Huaca Pucllana Dresses up with Coca-Cola! a VIP Event Was Held at the Huaca Pucllana, Which Is a Great Adobe and Clay Pyramid, Popular Historical Monument in Lima
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For internal use only Bienvenido! Summary Welcome to Perú, land of Transandina Facts millenary tradition and culture, 04 land of the Incas who built Transandina Franchise Unit Overview Macchu Picchu, and home to Positive Macroeconomic Context within the one of the best cuisines in the world. Region Competitive landscape becoming more Peru has been enjoying a sustained economic growth for the past 10 dynamic and challenging years, and this growth has allowed for renewed optimism and the emergence of a new buoyant middle class. The Coca-Cola Company Coca-Cola has been a part of in Peru Peruvians since its arrival on New 08 Year’s Eve 1936, it is one of the Favorable Operating Context most admired companies and Infrastructure Mapping loved brands in the country, and recognized for being a responsible citizen. NAB´s Figures The business, like the country, has 13 grown in the past years, and is ready to take the next step, with state of Industry Structure the art bottling plants which offer KO Portfolio Performance increased production capacity, a new execution model and solid plans 2014 Business Priorities for growth. | Summary 3 Market Execution @ Traditionals 18 The Execution Model Our Picture of Success Assets expansion Shopper Marketing Route to Market Long Range Plan Market Execution @ Modern Channel 25 The Execution Model Our Picture of Success Key Accounts Management Business Life 29 Key Initiatives 4 Transandina Facts | Transandina Franchise Unit Overview VENEZUELA COLOMBIA POPULATION TERRITORY ECUADOR BRASIL • 52.4 MM inhabitants • 2.983MM km2 • 1/3 of the population living in • Diverse Ecosystems: Amazon rural areas Jungle, Andes Mountains, De- • GDP Per Cap: US$ 4.1M serts and Coasts • Young Population, 50% under • Agriculture, Mining and Natural the age of 30 and an average age Gas are the Main Resources, Peru of 28. & Bolivia together own largest gas reserve in Latin America CHILE ARGENTINA OVERVIEW SYSTEM PROFILE FY 2013 Inhabitants: 31.2 MM Bottler Since: 1999 PERU GDP Per Cap: US$6,603 KO Vol: 275 MM UC Area: 1.3 MM km2 KO SOM w/SSD’s: 69.6% KO SOM w/NARDT: 56% Per Caps: 211 Bot 8oz Inhabitants: 11.0 MM Bottler Since: 1995 BOLIVIA GDP Per Cap: US$2,455 KO Vol: 123 MM UC Area: 1.1 MM km2 KO SOM w/SSD’s: 68.0% KO SOM w/NARDT: 60% Per Caps: 268 Bot 8oz Inhabitants: 6.8 MM Bottler Since: 2005 PARAGUAY GDP Per Cap: US$4,401 KO Vol: 61 MM UC Area: 407M km2 KO SOM w/SSD’s: 60.5% KO SOM w/NARDT: 57% Per Caps: 216 Bot 8oz Inhabitants: 3.4 MM Bottler Since: 2005 URUGUAY GDP Per Cap: US$16,539 KO Vol: 46 MM UC Area: 176M km2 KO SOM w/SSD’s: 60.6% KO SOM w/NARDT: 36% Per Caps: 325 Bot 8oz | Transandina Facts 5 Positive Macroeconomic Context within the Region Private Consumption 2014-2016 Growth PERU 4.5% Growth Political issues impacting Busi- Stable growth, lower than past moderation & weak ness & Consumers’ confidence. years. politic leadership New International context mod- Social