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Chocolate Confectionery in Colombia
Category Briefing | 26 Jul 2016
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.
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 chocolateconfectionery; 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 chocolateconfectionery with pieces of that leading biscuit. The so-called Cookies
and Cream white chocolatevarieties are a type of product that is seeing strong growth and posts
good potential over the forecast period.
Ca Nacional de Chocolates is successfully positioning Santander as a premium brand with
a social responsibility background. The company clearly states that better cacao is obtained
through the integration with producers who are provided with technical assistance and favourable
prices to sell crops. The company is also working to promote Santander within the institutional
market as an ingredient for consumer foodservice companies.
Chocolate confectionery is dominated by local players due to the importance of Ca
Nacional de Chocolates SA and Colombina SA. The most important international player in 2015 was
Ferrero Rocher del Ecuador SA with a 7% share of retail value sales. Nevertheless, international
brands gained importance via private label or products imported directly by major retail chains
(such as Almacenes xito or Tiendas Jumbo), which are taking advantage of free trade agreements
and demand for more sophisticated products and importing premium brands sold at relatively
affordable prices. An important player operating this way is Pricemart, which offers international
premium brands that are accessible to a large base of high- and middle- to high-income
consumers.
Chocolyne tablets have been greatly responsible for the significant growth of health and
wellness chocolate confectionery. With only 3g of added sugar, the product is marketed as a
healthier alternative to having a chocolate snack. This product is perfectly in line with the rising
tendency towards sugar consumption reduction in Colombia.
Despite not using mass advertising, Santander, the premium brand of Nutresa, is
positioning itself amongst chocolate lovers through an active presence on the internet. Santander
is positioned not only as confectionery but as a culinary ingredient for bakery, pastry and even
salty preparations.
There were no important packaging innovations detected in 2016.
Premium brands are seeing a more dynamic growth compared to standard and economy
brands. Private label products are negligible in Colombia as the market is dominated by major
companies and consumers are very attached to the traditional brands of Ca Nacional de
Chocolates, Colombiana, Nestl, Ferrero Rocher and Effem Colombia.
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.
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
Chocolate Pouches 1,368. 1,427. 1,509. 1,626. 1,599. 1,540.

and Bags 73 53 33 27 10 40
Boxed Assortments 302.92 324.63 348.73 352.29 563.90 569.00
Chocolate with Toys 111.56 117.59 124.07 125.81 124.20 122.90
2,388. 2,500. 2,647. 2,932. 2,994. 2,990.
Countlines 75 38 95 73 70 90
Seasonal Chocolate 223.23 236.53 253.37 273.27 281.90 287.10
6,523. 6,836. 7,194. 7,310. 7,096. 6,986.
Tablets 00 39 35 68 40 40
Other Chocolate Confe
ctionery - - - - - -
Chocolate Confectione 10,918 11,443 12,077 12,621 12,660 12,496
ry .20 .06 .80 .06 .20 .70
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Chocolate Confectionery by Category: Value 2011-2016
COP billion 2011 2012 2013 2014 2015 2016
Chocolate Pouches and

Bags 50.10 53.33 57.36 61.03 63.91 65.01
105.6 113.5 122.5 134.3 143.7 150.7
Countlines 0 5 6 2 4 4
Tablets 204.1 218.4 233.6 238.6 239.7 245.4
COP billion 2011 2012 2013 2014 2015 2016
8 4 4 3 4 7
Other Chocolate Confection
ery - - - - - -
405.7 435.3 468.2 492.3 519.4 537.5
Chocolate Confectionery 2 2 3 8 2 6
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2011-2016
% volume growth 2015/16 2011-16 CAGR 2011/16 Total
Chocolate Pouches and Bags -3.67 2.39 12.54

Boxed Assortments 0.90 13.44 87.84
Chocolate with Toys -1.05 1.95 10.16
Countlines -0.13 4.60 25.21
Seasonal Chocolate 1.84 5.16 28.61
Tablets -1.55 1.38 7.10
Other Chocolate Confectionery - - -
Chocolate Confectionery -1.29 2.74 14.46
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2011-2016
% current value growth 2015/16 2011-16 CAGR 2011/16 Total
Chocolate Pouches and Bags 1.72 5.35 29.75

Chocolate with Toys 4.88 6.68 38.15
Countlines 4.86 7.38 42.74
Tablets 2.39 3.75 20.22
Chocolate Confectionery 3.49 5.79 32.50
Table 5 Sales of Chocolate Tablets by Type: % Value 2011-2016
% retail value rsp 2011 2012 2013 2014 2015 2016
Plain Dark 14.50 14.52 14.53 14.54 14.60 14.65

Plain Milk 67.50 67.20 67.19 67.19 67.20 67.19
Plain White 8.00 8.00 7.99 7.99 8.03 8.05
Filled 10.00 10.28 10.28 10.29 10.17 10.11
Total 100.00 100.00 100.00 100.00 100.00 100.00
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2012-2016
% retail value rsp 2012 2013 2014 2015 2016
Ca Nacional de Chocolates SA 61.26 61.26 59.46 58.19 57.82

