Table of Contents
Soft Drinks in Indonesia - Industry Overview
EXECUTIVE SUMMARY
Stronger economy spurs soft drinks consumption
Younger generation boosts spending on soft drinks
Danone Aqua PT leads soft drinks in volume terms
Minimarket enjoys rapid growth
Healthy growth is projected for soft drinks
KEY TRENDS AND DEVELOPMENTS
Health and wellness gains increasing focus within soft drinks
Social media as marketing tool
Convenience drives soft drinks
Minimarket boosts soft drinks
Packaged food giants venture into soft drinks
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2006-2011
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2006-2011
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2006-2011
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2006-2011
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2011
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2011
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2011
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2011
Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2006-2011
Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2006-2011
Table 11 Off-trade Sales of Soft Drinks by Category: Value 2006-2011
Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2006-2011
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2007-2011
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2008-2011
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2007-2011
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2008-2011
Table 17 Company Shares of Off-trade Soft Drinks by Value 2007-2011
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2008-2011
Table 19 Penetration of Private Label (as sold) by Category by Volume 2006-2011
Table 20 Penetration of Private Label by Category by Value 2006-2011
Table 21 Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis 2011
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2011-2016
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2011-2016
Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2011-2016
Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2011-2016
Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2011-2016
Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2011-2016
Table 28 Forecast Off-trade Sales of Soft Drinks by Category: Value 2011-2016
Table 29 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2011-2016
APPENDIX
Fountain sales in Indonesia
Table 30 Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2006-2011
Table 31 Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2006-2011
Table 32 Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2006-2011
Table 33 Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2006-2011
Table 34 Forecast Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2011-2016
Table 35 Forecast Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2011-2016
Table 36 Forecast Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2011-2016
Table 37 Forecast Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2011-2016
DEFINITIONS
SOURCES
Summary 1 Research Sources
Soft Drinks in Indonesia - Company Profiles
Amerta Indah Otsuka PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 3 Amerta Indah Otsuka PT: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 4 Amerta Indah Otsuka PT: Competitive Position 2011
Nutrifood Indonesia PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 6 Nutrifood Indonesia PT: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 7 Nutrifood Indonesia PT: Competitive Position 2011
Sinar Sosro PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 9 Sinar Sosro PT: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 10 Sinar Sosro PT: Competitive Position 2011
Tang Mas PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 Tang Mas PT: Competitive Position 2011
Tempo Scan Pacific Tbk PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 14 Tempo Scan Pacific Tbk PT: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 15 Tempo Scan Pacific Tbk PT: Competitive Position 2011
Ultrajaya Milk Industry & Trading Co Tbk PT in Soft Drinks (Indonesia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 18 Ultrajaya Milk Industry & Trading Co Tbk PT: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 19 Ultrajaya Milk Industry & Trading Co Tbk PT: Competitive Position 2011
Asian Speciality Drinks in Indonesia - Category Analysis
HEADLINES
TRENDS
Asian speciality drinks was dominated by a multitude of products over the review period including RTD tea, nata de coco jelly drinks, soy bean/green bean drinks and tamarind drinks. Most products apart from RTD tea carry functional health benefits as a differentiating element. Sales of Asian speciality drinks are boosted during the festive season, which includes the fasting period when sales of sweet beverages are generally given a boost due to their role for breaking the fast. Growing health awareness and improved disposable incomes also paved the way for a sustained excellent performance of Asian speciality drinks which is perceived as a healthy treat for young and old alike. Asian still RTD tea continued to dominate Asian speciality drinks over the review period.
COMPETITIVE LANDSCAPE
With a major contribution to Asian still RTD tea, Sinar Sosro PT dominated retail volume sales with 67% share in 2011. The manufacturer offers extensive products in RTD tea both in black jasmine tea and green tea variants under three flagship brands, Teh Botol Sosro, Joy Tea and S-Tee. The long-established distribution network, high brand awareness among consumers, and deep penetration across all types of consumer segments reaching economy to upper incomes have contributed to its dominance and leadership during the review period despite facing increasing challenges from other beverage giants.
