BOTTLED WATER IN PERU

Euromonitor International
February 2016
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2010-2015 .............. 3
Table 2 Off-trade Sales of Bottled Water by Category: Value 2010-2015 ................. 3
Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth
2010-2015 .................................................................................................... 3
Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2010-
2015 ............................................................................................................. 3
Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2011-
2015 ............................................................................................................. 4
Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015 ......... 4
Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2011-
2015 ............................................................................................................. 5
Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015 ............ 5
Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2015-
2020 ............................................................................................................. 6
Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2015-
2020 ............................................................................................................. 6
Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume
Growth 2015-2020 ....................................................................................... 7
Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value
Growth 2015-2020 ....................................................................................... 7

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BOTTLED WATER IN PERU

HEADLINES
 Off-trade volume and value sales of bottled water grow by 11% and 14%, reaching 598 million
litres and n/s1.1 billion, respectively in 2015
 Bottled water is one of fastest-growing categories in soft drinks due to the healthy trend
adopted by Peruvian consumers and aggressive advertising campaigns
 On-trade bottled value and volume sales of bottled water rise by 9% and 6% in 2015, showing
strength but at a slower pace than that of off-trade sales
 Still bottled water sees fastest off-trade volume and value growth of 12% and 14%,
respectively in 2015
 Average unit price growth of bottled water is slightly slower in 2015 than growth in previous
year, due mostly to the economic deceleration and high competition
 Corp Lindley continues to lead bottled water with a 45% retail value share, followed by Ajeper
with 40%
 Bottled water is expected to record a CAGR of 9% in off-trade volume and value sales at
constant 2015 prices over the forecast period

TRENDS
 Peruvians are looking to take better care of their health, and that involves making a change in
their food and beverages intake; therefore, consumption of fast food and carbonates is
decreasing, whilst categories such as bottled water, juice and sports drinks are having a very
positive performance.
 Governmental promotion of healthier habits through the Ministry of Health and also by
municipalities is creating greater consciousness amongst Peruvians about their wellbeing and
health. As the most natural and healthiest beverage available is bottled water, consumers
have been increasing their consumption of it considerably in the last few years and this trend
is expected to continue over time.
 Day-to-day workers who do not bring a lunch box from home will eat out, and not always at
places where bottled water is always offered; therefore, the consumer needs to ask for it as
an alternative to other soft drinks on offer.
 Unit price movement of bottled water rose by a slightly slower 2% in 2015 compared to the
previous year due mainly to promotions in the face of intense competition in the category.
 Regarding the formats found in the category, bulk water in the country is mostly sold in 20-litre
carton dispensers that can easily be stored at home and even can come with a convenient
little plastic tap on the side for easier consumption.

COMPETITIVE LANDSCAPE
 Corp Lindley continued to lead in bottled water, accounting for 45% of the retail value sales in
2015. San Luis is the most important bottled water from Corp Lindley’s portfolio, ranking
second after Ajeper’s Cielo. Its brand Aquarius is the leading flavoured bottle water on the
market by far, holding an 84% value share in 2015. Corp Lindley’s success is based on its
long history on the market as well as on its ability to connect to consumers through different

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marketing campaigns that target young adults looking to take care of their health by
consuming San Luis bottled water.
 In 2015, Ajeper recorded the biggest increase in value sales, up by 16% compared to the
previous year. The company is very dynamically promotes its brand Cielo, with important
advertising campaigns, such as billboards, magazine and newspaper advertisements and
television commercials.
 Domestic companies continued to dominate bottled water in 2015 with brands such as San
Luis, Cielo, San Mateo and Vida, amongst others. Although there are several international
brands present, such as Perrier, VOSS, Evian and others, most of them are positioned as
premium brands and directed only to high-income consumers and their distribution is limited
to some supermarkets.
 Some domestic companies are looking to get into premium bottled water, which is well known
for high quality and outstanding prices compared to that of still regular bottled water, and this
segment is mostly led by international companies. Standard brands normally compete more
aggressively, using multimedia marketing campaigns involving television, radio, and internet
commercials, billboards, magazine and newspaper advertisements, and in-store promotions,
amongst many others.

PROSPECTS
 Bottled water is predicted to record a CAGR of 9% in off-trade volume and value sales at
constant 2015 prices over the forecast period. The category is expected to continue growing
more rapidly than the economy, because consumers will continue to migrate from artificial
juice and carbonates to healthier alternatives such as bottled water. It is expected that in the
coming years consumers will be increasingly conscious about their health and healthy eating
and drinking.
 Forecast data is not being significantly restated since the Peruvian economy is expected to be
stable in the coming years; no sudden changes are expected in the economy and political
matters, ensuring stability.
 The volume and constant value CAGRs of 14% and 13%, respectively over the review period
were much higher than the average growth rates predicted for the forecast period. The growth
registered over the review period was very aggressive because it included many years of
economic growth in the country, where many categories began to develop promoted by
increased disposable incomes. For the coming years, positive growth is expected, but
showing moderate rates, because the country has already gone through many years of
economic growth.
 Sudden political and economic turmoil in the country could affect the country’s stability, and
any changes in economic stability will affect growth of bottled water because consumers will
need to return to being more cautious about the products they consume and how they spend
money. Many products such as bottled water that could be “easily” replaceable could be
importantly affected should there be an onset of turmoil.
 Carbonated bottled water and still bottled water are expected to produce strong performances
during the forecast period, registering total volume CAGRs of 8-9%. Both are considered to
be the healthy and this will be highly promoted over the coming years.
 In 1914 Ajeper launched the bottled water Cielo Q10, enriched with coenzymes Q10; it has a
positive impact on health, is free of calories and has a light orange flavour. The performance
of Cielo Q10 is still not confirmed; however, it is still on the market, which means it is
attending to its target consumers.

