Beruflich Dokumente
Kultur Dokumente
IN COLOMBIA
Euromonitor International
July 2016
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport I
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 1
CHOCOLATE CONFECTIONERY IN
COLOMBIA
HEADLINES
In 2016, chocolate confectionery records 4% value growth in current terms to reach COP538
billion and sells 13,000 tonnes to see 1% volume decline
Chocolate confectionery is experiencing segmentation based on size and added value
Reduced sugar chocolate confectionery most dynamic with 9% current value growth in 2016
In 2016, average unit price sees 5% growth in current terms
Ca Nacional de Chocolates continues to lead sales in 2016, recording a value share of 58%
Chocolate confectionery is expected to see a 3% value CAGR at constant 2016 prices to
reach COP633 billion in 2021
TRENDS
The current offer of chocolate confectionery (mostly countlines and tablets) is being
segmented based on size and added value. Standard chocolate countlines and tablets are
becoming smaller (mostly under 40g) as manufacturers, especially multinationals with
presence in several markets, are opting to reduce their size to contribute to the fight against
overweight. Larger sizes (over 55g) are declining except for premium countlines with added
value that are suitable for gifts and sporadic indulgent consumption due to their higher unit
prices. That chocolate confectionery category offers some added value to consumers (cacao
from special origins or added fruits or nuts) such as the Santander brand from Ca Nacional
de Chocolates. The other alternative used by manufacturers to keep sales on a positive path
is to offer products with reduced sugar in brands such as Chocolyne.
Chocolate confectionery saw a slower growth in 2016 in terms of value compared to the
review period. A 3% growth in 2016 actually was a 1% decline in constant terms, which
represents a deceleration considering the 2% CAGR (also in constant terms) seen over the
review period. The category is experiencing a slowdown, as the most popular brands such as
Jet (in tablets) are seeing slower, even negative, value growth. Consumers are preferring
smaller products and more sophisticated chocolate confectionery with added nuts or fruits.
The unit price of smaller chocolates is lower and the repurchase rate (including premium
chocolate confectionery) is also lower. In addition consumers are looking for healthier
alternatives with less added sugar.
Reduced sugar chocolate confectionery was the fastest-growing category in 2016 with 9%
current value growth. Despite its still lower base, higher growth in this category is
demonstrating consumers are looking for healthier chocolate confectionery.
Colombia is also seeing higher unit prices of cacao, the main ingredient of chocolate
confectionery. Scarcer stocks and increasing global demand are pressing up prices. The local
cacao production is mainly focused to supplying local manufacturers and the excess is
exported. Nonetheless, the major manufacturer Ca Nacional de Chocolates for example has
not transferred higher supply costs to consumers and it is continually working to reduce costs
in the supply chain, integrating and providing technical assistance to cacao growers.
Considering that, higher prices of cacao have not shown a strong impact on local demand and
on the contrary, consumers are demanding premium chocolate with a higher percentage of
cacao from diverse origins as is already happening with coffee.
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 2
The standard segment dominates chocolate confectionery, although the premium segment is
expanding as consumers are more exposed to imported premium chocolates and local
manufacturers of brands such as Santander and Dolcevita are focusing on premium
chocolate launches. Premium launches are based on the use of exotic cacaos or fruits such
as uchuva in brands such as Santander and Dolcevita.
Plain milk continued leading chocolate tablets by type measure in 2016. Nonetheless, it has
seen a slight decline in percentage compared to plain dark tablets, which was seeing positive
share growth over the review period. Colombians are becoming more familiar with dark and
bitter varieties of chocolate confectionery; however, the market still prefers plain milk or
sweeter varieties in overall terms.
Local consumers still prefer traditional flavours and the addition of nuts or fruits (eg orange,
blackberry) and chocolate-based snacks due to the very popular coated grapes or peanuts
from Italo.
Mothers Day, Fathers Day and Love and Friendship Day (which takes place in September)
are the most important seasonal periods for chocolate confectionery sales in Colombia as well
as Christmas. St Valentines Day has not been traditionally celebrated in Colombia but it has
been gaining more importance in recent years.
In snacking, chocolate confectionery is receiving strong competition from biscuits and snack
bars. Chocolate confectionery remains as an indulgent category but despite the growth of
reduced sugar chocolate confectionery, it is seeing strong competition of categories perceived
as healthier such as cereal bars. Consumers are clearly differentiating consumption moments
for chocolate confectionery and other snacking varieties, but chocolate is considered as a
competing ingredient as it is also present in some snack bars and ice cream. To increase
consumption moments, companies such as Comestibles Italo and Ca Nacional de
Chocolates are offering smaller and fruity chocolate confectionery presentations.
Independent small grocers is the leading distribution channel for chocolate confectionery.
Most of the sales in this channel are single-unit transactions, demonstrating the channel is
key for this sort of impulse sales due to its proximity to consumers.
