Processed Meat and Seafood in ColombiaSep2018

PROCESSED MEAT AND
SEAFOOD IN COLOMBIA
Euromonitor International
November 2017
PROCESSED MEAT AND SEAFOOD IN COLOMBIA Passport I
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Processed Meat and Seafood by Category: Volume 2012-
2017 ............................................................................................................. 3
Table 2 Sales of Processed Meat and Seafood by Category: Value 2012-2017 ....... 3
Table 3 Sales of Processed Meat and Seafood by Category: % Volume
Growth 2012-2017 ....................................................................................... 4
Table 4 Sales of Processed Meat and Seafood by Category: % Value Growth
2012-2017 .................................................................................................... 5
Table 5 Sales of Shelf Stable Processed Red Meat by Type: % Volume
Breakdown 2012-2017 ................................................................................. 5
Table 6 Sales of Chilled Processed Red Meat by Type: % Volume Breakdown
2012-2017 .................................................................................................... 5
Table 7 Sales of Frozen Processed Red Meat by Type: % Volume Breakdown
2012-2017 .................................................................................................... 6
Table 8 Sales of Frozen Processed Poultry by Type: % Value Breakdown
2012-2017 .................................................................................................... 6
Table 9 Sales of Frozen Processed Seafood by Type: % Value Breakdown
2012-2017 .................................................................................................... 6
Table 10 NBO Company Shares of Processed Meat and Seafood: % Value
2013-2017 .................................................................................................... 6
Table 11 LBN Brand Shares of Processed Meat and Seafood: % Value 2014-
2017 ............................................................................................................. 7
Table 12 Distribution of Processed Meat and Seafood by Format: % Value
2012-2017 .................................................................................................... 8
Table 13 Forecast Sales of Processed Meat and Seafood by Category: Volume
2017-2022 .................................................................................................... 8
Table 14 Forecast Sales of Processed Meat and Seafood by Category: Value
2017-2022 .................................................................................................... 9
Table 15 Forecast Sales of Processed Meat and Seafood by Category: %
Volume Growth 2017-2022 ........................................................................ 10
Table 16 Forecast Sales of Processed Meat and Seafood by Category: %
Value Growth 2017-2022 ........................................................................... 10
© Euromonitor International
PROCESSED MEAT AND SEAFOOD IN COLOMBIA Passport 1
PROCESSED MEAT AND SEAFOOD IN