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 Functional bottled water has growth potential because consumers are always looking to find
new products with more added value. Vivant dominated functional bottled water with a 95%
retail value share in 2015, so the competition is still low and consumers are eager to have
more options.

CATEGORY DATA
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2010-2015

million litres
2010 2011 2012 2013 2014 2015

Carbonated Bottled Water 100.0 123.5 162.7 168.5 181.0 201.4

Flavoured Bottled Water 17.2 20.9 25.0 25.5 26.6 28.6
Functional Bottled Water 3.2 3.4 4.0 4.1 4.4 4.7
Still Bottled Water 185.1 227.8 302.8 308.5 325.6 364.1
Bottled Water 305.5 375.6 494.5 506.7 537.6 598.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Off-trade Sales of Bottled Water by Category: Value 2010-2015

PEN million
2010 2011 2012 2013 2014 2015

Carbonated Bottled Water 176.2 219.0 292.3 307.9 334.4 382.3

Flavoured Bottled Water 35.3 48.8 59.9 62.9 67.6 75.2
Functional Bottled Water 13.2 14.6 17.4 19.6 21.3 23.4
Still Bottled Water 308.6 382.6 522.4 533.8 579.2 658.9
Bottled Water 533.2 665.0 892.0 924.1 1,002.5 1,139.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth 2010-2015

% volume growth
2014/15 2010-15 CAGR 2010/15 Total

Carbonated Bottled Water 11.3 15.0 101.3

Flavoured Bottled Water 7.3 10.6 65.8
Functional Bottled Water 8.8 8.5 50.5
Still Bottled Water 11.8 14.5 96.7
Bottled Water 11.4 14.4 96.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2010-2015

% current value growth

2014/15 2010-15 CAGR 2010/15 Total

Carbonated Bottled Water 14.3 16.8 117.0

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Flavoured Bottled Water 11.4 16.3 113.2

Functional Bottled Water 9.7 12.2 77.5
Still Bottled Water 13.8 16.4 113.5
Bottled Water 13.7 16.4 113.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2011-2015

% off-trade volume
Company 2011 2012 2013 2014 2015

Corp Lindley SA 42.3 42.9 43.6 44.2 44.2

Ajeper SA 39.1 39.3 40.2 40.8 41.5
Coca-Cola Co, The - - - - 2.9
Embotelladora Don Jorge 2.5 2.2 2.2 2.2 2.1
SA
Inversiones Rind SAC 0.4 0.8 0.8 0.8 0.7
San Miguel Industrias 0.1 0.3 0.3 0.3 0.3
PET SA
Cia Cervecera Ambev 0.3 0.3 0.2 0.2 0.2
Perú SAC
Embotelladora Demesa SA 0.7 0.7 - - 0.2
Unión de Cervecerías 3.0 3.0 3.0 3.0 -
Peruanas Backus &
Johnston SAA
Pepsi-Cola Panamericana 0.4 - - - -
Perú SRL
Corp José R Lindley SA - - - - -
Others 11.2 10.6 9.6 8.5 7.8
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015

% off-trade volume
Brand (GBO) Company (NBO) 2012 2013 2014 2015

Cielo (Aje Group) Ajeper SA 39.3 40.2 40.8 41.5

San Luis (Coca-Cola Corp Lindley SA 38.5 39.3 39.9 40.1
Co, The)
Aquarius (Coca-Cola Corp Lindley SA 4.4 4.4 4.3 4.1
Co, The)
San Mateo Coca-Cola Co, The - - - 2.8
Vida Embotelladora Don Jorge SA 2.2 2.2 2.2 2.1
Vivant con L- Inversiones Rind SAC 0.8 0.8 0.8 0.7
Carnitina (Azende
Corp Cía Ltda)
Slinea (Industrias San Miguel Industrias 0.3 0.3 0.3 0.3
San Miguel) PET SA
San Carlos (PepsiCo Cia Cervecera Ambev 0.3 0.2 0.2 0.2
Inc) Perú SAC
DiPremium Embotelladora Demesa SA - - - 0.2
Cristalina Backus Coca-Cola Co, The - - - 0.2
San Mateo Unión de Cervecerías 2.8 2.8 2.7 -
(SABMiller Plc) Peruanas Backus &