PROSPECTS
Improved disposable incomes and increasing health awareness are expected to be key drivers for the performance of Asian speciality drinks over the forecast period. Some products are perceived as treats which benefit from better economic conditions and higher purchasing power. Some products are associated with having certain functional health benefits in both a curative and preventive manner which benefits from growing health awareness and concerns. Asian speciality drinks is expected to register a 7% retail volume CAGR over the forecast period
CATEGORY DATA
Table 38 Off-trade Sales of Asian Speciality Drinks by Category: Volume 2006-2011
Table 39 Off-trade Sales of Asian Speciality Drinks by Category: Value 2006-2011
Table 40 Off-trade Sales of Asian Speciality Drinks by Category: % Volume Growth 2006-2011
Table 41 Off-trade Sales of Asian Speciality Drinks by Category: % Value Growth 2006-2011
Table 42 Company Shares of Asian Speciality Drinks by Off-trade Volume 2007-2011
Table 43 Brand Shares of Asian Speciality Drinks by Off-trade Volume 2008-2011
Table 44 Company Shares of Asian Speciality Drinks by Off-trade Value 2007-2011
Table 45 Brand Shares of Asian Speciality Drinks by Off-trade Value 2008-2011
Table 46 Forecast Off-trade Sales of Asian Speciality Drinks by Category: Volume 2011-2016
Table 47 Forecast Off-trade Sales of Asian Speciality Drinks by Category: Value 2011-2016
Table 48 Forecast Off-trade Sales of Asian Speciality Drinks by Category: % Volume Growth 2011-2016
Table 49 Forecast Off-trade Sales of Asian Speciality Drinks by Category: % Value Growth 2011-2016
Bottled Water in Indonesia - Category Analysis
HEADLINES
TRENDS
The declining health condition of tap water primarily in the urban areas and increasing health awareness amongst the public promoted greater consumption of bottled water in the country. Health and wellness campaigns by bottled water manufacturers also continued to encourage people to drink more water daily. The drive by this campaign was also spurred by the rapid spread of media exposure regarding health aspects in drinking water, especially through the internet. Leading bottled water manufacturers continued to highlight the health benefits in their marketing campaigns.
COMPETITIVE LANDSCAPE
Danone Aqua PT was the clear leader of bottled water by capturing 45% share of off-trade volume sales in 2011. Aqua is its flagship brand, while VIT is an extension brand of the company to reach a wider consumer base with the lower-income segment. Aqua consistently markets its high quality brand image through innovative marketing advertisements. It boasts of finding the best natural mineral water source across the country and pays substantial value in social responsibility towards the environment where the company draws its water source from. Through years of expertise Aqua has become synonymous with mineral water in Indonesia. Aqua’s latest marketing campaign “It’s in me” promotes a message that a healthy lifestyle begins from oneself. Highlighting a healthy lifestyle boosts the image of the brand as part of this. The campaign is supported by high profile television advertisements featuring public figures from various professional fields. There is also a dedicated website for the campaign to build a personalised community as an identity login is required to access the website.
PROSPECTS
Population growth and growing urbanisation are expected to continue to be the main drivers for bottled water’s success over the forecast period. This will also be supported by the growing health awareness among consumers through the need for clean water and the importance of consuming enough daily water. Despite its high volume amongst other soft drinks, bottled water is projected to grow by a healthy 6% off-trade volume CAGR over the forecast period. A positive outlook is also anticipated across other channels such as institutions and foodservice outlets.
