RTD Tea in Peru

Euromonitor International
January 2020
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Players See Potential in Products Offering Healthy Attributes .................................................. 1
Rtd Tea Gains Shelf Space ...................................................................................................... 1
Younger Consumers Seek On-the-go Formats ........................................................................ 1
Competitive Landscape ................................................................................................................ 1
Ajeper’s Product Range Underpins Its Category Lead ............................................................. 1
Vida Brand Acquisition Boosts Ajeper’s Low-price Presence, Innovation Strategy Continues . 2
Arca Continental Lindley Focusses on Trade ........................................................................... 2
Category Data .............................................................................................................................. 2
Table 1 Off-trade Sales of RTD Tea by Category: Volume 2014-2019 ..................... 2
Table 2 Off-trade Sales of RTD Tea by Category: Value 2014-2019 ........................ 2
Table 3 Off-trade Sales of RTD Tea by Category: % Volume Growth 2014-
2019 ............................................................................................................. 2
Table 4 Off-trade Sales of RTD Tea by Category: % Value Growth 2014-2019........ 3
Table 5 Leading Flavours for Off-trade RTD Tea: % Volume 2014-2019 .................. 3
Table 6 NBO Company Shares of Off-trade RTD Tea: % Volume 2015-2019 .......... 3
Table 7 LBN Brand Shares of Off-trade RTD Tea: % Volume 2016-2019 ................ 3
Table 8 NBO Company Shares of Off-trade RTD Tea: % Value 2015-2019 ............. 4
Table 9 LBN Brand Shares of Off-trade RTD Tea: % Value 2016-2019 ................... 4
Table 10 Forecast Off-trade Sales of RTD Tea by Category: Volume 2019-
2024 ............................................................................................................. 4
Table 11 Forecast Off-trade Sales of RTD Tea by Category: Value 2019-2024 ......... 5
Table 12 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth
2019-2024 .................................................................................................... 5
Table 13 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth
2019-2024 .................................................................................................... 5

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RTD TEA IN PERU

HEADLINES
▪ In 2019 RTD tea sees off-trade current value growth of 11% to reach PEN573 million, and off-
trade volume growth of 6% to 94 million litres
▪ Consumer demand for healthier, lower-sugar options boosts RTD tea performance in 2019
▪ RTD tea products available only in off-trade outlets in 2019
▪ RTD tea competitive environment relatively static in 2019, and also concentrated, with top
three players holding combined off-trade value share of 78%
▪ Forecast period set to see off-trade current value CAGR of 10% (8% constant value CAGR),
with expected off-trade volume CAGR of 6%

PROSPECTS

Players See Potential in Products Offering Healthy Attributes

RTD tea saw continued growth in 2019. Local consumers are showing an increasing
preference for products they consider healthier and more natural. This has favoured not only
reduced sugar RTD teas, but also regular versions that contain green tea or include berries,
both of which are associated with a healthy diet.

Rtd Tea Gains Shelf Space

The sustained growth of this category has motivated the main beverage companies to
participate, seeking to gain a foothold before the category develops fully. As a consequence,
RTD teas are acquiring space on modern retailers’ shelves, with new varieties and
presentations.

Younger Consumers Seek On-the-go Formats

In the context of increasingly busy lifestyles, time is becoming an increasingly precious
resource, especially in the capital, Lima. This creates the right environment for products that
could offer the possibility of on-the-go consumption. Such products particularly appeal to
younger working adults, who are starting to consume RTD beverages not only on the public
highway, but also in the workplace.

COMPETITIVE LANDSCAPE

Ajeper’s Product Range Underpins Its Category Lead

Ajeper maintained its leading position in this category in 2019. With 10 years’ experience, and
being the pioneer with a light version, the company has a strong grip on RTD tea sales. Ajeper
also offers different formats suitable for both personal and family consumption, and targeting
various consumption occasions. Additionally, it continuously offers different varieties and
flavours.

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Vida Brand Acquisition Boosts Ajeper’s Low-price Presence, Innovation

Strategy Continues
In 2018 Ajeper acquired Embotelladora Don Jorge SA’s Vida RTD tea brand. With this, Ajeper
has consolidated its presence in the low-price segment. However, it is still developing an
innovation strategy, and not only a low-price strategy for its brands, in order to keep ahead of
the curve regarding consumer demand.

Arca Continental Lindley Focusses on Trade

Arca Continental Lindley entered RTD tea With Fuze Tea towards the end of the review
period. Even so, this category has not represented a priority over the last year. According to Ana
Maria Salas of Arca Continental Lindley, it instead focussed on trade: “It is managed with a
business logic where the increase goes in that sense and it is not focused on the final
consumer.”