COLOMBIA
HEADLINES
 In 2017 processed meat and seafood records retail volume growth of 2% and current value
growth of 7% to reach sales of 125,000 tonnes and COP2,993 billion, respectively
 Mercury found in processed seafood leads to a decline in volume sales
 Shelf stable processed poultry posts the strongest current value growth of 16%
 Average unit price rises by 5% in current terms
 Industrias de Alimentos Zenú continues to dominate the category with a value share of 71%
 Over the forecast period processed meat and seafood set to record both a volume and value
CAGR of 2% at constant 2017 prices to reach sales of 136,000 tonnes and COP3,294 billion,
respectively, in 2022
TRENDS
 Tests carried out by INVIMA (Colombia’s National Food and Drug Surveillance Institute)
revealing the presence of mercury in certain canned tuna brands affected processed seafood
in 2017, with canned tuna accounting for more than 90% of the category’s sales. INVIMA’s
tests revealed that the level of mercury in various tuna products was higher than permitted,
with this leading to some manufacturers facing a double-digit decline in volume and value
sales. Consumers took two approaches to the crisis. Many simply stopped buying canned
tuna, while others migrated to unaffected brands or processed meat.
 Processed meat and seafood recorded current value growth of 7% in 2017. This was stronger
than the review period CAGR of 5% despite the above-mentioned mercury crisis in canned
tuna and an alert from the World Health Organization regarding the health effects of
excessive consumption of processed meat.
 With current value growth of 16%, shelf stable processed poultry remained the fastest
growing category in 2017, albeit from a lower base when compared to red meat and seafood.
Shelf stable processed poultry continued to benefit from price reductions for brands such as
Zenú and Macedonia. Industrias de Alimentos Zenú has been active in this category,
launching shelf stable poultry with mayonnaise and mushrooms, with these becoming a
popular alternative for use in sandwiches, pasta and salads.
 Average unit price in processed meat and seafood rose by 5% in current terms in 2017.
Although inflation is falling, higher VAT affected the cost of the materials used by companies,
especially metal cans.
 As in other categories, discounters are also making inroads in processed meat and seafood,
particularly in chilled processed meat and shelf stable seafood. However, the strength,
tradition and recognition of brands like Zenú has helped reduce the impact of new private
label products.
COMPETITIVE LANDSCAPE
 Industrias de Alimentos Zenú continued to dominate processed meat and seafood in 2017
with a 71% share of value sales thanks to the strong positioning of its brands Zenú,
Ranchera, Pietrán and Rica. In 2017, the Zenú brand also benefited from an image revamp.
 Industrias de Alimentos Zenú also achieved the biggest increase in value share in 2017
thanks to the launch of new variants of shelf stable poultry, the consolidation of its
PractiCarne brand and changes to its sales and distribution strategy so as to directly serve
independent retailers, with the aim of offering a better service and lower prices.
 Discounters are increasingly penetrating the category with their private label ranges. They still
had a limited portfolio in 2017, however, focused on shelf stable meat. In response, Zenú
strengthened its new product development activities, focusing on poultry.
 The local company Industrias de Alimentos, which is part of Grupo Nutresa, continued to
dominate sales. This position can be largely attributed to the acquisition of other local brands.
 Chicken with antipasto is one of the most recent new launches from Zenú. It can be used as a
dip, a side dish or as an ingredient in different meals. The product complements the
company’s shelf stable poultry portfolio, which comprises chicken with mayonnaise and
chicken with mushrooms.
 Zenú updated the image of its products in 2017. The company is now using a red and white
design for its entire product portfolio.
 Zenú and other brand manufacturers used new packaging types for mature chilled meat
products like salami and Jamón Serrano in 2017, for example plastic trays with resealable
flexible plastic closures.
 The category continued to be dominated by standard and economy brands in 2017, although
premium meats gained some ground over the review period, for example salami, Jamón
Serrano and Chorizo Español.
PROSPECTS
 The mercury crisis in 2017 did not have a dramatic effect on the category as not all brands
were mentioned in the INVIMA report. Affected brand manufacturers are now recovering from
the crisis by focusing on supply chain transparency so as to ease the concerns of consumers.
This short-lived crisis is expected to have a limited impact on the forecast period performance
of the category but has served as a warning for manufacturers. Considering that this sort of
crisis could emerge again in the future as pollution levels cannot be controlled by fishermen,
manufacturers have learnt that they need to be more careful with their practices and
manufacturing processes. Additionally, consumers are now more aware of what goes into the
foods they eat and the authorities are more active in monitoring the food market.
 Over the forecast period processed meat and seafood is expected to record both a retail
volume and value CAGR of 2% at constant 2017 prices. This will be a stronger performance
than that of the review period despite the maturity of large categories like chilled processed
red meat and shelf stable processed red meat.
 Shelf stable processed poultry is expected to post the best performance over the forecast
period, with sales driven by the development of new products and the promotional activities of
Zenú. Due to its allegedly healthier properties, poultry has a better image than red meat, with
manufacturers continuing to highlight this.
 Average unit price in constant 2017 terms is expected to remain fairly stable over the forecast
period due to a reduction in inflationary pressures, the local market’s adjustment to a higher
rate of VAT and stabilisation of the exchange rate.
 Discounters will continue to expand over the forecast period, in turn affecting established
supermarkets, hypermarkets and even traditional retailers as these outlets are increasingly
being opened in residential areas.
 Zenú and other brand manufacturers are expected to continue to expand their portfolios of
processed meat, largely through poultry so as to overcome consumers’ increasing concerns
surrounding the consumption of red meat.
CATEGORY DATA
Table 1 Sales of Processed Meat and Seafood by Category: Volume 2012-2017
'000 tonnes
2012 2013 2014 2015 2016 2017
Processed Meat 86.3 83.2 88.8 92.1 91.9 94.4

