares of Spirits 2008-2011
Table 101 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 102 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 103 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 104 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016
Wine in Colombia - Category Analysis
HEADLINES
TRENDS
Although in Colombia per capita consumption of wine remains low, at 1.12 litres per capita in 2011 among the population aged more than 18 years, this represents a significant rise compared with 2006, when it was 0.77 litres, corresponding to an average annual increase of 8%. Affordability, along with increasing events related to wine, like fairs and tastings at specialised stores, have attracted people of all ages, who now feel comfortable drinking wine more often at informal meetings with friends and family, or just with a meal. Also, as habits are moving more towards frequent consumption rather than to heavy and sporadic drinking, wine is an ideal drink, and consumer willingness to learn and to try new things will guarantee further expansion in the following years.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Bodegas del Rhin Ltda, Vinos de la Corte SA and Casa Grajales SA, all of which are domestic companies, accounted for 17% of volume sales in 2011. Bodegas del Rhin Ltda recorded an increase of 14% in sales, aided by the fact that the company is present in all segments of wines, from economy to premium.
PROSPECTS
Wine is predicted to post a CAGR of 14% in off-trade volume, faster in comparison with the 2011-2016 period, which saw a rate of 11%. The positive figures will be supported by the increasing interest motivated by large retailers and specialist stores, which organise frequent fairs and tastings, attracting more visitors and creating more interest in wine. Also, the positive forecasts for expenditure on alcoholic drinks, with an average annual increase of 4% will drive sales of a product that still has low per capita consumption in the country, but where consumers are open to learning about wine and adopting more frequent consumption.
CATEGORY DATA
Table 105 Sales of Wine by Category: Total Volume 2006-2011
Table 106 Sales of Wine by Category: Total Value 2006-2011
Table 107 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 108 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 109 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 110 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 111 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 112 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 113 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 114 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 115 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 116 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 117 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 118 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 119 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 120 Sales of Still Red Wine by Quality Classification 2006-2011
Table 121 Sales of Still White Wine by Quality Classification 2006-2011
Table 122 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 123 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 124 Wine Imports by Country of Origin: Total Volume 2005-2010
Table 125 Wine Imports by Country of Origin: Total Value 2005-2010
Table 126 Wine Exports by Country of Destination: Total Volume 2005-2010
Table 127 Wine Exports by Country of Destination: Total Value 2005-2010
Table 128 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 129 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 130 Brand Shares of Still Light Grape Wine 2008-2011
Table 131 Company Shares of Champagne by National Brand Owner 2007-2011
Table 132 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 133 Brand Shares of Champagne 2008-2011
Table 134 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 135 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 136 Brand Shares of Other Sparkling Wine 2008-2011
Table 137 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011
Table 138 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011
Table 139 Brand Shares of Fortified Wine and Vermouth 2008-2011
Table 140 Company Shares of Non-grape Wine by National Brand Owner 2007-2011
Table 141 Company Shares of Non-grape Wine by Global Brand Owner 2007-2011
Table 142 Brand Shares of Non-grape Wine 2008-2011
Table 143 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 144 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 145 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 146 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016