Biscuits in Colombia

BISCUITS IN COLOMBIA
Euromonitor International
November 2014
Passport
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 4
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Sales of Biscuits by Category: Volume 2009-2014 ...................................... 4

Sales of Biscuits by Category: Value 2009-2014 ......................................... 5
Sales of Biscuits by Category: % Volume Growth 2009-2014 ...................... 5
Sales of Biscuits by Category: % Value Growth 2009-2014 ......................... 5
NBO Company Shares of Biscuits: % Value 2010-2014 .............................. 6
LBN Brand Shares of Biscuits: % Value 2011-2014 ..................................... 6
Distribution of Biscuits by Format: % Value 2009-2014................................ 7
Forecast Sales of Biscuits by Category: Volume 2014-2019........................ 8
Forecast Sales of Biscuits by Category: Value 2014-2019........................... 8
Forecast Sales of Biscuits by Category: % Volume Growth 2014-2019 ....... 8
Forecast Sales of Biscuits by Category: % Value Growth 2014-2019 .......... 9
HEADLINES
During 2014 biscuits grow by 1% in volume terms and by 5% in current value terms, driven by
an increase in disposable income, consumers higher expectations and successful companypositioning strategies
2014 growth is lower than the review periods 2% CAGR in volume terms and lower than the
review periods 6% CAGR in current value terms, given that biscuits is achieving a higher
level of maturity
Sandwich biscuits shows the highest growth rate in 2014 with an increase of 3% in volume
terms and 7% in current value terms
Average unit price grows 4% in current terms in 2014, faster than the inflation rate (3%), as
premium brands gain ground in plain biscuits and savoury biscuits and crackers, which
together account for 68% of current value sales
Ca de Galletas Noel SA remains the category leader by far with a value share of 51% in 2014
Biscuits to see a 1% volume CAGR and a value CAGR of 2% at constant 2014 prices over
the forecast period, driven by increases in disposable income, poverty reduction, firm
innovation and more intense competition
TRENDS
In 2014 biscuits will grow by 1% in volume terms and by 5% in current value terms, influenced
by an increase in disposable income, consumers higher expectations and successful
company-positioning strategies. During 2014 real economic growth will be 4%, which will
continue the review period trend of stable economic growth, poverty reduction and an
increase in disposable income. As a result, consumers are looking for more-sophisticated
products, and the emergence of these products explains why current value growth will be
higher than inflation and volume growth. Consumers are migrating to more-premium products,
and these brands show the highest sales growth.
2014s projected growth is lower than that of the overall review period in volume terms (2%
CAGR) and in current value terms (6% CAGR), due to the fact that biscuits is becoming a
more mature category. This trend applies to both savoury biscuits and crackers and sweet
biscuits, although in the case of the latter there are some categories, such as sandwich
biscuits, which are growing faster than observed earlier in the review period, indicating that
there is still some way to go before full maturity. An additional reason for the slowdown in
biscuits sales is the fact that the category is facing more-intense competition from snack bars,
which are considered healthier in a context where consumers are more focused on health and
wellness products.
Sandwich biscuits will represent the category with the highest growth in 2014 with an increase
of 3% in volume terms and 7% in current value terms. Brands in this category are able to
position their products among different consumer segments such as Oreo and Recreo, which
is for children and teenagers, and Tosh, which is aimed at adults. These products are closer
substitutes to chocolate and snack bars than other biscuits, and are growing fast and being
successful in satisfy consumers need for indulgence products. Nevertheless, sandwich
biscuits will only account for 13% of both total volume sales and total value sales in 2014, and
as a result this category has a limited influence on overall biscuits performance.
Passport
The average unit price will grow by 4% in current terms in 2014, faster than the inflation rate
of 3%. This is explained by the fact that premium brands (such as Tosh or Fitness) have
gained ground in plain biscuits and savoury biscuits and crackers, which together will account
for 68% of current value sales in 2014. In the case of the former, smaller-sized packages,
which have a higher average unit price, have been launched by Ca de Galletas Noel SA,
which will have a positive effect on the overall average unit price. On the other hand, input
costs will not affect price growth in 2014, with wheat and other inputs showing only a
moderate price increase similar to the inflation rate.
Savoury biscuits and crackers will show a stronger result in 2014 with 1% in volume growth
terms than sweet biscuits, which will stagnate. Among sweet biscuits, growth will be
constrained by a 2% decline in plain biscuits sales, which will account for 36% of sweet
biscuits volume sales in 2014. This decline will be caused by consumers migration to
alternatives considered more sophisticated and by the lack of innovation by main brands, as
in the case of Sultanas by Ca de Galletas Noel SA or the brand lines of Productos Ramo SA.
The traditional grocery retailers channel remains the principal channel of distribution with a
value share of 61% anticipated for 2014. However, the modern grocery retailers channel is
gaining in importance since more consumers are buying products in family sizes due to their
disposable income rising. The strengthening of the Colombian middle class is contributing to
the channels increasing prominence too. Within traditional grocery retailers, street vendors
are very important for impulse products such as biscuits, given their proximity to consumers
during the working day or school day.
Savoury biscuits and crackers faces competition from bread and breakfast cereals, not only
as alternatives for breakfast or snacks, but also as complements to other categories such as
spreads and butter. Sweet biscuits satisfy consumers indulgence needs, and for that reason
can be a substitute for chocolate confectionery, cakes, pastries and ice cream.
Despite the fact that sweet biscuits are sold throughout the year, the Christmas season has a
positive impact on sales, as firms offer special editions during December, such as Ca de
Galletas Noel SAs selected biscuits in a metal box presentation. Other special dates, such as
Easter, Halloween or Da del Amor y la Amistad (similar to Valentines Day) also stimulate
biscuit sales.
COMPETITIVE LANDSCAPE
Ca de Galletas Noel SA will remain the category leader by far with a share of 51% in value
terms. The company is part of Grupo Nutresa SA, one of the most important food-holding
companies in Colombia, which has well-positioned brands and a strong distribution network
with access to traditional channels. Additionally, the firm is able to innovate and understand
consumer expectations, as with its brand Tosh (which in 2014 will achieve a share of 10% in
overall biscuits value sales, a rise from 9% in 2013). Tosh is a premium brand orientated to
consumers looking for healthier alternatives. Tosh will record growth of 13% in current value
terms in 2014, as it is reaching a greater consumer base, including more middle-income
groups through traditional grocery retailers. Despite Toshs strong performance, Saltin
remains the most important Ca de Galletas Noel brand and will account for 48% and 24% of
value sales of savoury biscuits and crackers and total biscuits, respectively, in 2014.
Nestl de Colombia SA is the second-largest biscuit producer, and will account for a share of
12% in value terms in 2014, just above Colombina SA with 11%. The firm is present in
savoury biscuits and crackers as well as sweet biscuits with well-positioned brands such as
Saltinas (savoury biscuits and crackers), Morenitas (sweet biscuits) and Cocosette (sweet
biscuits). Furthermore, the companys plain biscuit brand Fitness will also show strong results
Passport
in 2014, growing by 3% in current value terms, as the brand is positioned as a healthier