- Shelf Stable Meat 7.0 7.0 7.3 7.7 7.6 7.6
-- Shelf Stable 7.0 7.0 7.2 7.6 7.5 7.5
Processed Red Meat
-- Shelf Stable - 0.0 0.1 0.1 0.1 0.2
Processed Poultry
- Chilled Processed Meat 74.0 70.8 75.1 77.8 77.7 80.0
-- Chilled Processed 66.3 63.1 67.4 70.0 69.9 72.0
Red Meat
Poultry
- Frozen Processed Meat 5.3 5.4 6.4 6.6 6.6 6.8
-- Frozen Processed Red 2.5 2.5 3.0 3.1 3.1 3.2
Meat
-- Frozen Processed 2.9 2.9 3.4 3.5 3.5 3.6
Poultry
Processed Seafood 37.7 40.5 43.1 31.7 31.0 30.7
- Shelf Stable Seafood 37.2 40.0 42.6 31.3 30.6 30.2
- Chilled Processed - - - - - -
Seafood
- Frozen Processed 0.5 0.5 0.5 0.5 0.5 0.5
Seafood
Meat Substitutes - - - - - -
- Chilled Meat - - - - - -
Substitutes
- Frozen Meat Substitutes - - - - - -
- Shelf Stable Meat - - - - - -
Substitutes
Processed Meat and 124.0 123.7 131.9 123.9 123.0 125.1
Seafood
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Processed Meat and Seafood by Category: Value 2012-2017
COP billion
2012 2013 2014 2015 2016 2017
Processed Meat 1,789.2 1,732.7 1,901.9 2,068.6 2,210.7 2,369.3

-- Shelf Stable 107.9 109.6 115.5 127.0 134.0 141.9
Processed Red Meat

-- Shelf Stable - 0.8 1.4 2.3 3.3 3.8
Processed Poultry
- Chilled Processed Meat 1,578.5 1,516.9 1,652.6 1,796.1 1,920.6 2,059.2
-- Chilled Processed 1,414.6 1,351.4 1,479.7 1,608.8 1,720.0 1,841.4
Red Meat
Poultry
Meat
Poultry
Seafood
Seafood
Substitutes
Substitutes
Processed Meat and 2,372.7 2,383.1 2,631.7 2,637.3 2,811.3 2,993.2
Seafood
Table 3 Sales of Processed Meat and Seafood by Category: % Volume Growth 2012-
2017
% volume growth
2016/17 2012-17 CAGR 2012/17 Total
Processed Meat 2.7 1.8 9.3

- Shelf Stable Meat 0.6 1.9 9.7
-- Shelf Stable Processed Red Meat 0.4 1.5 7.5
-- Shelf Stable Processed Poultry 9.0 - -
- Chilled Processed Meat 2.9 1.6 8.1
-- Chilled Processed Red Meat 2.9 1.6 8.5
-- Chilled Processed Poultry 2.4 0.8 4.2
- Frozen Processed Meat 2.4 4.8 26.4
-- Frozen Processed Red Meat 3.7 5.4 29.9
-- Frozen Processed Poultry 1.3 4.3 23.5
Processed Seafood -1.1 -4.0 -18.6
- Shelf Stable Seafood -1.2 -4.1 -18.8
- Chilled Processed Seafood - - -
- Frozen Processed Seafood 2.1 0.6 3.0
Meat Substitutes - - -
- Chilled Meat Substitutes - - -
- Frozen Meat Substitutes - - -
- Shelf Stable Meat Substitutes - - -
Processed Meat and Seafood 1.7 0.2 0.9
Table 4 Sales of Processed Meat and Seafood by Category: % Value Growth 2012-
2017
% current value growth

