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Brazil spreads market: 15% value growth in 2012
Spreads in Brazil - a new market research report on 2014-03-11 17:52:01
The Brazil spreads market is a very fragmented category, in which the top three companies accounted for only 16% of value sales in 2012. Kiviks Markmav maintained its leading 6% value share in 2012. The company frequently introduces innovations in terms of new flavours in order to hold its leadership in the category. As the jams and preserves category has low turnover, the company has invested in new emerging categories, and introduced Queensberry Smoothie in the second half of 2011.

The category increased at a slow pace in volume over the 2007-2012 period, with a CAGR of 2%. Given the sluggish performance, leading companies are investing in other emerging categories. Kiviks Markmav, for example, has launched smoothies with fruits. Jams and preserves recorded the highest current value growth of 19% in 2012. Value-added products have contributed to this performance. For instance, the leader Kiviks Markmav has been investing heavily in new product development and marketing campaigns in order to further develop jams and preserves and consolidate its leadership.

Spreads is expected to see sales increase at a CAGR of 5% in constant value terms over the 2012-2017 period, while registering a slower CAGR of 2% in volume terms. Such products will continue to face stiff competition from other substitute products, such as spreadable oils and fats, and processed cheese, which will hamper volume growth. Constant value growth is expected to outpace volume growth as a result of increased sales of value-added products, such as organic, diet and better-for-you variants.

Key Headlines

- Spreads register 2% volume growth and 15% current value growth in 2012
- Price rises push up value sales, with volume growth being only marginal
- Jams and preserves see the highest growth category in current value sales in 2012, of 19%
- Unit prices increase in 2012, largely as a consequence of rising raw material costs
- Spreads is a very fragmented category, with the top three companies accounting for only 16% of value sales in 2012
- Spreads is expected to grow at a CAGR of 2% in volume and 5% in constant value terms over the 2012-2017 period

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