Colombina SA 8.22 8.17 9.50 10.27 10.66
Ferrero Rocher del Ecuador SA 6.80 6.93 7.11 7.17 7.29
Effem Colombia Ltda 4.02 3.98 4.29 4.53 4.66
Industria Dos en Uno
de Colombia Ltda 1.68 1.67 1.66 1.62 1.59
Nestl de Colombia SA 1.33 1.30 1.29 1.33 1.38
Comestibles Italo SA 1.42 1.41 1.37 1.34 1.33
Chocolates Triunfo SA 0.97 0.92 0.90 0.85 0.80
Altipal SA - - 0.54 0.53 0.53
Mondelez
International Colombia SA - 0.33 0.33 0.32 0.22
Cadbury Adams Colombia SA 0.10 0.09 0.06 0.05 0.03
Aminona SA 0.56 0.56 - - -
Kraft Foods Colombia SA 0.38 - - - -
Others 13.26 13.37 13.51 13.81 13.68
100.0 100.0 100.0 100.0 100.0
Total 0 0 0 0 0
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2013-2016
% retail value rsp Company (NBO) 2013 2014 2015 2016
Jet (Grupo Nutresa Ca Nacional de 51.0 49.3 46.6 46.1

SA) Chocolates SA 0 8 4 9
Mont Blanc (Grupo Ca Nacional de
Nutresa SA) Chocolates SA 6.21 5.91 5.46 5.32
Ferrero Rocher Ferrero Rocher del
(Ferrero Group) Ecuador SA 3.45 3.58 3.63 3.70
Choco Break Colombina SA 1.64 2.50 3.27 3.54
Kinder Sorpresa Ferrero Rocher del
(Ferrero Group) Ecuador SA 2.91 2.97 2.97 3.01
Kick Colombina SA 2.53 2.69 2.80 2.95
Gol (Grupo Nutresa Ca Nacional de
SA) Chocolates SA 2.71 2.77 2.88 2.92
Muuu Colombina SA 2.46 2.63 2.47 2.40
Mini Jet (Grupo Ca Nacional de
Nutresa SA) Chocolates SA - - 1.91 2.07
Snickers (Mars Inc) Effem Colombia Ltda 1.50 1.60 1.70 1.75
Milky Way (Mars Inc) Effem Colombia Ltda 1.35 1.51 1.59 1.62
% retail value rsp Company (NBO) 2013 2014 2015 2016
Italo Comestibles Italo SA 1.41 1.37 1.34 1.33
Goleador Colombina SA 1.04 1.17 1.20 1.24
Golpe (Arcor SAIC) de Colombia Ltda 0.97 0.96 0.95 0.94
Roletto (Grupo Ca Nacional de
Triunfo Chocolates Triunfo SA 0.92 0.90 0.85 0.80
Nestl
Nestl (Nestl SA) de Colombia SA 0.70 0.69 0.73 0.75
Nikolo (Arcor SAIC) de Colombia Ltda 0.70 0.70 0.67 0.65
Twix (Mars Inc) Effem Colombia Ltda 0.57 0.56 0.60 0.63
Nestl
Crunch (Nestl SA) de Colombia SA 0.60 0.60 0.60 0.63
Kinder Chocolate (Ferr Ferrero Rocher del
ero Group) Ecuador SA 0.57 0.56 0.57 0.58
Lindt
(Chocoladefabriken
Lindt & Sprngli AG) Altipal SA - 0.54 0.53 0.53
Quimbaya Colombina SA 0.41 0.44 0.44 0.45
Choco Lyne (Grupo Ca Nacional de
3 Musketeers (Mars
Inc) Effem Colombia Ltda 0.30 0.32 0.32 0.32
M&M's (Mars Inc) Effem Colombia Ltda 0.20 0.26 0.29 0.32
Mondelez
Toblerone (Mondelez International Colombi
International Inc) a SA 0.33 0.33 0.32 0.22
Cadbury Milk Tray
(Mondelez Cadbury
International Inc) Adams Colombia SA 0.09 0.06 0.05 0.03
Lindt
(Chocoladefabriken
Lindt & Sprngli AG) Aminona SA 0.56 - - -
Cadbury Milk Tray Cadbury
(Kraft Foods Inc) Adams Colombia SA - - - -
13.5 13.6 13.9 13.7
Others Others 1 2 2 8
100. 100. 100. 100.
Total Total 00 00 00 00
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2011-2016
% retail value rsp 2011 2012 2013 2014 2015 2016
100. 100. 100. 100. 100. 100.