2016/17 2012-17 CAGR 2012/17 Total

-- Shelf Stable Processed Poultry 15.5 - -
Processed Seafood 3.9 1.3 6.9
- Shelf Stable Seafood 3.8 1.2 6.3
Table 5 Sales of Shelf Stable Processed Red Meat by Type: % Volume Breakdown
2012-2017
% retail volume
2012 2013 2014 2015 2016 2017
Beef 5.5 5.7 6.0 6.2 6.2 6.2

Lamb - - - - - -
Pork 94.5 94.3 94.0 93.8 93.8 93.8
Other Red Meats - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 6 Sales of Chilled Processed Red Meat by Type: % Volume Breakdown 2012-
2017
% retail volume
2012 2013 2014 2015 2016 2017
Beef 2.2 2.3 4.5 4.6 4.6 4.6

Lamb - - - - - -
Pork 97.8 97.8 95.5 95.4 95.4 95.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 7 Sales of Frozen Processed Red Meat by Type: % Volume Breakdown 2012-
2017
% retail volume
2012 2013 2014 2015 2016 2017
Beef 35.4 35.8 36.1 36.3 36.3 36.3

Lamb - - - - - -
Pork 64.6 64.2 63.9 63.8 63.7 63.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 8 Sales of Frozen Processed Poultry by Type: % Value Breakdown 2012-2017
% retail value rsp

2012 2013 2014 2015 2016 2017
Chicken Nuggets 36.0 37.5 38.5 39.2 39.5 39.8

Chicken Patties 46.0 46.0 46.0 45.2 45.0 45.0
Chicken Sticks 8.3 8.2 8.1 8.6 8.6 8.5
Others 9.7 8.3 7.4 7.0 6.9 6.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 9 Sales of Frozen Processed Seafood by Type: % Value Breakdown 2012-2017
% retail value rsp

2012 2013 2014 2015 2016 2017
Battered Fish Fillets 32.0 33.0 33.3 34.5 34.5 34.5

Fish Fingers 53.8 53.5 53.2 51.4 51.3 51.4
Shrimp/prawns 10.2 10.2 10.3 11.1 11.5 11.6
Others 4.0 3.3 3.3 3.0 2.7 2.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 10 NBO Company Shares of Processed Meat and Seafood: % Value 2013-2017
% retail value rsp

Company 2013 2014 2015 2016 2017
Industrias de Alimentos 65.5 64.9 70.0 70.1 70.6

Zenú SA
Seatech International Inc 11.8 12.2 9.2 8.9 8.9
Grupo Alimentario del 2.4 2.6 2.7 2.8 2.5
Atlántico SA
Colombo Española de 2.7 3.0 2.0 1.8 1.7
Conservas
Avesco SA 0.9 0.9 1.0 1.0 1.0

Comestibles Alfa Ltda 0.8 0.8 0.8 0.8 0.8
Soberana SAS 1.0 1.0 0.7 0.7 0.7
Casa Luker SA 0.8 0.7 0.6 0.6 0.6
Trilladora La Motaña SAS 0.5 0.7 0.5 0.6 0.6
Distriaves SA 0.3 0.3 0.3 0.3 0.3
Industrias Alimenticias 0.3 0.3 0.3 0.3 0.3
Aretama SA
Pollos El Bucanero SA 0.1 0.2 0.2 0.2 0.2
Vitamar Ltda 0.1 0.1 0.1 0.1 0.1
Calypso del Caribe SA 0.1 0.1 0.1 0.1 0.1
Alimentos Friko SA 0.1 0.1 0.1 0.1 0.1
Pesquera Vikingos de 0.1 0.1 0.1 0.0 0.0
Colombia SA
Pronaca SA 0.2 0.2 0.1 0.0 0.0
Private Label 3.7 3.9 3.1 3.3 3.5
Others 8.7 7.9 8.2 8.2 8.0
Total 100.0 100.0 100.0 100.0 100.0
Table 11 LBN Brand Shares of Processed Meat and Seafood: % Value 2014-2017
% retail value rsp