alternative, allowing it to benefit from the burgeoning health and wellness trend. Despite the
fact that this growth rate looks modest, it will be an impressive result in a context where plain
biscuits is projected to decrease by 2% in volume terms and register a growth rate of only 2%
in current value terms.
Mondelez International Colombia SA will be the company with the highest sales increase in
2014, at 14% in current value terms, achieving a total category share of 10%. The company
follows a successful advertising strategy for its brands Club Social and Oreo, which are well
positioned in consumers minds, especially among younger consumers. In 2014 these brands
will have a value share of 4% in savoury biscuits and crackers and 20% in sandwich biscuits,
respectively. The former has innovated with the launch of many flavours between 2012 and
2014, such as cheese, butter, added oats and fibre, and with a new format of savoury
sandwiches in 2012 with its Sandwich Provolone and Integral Queso Blanco (white cheese)
brands. Despite these launches being in 2012, these brands have become more visible in
2014 after a strong advertising campaign. In the case of Oreo, the company has also invested
in positioning new flavours, such as vanilla and chocolate, that go beyond the traditional
fillings.
The biscuits category is dominated by domestic firms due to the importance of Ca de
Galletas Noel SA and Colombina SA. The most important foreign firms are Nestl de
Colombia SA (projected to have a value share of 12% in 2014) and Mondelez International
Colombia SA (projected to have a value share of 10% in 2014). Both firms have wellpositioned brands such as Saltinas by Nestl de Colombia SA and have access to traditional
grocery retailers channels.
In July 2014, Ca de Galletas Noel launched Saltin in individual packages, which aimed to
benefit from the popularity of the products family-size offerings. This strategy attempted to
revitalise the brand, promoting impulse consumption and aiming to achieve a higher
consumer base due to the fact that a significant number of consumers does not have enough
disposable income to purchase family-sized packages.
No packaging innovations will be observed during 2014.
The category is dominated by standard brands, although as consumers are looking for new
alternatives, premium brands such as Fitness and Tosh are gaining ground. Nevertheless
these brands do not really represent strong price differences from standard brands and are
still accessible to a wide consumer base. Additionally, there has been an increase in the
presence of premium imported brands, such as Bakeleys and Quadratini, and some are
imported directly by the main retail chains such as Almacenes xito SA and Tiendas Jumbo.
PROSPECTS
Over the forecast period, biscuits will register a 1% CAGR in volume and a value CAGR of
2% at constant 2014 prices, benefiting from an expected increase in disposable income,
poverty reduction and stronger competition among firms. Over 2014-2019, the poverty
reduction observed during the review period will continue, as stable economic growth and
active government policies are expected. At the same time, competition among firms will
increase, which will stimulate further product innovations, active launches and advertising
campaigns.
The growth rates during the forecast period will be lower than those in the review period a
3% CAGR in constant value terms and a 2% CAGR in volume terms. This is due to the fact
that biscuits will reach a higher level of maturity, with more limited space to grow and fewer
new adoptees of these well-known products. Due to consumers higher expectations and
Passport
Passport
stronger competition, it is expected that the categorys players will adapt by producing higherquality products with more-affordable prices, which will stifle volume growth over the forecast
period.
Sandwich biscuits will have the highest growth over the forecast period with a 3% CAGR in
volume terms and a value CAGR of 4% at constant 2014 prices. It will be favoured by
satisfying consumer demand for more-sophisticated indulgence products and will be more
competitive with substitutes such as ice cream, confectionery and cakes. Additionally, the
expected wide portfolio of products generated as a result of the launches during the review
period will strengthen companies ability to fill diverse consumer preferences.
Plain biscuits will have the weakest performance in the forecast period, as its volume sales
will decline by 1% CAGR. Furthermore, the category will record a value CAGR of 0% at
constant 2014 prices. The difference between volume and constant value growth will be due
to the fact that brands with higher unit prices, which consumers associate with a higher
quality, such as Tosh and Fitness, are going to continue increasing in popularity owing to
consumers higher. This will occur as consumers become less concerned about price and
more focused on quality and added value.
The average unit price will grow by a CAGR of 1% in constant value terms in the forecast
period, driven by an increase in product quality rather than any input cost increases. Input
costs are expected to show growth similar to that in the inflation rate, since commodity prices
are expected to be more stable than in the review period. This expected average unit price
increase is moderate, which will ensure a continued rise in the consumer base.
Mondelez International Colombia SAs importance is expected to increase over the forecast
period due to its strong performance over the review period. The companys brands are
especially popular among younger consumers and the firm has made strong investments in
its production facilities, which will help it continue to generate strong sales in the forecast
period.
Demographic changes will have opposing impacts on biscuits performance in 2014-2019. On
the one hand, an expected increase in busy lifestyles and single-person households will
increase consumption, since biscuits are considered a practical solution for snacks and
simpler meals. On the other hand, an anticipated increase in the average age will generate a
more-adult consumer base more concerned about health and wellness, which could generate
a volume consumption decrease.
CATEGORY DATA
Table 1
Sales of Biscuits by Category: Volume 2009-2014
'000 tonnes
Savoury Biscuits and

