Soft Drinks Packaging In Mexico Essay

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SOFT DRINKS PACKAGING IN
MEXICO
Euromonitor International
February 2015

SOFT DRINKS PACKAGING IN MEXICO

LIST OF CONTENTS AND TABLES
Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Prospects ..................................................................................................................................... 2

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SOFT DRINKS PACKAGING IN MEXICO

SOFT DRINKS PACKAGING IN
MEXICO
HEADLINES
 In 2014, soft drinks packaging records a total volume sales increase of 1% and reaches 47.3 billion units
 Individual pack types of small formats that range from 100ml to 355ml offer growth opportunities within soft drinks with high sugar content
 PET bottles of 230ml record dynamic growth within energy drinks thanks to the entrance of the brand Vive 100 (Qualamex SA de CV)
 Over the review period, the brand Frutsi (Jugos Del Valle SA de CV) launched its unfrozen juice drink in a triangle-shaped liquid carton of 100ml
 Over the forecast period, total volume sales of packaging of soft drinks are expected to grow at a CAGR of 1%, reaching 54.5 billion units in 2019

TRENDS
 In October 2013, the Mexican Congress approved a new tax that aims to strengthen efforts from the government in combating the growing prevalence of obesity and diabetes. The special tax, which entered into force in January 2014, affects, amongst other products, energy drinks and beverages that contain added sugar. Beverages that contain added sugar will be taxed Mx$1.00 per litre while energy drinks will have a 25% tax that also applies to concentrates, powder and syrups used in preparing energy drinks. As a result of the new tax, companies have developed different marketing strategies to maintain their sales, which includes the development of smaller pack types that allow them to offer consumers similar prices to those offered before the tax, but with smaller portions. In 2014, smaller pack types were observed within several categories of soft drinks, with brands such as Frutsi and Del
Valle (Jugos Del Valle SA de CV) offering juice products in shaped folding cartons of 100ml,
Jumex (Grupo Jumex SA de CV) with juice in metal beverage cans of 125ml and Coca-Cola
(The Coca-Cola Company) increasing the distribution of carbonates in small presentations such as 237ml metal beverage cans, and 355ml and 400ml PET bottles.
 In order to encourage volume sales of smaller pack products, in 2014, several brands offered multipack presentations. In modern retail distribution channels, carbonated beverages in metal cans of 237ml are only offered in multipack presentations of 6, 8 and 12 units and PET bottles of 355ml are only offered in multipacks of 8 units. Some other products offered in multipack presentations include juice in brick liquid cartons of 200ml that come in 4-pack presentations and flavoured water in PET bottles of 330ml in 6-packs.
 Over the review period, there were several launches of individual packaging types in soft drinks that ranged from 100ml to 355ml. An interesting packaging type is the triangle-shaped liquid carton of 100ml observed within unfrozen juice, launched by the brand Frutsi (Jugos Del
Valle SA de CV). In addition to the attractive packaging type for children, during 2014 this product was offered at Mx$2.00, becoming one of the lowest-priced beverage products available.  Also over the review period, the brand Vive 100 (Qualamex SA de CV) launched its energy drink in PET bottles of 230ml, offering a differentiated product as most energy drinks were previously offered in metal beverage cans. The brand also stands out in terms of pricing, as it

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SOFT DRINKS PACKAGING IN MEXICO

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