Brand (GBO) Company (NBO) 2014 2015 2016 2017
Zenú (Grupo Nutresa Industrias de Alimentos 64.2 69.1 69.1 69.5

SA) Zenú SA
Van Camp's (ConAgra Seatech International Inc - - 8.9 8.9
Brands Inc)
Alamar Grupo Alimentario del 2.6 2.7 2.8 2.5
Atlántico SA
Isabel (Bolton Colombo Española de - 2.0 1.8 1.7
Group, The) Conservas
Pietrán (Grupo Industrias de Alimentos 0.7 0.9 1.0 1.1
Nutresa SA) Zenú SA
Kokoriko Avesco SA 0.9 1.0 1.0 1.0
La Soberana Soberana SAS 1.0 0.7 0.7 0.7
Vigilante (Justo Comestibles Alfa Ltda 0.5 0.6 0.6 0.6
López Valcárcel SA)
Vikingos Casa Luker SA 0.7 0.6 0.6 0.6
La Española (Getafe Trilladora La Motaña SAS 0.7 0.5 0.6 0.6
SA)
Delichicks Distriaves SA 0.3 0.3 0.3 0.3
Brosty Industrias Alimenticias 0.3 0.3 0.3 0.3
Aretama SA
Roland (American Comestibles Alfa Ltda 0.2 0.3 0.2 0.2
Roland Food Corp)
Bucanero Pollos El Bucanero SA 0.2 0.2 0.2 0.2
Vitamar Vitamar Ltda 0.1 0.1 0.1 0.1
Calypso Calypso del Caribe SA 0.1 0.1 0.1 0.1
Friko Alimentos Friko SA 0.1 0.1 0.1 0.1
Vikingos (Casa Pesquera Vikingos de 0.1 0.1 0.0 0.0
Luker SA) Colombia SA
Mr Cook Pronaca SA 0.2 0.1 0.0 0.0
Van Camp's (ConAgra Seatech International Inc 12.2 9.2 - -
Foods Inc)
Isabel (Conservas Colombo Española de 3.0 - - -
Garavilla SA) Conservas
Zenú (Grupo Industrias de Alimentos - - - -

Nacional de Zenú SA
Chocolates SA)
Private label Private Label 3.9 3.1 3.3 3.5
Others Others 7.9 8.2 8.2 8.0
Total Total 100.0 100.0 100.0 100.0
Table 12 Distribution of Processed Meat and Seafood by Format: % Value 2012-2017
% retail value rsp

2012 2013 2014 2015 2016 2017
Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 91.1 96.4 95.1 100.0 100.0 100.0
-- Modern Grocery 29.0 31.5 32.3 35.5 37.0 38.5
Retailers
--- Convenience Stores 0.2 0.2 0.2 0.2 0.2 0.2
--- Discounters 0.7 1.0 1.9 2.4 2.8 3.3
--- Forecourt Retailers - - - - - -
--- Hypermarkets 6.2 6.7 6.7 7.4 7.6 7.8
--- Supermarkets 22.0 23.6 23.5 25.5 26.4 27.3
-- Traditional Grocery 62.1 64.9 62.8 64.5 63.0 61.4
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 62.1 64.9 62.8 64.5 63.0 61.4
Grocers
--- Other Grocery - - - - - -
Retailers
- Non-Grocery Specialists 8.9 3.6 4.8 0.0 - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- 8.9 3.6 4.8 0.0 - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Forecast Sales of Processed Meat and Seafood by Category: Volume 2017-
2022
'000 tonnes
2017 2018 2019 2020 2021 2022
Processed Meat 94.4 96.5 98.6 100.3 101.8 103.2