Crackers
Sweet Biscuits
- Alfajores
- Chocolate Coated
Biscuits
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
2009
2010
2011
2012
2013
2014
73.3
75.4
77.1
79.9
80.6
81.4
49.4
1.4
50.8
1.4
52.0
1.4
52.9
1.4
52.9
1.5
52.9
1.5
3.1
11.7
18.2
15.1
122.7
3.1
11.7
18.9
15.6
126.1
3.2
11.7
19.5
16.2
129.0
3.2
11.8
19.9
16.6
132.8
3.2
11.7
19.4
17.1
133.5
3.3
11.5
19.0
17.6
134.3
Source:
Passport
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Biscuits by Category: Value 2009-2014
COP billion

Crackers
Sweet Biscuits
- Alfajores
- Chocolate Coated
Biscuits
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2009
2010
2011
2012
2013
2014
524.7
553.0
599.2
651.8
677.4
712.5
582.5
27.5
622.4
29.2
656.1
30.6
691.7
32.0
710.4
33.4
739.1
35.3
66.6
128.2
220.2
140.0
1,107.3
71.2
133.7
238.2
150.1
1,175.4
75.2
138.5
252.1
159.7
1,255.3
79.0
145.3
265.6
169.8
1,343.5
81.7
148.1
268.0
179.2
1,387.8
85.6
153.0
273.7
191.5
1,451.6
Table 3
Sales of Biscuits by Category: % Volume Growth 2009-2014
% volume growth
Savoury Biscuits and Crackers