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Johnston SAA
Cristalina Backus Unión de Cervecerías 0.2 0.2 0.2 -
(SABMiller Plc) Peruanas Backus &
Johnston SAA
Agua Demesa Embotelladora Demesa SA 0.7 - - -
Free Light (Aje Ajeper SA - - - -
Group)
Aquarius (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
Dasani (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
San Luis (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
San Carlos (PepsiCo Pepsi-Cola Panamericana - - - -
Inc) Perú SRL
SoBe (PepsiCo Inc) Pepsi-Cola Panamericana - - - -
Perú SRL
Others Others 10.6 9.6 8.5 7.8
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2011-2015

% off-trade value rsp

Company 2011 2012 2013 2014 2015

Corp Lindley SA 43.1 43.4 44.2 44.6 44.5

Ajeper SA 37.6 37.8 38.5 39.1 40.0
Coca-Cola Co, The - - - - 3.5
Inversiones Rind SAC 0.9 1.8 2.0 2.0 1.9
Embotelladora Don Jorge 2.2 2.0 2.0 2.0 1.9
SA
San Miguel Industrias 0.2 0.4 0.4 0.4 0.4
PET SA
Cia Cervecera Ambev 0.2 0.2 0.2 0.2 0.2
Perú SAC
Embotelladora Demesa SA 0.7 0.6 - - 0.2
Unión de Cervecerías 3.5 3.5 3.5 3.5 -
Peruanas Backus &
Johnston SAA
Pepsi-Cola Panamericana 1.1 - - - -
Perú SRL
Corp José R Lindley SA - - - - -
Others 10.6 10.2 9.3 8.2 7.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015

% off-trade value rsp

Brand (GBO) Company (NBO) 2012 2013 2014 2015

Cielo (Aje Group) Ajeper SA 37.8 38.5 39.1 40.0

San Luis (Coca-Cola Corp Lindley SA 37.7 38.4 38.9 38.9
Co, The)

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Aquarius (Coca-Cola Corp Lindley SA 5.7 5.7 5.7 5.6

Co, The)
San Mateo Coca-Cola Co, The - - - 3.3
Vivant con L- Inversiones Rind SAC 1.8 2.0 2.0 1.9
Carnitina (Azende
Corp Cía Ltda)
Vida Embotelladora Don Jorge SA 2.0 2.0 2.0 1.9
Slinea (Industrias San Miguel Industrias 0.4 0.4 0.4 0.4
San Miguel) PET SA
San Carlos (PepsiCo Cia Cervecera Ambev 0.2 0.2 0.2 0.2
Inc) Perú SAC
DiPremium Embotelladora Demesa SA - - - 0.2
Cristalina Backus Coca-Cola Co, The - - - 0.1
San Mateo Unión de Cervecerías 3.3 3.3 3.3 -
(SABMiller Plc) Peruanas Backus &
Johnston SAA
Cristalina Backus Unión de Cervecerías 0.2 0.2 0.2 -
(SABMiller Plc) Peruanas Backus &
Johnston SAA
Agua Demesa Embotelladora Demesa SA 0.6 - - -
Free Light (Aje Ajeper SA - - - -
Group)
Aquarius (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
Dasani (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
San Luis (Coca-Cola Corp José R Lindley SA - - - -
Co, The)
San Carlos (PepsiCo Pepsi-Cola Panamericana - - - -
Inc) Perú SRL
SoBe (PepsiCo Inc) Pepsi-Cola Panamericana - - - -
Perú SRL
Others Others 10.2 9.3 8.2 7.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2015-2020

million litres
2015 2016 2017 2018 2019 2020

Carbonated Bottled Water 201.4 221.1 240.4 260.7 282.1 304.8

Flavoured Bottled Water 28.6 30.6 32.7 34.7 36.7 38.6
Functional Bottled Water 4.7 5.1 5.4 5.7 5.9 6.2
Still Bottled Water 364.1 400.7 436.6 473.5 511.8 552.0
Bottled Water 598.8 657.5 715.1 774.5 836.5 901.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2015-2020

PEN million
2015 2016 2017 2018 2019 2020

Carbonated Bottled Water 382.3 420.4 457.9 497.4 539.2 583.6

Flavoured Bottled Water 75.2 81.0 87.0 92.8 98.5 104.1

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Functional Bottled Water 23.4 25.0 26.5 28.0 29.5 31.1

Still Bottled Water 658.9 725.5 790.9 858.3 928.6 1,002.5
Bottled Water 1,139.8 1,252.0 1,362.4 1,476.6 1,595.8 1,721.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth

2015-2020

% volume growth
2015/16 2015-20 CAGR 2015/20 Total

Carbonated Bottled Water 9.8 8.6 51.3

Flavoured Bottled Water 7.0 6.2 35.2
Functional Bottled Water 7.0 5.6 31.4
Still Bottled Water 10.1 8.7 51.6
Bottled Water 9.8 8.5 50.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value Growth

2015-2020

% constant value growth

2015/2016 2015-20 CAGR 2015/20 TOTAL

Carbonated Bottled Water 10.0 8.8 52.7

Flavoured Bottled Water 7.7 6.7 38.4
Functional Bottled Water 7.2 5.9 33.0
Still Bottled Water 10.1 8.8 52.1
Bottled Water 9.8 8.6 51.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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