CATEGORY DATA
Table 1 Off-trade Sales of RTD Tea by Category: Volume 2014-2019

million litres
2014 2015 2016 2017 2018 2019

Carbonated RTD Tea - - - - - -

Still RTD Tea 57.8 67.1 75.7 83.0 88.3 93.7
RTD Tea 57.8 67.1 75.7 83.0 88.3 93.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Off-trade Sales of RTD Tea by Category: Value 2014-2019

PEN million
2014 2015 2016 2017 2018 2019

Carbonated RTD Tea - - - - - -

Still RTD Tea 309.8 364.7 415.7 467.5 516.9 573.2
RTD Tea 309.8 364.7 415.7 467.5 516.9 573.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Off-trade Sales of RTD Tea by Category: % Volume Growth 2014-2019

% volume growth
2018/19 2014-19 CAGR 2014/19 Total

Carbonated RTD Tea - - -

Still RTD Tea 6.1 10.2 62.3
RTD Tea 6.1 10.2 62.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 4 Off-trade Sales of RTD Tea by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Carbonated RTD Tea - - -

Still RTD Tea 10.9 13.1 85.0
RTD Tea 10.9 13.1 85.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Leading Flavours for Off-trade RTD Tea: % Volume 2014-2019

% retail volume
2014 2015 2016 2017 2018 2019

Black - Lemon 23.8 24.7 25.6 25.7 25.7 25.7

Black - Peach 21.1 21.1 21.1 21.1 21.1 21.2
Green - Lemon 31.5 31.5 31.4 31.4 31.3 31.3
Green - Peach 20.1 20.0 19.8 19.8 19.7 19.7
Other Flavours 3.5 2.7 2.0 2.0 2.1 2.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 NBO Company Shares of Off-trade RTD Tea: % Volume 2015-2019

% off-trade volume
Company 2015 2016 2017 2018 2019

Ajeper SA 41.3 41.0 41.9 42.3 42.6

CBC Peruana SAC - 18.7 18.2 18.0 17.8
Gloria SA, Grupo 12.6 12.2 11.8 11.6 11.4
Embotelladora Don Jorge 10.5 10.4 10.1 9.9 9.8
SA
La Cosecha Peruana SAC 9.3 9.7 9.6 9.6 9.7
P&D Andina Alimentos SA 1.3 1.3 1.2 1.2 1.2
Others 25.0 6.8 7.1 7.3 7.5
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 7 LBN Brand Shares of Off-trade RTD Tea: % Volume 2016-2019

% off-trade volume
Brand (GBO) Company (NBO) 2016 2017 2018 2019

Free Tea (Aje Group) Ajeper SA 28.5 29.0 29.3 29.5

Lipton (Unilever CBC Peruana SAC 18.7 18.2 18.0 17.8
Group)
Free Tea Light (Aje Ajeper SA 12.5 12.9 13.0 13.1
Group)
Leaf Tea Gloria SA, Grupo 12.2 11.8 11.6 11.4
Vida Embotelladora Don Jorge SA 10.4 10.1 9.9 9.8
Beberash La Cosecha Peruana SAC 9.7 9.6 9.6 9.7

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Hornimans (Jacobs P&D Andina Alimentos SA 1.3 1.2 1.2 1.2

Douwe Egberts)
Hornimans (DE P&D Andina Alimentos SA - - - -
Master Blenders
1753 NV)
Others Others 6.8 7.1 7.3 7.5
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 8 NBO Company Shares of Off-trade RTD Tea: % Value 2015-2019

% off-trade value rsp

Company 2015 2016 2017 2018 2019

Ajeper SA 43.2 42.6 42.9 42.8 42.7

CBC Peruana SAC - 22.9 22.6 22.5 22.4
La Cosecha Peruana SAC 12.5 12.9 13.0 13.0 13.2
Gloria SA, Grupo 8.1 7.8 7.6 7.6 7.5
Embotelladora Don Jorge 6.6 6.5 6.4 6.4 6.3
SA
P&D Andina Alimentos SA 1.4 1.4 1.4 1.4 1.4
Others 28.2 5.9 6.2 6.3 6.5
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 9 LBN Brand Shares of Off-trade RTD Tea: % Value 2016-2019

% off-trade value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Free Tea (Aje Group) Ajeper SA 29.7 29.6 29.7 29.8

Lipton (Unilever CBC Peruana SAC 22.9 22.6 22.5 22.4
Group)
Beberash La Cosecha Peruana SAC 12.9 13.0 13.0 13.2
Free Tea Light (Aje Ajeper SA 12.9 13.2 13.1 12.9
Group)
Leaf Tea Gloria SA, Grupo 7.8 7.6 7.6 7.5
Vida Embotelladora Don Jorge SA 6.5 6.4 6.4 6.3
Hornimans (Jacobs P&D Andina Alimentos SA 1.4 1.4 1.4 1.4
Douwe Egberts)
Hornimans (DE P&D Andina Alimentos SA - - - -
Master Blenders
1753 NV)
Others Others 5.9 6.2 6.3 6.5
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 10 Forecast Off-trade Sales of RTD Tea by Category: Volume 2019-2024

million litres
2019 2020 2021 2022 2023 2024

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Carbonated RTD Tea - - - - - -

Still RTD Tea 93.7 99.3 105.2 111.3 117.4 123.4
RTD Tea 93.7 99.3 105.2 111.3 117.4 123.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Off-trade Sales of RTD Tea by Category: Value 2019-2024

PEN million
2019 2020 2021 2022 2023 2024

Carbonated RTD Tea - - - - - -

Still RTD Tea 573.2 619.2 668.6 720.7 775.1 830.6
RTD Tea 573.2 619.2 668.6 720.7 775.1 830.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth 2019-
2024

% volume growth
2019/20 2019-24 CAGR 2019/24 Total

Carbonated RTD Tea - - -

Still RTD Tea 6.0 5.7 31.7
RTD Tea 6.0 5.7 31.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 13 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Carbonated RTD Tea - - -

Still RTD Tea 8.0 7.7 44.9
RTD Tea 8.0 7.7 44.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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