-- Shelf Stable 7.5 7.6 7.7 7.8 7.8 7.9
Processed Red Meat
-- Shelf Stable 0.2 0.2 0.2 0.2 0.2 0.2
Processed Poultry
- Chilled Processed Meat 80.0 81.9 83.6 85.2 86.5 87.7
Red Meat
Poultry
Meat
Poultry
Seafood
Seafood
Substitutes
Substitutes
Processed Meat and 125.1 127.7 130.0 132.1 134.0 135.5
Seafood
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 14 Forecast Sales of Processed Meat and Seafood by Category: Value 2017-
2022
COP billion
2017 2018 2019 2020 2021 2022
Processed Meat 2,369.3 2,436.1 2,496.3 2,547.4 2,590.7 2,628.1

-- Shelf Stable 141.9 144.4 146.5 148.3 149.8 151.2
Processed Red Meat
-- Shelf Stable 3.8 4.0 4.2 4.4 4.6 4.8
Processed Poultry
- Chilled Processed Meat 2,059.2 2,118.0 2,171.1 2,216.0 2,254.1 2,287.1
-- Chilled Processed 1,841.4 1,891.8 1,937.2 1,975.2 2,007.2 2,035.0
Red Meat
Poultry
Meat
Poultry
Seafood
Seafood
Substitutes

Substitutes
Processed Meat and 2,993.2 3,071.0 3,141.0 3,200.3 3,250.5 3,293.9
Seafood
trade sources
Table 15 Forecast Sales of Processed Meat and Seafood by Category: % Volume

Growth 2017-2022
% volume growth
2017/18 2017-22 CAGR 2017/22 Total

-- Shelf Stable Processed Poultry 4.9 4.1 22.5
trade source
Table 16 Forecast Sales of Processed Meat and Seafood by Category: % Value

Growth 2017-2022
% constant value growth

2017/2018 2017-22 CAGR 2017/22 Total

-- Shelf Stable Processed Poultry 5.9 4.8 26.7

trade source

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PROCESSED MEAT AND

LIST OF CONTENTS AND TABLES

PROCESSED MEAT AND SEAFOOD IN

Processed Meat 86.3 83.2 88.8 92.1 91.9 94.4

Table 2 Sales of Processed Meat and Seafood by Category: Value 2012-2017

Processed Meat 1,789.2 1,732.7 1,901.9 2,068.6 2,210.7 2,369.3

Processed Red Meat

Processed Meat 2.7 1.8 9.3

% current value growth

Processed Meat 7.2 5.8 32.4

Beef 5.5 5.7 6.0 6.2 6.2 6.2

Beef 2.2 2.3 4.5 4.6 4.6 4.6

Beef 35.4 35.8 36.1 36.3 36.3 36.3

Table 8 Sales of Frozen Processed Poultry by Type: % Value Breakdown 2012-2017

% retail value rsp

Chicken Nuggets 36.0 37.5 38.5 39.2 39.5 39.8

Table 9 Sales of Frozen Processed Seafood by Type: % Value Breakdown 2012-2017

% retail value rsp

Battered Fish Fillets 32.0 33.0 33.3 34.5 34.5 34.5

% retail value rsp

Industrias de Alimentos 65.5 64.9 70.0 70.1 70.6

Avesco SA 0.9 0.9 1.0 1.0 1.0

% retail value rsp

Zenú (Grupo Nutresa Industrias de Alimentos 64.2 69.1 69.1 69.5

Zenú (Grupo Industrias de Alimentos - - - -

Table 12 Distribution of Processed Meat and Seafood by Format: % Value 2012-2017

% retail value rsp

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

Processed Meat 94.4 96.5 98.6 100.3 101.8 103.2

Processed Meat 2,369.3 2,436.1 2,496.3 2,547.4 2,590.7 2,628.1

- Frozen Meat Substitutes - - - - - -

Table 15 Forecast Sales of Processed Meat and Seafood by Category: % Volume

Processed Meat 2.3 1.8 9.3

Table 16 Forecast Sales of Processed Meat and Seafood by Category: % Value

% constant value growth

Processed Meat 2.8 2.1 10.9

- Chilled Meat Substitutes - - -

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