Sweet Biscuits
- Alfajores
- Chocolate Coated Biscuits
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
Table 4
2013/14
2009-14 CAGR
2009/14 Total
1.0
0.0
1.3
1.0
-0.9
-2.1
2.9
0.6
2.1
1.4
1.2
1.0
-0.2
0.9
3.1
1.8
11.1
7.0
6.3
5.2
-1.0
4.5
16.5
9.5
Sales of Biscuits by Category: % Value Growth 2009-2014
% current value growth

Sweet Biscuits
- Alfajores
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2013/14
2009-14 CAGR
2009/14 Total
5.2
4.0
5.6
4.8
3.3
2.2
6.9
4.6
6.3
4.9
5.1
5.2
3.6
4.4
6.5
5.6
35.8
26.9
28.3
28.6
19.3
24.3
36.7
31.1
Table 5
Passport
NBO Company Shares of Biscuits: % Value 2010-2014
% retail value rsp

Company
Ca de Galletas Noel SA
Nestl de Colombia SA
Colombina SA
Mondelez International
Colombia SA
Productos Ramo SA
Alicorp Colombia SA
Comestibles Italo SA
Parmalat Colombia Ltda
Ca Nacional de
Chocolates SA
Kraft Foods Colombia SA
Harinera del Valle SA
Nabisco Royal
Colombiana SA
Private Label
Others
Total
Source:
2010
2011
2012
2013
2014
49.6
12.3
11.1
-
50.0
12.6
10.9
-
50.6
12.5
10.8
-
50.8
12.3
10.9
8.7
51.0
12.1
11.0
9.5
3.1
2.0
1.1
0.3
0.3
3.0
2.0
1.1
0.3
0.2
3.0
2.0
1.1
0.3
0.2
2.8
2.0
1.0
0.3
0.2
2.7
1.9
1.0
0.3
0.2
8.4
0.0
-
8.3
-
8.2
-
2.0
9.8
100.0
1.3
10.2
100.0
1.4
10.0
100.0
1.4
9.5
100.0
1.5
8.8
100.0
Table 6
LBN Brand Shares of Biscuits: % Value 2011-2014
% retail value rsp

Brand
Saltin
Tosh
Noel
Saltinas
Ducales
Bridge
Crakeas
Oreo
Sultanas
La Rosa
Honey Bran
Ramo
Club Social
Rondallas
Glacitas
Soda
Recreo
Muuu
Brinky
Kraker Bran
Mini Chips
Company
2011
2012
2013
2014
Colombina SA
Colombina SA
Colombia SA
Colombia SA
Productos Ramo SA
Colombia SA
Alicorp Colombia SA
Colombina SA
Colombina SA
Colombia SA
23.6
8.5
6.7
4.2
3.9
3.2
2.8
-
24.0
8.6
6.6
4.2
4.0
3.2
2.9
-
23.8
9.1
6.7
4.2
4.0
3.3
2.9
2.4
23.5
9.7
6.5
4.2
4.0
3.3
3.0
2.7
2.7
2.5
-
2.7
2.4
-
2.6
2.5
2.2
2.5
2.4
2.3
2.5
-
2.5
-
2.3
2.0
2.2
2.1
2.3
2.0
1.9
1.5
1.6
1.3
-
2.3
2.0
1.9
1.6
1.6
1.3
-
2.1
2.0
1.8
1.7
1.6
1.4
1.1
2.0
1.9
1.8
1.8
1.5
1.3
1.2
1.0
1.0
1.1
1.1
Italo
Nabisco
Comestibles Italo SA
Colombia SA
Productos Ramo SA
Colombina SA
Colombia SA
Private Label
Dux
Fitness
Saladas
Cocosette
Piazza
Chips Ahoy!
Macarena
Oreo
Honey Bran
Club Social
Kraker Bran
Nabisco
Chips Ahoy!
Private label
Others
Total
Source:
Passport
1.1
-
1.1
-
1.0
0.8
1.0
0.9
0.7
0.6
0.5
0.5
0.4
-
0.7
0.6
0.5
0.5
0.3
-
0.7
0.6
0.5
0.5
0.3
0.3
0.7
0.6
0.5
0.5
0.4
0.3
0.3
2.3
2.2
1.6
1.1
0.8
0.3
1.3
13.8
100.0
0.3
2.3
2.2
1.6
1.1
0.7
0.3
1.4
13.6
100.0
0.3
1.4
13.1
100.0
0.3
1.5
12.4
100.0
Table 7
Distribution of Biscuits by Format: % Value 2009-2014
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Retailers
-- Health and Beauty
Retailers
-- Mixed Retailers
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:
2009
2010
2011
2012
2013
2014
100.0
100.0
42.2
100.0
100.0
44.4
100.0
100.0
41.7
100.0
100.0
40.1
100.0
100.0
39.0
100.0
100.0
38.7
0.1
0.1
19.8
22.1
57.8
0.2
0.1
20.7
23.3
55.6
0.2
0.1
17.0
24.3
58.3
0.3
0.1
15.0
24.7
59.9
0.3
0.1
14.0
24.6
61.0
0.3
0.1
13.9
24.3
61.2
32.9
30.7
33.4
34.9
35.9
36.2
24.9
24.9
24.9
25.0
25.1
25.1
0.0
0.0
100.0
0.0
0.0
100.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
100.0
Table 8
Passport
Forecast Sales of Biscuits by Category: Volume 2014-2019
'000 tonnes

