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December 22, 2014

Soft Drinks Players will Battle for Cuba if Trade Embargo is Lifted

With recent news that the US is restoring full diplomatic relations with Cuba, analysts are speculating that the trade embargo between the two countries may be lifted. It is expected that Iconic soft drink brands such as Coca-Cola and Pepsi will quickly enter Cuba if the trade embargo is lifted, but these companies may find it difficult to compete with both local players and Peru's Aje Groupe, which has established itself as a strong competitor in emerging Latin American markets.

JonasFelicianoAnalyst Insight by Jonas Feliciano - Senior Beverages Analyst

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December 19, 2014

Cuba Libre: Latin America’s Final Consumer Frontier?


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With the thaw in relations between Cuba and the USA, multinationals are likely to be planning their strategies in the new year to boost business in this frontier market. Even before the thaw, we identified Cuba as a Consumer Market of the Future. In 2013, consumer expenditure totalled Tweet-ThisUS$38.6 billion, and with a population of 11.3 million, albeit in slow decline, the market offers real promise for multinationals. Although the US embargo has not yet been lifted, the time might be right to re-evaluate Cuba’s potential as a consumer market.

Low-income consumers underpin the market

Outside of tourism, the most immediately obvious market is for alcohol and soft drinks. We forecast that these markets will increase by 51.6% and 34.8% in nominal terms between 2014 and 2018. This will be driven by increasing tourist arrivals and rising incomes supported by remittances. Although Cuba has a relatively old demographic profile – the median age was 40.3 in 2013, 10 years higher than Brazil, it has a large proportion of working age population – 70.5% were aged 15-64 in 2013 which contributes to this income growth. The market is currently constrained by rationing and subsidised prices however. Other fast-growing markets in the future include home care and tissue and hygiene. Durable goods such as consumer electronics and appliances are likely to see slower growth. One explanation for this, and something to remember across markets, is that despite growth, overall incomes are low – per capita GDP stood at US$6,788 in 2013, roughly Tweet-Thiscomparable to Peru and Ecuador. Although price-sensitive, Cuban consumers can be targeted with the “traditional” smaller packet sizes aimed at bottom of the pyramid consumers around the globe but also through innovation. As in the rest of Latin America, an approach based on tailoring to local tastes and aspirations, whilst striving to build brand and in some cases category awareness, is likely to have the most success.


Forecast Growth Rates of Selected Markets in Cuba: 2014-2018

Forecast Growth Rates of Selected Markets in Cuba: 2014-2018

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources


History lesson from Eastern Europe

Lessons can be learned from experiences following the fall of the iron curtain in Eastern Europe and the fall of the Berlin Wall, which celebrated its 25th anniversary in November of this year. In addition a look at Myanmar and China could yield insights. However, these lessons cannot be transferred to Cuba in their entirety - rather they should be used to inform strategies in Cuba. Cuban consumers have their unique tastes and preferences so a holistic approach, taking in a thorough knowledge of the market, consumers, economic backdrop, business environment, competitors and partners is crucial for optimum success.

A Cuba strategy should also be seen as a long-term one, gains and change will not be realised overnight. Resistance to commercialism will also be seen in some segments and the mind-set of “being at war” with the USA could take a generation to change. It would also be wrong to see Cuba as an entirely virgin market. Cuba trades heavily with China and Spain and companies from these countries have first-mover advantage in some sectors. It also suffers from serious economic challenges – including crumbling infrastructure, low productivity and a lack of investment – and its economic development should be monitored closely.


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December 18, 2014

Cuba: Key Market of the Future


Cuba is identified as one of the 20 Markets of the Future that will offer the most opportunities for consumer goods companies. Accelerating market liberalization and improvement of business environment is anticipated to boost employment and income growth, resulting in a sizeable increase in consumer expenditure by 2020. Alcoholic drinks is projected to become the largest consumer market over the forecast period, with spirits and beer being the most promising categories.

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Diplomatic Normalisation Promises Cuban Evolution for US Cigar Market

Shane_MacGuillAnalyst Insight by Shane MacGuill - Tobacco Analyst

The almost total thawing out of diplomatic relations between the US and Cuba, announced yesterday, 17th December by President Barack Obama, could lead to the smouldering of Cuban cigars from coast to coast in the US$8 billion dollar US cigar market. The biggest winners from the relaxing of the trade embargo with Cuba are likely to be Imperial Tobacco plc, the world’s 4th largest international tobacco company and part owner, with the Cuban government of the state cigar company Corporacion Habanos and the US tobacco specialist stores which currently supply around 40% of the country’s cigars and through which high price point Cuban offerings will largely be distributed.

