Bottled Water in Peru

BOTTLED WATER IN PERU
Euromonitor International
February 2016
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Off-trade Sales of Bottled Water by Category: Volume 2010-2015 .............. 3

Off-trade Sales of Bottled Water by Category: Value 2010-2015 ................. 3
Off-trade Sales of Bottled Water by Category: % Volume Growth
2010-2015 .................................................................................................... 3
Off-trade Sales of Bottled Water by Category: % Value Growth 20102015 ............................................................................................................. 3
NBO Company Shares of Off-trade Bottled Water: % Volume 20112015 ............................................................................................................. 4
LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015 ......... 4
NBO Company Shares of Off-trade Bottled Water: % Value 20112015 ............................................................................................................. 5
LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015 ............ 5
Forecast Off-trade Sales of Bottled Water by Category: Volume 20152020 ............................................................................................................. 6
Forecast Off-trade Sales of Bottled Water by Category: Value 20152020 ............................................................................................................. 6
Forecast Off-trade Sales of Bottled Water by Category: % Volume
Growth 2015-2020 ....................................................................................... 7
Forecast Off-trade Sales of Bottled Water by Category: % Value
Growth 2015-2020 ....................................................................................... 7
Passport

HEADLINES
Off-trade volume and value sales of bottled water grow by 11% and 14%, reaching 598 million
litres and n/s1.1 billion, respectively in 2015
Bottled water is one of fastest-growing categories in soft drinks due to the healthy trend
adopted by Peruvian consumers and aggressive advertising campaigns
On-trade bottled value and volume sales of bottled water rise by 9% and 6% in 2015, showing
strength but at a slower pace than that of off-trade sales
Still bottled water sees fastest off-trade volume and value growth of 12% and 14%,
respectively in 2015
Average unit price growth of bottled water is slightly slower in 2015 than growth in previous
year, due mostly to the economic deceleration and high competition
Corp Lindley continues to lead bottled water with a 45% retail value share, followed by Ajeper
with 40%
Bottled water is expected to record a CAGR of 9% in off-trade volume and value sales at
constant 2015 prices over the forecast period
TRENDS
Peruvians are looking to take better care of their health, and that involves making a change in
their food and beverages intake; therefore, consumption of fast food and carbonates is
decreasing, whilst categories such as bottled water, juice and sports drinks are having a very
positive performance.
Governmental promotion of healthier habits through the Ministry of Health and also by
municipalities is creating greater consciousness amongst Peruvians about their wellbeing and
health. As the most natural and healthiest beverage available is bottled water, consumers
have been increasing their consumption of it considerably in the last few years and this trend
is expected to continue over time.
Day-to-day workers who do not bring a lunch box from home will eat out, and not always at
places where bottled water is always offered; therefore, the consumer needs to ask for it as
an alternative to other soft drinks on offer.
Unit price movement of bottled water rose by a slightly slower 2% in 2015 compared to the
previous year due mainly to promotions in the face of intense competition in the category.
Regarding the formats found in the category, bulk water in the country is mostly sold in 20-litre
carton dispensers that can easily be stored at home and even can come with a convenient
little plastic tap on the side for easier consumption.
COMPETITIVE LANDSCAPE
Corp Lindley continued to lead in bottled water, accounting for 45% of the retail value sales in
2015. San Luis is the most important bottled water from Corp Lindleys portfolio, ranking
second after Ajepers Cielo. Its brand Aquarius is the leading flavoured bottle water on the
market by far, holding an 84% value share in 2015. Corp Lindleys success is based on its
long history on the market as well as on its ability to connect to consumers through different
