Fats and Spreads in

Latin America
Analysis of Fats and Spreads sub-category NPD
in Latin America

November 2015
 Executive summary
In 2014, Latin America ranks fourth for dairy category launches and fifth for fats and
spreads sub-category launches tracked. Europe is the leading region.

Tracked fats and spreads launches in Latin America have grown at 13.6% CAGR over
the last 5 years. This growth is lower than that of the dairy category (23.3% CAGR).

The top 5 countries for fats and spreads in Latin America based on launches tracked
during 2012-2014 are Mexico, Brazil, Argentina, Chile and Colombia.

No trans fats and low cholesterol are the top positionings as well as the top health
claims for fats and spreads launches tracked in Latin America in 2012 and 2014,
while allergy and gluten free were the leading positionings in 2013.

Over the last 3 years, top positionings varied when tracked launches are broken down
by top country.

During 2012 to 2014, salt is the top flavor for fats and spreads launches tracked in
Latin America and also across the majority of the top 5 countries in Latin America.

2
Source: Innova Database product launches tracked
 Notes
This report is a region level analysis for fats and spreads sub-category. The report
also dives deeper into the category, top countries, positioning and flavor trends.

Indexed product launch numbers are obtained by assigning 100 to the start year
values and using 100 as the base calculating all later values in proportion to the
actual product launch numbers. CAGR stands for Compounded Annual Growth Rate.

3
Source: Innova Database product launches tracked
 Product Launch Trends

4 www.innovadatabase.com
 Regional breakdown
Latin America ranks fourth for dairy category launches tracked in 2014 and fifth for
fats and spreads sub-category launches. Europe is the leading region for both the
dairy category and fats and spreads sub-category.

Note: Middle East/North Africa (MENA) covers the following countries Algeria, Egypt, Morocco, Tunisia, Bahrain,
Iran, Israel, Kuwait, Pakistan, Qatar, Saudi Arabia, Turkey and United Arab Emirates.
5
Source: Innova Database product launches tracked
 Relative development of fats and
spreads
Tracked fats andlaunches
spreads launches invs. dairy
Latin America havecategory
grown at 13.6% CAGRinover
Latin America
the last 5 years. This growth is lower than that of the dairy category (23.3% CAGR).

6
Source: Innova Database product launches tracked
 Dairy category launches in Latin
America,
Fats and spreadsby sub-category
held an average share of 5% of overall dairy category launches
tracked in Latin America over the last 3 years. Milk and milk drinks is the leading sub-
category.

7
Source: Innova Database product launches tracked
 Dairy category launches in Latin
America, byshare
During 2012 to 2014, top country
of fats (2012-2014)
and spreads launches tracked as a percentage of
dairy category launches is higher in Mexico, compared to other top countries in Latin
America.

8
Source: Innova Database product launches tracked
 Fats and spreads sub-category
launches in
Mexico is the most Latin
active market forAmerica, by top
fats and spreads launches tracked in Latin
country
America in 2012 and 2014, while Brazil leads in 2013.

Chile is the only country to record YoY growth in new product launch activity in 2014.

9
Source: Innova Database product launches tracked
 Product Positioning Trends

10 www.innovadatabase.com
 Top 5 positionings for fats and spreads
in Latin
No America
trans fats and low cholesterol remained the most popular positionings for fats and
spreads launches tracked in Latin America in 2012 and 2014, while allergy and gluten
free were most popular in 2013.
The total share of top 5 positionings increased over the last 3 years. All the top 5
positionings are health-related.

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Source: Innova Database product launches tracked
 Traditional products remain popular
Numar Margarina Clasica: Classic Margarine.
(Costa Rica, Jun 2014)
Description: Classic margarine in a 500g plastic
packet, held in a carton box.
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Sancor Clasica Manteca: Classic Butter With
Multivitamins.
(Argentina, Aug 2014)
Description: Gluten free butter with vitamins, wrapper
with a 500g aluminum foil wrapper. Contains vitamins
A, D, and E. No W.O.R.B. Classic.
 More potential for economy lines

Qualy Cremosa Margarina Com Sal: Gloria Mantequilla Con Sal: Butter With
Margarine With Salt. Salt.
(Brazil, Apr 2014) (Peru, Dec 2014)

Description: Margarine with salt, in a 1kg Description: Butter with salt, in a 240g
plastic container. Economic package. aluminum foil wrapper. With 20% more.
Made from pure cow's milk.

