2023-05-14 10:00:00
What were the results of Arca Continental Lindley and Coca-Cola last year?
Ignacio Pró (IP): We closed 2022 with a sales volume of 300 million unit boxes (each box equals 5.6 liters). During the pandemic we were at 280 million more or less and the lowest point was approximately 255. We have never reached this milestone before, last year.
Then they already resumed pre-pandemic levels.
Hernán Novelo (HN): Yes, although not on all channels. In the traditional, there has been a recovery. But the restaurants, which were the ones that suffered the most, are only beginning to see a little more light this year. Half of the clients were lost during the pandemic, as they closed.
How did the rains affect them? How do they quantify it?
HN: They affected us like most suppliers. The north was the hardest hit, without a doubt. Maybe we had 3% less sales.
What is the projection for this year in sales?
IP: We want to maintain growth over the number of unit cases in 2022.
HN: I mightn’t say an exact number. The first quarter numbers are there (6.5% in volume) and we think that might continue, with single digit growth.
What investments do you have planned for this year?
HN: We are investing in refrigeration equipment, exhibition assets and infrastructure for clients. We have the goal of raising the amount by 25% more than last year. We will also have investments to continue strengthening distribution capacity and our digitization.
Could an increase in capacity be expected in the short term or a new plant?
HN: We have not reached capacity and we have enough to make more than 300 million unit cases. Depending on what comes in six or seven years, we might make investment decisions.
READ MORE: Mexican Arca Continental will invest more than US$ 801 million in 2023
How many releases do you have planned for this year?
IP: Between flavors and formats there must be 10 innovations. So far we’ve moved on with five, including two Powerade flavors and two St. Louis flavored waters. The novelties will come more for the water category.
Several years ago the Abode of Still Kola It left the market and now the same thing is happening with Inca Kola Power, what happened?
IP: Innovation is a constant process of trial and error. We will continue to innovate with Still Kola and sometimes there will be success and sometimes not. The brand has a very loyal and critical consumer, regarding which we are going to learn in order to renew.
He says that they are going to continue innovating, might we expect a new variety this year?
IP: Not necessarily a new flavor, may be new formats.
So a new flavor is not something we would see any time soon.
IP: Not for now.
How are you doing with the unsweetened varieties?
IP: Inca Kola and Coca Cola without sugar they have been positioning themselves well. In each brand, 12% of the sale already corresponds to these varieties. In addition, 50% of the growth in the first quarter is leveraged in the sugar-free versions, which is a trend that is seen not only in Peru, but throughout the region. Today, 80% of our portfolio is reduced in sugars and we are going to continue with that.
READ MORE: Arca Continental Lindley: sugar-free portfolio boosted sales of Inca Kola and Coca-Cola
And with the flavored waters of San Luis?
IP: We now have three lines with the brand: flat water (still), sparkling and flavored. The latter represents 5% in personal formats. It has little time and is still in a period of expansion. We are calibrating the demand, but we see it with optimism.
The Topo Chico alcoholic beverage also left the market.
IP: Topo Chico entered a difficult period, because we were in a pandemic. Maybe it wasn’t the time. However, in Latin America we have a portfolio of alcoholic beverages and we are evaluating the right moment to return.
The return would not necessarily be with Topo Chico…
IP: Not necessarily. The brand continues in other countries in the region. But in Latin American markets we also have, for example, Schweppes with vodka, Jack & Coke (Jack Daniel’s with Coca Cola canned) and even Topo Chico with tequila. These products are part of the portfolio that we have under evaluation for reintegration into the world of alcohols.
And when will this reinsertion occur?
IP: In the medium term.
Before 2025 would they return?
IP: We should be there.
During the last earnings call of Arca Continental It was said that in Peru they were developing a beer distribution pilot, what can you tell us regarding that?
IP: We don’t have a lot of information or hard data to compete with. We have little time with that. It’s a pilot that has only recently been deployed and is actually aiming to test new ways to diversify the business.
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