Passport
marketing campaigns that target young adults looking to take care of their health by
consuming San Luis bottled water.
In 2015, Ajeper recorded the biggest increase in value sales, up by 16% compared to the
previous year. The company is very dynamically promotes its brand Cielo, with important
advertising campaigns, such as billboards, magazine and newspaper advertisements and
television commercials.
Domestic companies continued to dominate bottled water in 2015 with brands such as San
Luis, Cielo, San Mateo and Vida, amongst others. Although there are several international
brands present, such as Perrier, VOSS, Evian and others, most of them are positioned as
premium brands and directed only to high-income consumers and their distribution is limited
to some supermarkets.
Some domestic companies are looking to get into premium bottled water, which is well known
for high quality and outstanding prices compared to that of still regular bottled water, and this
segment is mostly led by international companies. Standard brands normally compete more
aggressively, using multimedia marketing campaigns involving television, radio, and internet
commercials, billboards, magazine and newspaper advertisements, and in-store promotions,
amongst many others.
PROSPECTS
Bottled water is predicted to record a CAGR of 9% in off-trade volume and value sales at
constant 2015 prices over the forecast period. The category is expected to continue growing
more rapidly than the economy, because consumers will continue to migrate from artificial
juice and carbonates to healthier alternatives such as bottled water. It is expected that in the
coming years consumers will be increasingly conscious about their health and healthy eating
and drinking.
Forecast data is not being significantly restated since the Peruvian economy is expected to be
stable in the coming years; no sudden changes are expected in the economy and political
matters, ensuring stability.
The volume and constant value CAGRs of 14% and 13%, respectively over the review period
were much higher than the average growth rates predicted for the forecast period. The growth
registered over the review period was very aggressive because it included many years of
economic growth in the country, where many categories began to develop promoted by
increased disposable incomes. For the coming years, positive growth is expected, but
showing moderate rates, because the country has already gone through many years of
economic growth.
Sudden political and economic turmoil in the country could affect the countrys stability, and
any changes in economic stability will affect growth of bottled water because consumers will
need to return to being more cautious about the products they consume and how they spend
money. Many products such as bottled water that could be easily replaceable could be
importantly affected should there be an onset of turmoil.
Carbonated bottled water and still bottled water are expected to produce strong performances
during the forecast period, registering total volume CAGRs of 8-9%. Both are considered to
be the healthy and this will be highly promoted over the coming years.
In 1914 Ajeper launched the bottled water Cielo Q10, enriched with coenzymes Q10; it has a
positive impact on health, is free of calories and has a light orange flavour. The performance
of Cielo Q10 is still not confirmed; however, it is still on the market, which means it is
attending to its target consumers.
Passport
Passport
Functional bottled water has growth potential because consumers are always looking to find
new products with more added value. Vivant dominated functional bottled water with a 95%
retail value share in 2015, so the competition is still low and consumers are eager to have
more options.
CATEGORY DATA
Table 1
Off-trade Sales of Bottled Water by Category: Volume 2010-2015
million litres
Carbonated Bottled Water

Flavoured Bottled Water
Functional Bottled Water
Still Bottled Water
Bottled Water
Source:
2010
2011
2012
2013
2014
2015
100.0
17.2
3.2
185.1
305.5
123.5
20.9
3.4
227.8
375.6
162.7
25.0
4.0
302.8
494.5
168.5
25.5
4.1
308.5
506.7
181.0
26.6
4.4
325.6
537.6
201.4
28.6
4.7
364.1
598.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Off-trade Sales of Bottled Water by Category: Value 2010-2015
PEN million

Still Bottled Water
Bottled Water
Source:
2010
2011
2012
2013
2014
2015
176.2
35.3
13.2
308.6
533.2
219.0
48.8
14.6
382.6
665.0
292.3
59.9
17.4
522.4
892.0
307.9
62.9
19.6
533.8
924.1
334.4
67.6
21.3
579.2
1,002.5
382.3
75.2
23.4
658.9
1,139.8
Table 3
Off-trade Sales of Bottled Water by Category: % Volume Growth 2010-2015
% volume growth

