Published by Canadean, this Quarterly Beverage Tracker report provides a detailed analysis of the latest developments in the Mexico beverage market
Introduction and Landscape
Why was the report written?
In the current climate of economic uncertainty and market volatility companies need to know about more than just data. This report provides a complete overview of all commercial beverage consumption trends, latest market developments and an economic mood indicator
What is the current market landscape and what is changing?
The positive performance witnessed by many of the categories throughout July and August were dampened by the unfavourable conditions in September. Despite this, categories such as packaged water and energy drinks did manage to remain with a positive dynamic.
What are the key drivers behind recent market changes?
A weak economic landscape was seen in Mexico during third quarter of the year as a consequence of the disaster caused by heavy rains. The soft drinks industry was hampered by the storms in September, with Q3 down by 1%.
What makes this report unique and essential to read?
Designed for clients who want to understand the latest trends in the Mexico beverage industry and want more detail and analysis on this data. Canadean's Mexico Quarterly Beverage Tracker report is ideal for benchmarking total market vs retail audit data and is an essential tool for keeping up-to-date with the latest industry and market developments
Key Features and Benefits
Readers are provided with a summary snap shot table showing category growth in Q32013 vs Q32012, together with 2012 actual volumes, 2013 forecast volumes and projected growth
An economic mood indicator, completed by Canadean's local consultant, examines (on a scale of one to five) whether confidence levels in the industry are better or worse than the previous quarter, whether net prices are rising or falling and how Private Label products have performed versus the rest of the market. Selected retail pricing data is given for the most recent quarter and the previous four quarters, enabling analysis of price movements.
of the last quarter's commercial beverage performance are identified and the key market drivers examined
Volumes for Q32013 vs Q32012, full year 2012, moving annual totals (MAT) and 2013 forecasts are provided for each individual beverage category, together with supporting text on quarterly performance and forecast assumptions. More granular data is provided for the Carbonates category, with data split by regular vs low calorie, and by key flavours. Significant activity in the soft drinks industry is covered including recent new product introductions (detailing flavour, pack type, pack size, retail price and selected pack shots).
Key Market Issues
In mid-September, the country suffered its worst flooding on record when tropical storms Manuel and Ingrid converged from the Pacific and the Gulf of Mexico, killing more than 150 people and causing estimated damage of around US$6 bn.
The unemployment rate in September 2013 was 4.92%, greater than the one registered the same month last year.
In August, remittances from Mexicans from outside slowed their negative trend of 13 months, after registering an increase of 1.15% compared to last year. The growth in remittances was achieved thanks to the appreciation in the exchange rate and to the slight recovery trend in American jobs, from which 98% of remittances came from.
Private Label brands are taking advantage of the economic situation. They showed a good performance in Q3-13, mainly due to the decreasing consumer purchasing power.
The National Association of Supermarkets and Department Stores (ANTAD) revealed that in September the sales of the associated chains, including openings, reported a weak growth 2% while same units reported a decrease of 3%.
By increasing its national distribution force, making efforts in the convenience channel and launching a successful promotion which gives free mobile phone airtime, Ciel increase its packaged water market share.
Although it is a difficult economic landscape, the juice category achieved a moderate 1% growth boosted by its performance in the traditional channel.
The Federal Competition Commission established new terms for the exclusivity contracts of the two market leaders, GrupoModelo and Heineken. Both brewers will allow the free entrance of artisanal beers to the on-premise channels where they already sell and must also limit their exclusivity contracts in traditional stores and restaurants with a maximum of 25% of its outlets. The final solution will benefit artisanal beers and also to a lesser extent imported beers
Despite the domestic consumption of cider being mainly related to December celebrations, the category showed a solid 38% growth (from a small base), boosted by Strongbow's efforts in the modern and on-premise channels.
Hot coffee is predicted to show a steady 3% growth in 2013, driven by investment made by Nestlé in coffee production and product innovation.