CATEGORY DATA
Institutional Bottled Water Sales
Table 50 Sales of Bottled Water to Institutional Channel 2006-2011
Table 51 Off-trade Sales of Bottled Water: Volume 2006-2011
Table 52 Off-trade Sales of Bottled Water: Value 2006-2011
Table 53 Off-trade Sales of Bottled Water: % Volume Growth 2006-2011
Table 54 Off-trade Sales of Bottled Water: % Value Growth 2006-2011
Table 55 Company Shares of Bottled Water by Off-trade Volume 2007-2011
Table 56 Brand Shares of Bottled Water by Off-trade Volume 2008-2011
Table 57 Company Shares of Bottled Water by Off-trade Value 2007-2011
Table 58 Brand Shares of Bottled Water by Off-trade Value 2008-2011
Table 59 Forecast Off-trade Sales of Bottled Water: Volume 2011-2016
Table 60 Forecast Off-trade Sales of Bottled Water: Value 2011-2016
Table 61 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2011-2016
Table 62 Forecast Off-trade Sales of Bottled Water: % Value Growth 2011-2016
Carbonates in Indonesia - Category Analysis
HEADLINES
TRENDS
The continuous media exposure regarding the negative effects of carbonates on one’s health impeded the growth of carbonates compared to other soft drinks. As health and wellness campaigns garnered more attention than ever before, awareness among consumers continued to increase. However, the growth of carbonates continued to be sustained by the present culture among the youth (especially teenagers and young adults). Soda, a well-known term for carbonates, is associated with modern culture for beverages along with fast food for foods. The younger generation has grown up with carbonated drinks and is familiar with their taste. Carbonates registered 6% off-trade volume growth in 2011 primarily due to the distribution efforts of leading players in providing more cooling equipment.
COMPETITIVE LANDSCAPE
Coca-Cola Indonesia PT continued to lead carbonates with a commanding 91% share of off-trade volume sales in 2011. The company markets a wide range of leading carbonate drinks such as Coca-Cola, Coca-Cola Zero, Sprite, Sprite Zero, Fanta, Schweppes and A&W Root Beer. In fact, being a pioneer in introducing the cola drink to Indonesia, Coca-Cola is synonymous with any cola carbonates. The company strongly promoted its products over the review period with heavy investment in marketing including television advertisements and promotional activities targeting specific consumer groups such as Fanta which targets school pupils through its “Tas Gaul Fanta”, a local promotion in the Sumatera area. Coca-Cola Zero and Sprite Zero are significant new product developments launched during the review period, targeting the health-conscious urban consumers claiming to contain zero sugar yet offering the same taste and quality.
PROSPECTS
Albeit slowing down compared to the review period, carbonates is still expected to provide positive room for growth over the forecast period with a 5% off-trade volume CAGR. The negative health aspect of carbonates is expected to remain the impeding factor towards growth while on the other hand; the strategic move of manufacturers to provide greater cooling capacity is expected to sustain growth to reach a wider consumer base. The confidence is also boosted by the growing number of convenience stores in the country to reach even the rural areas.
CATEGORY DATA
Table 63 Low Calorie Carbonates by Category
Table 64 Off-trade Sales of Carbonates by Category: Volume 2006-2011
Table 65 Off-trade Sales of Carbonates by Category: Value 2006-2011
Table 66 Off-trade Sales of Carbonates by Category: % Volume Growth 2006-2011
Table 67 Off-trade Sales of Carbonates by Category: % Value Growth 2006-2011
Table 68 On-trade vs Off-trade Sales of Carbonates: Volume 2006-2011
Table 69 On-trade vs Off-trade Sales of Carbonates: Value 2006-2011
Table 70 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2006-2011
Table 71 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2006-2011
Table 72 Off-trade Sales of Low Calorie Cola Carbonates by Category: % Volume Breakdown 2006-2011
Table 73 Company Shares of Carbonates by Off-trade Volume 2007-2011
Table 74 Brand Shares of Carbonates by Off-trade Volume 2008-2011
Table 75 Company Shares of Carbonates by Off-trade Value 2007-2011
Table 76 Brand Shares of Carbonates by Off-trade Value 2008-2011
Table 77 Forecast Off-trade Sales of Carbonates by Category: Volume 2011-2016
Table 78 Forecast Off-trade Sales of Carbonates by Category: Value 2011-2016
Table 79 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth 2011-2016
Table 80 Forecast Off-trade Sales of Carbonates by Category: % Value Growth 2011-2016
Concentrates in Indonesia - Category Analysis
HEADLINES
TRENDS
Concentrates enjoyed healthy 6% off-trade volume RTD growth in 2011, primarily attributed to the phenomenal growth of liquid concentrates. Robust economic growth in the country fuelled greater consumption including food and beverages as rising disposable incomes encouraged consumers to spend extra. The highest peak of sales in liquid concentrates was witnessed during the festive period of Idul Fitri which spurred the growth of overall annual sales of liquid concentrates. On the other hand, growing health concerns hampered the growth of powder concentrates, of which the majority belongs to energy drinks.