Still Bottled Water
Bottled Water
Source:
Table 4
2014/15
2010-15 CAGR
2010/15 Total
11.3
7.3
8.8
11.8
11.4
15.0
10.6
8.5
14.5
14.4
101.3
65.8
50.5
96.7
96.0
Off-trade Sales of Bottled Water by Category: % Value Growth 2010-2015
% current value growth
2014/15
2010-15 CAGR
2010/15 Total
14.3
16.8
117.0
Passport

Still Bottled Water
Bottled Water
Source:
Table 5
11.4
9.7
13.8
13.7
NBO Company Shares of Off-trade Bottled Water: % Volume 2011-2015
Corp Lindley SA
Ajeper SA
Coca-Cola Co, The
Embotelladora Don Jorge
SA
Inversiones Rind SAC
San Miguel Industrias
PET SA
Cia Cervecera Ambev
Per SAC
Embotelladora Demesa SA
Unin de Cerveceras
Peruanas Backus &
Johnston SAA
Pepsi-Cola Panamericana
Per SRL
Corp Jos R Lindley SA
Others
Total
Table 6
113.2
77.5
113.5
113.8
% off-trade volume
Company
Source:
16.3
12.2
16.4
16.4
2011
2012
2013
2014
2015
42.3
39.1
2.5
42.9
39.3
2.2
43.6
40.2
2.2
44.2
40.8
2.2
44.2
41.5
2.9
2.1
0.4
0.1
0.8
0.3
0.8
0.3
0.8
0.3
0.7
0.3
0.3
0.3
0.2
0.2
0.2
0.7
3.0
0.7
3.0
3.0
3.0
0.2
-
0.4
11.2
100.0
10.6
100.0
9.6
100.0
8.5
100.0
7.8
100.0
LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015
% off-trade volume
Brand (GBO)
Cielo (Aje Group)
San Luis (Coca-Cola
Co, The)
Aquarius (Coca-Cola
Co, The)
San Mateo
Vida
Vivant con LCarnitina (Azende
Corp Ca Ltda)
Slinea (Industrias
San Miguel)
San Carlos (PepsiCo
Inc)
DiPremium
Cristalina Backus
San Mateo
(SABMiller Plc)
Company (NBO)
2012
2013
2014
2015
Ajeper SA
Corp Lindley SA
39.3
38.5
40.2
39.3
40.8
39.9
41.5
40.1
Corp Lindley SA
4.4
4.4
4.3
4.1
Coca-Cola Co, The

Embotelladora Don Jorge SA
2.2
0.8
2.2
0.8
2.2
0.8
2.8
2.1
0.7

PET SA
Cia Cervecera Ambev
Per SAC
Coca-Cola Co, The
Unin de Cerveceras
Peruanas Backus &
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
2.8
2.8
2.7
0.2
0.2
-
Cristalina Backus
(SABMiller Plc)
Agua Demesa
Free Light (Aje
Group)
Aquarius (Coca-Cola
Co, The)
Dasani (Coca-Cola
Co, The)
San Luis (Coca-Cola
Co, The)
San Carlos (PepsiCo
Inc)
SoBe (PepsiCo Inc)
Others
Total
Source:
Table 7
Passport
Johnston SAA
Unin de Cerveceras
Peruanas Backus &
Johnston SAA
Ajeper SA
0.2
0.2
0.2
0.7
-
Per SRL
Per SRL
Others
Total
10.6
100.0
9.6
100.0
8.5
100.0
7.8
100.0
NBO Company Shares of Off-trade Bottled Water: % Value 2011-2015
% off-trade value rsp

Company
Corp Lindley SA
Ajeper SA
Coca-Cola Co, The
Embotelladora Don Jorge
SA
PET SA
Cia Cervecera Ambev
Per SAC
Unin de Cerveceras
Peruanas Backus &
Johnston SAA
Per SRL
Others
Total
Source:
Table 8
2011
2012
2013
2014
2015
43.1
37.6
0.9
2.2
43.4
37.8
1.8
2.0
44.2
38.5
2.0
2.0
44.6
39.1
2.0
2.0
44.5
40.0
3.5
1.9
1.9
0.2
0.4
0.4
0.4
0.4
0.2
0.2
0.2
0.2
0.2
0.7
3.5
0.6
3.5
3.5
3.5
0.2
-
1.1
10.6
100.0
10.2
100.0
9.3
100.0
8.2
100.0
7.4
100.0
LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015
% off-trade value rsp

