Concentrates - Singapore

Euromonitor International : Country Sector Briefing January 2011

Concentrates

Singapore

List of Contents and Tables

Headlines ................................................................................................................................................................. 1 Trends ...................................................................................................................................................................... 1 Competitive Landscape .......................................................................................................................................... 1 Prospects .................................................................................................................................................................. 2 Category Data ......................................................................................................................................................... 2 Concentrates Conversions ........................................................................................................................................ 2 Table 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format ............................... 2 Table 2 Off-trade Sales of Concentrates (as sold) by Category: Volume 2005-2010 ..................... 2 Table 3 Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2005-2010.......................................................................................................................... 3 Table 4 Off-trade Sales of Concentrates (RTD) by Category: Volume 2005-2010 ........................ 3 Table 5 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2005-2010.......................................................................................................................... 3 Table 6 Off-trade Sales of Concentrates by Category: Value 2005-2010 ....................................... 3 Table 7 Off-trade Sales of Concentrates by Category: % Value Growth 2005-2010...................... 3 Table 8 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2006-2010.......................................................................................................................... 4 Table 9 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 20072010 ................................................................................................................................... 4 Table 10 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2006-2010.......................................................................................................................... 4 Table 11 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 20072010 ................................................................................................................................... 4 Table 12 Company Shares of Concentrates (RTD) by Off-trade Volume 2006-2010 ...................... 5 Table 13 Brand Shares of Concentrates (RTD) by Off-trade Volume 2007-2010 ............................ 5 Table 14 Company Shares of Concentrates by Off-trade Value 2006-2010 ..................................... 5 Table 15 Brand Shares of Concentrates by Off-trade Value 2007-2010........................................... 6 Table 16 Forecast Off-trade Sales of Concentrates (as sold) by Category: Volume 2010-2015.......................................................................................................................... 6 Table 17 Forecast Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2010-2015............................................................................................................. 6 Table 18 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 20102015 ................................................................................................................................... 7 Table 19 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2010-2015............................................................................................................. 7 Table 20 Forecast Off-trade Sales of Concentrates by Category: Value 2010-2015 ........................ 7 Table 21 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2010-2015.......................................................................................................................... 7

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Concentrates

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CONCENTRATES IN SINGAPORE
HEADLINES
Concentrates posted 4% growth in total current value terms in 2010 to reach sales of almost S$10 million Ribena sustains performance for concentrates despite consumers increasing consumption outside the home with the recovery of the economy in 2010 Liquid concentrates leads with total value growth of 4% in 2010 In 2010, average unit price of concentrates increased slightly GlaxoSmithKline Singapore Pte Ltd leads with some 50% of off-trade value sales in 2010 Concentrates is expected to post negligible total constant value growth over the forecast period

TRENDS
In 2010, concentrates, which are often used for preparing large volumes of drinks at events such as birthday parties, saw slower sales compared to 2009. This was the result of consumers increasing beverage consumption outside the home with the recovery of the economy in 2010. However, popular liquid concentrate Ribena sustained the performance of concentrates with its high vitamin C content in the blackcurrant fruit drink. Moreover, the brand has been well established in Singapore for its liquid concentrate for at-home consumption for many years. Other liquid concentrates such as F&N Cordial are more commonly used for events and special occasions. Liquid concentrates led with total value growth of 4% in 2010, mainly due to popular brands such as Ribena and Sunquick. Among foreign expatriates in Singapore, some are from countries more accustomed to using concentrates to prepare beverages at home. This group of consumers helped drive sales of premium liquid concentrates such as Bickfords. Moreover, powder concentrates such as Lipton Ice Tea faced strong competition from RTD tea which provided greater convenience. The average unit price of concentrates increased slightly in 2010 due to reduced consumption of concentrates by locals who used standard or economy liquid concentrates such as Sunquick during the recession in 2009 for better cost savings and value. On the other hand, with the recovery of the economy, consumption of premium liquid concentrates such as Bickfords increased. An increase in the off-trade retail selling price for Sunquick was observed in 2010, resulting in an increase in the average unit price of concentrates as a whole in 2010. As concentrates are usually bought in bigger pack sizes for better value, sales of concentrates in Singapore are generally dominated by supermarkets/hypermarkets, followed by independent small grocers in 2010. On-trade sales of concentrates remain limited in Singapore, with brands such as Ribena enjoying fountain sales of its concentrates at certain on-trade outlets. Even then, the ready-to-drink format for Ribena registered more significant sales as compared to the concentrates at such on-trade outlets. The key consumers of concentrates in Singapore are usually families or party groups as concentrates are often mixed with water to produce larger volumes of drinks. Liquid concentrates such as Ribena are often prepared for family consumption, while F&N Cordial is typically used at events such as birthday parties.