COMPETITIVE LANDSCAPE
Sido Muncul PT led concentrates with 18% off-trade value share in 2011 through the sales of flagship brand Kuku Bima Ener-G!. The continuous marketing efforts to target as wide as possible the lower income segments, particularly the blue-collar male consumers, have reaped success through rapid increasing brand awareness. The brand’s marketing campaigns are supported by well-known national public figures in sport such as Chris John (boxing) and Ade Rai (body building). Besides television advertisements, the brand is also marketed through street kiosks which normally sell instant coffee, instant noodle and Jamu (Indonesian traditional herbal medicines or drinks). These kiosks or stalls are decorated with Kuku Bima Ener-G’s advertisement banners. By launching various fruit flavours, the brand has also significantly gained favour from younger consumers.
PROSPECTS
Positive economic growth in the country is expected to sustain spending on concentrates as it will with soft drinks overall. The tradition of exchanging gifts during the festive seasons is expected to remain the major factor driving sales for most liquid concentrate manufacturers. The consumer base of concentrates is expected to continue relying on the lower-income segment through mass volume sales and therefore a growing population in the country also facilitates potential room for growth of concentrates. A healthy 4% off-trade volume RTD CAGR is expected over the forecast period for total concentrates owing more to the higher percentage rate of liquid concentrates in the midst of growing health concerns over energy drinks.
CATEGORY DATA
Concentrates Conversions
Summary 20 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 81 Off-trade Sales of Concentrates (as sold) by Category: Volume 2006-2011
Table 82 Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2006-2011
Table 83 Off-trade Sales of Concentrates (RTD) by Category: Volume 2006-2011
Table 84 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2006-2011
Table 85 Off-trade Sales of Concentrates by Category: Value 2006-2011
Table 86 Off-trade Sales of Concentrates by Category: % Value Growth 2006-2011
Table 87 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2007-2011
Table 88 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2008-2011
Table 89 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2007-2011
Table 90 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2008-2011
Table 91 Company Shares of Concentrates (RTD) by Off-trade Volume 2007-2011
Table 92 Brand Shares of Concentrates (RTD) by Off-trade Volume 2008-2011
Table 93 Company Shares of Concentrates by Off-trade Value 2007-2011
Table 94 Brand Shares of Concentrates by Off-trade Value 2008-2011
Table 95 Forecast Off-trade Sales of Concentrates (as sold) by Category: Volume 2011-2016
Table 96 Forecast Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2011-2016
Table 97 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2011-2016
Table 98 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2011-2016
Table 99 Forecast Off-trade Sales of Concentrates by Category: Value 2011-2016
Table 100 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2011-2016
Fruit/Vegetable Juice in Indonesia - Category Analysis
HEADLINES
TRENDS
Along with the health and wellness trend, fruit/vegetable juice gained increasing favour from consumers for containing needed vitamins and antioxidants, while at the same time functioning well as a refreshing drink. This category registered 7% off-trade volume growth to reach 122 million litres in 2011, one of the highest performances in soft drinks. However, the growth rate slowed down when compared to the previous year due to declining popularity of fruit-flavoured drinks (no juice content). This fruit-flavoured drink is popular among the lower-income segment, and primarily distributed in the cup packaging. Along with rising concerns over health and wellness, this drink is less favoured as it contains artificial colouring and flavouring. More concern arose as the drink is made of artificial sweetener which might pose a danger to health. Rising disposable income among consumers allowed them to trade up to juice drink variants which contributed to the higher growth of juice drinks compared to the fruit-flavoured drinks in 2011.