Inclusion & poverty erating Peru’s growth. reduction as part of presidential agenda. BOLIVIA 4.4% Economic Strong economic policy, with net In practice strong economic ties stability, reserves @ 53% of GDP. prevent actions. but unpredictable Government interventionism ris- Presidential elections (2014) with business environment ing (anti-American & Chilean). Morales as favorite. PARAGUAY 4.6% Restrained private Strong agro-economy depend- New President Cartes to restore consumption, in line ence driving growth volatility. economic growth and interna- tional relationships, but posing with economic activity Brazil’s Real depreciation fuelling border challenges. challenges within the party. URUGUAY 4.4% Stable growth with Strong fundamentals & foreign Argentina’s inflation as a threat inflation challenges investing support Peso apprecia- to our stills exports model. tion. Inflation to slowdown from Presidential elections (2014) 8% to 6%. challenging for Mujica. 6 Transandina Facts | Competitive landscape becoming more dynamic and challenging Strong Competition focused in Stills New Competitive Dynamics • Started operations in late 2013 22% SOM w/NARTD, driven by Cielo. • Present in 3 main cities with focus AJE Volume mix by brand in Santa Cruz, currently importing 8 15 20 products from Peru 18 22 20 • 3rd Party Distribution System 22 24 27 • Categories: SSDs, Water, Sports, Juices & Juice Drinks 41 30 33 • -15% Price Gap vs. TCCC 2007 2010 2013 Cifrut Kola Real Cielo Sporade Other Distribution challenges with AMBEV Pepsico relaunch has not brought Plain Water as main challenger to SSDs dynamism to market 9% 10% +5.8pp 28.5 8% 8% 22.7 Nov ‘11 Nov ‘12 Nov ‘13 SOM PCI w/NARTD 2008 2013 SOM PCI w/SSDs SOM Danone w/NARTD • After re-launching 2 years ago, PCI has stabilized • Danone capturing +6pp in NARTDs (5 years) driv- with minimal SOM gains en mainly by Plain Water • Expansion beyond Modern Channel & outside • Flavored Water still an under-developed business Asunción has captured share mainly from other • Acquired MILOTUR (Nativa Water players (Niko &Pulp) #2, SOM 15% and NIX SSD B-brand, SOM 6%) • Plans to enter Beer market, importing from ARG ↘ Launched as a tactic action under Teens Campaign “Efervescencia” from August to September 2013. “Coca-Cola Names” activation PET 500ml labels was complemented with a strong BTL and digital support: 153M BTL contacts to print customized bottles, 100M contacts through Facebook App to visualize customized names in our digital OOH. From the business perspective, results were excellent: volume grew +22% vs. PY, capturing +1 Pts in SOM. 8 The Coca-Cola Company in Peru | Machu Pichu, one of the 7 wonders of the world, is located in the city of Cusco Lake Titicaca, South America´s largest lake at 3821 meters above sea level, is the highest navigable lake on earth Top Culinary Destination | The Coca-Cola Company in Peru 9 Favorable operating context MACROECONOMIC INFORMATION SOCIOECONOMIC INFORMATION Consumer Inflation NSE Distribution 6.7 2005 2013 NSE A 4.7 1.3% 1.9% 3.9 3.5 NSE B 2.9 2.6 5.7% 9.4% 2.1 1.5 1.1 NSE C 0.2 16.8% 23.1% NSE D 