COMPETITIVE LANDSCAPE
GlaxoSmithKline Singapore Pte Ltd leads concentrates by some distance with 50% of off-trade value sales in 2010. This was mainly attributed to the consistent efforts of the company to invest in promotion and advertising over the review period. MediaCorp artiste Evelyn Tan was also used as a celebrity endorser for the brand. The company also made use of the internet to launch contests, appealing to the young. In addition, Ribena liquid concentrate boasts a high vitamin C content, making it a healthy blackcurrant fruit drink for Singaporeans.

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Concentrates

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Sales of both liquid and powder concentrates are largely dominated by international players such as Barkath Co-Ro Manufacturing Sdn Bhd, GlaxoSmithKline Singapore and Unilever Singapore Pte Ltd. Frequent consumption of concentrates is not part of the culture of Singaporeans in general and this has not prompted domestic manufacturers to venture into the category other than domestic brand F&N Cordial. There were no prominent product launches observed for concentrates in 2010. However, leading brand Ribena continued its consistent marketing efforts by launching its Ribena Romanticons 2010 Promotion from February to March 2010. Purchase of either a 330ml Ribena pouch pack or 500ml PET bottle with a sticker bearing the Ribena Romanticons logo enabled consumers to take part in a Collect, Match & Win Weekly Draw and the The Greatest Love Story Never Told story writing contest at Ribenas official website. Despite the promotion of the ready-to-drink format of Ribena rather than liquid concentrate through the contests, it promoted and created appeal for the brand as a whole among younger consumers. There were no significant packaging innovations observed in 2010. Most liquid concentrates generally come in PET bottles, with a minority of premium brands such as Bickfords using glass bottles. As for powder concentrates, brands such as Lipton and Boh come in sachets. Private label did not pose a threat to established brands of concentrates in 2010 due mainly to the inferior quality, product innovations, as well as minimal price difference.

PROSPECTS
With expectations of continued economic recovery for Singapore over the forecast period, Singaporeans are expected to dine, shop and relax more frequently outside the home. The need to prepare beverages in large volumes using concentrates would be reduced, resulting in slower growth for concentrates over the forecast period. Moreover, RTD beverages such as RTD tea and Ribena juice drinks will see increasing popularity as consumers demand beverage products that provide convenience. Liquid concentrates for juices such as Sunquick will also face a threat from fresh packaged orange juice such as that from Peel Fresh. However, as previously noted, an increase in the number of foreign expatriates who come from cultures where consumption of liquid concentrates at home is the norm is likely to help boost sales to offset declining demand for liquid concentrates among local consumers. These consumers are expected to purchase premium liquid concentrates, driving up average unit price over the forecast period. On the other hand, price promotions will be prevalent to entice consumers to purchase concentrates for better value when consuming drinks in large volumes, driving average unit price of concentrates down in general over the forecast period.

CATEGORY DATA
Concentrates Conversions
Table 1 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format Conversion factors Powder concentrates Liquid concentrates
Source: Euromonitor International

1kg = 10 litres RTD 1 litre = 6.8 litres RTD

Table 2

Off-trade Sales of Concentrates (as sold) by Category: Volume 2005-2010 2005 2006 1.5 2007 1.5 2008 1.6 2009 1.6 2010 1.6

Liquid Concentrates (Million litres)

1.4

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Powder Concentrates (Tonne) Concentrates (Million litres)

Source: Notes:

33.7 1.4

34.0 1.5

34.6 1.5

34.9 1.6

35.6 1.6

36.1 1.6

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Totals exclude powder concentrates

Table 3 % volume growth

Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2005-2010

2009/10 Liquid Concentrates Powder Concentrates Concentrates

Source: Notes:

2005-10 CAGR 2.7 1.4 2.7

2005/10 TOTAL 14.2 7.2 14.2

3.5 1.5 3.5

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Totals exclude powder concentrates

Table 4 Million litres

Off-trade Sales of Concentrates (RTD) by Category: Volume 2005-2010

2005 Liquid Concentrates Powder Concentrates Concentrates

Source:

2006 10.4 0.3 10.7

2007 10.6 0.4 10.9

2008 10.8 0.4 11.1

2009 11.1 0.4 11.4

2010 11.5 0.4 11.9

10.0 0.3 10.4

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5 % volume growth

Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2005-2010

2009/10 Liquid Concentrates Powder Concentrates Concentrates

Source:

2005-10 CAGR 2.7 1.9 2.7

2005/10 TOTAL 14.5 9.6 14.3

3.8 1.4 3.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6 S$ million

Off-trade Sales of Concentrates by Category: Value 2005-2010

2005 Liquid Concentrates Powder Concentrates Concentrates

Source:

2006 7.9 0.6 8.4

2007 8.2 0.6 8.8

2008 8.4 0.6 9.0

2009 8.5 0.6 9.1

2010 8.9 0.6 9.5

7.7 0.6 8.2

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7

Off-trade Sales of Concentrates by Category: % Value Growth 2005-2010

% current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL

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Concentrates

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Liquid Concentrates Powder Concentrates Concentrates

Source:

4.0 2.0 3.9

2.9 1.9 2.8

15.3 9.8 15.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8

Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2006-2010

% off-trade volume Company GlaxoSmithKline Singapore Pte Ltd Barkath Co-Ro Manufacturing Sdn Bhd Coca-Cola Singapore Beverages Pte Ltd Others Total
Source:

2006 44.0 27.5 12.0 16.5 100.0

2007 44.0 26.5 12.0 17.5 100.0

2008 44.2 26.5 12.0 17.3 100.0

2009 44.5 27.0 11.5 17.0 100.0

2010 44.9 27.1 10.6 17.4 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9

Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2007-2010

% off-trade volume Brand Ribena Sunquick F&N Cordial Rose F&N Cordial Orange Others Total
Source:

Company GlaxoSmithKline Singapore Pte Ltd Barkath Co-Ro Manufacturing Sdn Bhd Coca-Cola Singapore Beverages Pte Ltd Coca-Cola Singapore Beverages Pte Ltd

2007 44.0 26.5 8.0 4.0 17.5 100.0

2008 44.2 26.5 8.2 3.8 17.3 100.0

2009 44.5 27.0 8.0 3.5 17.0 100.0

2010 44.9 27.1 7.3 3.3 17.4 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10

Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2006-2010

% off-trade volume Company Unilever Singapore Pte Ltd PepsiCo International Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The Others Total
Source:

2006 39.5 32.5 7.0 21.0 100.0

2007 40.5 33.0 26.5 100.0

2008 40.8 32.8 26.4 100.0

2009 40.8 32.3 26.9 100.0

2010 40.8 32.0 27.2 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 11

Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2007-2010

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% off-trade volume Brand Lipton Ice Tea Gatorade Tang Gatorade Others Total
Source:

Company Unilever Singapore Pte Ltd PepsiCo International Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The

2007 40.5 33.0 26.5 100.0

2008 40.8 32.8 26.4 100.0

2009 40.8 32.3 26.9 100.0

2010 40.8 32.0 27.2 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 12

Company Shares of Concentrates (RTD) by Off-trade Volume 2006-2010

% off-trade volume Company Barkath Co-Ro Manufacturing Sdn Bhd GlaxoSmithKline Singapore Pte Ltd Coca-Cola Singapore Beverages Pte Ltd PepsiCo International Pte Ltd Unilever Singapore Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The Others Total
Source:

2006 38.1 36.6 8.3 1.5 0.9 0.2 14.4 100.0

2007 36.9 36.8 8.4 1.5 0.9 15.5 100.0

2008 37.0 37.0 8.4 1.5 0.9 15.3 100.0

2009 37.5 37.1 8.0 1.5 0.9 15.0 100.0

2010 37.6 37.4 7.4 1.4 0.9 15.3 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 13

Brand Shares of Concentrates (RTD) by Off-trade Volume 2007-2010

% off-trade volume Brand Sunquick Ribena F&N Gatorade Lipton Tang Gatorade Others Total
Source:

Company Barkath Co-Ro Manufacturing Sdn Bhd GlaxoSmithKline Singapore Pte Ltd Coca-Cola Singapore Beverages Pte Ltd PepsiCo International Pte Ltd Unilever Singapore Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The

2007 36.9 36.8 8.4 1.5 0.9 15.5 100.0

2008 37.0 37.0 8.4 1.5 0.9 15.3 100.0

2009 37.5 37.1 8.0 1.5 0.9 15.0 100.0

2010 37.6 37.4 7.4 1.4 0.9 15.3 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 14

Company Shares of Concentrates by Off-trade Value 2006-2010

% off-trade value rsp Company

2006

2007

2008

2009

2010

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GlaxoSmithKline Singapore Pte Ltd Barkath Co-Ro Manufacturing Sdn Bhd Coca-Cola Singapore Beverages Pte Ltd PepsiCo International Pte Ltd Unilever Singapore Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The Others Total
Source:

48.9 30.6 4.1 3.2 2.5 0.3 10.4 100.0

48.9 29.7 4.1 3.2 2.5 11.6 100.0

49.6 29.0 4.0 3.2 2.5 11.6 100.0

49.9 29.4 3.5 3.2 2.5 11.4 100.0

50.1 29.6 3.2 3.1 2.5 11.5 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 15

Brand Shares of Concentrates by Off-trade Value 2007-2010

% off-trade value rsp Brand Ribena Sunquick F&N Gatorade Lipton Tang Gatorade Others Total
Source:

Company GlaxoSmithKline Singapore Pte Ltd Barkath Co-Ro Manufacturing Sdn Bhd Coca-Cola Singapore Beverages Pte Ltd PepsiCo International Pte Ltd Unilever Singapore Pte Ltd Kraft Foods (S) Pte Ltd Quaker Oats Co, The

2007 48.9 29.7 4.1 3.2 2.5 11.6 100.0

2008 49.6 29.0 4.0 3.2 2.5 11.6 100.0

2009 49.9 29.4 3.5 3.2 2.5 11.4 100.0

2010 50.1 29.6 3.2 3.1 2.5 11.5 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 16

Forecast Off-trade Sales of Concentrates (as sold) by Category: Volume 2010-2015 2010 2011 1.7 36.6 1.7 2012 1.7 37.1 1.7 2013 1.8 37.6 1.8 2014 1.8 37.9 1.8 2015 1.8 38.2 1.8

Liquid Concentrates (Million litres) Powder Concentrates (Tonne) Concentrates (Million litres)
Source: Notes:

1.6 36.1 1.6

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Totals exclude powder concentrates

Table 17

Forecast Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 20102015

% volume growth 2014/15 Liquid Concentrates Powder Concentrates Concentrates 1.3 0.8 1.3 2010-15 CAGR 1.9 1.1 1.9 2010/15 TOTAL 9.8 5.8 9.8

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Source: Notes:

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Totals exclude powder concentrates

Table 18 Million litres

Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2010-2015

2010 Liquid Concentrates Powder Concentrates Concentrates

Source:

2011 11.9 0.4 12.3

2012 12.2 0.4 12.6

2013 12.6 0.4 13.0

2014 12.9 0.4 13.3

2015 13.2 0.4 13.6

11.5 0.4 11.9

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 19

Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 20102015

% volume growth 2014/15 Liquid Concentrates Powder Concentrates Concentrates

Source:

2010-15 CAGR 2.9 1.0 2.8

2010/15 TOTAL 15.4 5.2 15.0

2.5 0.7 2.4

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 20 S$ million

Forecast Off-trade Sales of Concentrates by Category: Value 2010-2015

2010 Liquid Concentrates Powder Concentrates Concentrates

Source:

2011 9.0 0.6 9.6

2012 9.0 0.6 9.6

2013 9.0 0.6 9.6

2014 9.0 0.6 9.6

2015 8.9 0.6 9.5

8.9 0.6 9.5

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 21

Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2010-2015

% constant value growth 2010-15 CAGR Liquid Concentrates Powder Concentrates Concentrates
Source:

2010/15 TOTAL 0.6 -3.2 0.3

0.1 -0.6 0.1

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

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