COMPETITIVE LANDSCAPE
Unilever Indonesia Tbk PT led fruit/vegetable juice by 26% off-trade value share in 2011 through the contribution of the Buavita brand. Unilever continues its heavy marketing attempts to lift Buavita’s image as a healthy drink with natural benefits of fruits which is in line with the increasing health and wellness trend. Along with high-profile marketing attempts, Buavita also launched a series of new fruit juices in recent years as well as development in packaging. With the launch of the gable top liquid carton for its 1ltr pack, Buavita is increasingly attractive as a family drink which becomes the driving factor of its robust growth in 2011. The new launches in 2011 from Buavita include Buavita Pome Punch, Buavita Pina Melon Mix, and Buavita 2Go Orange Blast. Except for juice drinks, all Buavita juices are available in liquid carton packaging ranging from Buavita mini of 125ml, to 250ml and the biggest 1ltr Buavita 2Go comes in a PET bottle in 300ml.
PROSPECTS
In tandem with the growing health and wellness trend, fruit/vegetable juice is expected to sustain a robust 7% off-trade volume CAGR over the forecast period. The growing convenience lifestyle will also push consumers to opt for juices rather than eating fruit. The growth is contributed from across various types of fruit/vegetable juice segments. Improved product innovations are also anticipated particularly driven by health aspects. Superfruits are expected to influence more variants towards the current product offerings due to their higher health benefits.
CATEGORY DATA
Table 101 Off-trade Sales of Fruit/Vegetable Juice by Category: Volume 2006-2011
Table 102 Off-trade Sales of Fruit/Vegetable Juice by Category: Value 2006-2011
Table 103 Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2006-2011
Table 104 Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth 2006-2011
Table 105 Leading Flavours for 100% Juice: % Volume Breakdown 2006-2011
Table 106 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2006-2011
Table 107 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2006-2011
Table 108 Leading Flavours for Fruit-flavoured Drinks (No Juice Content): % Volume Breakdown 2006-2011
Table 109 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2010
Table 110 Chilled Vs Ambient Reconstituted 100% Juice: % Volume Analysis 2006-2011
Table 111 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2007-2011
Table 112 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2008-2011
Table 113 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2007-2011
Table 114 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2008-2011
Table 115 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Volume 2011-2016
Table 116 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Value 2011-2016
Table 117 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2011-2016
Table 118 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth 2011-2016
RTD Coffee in Indonesia - Category Analysis
HEADLINES
TRENDS
Continuous growth of urbanisation in the country with increasing demanding lifestyles promoted the growth of RTD coffee. Convenience and price value over buying from nearby coffee shops was another key advantage of RTD coffee which enjoyed a robust 13% off-trade volume growth rate in 2011 to reach 10.4 million litres. Compared to other types of drinks, RTD coffee is considered as a relatively new trend with a comparatively low value base, yet its popularity is increasing particularly among the younger generation. The popularity of coffee is not only limited to the RTD format but also to other types including hot drinks and on-trade coffee shops.
COMPETITIVE LANDSCAPE
Nestlé Indonesia PT continued to lead RTD coffee with its flagship brand, Nescafé. The brand first entered Indonesia through hot coffee drinks in instant coffee. The popularity of its RTD offering therefore is boosted by the popularity of Nescafé in hot drinks. Despite offering the relatively more premium RTD coffee in a metal beverage can in three variants, Original, Latte, and Mocha, Nescafé RTD coffee also offers a lower end UHT drink in a liquid carton pack with Nescafé Cream Coffee. The UHT drink later expanded in 2011 with the launch of French Vanilla and Caramelicious variants in order to cater more to younger consumers. Such extensive offerings in RTD coffee ranked Nescafé first with a dominant off-trade volume share of 51%. Moreover, the established distribution network of the company also promotes greater reach to young urban consumers. Nescafé caters more towards the middle to upper-income consumers and thus modern retail channels continued to distribute the major share for this drink. The rapid growth of convenience store also adds another key growth factor for the growing distribution network of Nescafé products.