Imperial Tobacco inherited  a 50% holding in the Cuban state cigar company Corporacion Habanos through its purchase of the French-Spanish tobacco giant Altadis in 2007. It is thought that the company, which distributes the Cohiba and Montecristo premium cigar brands outside the US and non-Cuban brands such as Romeo y Julieta within it, has been anticipating the relaxation of the trade embargo for some time and has plans to ramp up production by 50% to meet increased demand. However, in an analyst briefing in November 2014, Imperial CEO Alison Cooper made reference to some supply issues in Cuba which may or may not impact this target:

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November 22, 2014

Panorama de retail en Latinoamérica ¿estaremos realmente tan afectados?

El desarrollo del retail va muy de la mano de la economía. Actualmente la economía global está pasando por un momento difícil pero la industria de retail se mantiene estable en Latinoamérica en general con tasas de crecimiento de 4% anual en términos constantes para los próximos 5 años, según datos de Euromonitor International. La región se compone de países cuyo mercado retail está más desarrollado como Chile, México y Uruguay y países donde aún hay muchas oportunidades de expansión como Bolivia, Guatemala y República Dominicana. Por su parte, el crecimiento de la clase media ha ayudado a impulsar el mercado. Aunque los efectos de la economía aún no se han materializado en el retail, se puede esperar que en el futuro las tasas de crecimiento sean más moderadas.

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November 20, 2014

Added Value in the Brazilian Toilet Paper Market

With increasing average incomes and industry sophistication, consumers in Brazil are beginning to trade up to higher quality products, increasing the overall value of the market.

Video features Leonardo Freitas - Research Associate

November 14, 2014

Chaves para Entender o Mercado de Vitaminas e Suplementos Alimentares na América Latina

250_consumerHealthPortuguese-v1.0Baixe este e-book para ter um panorama global sobre o mercado de vitaminas e suplementos alimentares, bem como conhecer as principais tendências na Argentina, Bolívia, Chile, Colômbia, Costa Rica, Equador, Guatemala, México, Peru, República Dominicana, Uruguai e Venezuela.


O mercado global de vitaminas e suplementos alimentares está crescendo e a América Latina se destaca pelo dinamismo na venda desses produtos. A expectativa é que a demanda na região continue crescendo, atraindo forte competição e aumentando o valor da indústria para US$ 5,5 bilhões até 2018.

November 11, 2014

Recent Launches in Oils and Fats in Brazil


Vegetable and seed oil makes up the largest segment of the Brazilian oils and fats market. This podcast discusses industry trends, new product launches, business opportunities and predictions for the market.

Learn more about Brazil's Business and Consumer Environment in our free whitepaper

Listen as MP3

Podcast features Renata Benites, Research Associate

November 9, 2014

Local Players Gain Market Share of Tablets in Brazil

In 2014, Samsung lost its leading position in tablets in Brazil to local company DL. Brazil's closed economy, particularly the high taxes on imported products, creates an environment particularly hospitable to local business growth. As a result, international brands are adapting new strategies to target the Brazilian market. Watch the video for complete insight.

Video features Alexis Frick - Research Associate

November 6, 2014

Euromonitor to Speak at SNAXPO 2015



Event: Snaxpo 2015

Dates: March 28-31, 2015

Location: Orlando, Florida

Event Description: The world's largest, most comprehensive trade show devoted exclusively to the international snack food industry is heading back to Florida in 2015. Orlando is an ideal destination to bring together owners, executives and buyers from every segment of the industry around the world. Come take advantage of a little sun, a little fun, and a lot of exciting ways to build new business, generate quality leads and promote your brand – especially as an exhibitor, sponsor or both. Whether you're a small start-up or a multi-national corporation, with a strong presence at SNAXPO, customers will see you as a category leader, committed to their success and dedicated to advancing the snack food industry.

Website: http://snaxpo.com/

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Recent Posts

Soft Drinks Players will Battle for Cuba if Trade Embargo is Lifted

Cuba Libre: Latin America’s Final Consumer Frontier?

Cuba: Key Market of the Future

Diplomatic Normalisation Promises Cuban Evolution for US Cigar Market

Panorama de retail en Latinoamérica ¿estaremos realmente tan afectados?

Added Value in the Brazilian Toilet Paper Market

Chaves para Entender o Mercado de Vitaminas e Suplementos Alimentares na América Latina

Recent Launches in Oils and Fats in Brazil

Local Players Gain Market Share of Tablets in Brazil

Euromonitor to Speak at SNAXPO 2015