Crackers
Sweet Biscuits
- Alfajores
- Chocolate Coated
Biscuits
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2014
2015
2016
2017
2018
2019
81.4
82.0
82.4
82.9
83.6
84.3
52.9
1.5
53.1
1.5
53.4
1.5
54.1
1.5
55.0
1.6
56.0
1.6
3.3
11.5
19.0
17.6
134.3
3.3
11.5
18.7
18.1
135.1
3.4
11.5
18.4
18.6
135.8
3.4
11.5
18.4
19.2
137.0
3.5
11.7
18.4
19.9
138.6
3.6
11.8
18.5
20.5
140.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 9
Forecast Sales of Biscuits by Category: Value 2014-2019
COP billion

Crackers
Sweet Biscuits
- Alfajores
- Chocolate Coated
Biscuits
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2014
2015
2016
2017
2018
2019
712.5
723.0
731.6
741.4
752.1
762.5
739.1
35.3
747.1
36.1
756.3
36.9
770.0
37.8
786.8
38.8
806.1
39.9
85.6
153.0
273.7
191.5
1,451.6
87.1
153.6
272.0
198.4
1,470.1
88.8
154.4
270.8
205.4
1,487.9
90.7
156.3
272.1
213.1
1,511.4
92.8
158.8
275.2
221.2
1,538.9
95.3
161.8
279.5
229.7
1,568.6
trade sources
Table 10
Forecast Sales of Biscuits by Category: % Volume Growth 2014-2019
% volume growth

Sweet Biscuits
- Alfajores
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2018/19
2014-19 CAGR
2014/19 Total
0.8
1.9
2.1
2.2
1.3
0.7
3.4
1.2
0.7
1.2
1.7
1.7
0.4
-0.5
3.2
0.9
3.5
5.9
8.8
8.7
2.2
-2.6
16.8
4.4
trade sources
Table 11
Passport
Forecast Sales of Biscuits by Category: % Value Growth 2014-2019
% constant value growth

Sweet Biscuits
- Alfajores
- Cookies
- Filled Biscuits
- Plain Biscuits
- Sandwich Biscuits
Biscuits
Source:
2014-19 CAGR
2014/19 TOTAL
1.4
1.8
2.5
2.2
1.1
0.4
3.7
1.6
7.0
9.1
13.1
11.3
5.7
2.1
19.9
8.1
trade sources

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LIST OF CONTENTS AND TABLES

Sales of Biscuits by Category: Volume 2009-2014 ...................................... 4

in 2014, growing by 3% in current value terms, as the brand is positioned as a healthier

Sales of Biscuits by Category: Volume 2009-2014

Savoury Biscuits and

Sales of Biscuits by Category: Value 2009-2014

Savoury Biscuits and

Sales of Biscuits by Category: % Volume Growth 2009-2014

Savoury Biscuits and Crackers

Sales of Biscuits by Category: % Value Growth 2009-2014

% current value growth

Savoury Biscuits and Crackers

NBO Company Shares of Biscuits: % Value 2010-2014

% retail value rsp

LBN Brand Shares of Biscuits: % Value 2011-2014

% retail value rsp

Distribution of Biscuits by Format: % Value 2009-2014

% retail value rsp

Forecast Sales of Biscuits by Category: Volume 2014-2019

Savoury Biscuits and

Forecast Sales of Biscuits by Category: Value 2014-2019

Savoury Biscuits and

Forecast Sales of Biscuits by Category: % Volume Growth 2014-2019

Savoury Biscuits and Crackers

Forecast Sales of Biscuits by Category: % Value Growth 2014-2019

% constant value growth

Savoury Biscuits and Crackers

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