PROSPECTS
The same trend as in 2011 is expected to remain the major driver for RTD coffee for the forecast period. Growing urbanisation and the convenience lifestyle continued to be the key competitive advantages of RTD coffee over other types of coffee drinks available. RTD coffee is expected to record a robust 14% off-trade volume CAGR over the forecast period. Such a high figure is also attributable to the small base value of the category’s size.
CATEGORY DATA
Table 119 Off-trade Sales of RTD Coffee: Volume 2006-2011
Table 120 Off-trade Sales of RTD Coffee: Value 2006-2011
Table 121 Off-trade Sales of RTD Coffee: % Volume Growth 2006-2011
Table 122 Off-trade Sales of RTD Coffee: % Value Growth 2006-2011
Table 123 Company Shares of RTD Coffee by Off-trade Volume 2007-2011
Table 124 Brand Shares of RTD Coffee by Off-trade Volume 2008-2011
Table 125 Company Shares of RTD Coffee by Off-trade Value 2007-2011
Table 126 Brand Shares of RTD Coffee by Off-trade Value 2008-2011
Table 127 Forecast Off-trade Sales of RTD Coffee: Volume 2011-2016
Table 128 Forecast Off-trade Sales of RTD Coffee: Value 2011-2016
Table 129 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2011-2016
Table 130 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2011-2016
Table 131 Forecast Off-trade Sales of RTD Coffee: Volume 2011-2016
Table 132 Forecast Off-trade Sales of RTD Coffee: Value 2011-2016
Table 133 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 011-2016
Table 134 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2011-2016
RTD Tea in Indonesia - Category Analysis
HEADLINES
TRENDS
Growing urbanisation and population coupled by growing lifestyle of convenient drinks primarily among younger urban consumers contributed to the growth of RTD tea in 2011, which recorded 7% off-trade volume growth, to reach 1.3 billion litres. In anticipation of the growing demand, manufacturers continued to offer various variants of RTD tea. A significant number of new launches were witnessed in 2011 and received a positive response as the trend towards convenience drinks increased among the current generation. Manufacturers of RTD tea continued to deliver marketing messages which targeted consumers at a young median age, ranging from teenagers to young adults.
COMPETITIVE LANDSCAPE
Sinar Sosro PT continued to dominate RTD tea with 73% off-trade volume share in 2011. As a pioneer in RTD tea, the company has a strong established distribution network spanning modern and traditional retailers across the nation. Its distribution network for returnable glass bottle packaging is unmatched in terms of traditional retailer reach with competitors preferring to focus on RTD tea in PET bottle, plastic cups and tetra pak packaging and modern retailer availability, instead of competing against the leading brand of glass bottle packaging, Teh Botol Sosro. Besides being the leader in black jasmine RTD tea, the company also manufactures green tea RTD tea under brand Joy Tea since late 2007 in response to the increasing trend of health and wellness. Sinar Sosro also leads still RTD tea excluding Asian through its Fruit Tea available in liquid cartons of 200ml and PET bottle of 500ml. In carbonated tea, the company is the sole contributor with the TEBS brand available both in metal beverage cans and PET bottles.
PROSPECTS
RTD tea is expected to register a healthy 7% off-trade volume CAGR over the forecast period owing to the growing population and economy in the country. Amidst the increasing number of various soft drinks, RTD is expected to continue to be a customary soft drink in Indonesia with penetration that is among the largest in soft drinks. Growing convenience lifestyles will also promote greater consumption of RTD tea as opposed to making iced tea from brewing the tea leaves. Health and wellness is expected to remain as one of the key drivers of growth and marketing communication is expected to continue to highlight certain health benefits of the products.