Store-Based Retailing 00 00 00 00 00 00
96.7 97.0 97.8 97.9 97.8 97.9
- Grocery Retailers 2 9 1 0 9 0
38.3 37.7 37.6 37.5 37.2 36.6
-- Modern Grocery Retailers 0 5 8 4 1 9
--- Convenience Stores 0.26 0.30 0.34 0.40 0.47 0.49
--- Discounters 0.34 0.69 0.96 1.75 2.00 2.26
--- Forecourt Retailers 0.01 0.01 0.01 0.01 0.01 0.01
20.1 19.9 20.0 19.9 19.9 19.4
--- Hypermarkets 6 8 6 0 3 6
17.5 16.7 16.3 15.4 14.8 14.4
--- Supermarkets 3 7 0 9 0 8
58.4 59.3 60.1 60.3 60.6 61.2
-- Traditional Grocery Retailers 2 4 3 6 8 1
--- Food/drink/tobacco 12.3 12.6 13.0 13.2 13.3 13.5
specialists 0 8 0 2 5 3
42.3 42.9 43.6 43.7 44.0 44.4
--- Independent Small Grocers 5 6 0 3 5 6
--- Other Grocery Retailers 3.77 3.69 3.54 3.41 3.28 3.22
- Non-Grocery Specialists - - - - - -
-- Health and Beauty Specialist
Retailers - - - - - -
-- Other Foods Non-Grocery
Specialists - - - - - -
- Mixed Retailers 3.28 2.91 2.19 2.10 2.11 2.10
Non-Store Retailing - - - - - -
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
100. 100. 100. 100. 100. 100.
Total 00 00 00 00 00 00
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2016-2021
tonnes 2016 2017 2018 2019 2020 2021
Chocolate Pouches 1,540. 1,589. 1,636. 1,680. 1,722. 1,760.

and Bags 40 40 20 50 10 70
tonnes 2016 2017 2018 2019 2020 2021
2,990. 3,116. 3,277. 3,429. 3,572. 3,710.
Countlines 90 30 40 10 90 70
6,986. 7,138. 7,276. 7,399. 7,507. 7,600.
Tablets 40 00 00 60 90 20
Other Chocolate Confe
ctionery - - - - - -
Chocolate Confectione 12,496 12,864 13,249 13,607 13,938 14,241
ry .70 .20 .80 .90 .00 .70
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2016-2021
COP billion 2016 2017 2018 2019 2020 2021
Chocolate Pouches and

Bags 65.01 67.75 70.30 72.64 74.74 76.56
150.7 158.1 167.3 175.9 184.0 191.7
Countlines 4 5 3 5 6 3
245.4 252.0 257.9 263.1 267.5 271.0
Tablets 7 4 5 1 0 6
Other Chocolate Confection
ery - - - - - -
537.5 558.1 579.4 599.0 616.8 632.8
Chocolate Confectionery 6 8 8 7 4 2
trade sources
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth
2016-2021
% volume growth 2016/17 2016-21 CAGR 2016/21 Total

Countlines 4.19 4.41 24.07
Tablets 2.17 1.70 8.79
trade sources
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2016-
2021
2016/201
% constant value growth 7 2016-21 CAGR 2016/21 TOTAL

Countlines 4.92 4.93 27.20
Tablets 2.68 2.00 10.43
Other Chocolate Confectione
ry - - -
trade sources
Sustainability is more than an agriculture practice and a reduction of carbon emission from cars.
Human sustainability is a topical issues, relating to provision of healthy foods and beverages and
how the right nutrition can prolong the quality of life, given that ageing is a demographic fact
across not only Western Europe but China, too. While human sustainability may be a big concept
to comprehend, for individual consumers, this is related to their health and that is personal.
In Western Europe, major brand owners are watched by governments and health authorities;
sugary beverages seemingly have become the public enemy and targeted. Sugar seems a sin
ingredient having an adverse effect on human sustainability. In some countries, the definition of
naturally healthy and/or all natural has not yet legally and technically been settled by regulators,
but industry players tend to agree on the initiative to reduce sugar, natural sugar and artificial
sweeteners. It is noted that the introduction of a sugar tax or the pending introduction, has
resulted in a wave of reformulation in some countries. Lucozade Ribena Suntory in the UK
announced its intention to make all its products with less than 4.5g of sugar per 100ml; packaging
will also be changed to make calorie content more visible to consumers. This motive is to escape
the Governments sugar tax which will come into effect in 2018. Reduction in sugar may steal a lot
of headlines, but, consumers seem to prefer to see and hear the words natural and organic.
Many health conscious consumers happen to be those who are concerned with sustainability of the
planet and participating in the organic movement

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Chocolate Confectionery in Colombia

Category Briefing | 26 Jul 2016

Chocolate Pouches 1,368. 1,427. 1,509. 1,626. 1,599. 1,540.

Chocolate Pouches and

Chocolate Pouches and Bags -3.67 2.39 12.54

Chocolate Pouches and Bags 1.72 5.35 29.75

Plain Dark 14.50 14.52 14.53 14.54 14.60 14.65

Ca Nacional de Chocolates SA 61.26 61.26 59.46 58.19 57.82

Jet (Grupo Nutresa Ca Nacional de 51.0 49.3 46.6 46.1

100. 100. 100. 100. 100. 100.

Chocolate Pouches 1,540. 1,589. 1,636. 1,680. 1,722. 1,760.

Chocolate Pouches and

Chocolate Pouches and Bags 3.18 2.71 14.30

Chocolate Pouches and Bags 4.21 3.33 17.77

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