COMPETITIVE LANDSCAPE
Ca Nacional de Chocolates SA continued having an undisputed leadership in 2015 with a
retail value share of 58%. The companys leading position is due largely to its very traditional
brands such as Jet and Jumbo and its successful entrance to the health and wellness area
with Chocolyne. Although Jet has been showing a decline due to consumers shifting to more
sophisticated products, the company was not seeing a strong overall decline in shares in
2015 as it captivated consumers with other brands and products. The company continued to
innovate through brand extensions of Jet and Jumbo, including Jet and Jumbo miniatures,
which are more affordable for consumers and are in line with the need to have indulgence but
with smaller products, something that is shaping the market with the health and wellness
trend.
Colombina SA saw the biggest increase in shares in 2016 and it was ranked second in the
category with an 11% share of retail value sales. The company registered the strongest
current retail value growth due to new product development, including some brand extensions
of its leading brand, Choco Break. The company is also leveraging the strong positioning of
brands such as Oreo to offer chocolate confectionery with pieces of that leading biscuit. The
so-called Cookies and Cream white chocolate varieties are a type of product that is seeing
strong growth and posts good potential over the forecast period.
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 3
PROSPECTS
The trend of smaller sizes in chocolate confectionery will continue to develop over the
forecast period and consumers will continue shifting from plain chocolate to products with
added fruit or nuts. Larger sizes will continue to be used mostly by premium brands.
The expected value CAGR of 3% for the forecast period at constant 2016 prices is slightly
higher than that registered over the review period (2%) in constant terms. Higher overall value
growth is expected to be driven by higher growth of premium chocolate.
After reduced sugar confectionery, seasonal chocolate is expected to see the best
performance over the forecast period. Sophistication of chocolate confectionery is responding
to the development of more demanding consumers. Seasonal chocolate is in line with this
trend and consumers are exposed to more premium imported and locally manufactured
products useful as gifts in certain seasons. With kits, large tablets and a growing artisanal
chocolate confectionery offer, chocolate confectionery is expected to regain traction as a gift
option over the forecast period.
Chocolate confectionery unit prices are expected to show stable and very small growth over
the forecast period with a 1% CAGR at constant prices. Although premium chocolate is rising,
the category will continue to be dominated by standard chocolate, which is driving stable price
increases thanks to discounting. Unit price increases are expected to be moderate despite the
inflation outbreaks experienced in 2015-2016.
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 4
Competition from other snacks considered healthier will negatively affect the performance of
chocolate confectionery over the forecast period. With a very strong growth, cereal bars will
be the category captivating the attention of consumers, keeping sales of other snacks at more
moderate levels.
Major manufacturers are expected to increase their new product development activity in
premium chocolates and chocolate confectionery with added nuts and fruits, as they are what
consumers are demanding.
With new brand extensions of major brands such as Jet, Ca Nacional de Chocolates is
expected to continue launching chocolate pouches and bags to offer smaller indulgent sizes
and alternatives to consumers of traditional brands. Traditional or plain milk chocolate
manufacturers are expected to rely on this strategy to keep volume sales growth over the
forecast period amidst consumers shifting to premium brands or chocolate confectionery with
added ingredients (eg fruits and nuts). Despite this trend, the traditional brand Jumbo for
example is expected to perform well even in its larger sizes as it offers an indulgent snack
with added nuts. Consumers usually do not consume larger tablets on just one occasion and
companies will continue shrinking tablets and countlines presentations to leverage this trend.
CATEGORY DATA
Table 1 Sales of Chocolate Confectionery by Category: Volume 2011-2016
tonnes
2011 2012 2013 2014 2015 2016
COP billion
2011 2012 2013 2014 2015 2016
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
% volume growth
2015/16 2011-16 CAGR 2011/16 Total
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 6
Chocolates SA
Colombina SA 8.2 8.2 9.5 10.3 10.7
Ferrero Rocher del 6.8 6.9 7.1 7.2 7.3
Ecuador SA
Effem Colombia Ltda 4.0 4.0 4.3 4.5 4.7
Industria Dos en Uno de 1.7 1.7 1.7 1.6 1.6
Colombia Ltda
Nestl de Colombia SA 1.3 1.3 1.3 1.3 1.4
Comestibles Italo SA 1.4 1.4 1.4 1.3 1.3
Chocolates Triunfo SA 1.0 0.9 0.9 0.8 0.8
Altipal SA - - 0.5 0.5 0.5
Mondelez International - 0.3 0.3 0.3 0.2
Colombia SA
Cadbury Adams Colombia SA 0.1 0.1 0.1 0.0 0.0
Aminona SA 0.6 0.6 - - -
Kraft Foods Colombia SA 0.4 - - - -
Others 13.3 13.4 13.5 13.8 13.7
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
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 7
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 8
tonnes
2016 2017 2018 2019 2020 2021
COP billion
2016 2017 2018 2019 2020 2021
% volume growth
2016/17 2016-21 CAGR 2016/21 Total
Euromonitor International
CHOCOLATE CONFECTIONERY IN COLOMBIA Passport 9
Euromonitor International