Brand (GBO)
Cielo (Aje Group)
San Luis (Coca-Cola
Co, The)
Company (NBO)
2012
2013
2014
2015
Ajeper SA
Corp Lindley SA
37.8
37.7
38.5
38.4
39.1
38.9
40.0
38.9
Aquarius (Coca-Cola
Co, The)
San Mateo
Vivant con LCarnitina (Azende
Corp Ca Ltda)
Vida
Slinea (Industrias
San Miguel)
San Carlos (PepsiCo
Inc)
DiPremium
Cristalina Backus
San Mateo
(SABMiller Plc)
Cristalina Backus
(SABMiller Plc)
Agua Demesa
Free Light (Aje
Group)
Aquarius (Coca-Cola
Co, The)
Dasani (Coca-Cola
Co, The)
San Luis (Coca-Cola
Co, The)
San Carlos (PepsiCo
Inc)
SoBe (PepsiCo Inc)
Others
Total
Source:
Passport
Corp Lindley SA
5.7
5.7
5.7
5.6
Coca-Cola Co, The

1.8
2.0
2.0
3.3
1.9
Embotelladora Don Jorge SA

PET SA
Cia Cervecera Ambev
Per SAC
Coca-Cola Co, The
Unin de Cerveceras
Peruanas Backus &
Johnston SAA
Unin de Cerveceras
Peruanas Backus &
Johnston SAA
Ajeper SA
2.0
0.4
2.0
0.4
2.0
0.4
1.9
0.4
0.2
0.2
0.2
0.2
3.3
3.3
3.3
0.2
0.1
-
0.2
0.2
0.2
0.6
-
Per SRL
Per SRL
Others
Total
10.2
100.0
9.3
100.0
8.2
100.0
7.4
100.0
Table 9
Forecast Off-trade Sales of Bottled Water by Category: Volume 2015-2020
million litres

Still Bottled Water
Bottled Water
Source:
2015
2016
2017
2018
2019
2020
201.4
28.6
4.7
364.1
598.8
221.1
30.6
5.1
400.7
657.5
240.4
32.7
5.4
436.6
715.1
260.7
34.7
5.7
473.5
774.5
282.1
36.7
5.9
511.8
836.5
304.8
38.6
6.2
552.0
901.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 10
Forecast Off-trade Sales of Bottled Water by Category: Value 2015-2020
PEN million

2015
2016
2017
2018
2019
2020
382.3
75.2
420.4
81.0
457.9
87.0
497.4
92.8
539.2
98.5
583.6
104.1

Still Bottled Water
Bottled Water
Source:
Passport
23.4
658.9
1,139.8
25.0
725.5
1,252.0
26.5
790.9
1,362.4
28.0
858.3
1,476.6
29.5
928.6
1,595.8
31.1
1,002.5
1,721.3
trade sources
Table 11
Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth

2015-2020
% volume growth

Still Bottled Water
Bottled Water
Source:
Table 12
2015/16
2015-20 CAGR
2015/20 Total
9.8
7.0
7.0
10.1
9.8
8.6
6.2
5.6
8.7
8.5
51.3
35.2
31.4
51.6
50.6
trade sources
Forecast Off-trade Sales of Bottled Water by Category: % Value Growth

2015-2020
% constant value growth

Still Bottled Water
Bottled Water
Source:
2015/2016
2015-20 CAGR
2015/20 TOTAL
10.0
7.7
7.2
10.1
9.8
8.8
6.7
5.9
8.8
8.6
52.7
38.4
33.0
52.1
51.0
trade sources

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