Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to 2015 Venezuela

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Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to 2015 Venezuela
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Distribution Trends in Soft Drinks Venezuela







Contents

Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to

2015 .................................................................................................................................................. 2

Distribution Trends .................................................................................................................................... 2

Market Valuation/Pricing ............................................................................................................................ 2

Soft Drinks On-Premise vs Off-Premise – Volume, 2006-2010F (% Growth) ........................................... 3

Soft Drinks On-Premise vs Off-Premise – Value, 2006-2010F (% Growth) .............................................. 3

Soft Drinks on-Premise vs Off-Premise – Volume & Value, 2006-2010F (M Litres/Local Currency) ........ 4

Soft Drinks On-Premise vs Off-Premise by Category, 2009 vs 2010F (% Growth).................................. 4

Soft Drinks On-Premise vs Off-Premise, 2009-2015F (% Growth) .......................................................... 5

Soft Drinks On-Premise vs Off-Premise, 2009, 2010F & 2015F (% Share) ............................................. 5

Soft Drinks On-Premise vs Off-Premise Average Price Per Litre by Category, 2010F (Local Currency) .. 6

Soft Drinks Product Definitions ..................................................................................................... 7

Glossary ..........................................................................................................................................14

Forecast Methodology...................................................................................................................16









Soft Drinks Service/Dec-2010 1

Venezuela Distribution Trends in Soft Drinks





Distribution Trends in Soft Drinks: On-Premise vs Off-Premise

Dynamics & Forecasts to 2015





Distribution Trends



Growth in on-trade consumption slowed



Growth in on-trade consumption slowed in 2009 as, with reduced purchasing power, consumers cut back their

spending on leisure activities. Moreover, security has become a key issue for Venezuelans due to the higher

levels of crime and violence observed in the country; Caracas is ranked as the most dangerous city in Latin

America, and many Venezuelans prefer to stay at home rather than go out. Horeca channels have also suffered

with the decline of the tourism industry. However, ‘on the go’ consumption is a growing trend in Venezuela,

benefiting from distribution through kiosks and street vendors.



Traditional stores, including panaderias (bakeries), remain the most important retail channel with some 39%

share of the soft drinks market; they are located close to homes and offer greater convenience, especially for

impulse purchases. With lower purchasing power, many Venezuelans are opting to shop on a daily basis,

favouring sales through this channel.



Mercal, the retail channel (included within the traditional channel) used by the government to distribute its

subsidised products, and by private companies to distribute soft drinks, is gaining ground. This channel is

mostly used by the low income strata, whilst abastos and bodegas (independent food stores) are visited more

by mid and high income strata consumers.



Large modern retail remains undeveloped in Venezuela compared to neighbour countries like Colombia.

International retailers are wary of entering the Venezuelan market; this is unlikely to change following the

expropriation of Exito (Casino group) in early 2010. Nonetheless, supermarkets, mainly led by local companies

like CADA, Central Madeirense and Exelsior Gama, as well as convenience stores, led by Famatodo, are

important distribution channels for all soft drinks. Makro is the only

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