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 26.5% 27.1% NSE E 49.7% 38.4% Foreign Investment BB US$ 13.6 12.2 Inhabitants 8.4 8.2 6.9 6.4 5.4 3.4 2.5 URBAN 1.5 MM AREA 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 7.8 households 78% RURAL Gross Domestic Product % vs. PY AREA 9.8% 8.9% 8.8% 22% 7.7% 6.8% 6.9% 6.3% 5.0% 5.0% 2 of 3 households are located 0.9% in urban areas 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 10 The Coca-Cola Company in Peru | Infrastructure Mapping TRUJILLO Products: SSD’s & Water Lines: 6 IQUITOS Capacity: 116.4 MM UC per year Products: SSD’s & Water DISTANCE FROM LIMA 570 km Lines: 2 Capacity: 10.4 MM UC per year DISTANCE FROM LIMA 1,009 km LIMA Rimac Products: SSD’s, Water, Stills, Energy & Sports Drinks Lines: 6 Capacity: 74.9 MM UC per year Callao Products: SSD’s Lines: 6 Capacity: 116.3 MM UC per year Frutos (Zarate) Products: Water, Nectars, Stills & Sport Drinks Lines: 10 AREQUIPA Capacity: 93.3 MM UC per year Products: SSD’s & Water 6 Lines: CUSCO Capacity: 66.7 MM UC per year SSD’s & Water DISTANCE 1,030 km Products: FROM LIMA Lines: 2 Capacity: 19.1 MM UC per year DISTANCE FROM LIMA 1,165 km | The Coca-Cola Company in Peru 11 Infrastructure Mapping INVESTING FOR THE FUTURE Products Pucusana SSD’s, Water, Stills, Energy & Sports Drinks Lines Capacity 165.9 Investment US$ 200 MM Completion November 2014 Un paso más hacia la botella del futuro. Hecha hasta con 30% de material de origen vegetal. 100% reciclable. conoce más en www.coca-cola.com.pe ↘Plant Bottle was launched in October 2013 with a complete IMC. Special events targeting media and key influencers generated aproximately US$ 50,000 in free publicity. | NAB’s Figures 13 KO participating in 71% of volume & 77% of value NAB’s INDUSTRY MM UC MM UC UC MIX SOM PRICE MM VAR VS PY KO VAR VS PY INDEX (PTS) (PTS) SSD's Reg 296.5 -2.8 55% 69.2% 1.1 100 Plain Water 105.0 4.4 19% 35.5% 0.3 45 Dairy 30.0 7.0 6% - - 192 Juice Stills 24.9 3.2 5% - - 76 Juice Nectars 23.2 -8.0 4% 52.1% 2.4 124 Bulk Water 22.1 6.5 4% 54.8% -2.5 30 Sports Drink 20.4 -5.6 4% 26.8% 4.5 125 Tea RTD 7.9 83.8 1% - - 95 Flavored Water 4.8 1.7 1% 81.5% 2.6 104 SSD's 0-Cal 4.4 3.1 1% 89.1% 3.1 130 Energy Drink 0.3 -30.5 0% 4.5% -9.0 801 SOM KO Pack & Price Architecture Package Mix i.e. LIMA LOW SEL NARTD KO LIMA LOW SEL SS OW 25% ENTRY FREQUENCY UPSIZE SS OW 34% SS REF 9% SS REF 10% MS OW MS OW MS REF 19% MS REF 16% 41% 47% 192 ML 400 ML 330 ML 500 ML 625 ML RGB RGB RGB RGB RGB SOLES 0.50 1.00 1.20 1.50 1.80 Channel Mix & SOM US$ 0.18 0.36 0.43 0.54 0.64 M&P OP SS S&H 100% 8.6% 10.7% 90% 13.8% 7% 52.2% 7% 80% 7% 70% 23% 3% 16% 4% 30% 60% 7.5% 2.1% 8.1% 50% 10.7% 40% 30% 55.1% RGB 1.0 L PET 1.5L RP 2.5L 53.9% 41.6% 20% 38.7% SOLES 2.5 4.0 4.5 10% US$ 0.9 1.43 1.61 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TCCC AMBEV AÑAÑOS MILLER OTHER 14 NAB’s Figures | PORTFOLIO # of SOM (UC) SOM (TX) SOM (Val) SSD’s SKUs 2013 vs PY 2013 vs PY 2013 vs PY 20 25.0% 0.5 26.8% 0.3 25.1% 0.3 18 28.5% 0.6 32.4% 0.7 29.0% 0.1 23 7.3% 0.4 7.2% 0.6 8.5% 0.8 16 4.2% flat 4.2% -0.1 4.7% 0.5 5 0.2% 0.2 0.3% 0.2 0.1% 0.1 13 2.9% -0.6 2.6% -0.6 2.7% -0.5 Zero Cal.