CATEGORY DATA
Table 135 Off-trade Sales of RTD Tea by Category: Volume 2006-2011
Table 136 Off-trade Sales of RTD Tea by Category: Value 2006-2011
Table 137 Off-trade Sales of RTD Tea by Category: % Volume Growth 2006-2011
Table 138 Off-trade Sales of RTD Tea by Category: % Value Growth 2006-2011
Table 139 Leading Flavours for RTD Tea: % Volume Breakdown 2006-2011
Table 140 Company Shares of RTD Tea by Off-trade Volume 2007-2011
Table 141 Brand Shares of RTD Tea by Off-trade Volume 2008-2011
Table 142 Company Shares of RTD Tea by Off-trade Value 2007-2011
Table 143 Brand Shares of RTD Tea by Off-trade Value 2008-2011
Table 144 Forecast Off-trade Sales of RTD Tea by Category: Volume 2011-2016
Table 145 Forecast Off-trade Sales of RTD Tea by Category: Value 2011-2016
Table 146 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth 2011-2016
Table 147 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth 2011-2016
Sports and Energy Drinks in Indonesia - Category Analysis
HEADLINES
TRENDS
Many sports drinks and energy drinks products are positioned as health supplements for active individuals. With better economic conditions and the hectic schedule of urban lifestyles, consumers are turning to sports and energy drinks to boost their stamina. Manufacturers of sports and energy drinks actively promote functional benefits of their products towards health and stamina. Indonesian consumers are still very much influenced by marketing and communication strategies, spurring healthy growth of this category. Sports and energy drinks registers 14% off-trade volume growth in 2011 to reach 432 million litres.
COMPETITIVE LANDSCAPE
Amerta Indah Otsuka PT led sports and energy drinks with 40% off-trade volume share in 2011, a higher percentage share than the previous year, due to its success to reach a wider consumer base through its flagship brand, Pocari Sweat. Being a product of Japanese origin, Pocari Sweat, wins consumers’ confidence due to the safe and health aspect of the product. The recent company’s advertisement on Indonesian local channels also uses the Japanese song “Youth sweat beautiful”, endorsed by a local model, Aelke Mariska. Although Pocari Sweat is available only in one flavour, the drink is available in various pack sizes so consumers are able to choose which one is best suited to their needs. It is available in metal beverage cans of 330ml, in PET bottle 350ml, 500ml and 2litres, and in Aseptic bottle 350ml and 500ml. The most economical yet less convenient one is the powder concentrate format of 15gms per sachet. Due to the increasing popularity of this drink, Pocari Sweat is prominent on sports drink shelves in retailing outlets and often fills the largest space among the rest.
PROSPECTS
Growing urbanisation with its demanding lifestyle is expected to sustain a robust growth rate of sports and energy drinks over the forecast period. Increasing popularity of keeping in shape and healthy by working out in gymnasiums also adds the increasing relevance of sports drinks among these club members. Better economic conditions on the other side also increase the affordability for most people to trade up to isotonic drinks from merely drinking bottled water. Sports and energy drinks is expected to register a 12% off-trade volume CAGR over the forecast period.
CATEGORY DATA
Table 148 Off-trade Sales of Sports and Energy Drinks by Category: Volume 2006-2011
Table 149 Off-trade Sales of Sports and Energy Drinks by Category: Value 2006-2011
Table 150 Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth 2006-2011
Table 151 Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth 2006-2011
Table 152 Company Shares of Sports and Energy Drinks by Off-trade Volume 2007-2011
Table 153 Brand Shares of Sports and Energy Drinks by Off-trade Volume 2008-2011
Table 154 Company Shares of Sports and Energy Drinks by Off-trade Value 2007-2011
Table 155 Brand Shares of Sports and Energy Drinks by Off-trade Value 2008-2011
Table 156 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Volume 2011-2016
Table 157 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Value 2011-2016
Table 158 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth 2011-2016
Table 159 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth 2011-2016