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 Top 5 positionings for fats and spreads
in Latin
For America,
the last 3 years, top positioningsby top
for fats country
and spreads launches tracked varied
across the top 5 countries in Latin America. Low cholesterol is the leading positioning
in Mexico and Chile, while allergy is most prevalent in Argentina. In Brazil, both
allergy and gluten free are equally as popular. In Colombia, no trans fats ranks first.

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Source: Innova Database product launches tracked
 Top 5 health claims for fats and spreads
in Latin
No trans fats isAmerica
the leading health claim for fats and spreads launches tracked in Latin
America in 2012 and 2014, while allergy ranks first in 2013.
In 2014, low cholesterol is as equally popular as no trans fats.

15
Source: Innova Database product launches tracked
 Low cholesterol claims share the lead
Lonco Leche Sin Colesterol
Mantequilla Con Aceite De Canola:
Cholesterol Free Butter With
Canola Oil.
(Chile, Dec 2014)
Description: Cholesterol-free butter
with canola oil, in a plastic container.
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Qualy Cremosa Margarina:
Unsalted Margarine.
(Brazil, May 2014)
Description: Unsalted margarine
in a 500g plastic container. No
trans fats. Gluten free. No
cholesterol. No sodium.
Corona Manteca: Butter.
(Costa Rica, May 2014)
Description: Butter in a 1kg plastic
wrapper. Low cholesterol. With
100% vegetable oil.
 Low & no salt/sodium claims
Supermaxi Mantequilla Sin Sal
Pasteurizada: Pasteurized Unsalted
Butter.
(Ecuador, Jul 2014)
Description: Pasteurized unsalted
butter in a 250g aluminum foil
wrapper. No salt.
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Vita Mantequilla Con Sal: Butter
With Salt.
(Ecuador, Oct 2014)
Description: 250g of pasteurized
butter with salt, in an aluminum
wrapper. No sugar. High fat. Low
salt.
Sancor Manteca: Butter.
(Argentina, Jan 2014)
Description: Butter with vitamin A, in a
200g waxed paper wrapper. Gluten
free. Source of vitamin A. Low
Sodium. No T.A.C.C.
 Added value with vitamin/mineral fortification
Caperucita Margarina: Unsalted
Margarine.
(Mexico, Jan 2014)
Description: Unsalted margarine
enriched with vitamins A and D, in
a 390g plastic tub.
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Becel Manteiga Com Sal:
Butter With Salt.
(Brazil, Mar 2014)
Description: Butter with salt in a
500g plastic container. Contains
omega 3 and 6. Source of
vitamins A, D and E.
San Antonio Margarina: Margarine.
(Mexico, Mar 2014)
Description: Margarine in a 90g paper
wrapper. Contains omega-6
supplemented with vitamin E.
 Light/less/low fat claims are gaining traction
Balkis Light Manteiga Com Sal:
Light Butter With Salt.
(Brazil, Aug 2014)
Description: Light butter with salt, in a
130g plastic container. Gluten free.
42% less calories. 45% less fat.
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Laive Mantequilla Light: Light
Butter.
(Peru, Feb 2014)
Description: Light salted butter
in a 225g plastic container. 37%
less fat.
I Cant Believe Its Not Butter
Margarina Baja En Grasa: Low Fat
Original Vegetable Oil Spread.
(Colombia, Sep 2014)
Description: 58% vegetable oil
spread with fresh butter taste, in a
425g plastic container. 70% less
saturated fat than butter. 30%
fewer calories than butter.
 Product Flavors Trends

20 www.innovadatabase.com
 Top 5 flavors for fats and spreads in
Latin America
During 2012 to 2014, salt is the dominant flavor for fats and spreads launches tracked
in Latin America.
The total share of top 5 flavors declined over the last 3 years.

