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Peru: Deceleration continues, valuable brands grow



Olivia Hernandez

Client Management Director

Kantar Millward Brown Peru

In economic terms, 2017 was not much different to 2016; hopes for an economic recovery by the last quarter in 2017 were dashed by a political crisis, leaving that last quarter with growth below expectations. Deceleration has remained, hence Peruvian consumers are still seeking a good value equation. Now more than ever, Peruvian consumers are looking for quality and good price.

Against this economic backdrop, it is striking that the value of the 20 most valuable brands in Peru saw a 12 percent increase in brand value over the past year. How did they do it?

Let’s start with the alcoholic beverage category, where we see aggressive price and distribution strategies favored by the growth of new convenience retail formats, such as cash and carry (showing 46 percent growth according to Kantar WorldPanel), and discounters (30 percent growth).  Therefore, although value in the beer category has been severely threatened, brands were  able to maintain their  value within the ranking and we even saw a 1.4 percent increase in the total category value.

In this category, we see clear examples of strategies for delivering a good value equation. On the one hand, Cristal adopted an “affordability” strategy with the launch of a 1-liter pack at strategic points of sale, mindful of cannibalizing its own SKUs and even other brands in their portfolio.

On the other hand, we have Cusqueña, a brand that had been working on strengthening its equity through quality credentials via a communication campaign based on “the good made better”; taking advantage of the premiumization halo and clearly justifying its higher price.


Players in the soft drink category have been facing challenges, including a growing desire for health, and the passing of the Healthy Nutrition Act. Inca Kola, a highly esteemed Peruvian brand, has experienced a 21 percent brand growth in brand value by acting in line with these trends and not against them. Relevant investment in communication campaigns around sugarless varieties, and the launch of smaller SKUs, have been key actions that offer consumers a different value proposition.

Malls are still experiencing strong growth in Peru, numbering  more than 80 nationwide, and Real Plaza, the brand with the highest growth last year in the Peruvian ranking (58 percent), does not disappoint, growing 15 percent this year and contributing significantly to the total value of the most valuable Peruvian brands. Although, it is still engaged in expansion, its strategies also focus on brand consolidation through improving consumers’ experience and homogenizing its brand proposal in its different locations.

As for financial institutions, Mi Banco has posted 51 percent brand value growth, being the leading institution in the microfinancing sector. It has a measured branch expansion strategy and is betting on a “customer-centric” focus via customer segmentation in order to understand the depth of customers’ needs; thus, becoming relevant and amplifying their value proposal.

Lastly, Bolivar, the premium Peruvian brand in the laundry category, is leveraging innovation without losing sight of the importance of offering consumers presentations within their reach, such as sachets.

Thus, we see how, through different strategies, the most valuable brands are continuing to grow. They are focused on a clear brand purpose and amplifying it, without losing sight of the importance of the value equation that remains so important to Peruvian consumers.