21
Source: Innova Database product launches tracked
 Top 5 flavors for fats and spreads in
Latin America,
For the last 3 years, salt is theby top
top flavor country
for fats (2012-
and spreads launches tracked across
2014)
all the top 5 countries in Latin America except Argentina, where oil, vegetable and
milk are most popular.

22
Source: Innova Database product launches tracked
 Salt flavor dominates the category

Prime Cremosa Creme
Vegetal Com Sal: Butter With
Salt.
(Brazil, Nov 2014)
Description: Butter cream with
salt, in a 500g plastic pot.
Aviacao Manteiga Com Sal:
Butter With Salt.
(Brazil, Aug 2014)
Description: High quality butter
with salt, in a 200g plastic pot.
Colun Pura Mantequilla Untable Con
Sal: Butter Spread With Salt.
(Chile, Dec 2014)
Description: Pasteurized butter spread
with salt, in a plastic container.

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 Well-established vegetable oil blends

Heb You D Think Its Butter Vegetable Oil Sadia Qualy Aera Com Sal: Salted
Spread. Margarine.
(Mexico, Jul 2014) (Brazil, Aug 2014)
Description: Vegetable oil spread in a 425g plastic Description: Salted margarine with vegetable
container. oil, in a plastic container.

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 Versatile garlic finds more applications
Mira Flores Mantequilla Finas Hierbas:
Unsalted Butter Fine Herbs.
(Ecuador, Jul 2014)
Description: Unsalted butter with fine herbs
(garlic, basil, parsley), in a plastic pot.
25
Albait Jocoque Seco Con Hierbabuena Y
Ajo: Mint And Garlic Dry Buttermilk.
(Mexico, Feb 2014)
Description: Organic mint and garlic dry
buttermilk, in a plastic container.
 Milk has wholesome appeal
Coronado Cajeta Quemada
Burned Goat Milk Spreadable.
(Mexico, Jul 2014)
Description: Burned goat milk
spreadable in a plastic tube.
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Leco Margarina Ao Leite Sem
Sal: Saltless Margarine With
Milk.
(Brazil, Jan 2014)
Description: Saltless margarine
with milk, in a 500g plastic
container.
Gloria Mantequilla Con Sal Con
Pura Leche De Vaca: Salted Butter
With Pure Cows Milk.
(Peru, Aug 2014)
Description: Salted butter with pure
cow's milk in a 100g aluminum foil
wrapper.
 Alternative oils for health

Enature Mantequilla De Coco Goodliving Light Margarine With Olive Oil.

Organico: Organic Coconut Butter. (Costa Rica, Jan 2014)
(Mexico, Jun 2014)
Description: Organic coconut butter in a Description: Margarine with olive oil, in a 454g
473g glass jar. plastic container.

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 Whats next for fats & spreads in Latin
America?
Tracked fats and spreads launches recorded a CAGR of 13.6% over the past 5 years
in Latin America and have had a consistent share of total dairy category product
launches tracked, which is a positive sign for this sub-category.

From a health perspective, no trans fats and low cholesterol continue to be a

significant claims force. There is also evidence of alternative oils such as olive oil,
being incorporated into product formulations for health benefits and this trend should
continue. Unlike other markets globally, the emphasis on cleaner label promotion via
claims is not well established for fats & spreads products for the Latin American
market. There could be more activity in this space in the near future.

Tradition is still a key driver for new product development, with classic product claims
being evident. The current trend of cultured butter claims which are present in other
markets, has yet to emerge in Latin America. These type of products and claims
centered around traditional production methods such as churning could gain traction.

As far as flavor is concerned for fats & spreads in Latin America, both sweet and
savory flavor applications for spreads are in their infancy and have potential for
significant growth.

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Source: Innova Database product launches tracked