BPOs boost soda as bestseller in Philippine market

By Dennis D. Estopace, BusinessMirror

Posted at Nov 26 2012 09:33 AM | Updated as of Nov 26 2012 05:33 PM

MANILA, Philippines - Graveyard shifts are fizzy sweet. So says Pepsi-Cola and confirmed by the latest report on the top 50 consumer-packaged goods by Nielsen Holdings N.V.

According to Nielsen, carbonated soft drinks outranked other categories in terms of market value for the past 12 months ending June 2012. The market research firm placed the value at P79.6 billion in terms of moving annual (MAT) June 2012.
Following carbonated drinks are the wines and spirits category, with P43.1 billion in MAT.
“This year, the category slightly expands with successful new products. Advertising spend is up by 20 percent versus last year.”
Advertising spend for carbonated drinks shows an increase of 41 percent. But “the category remains stable,” Nielsen added.
The increase may be credited to the business-process outsourcing (BPO) industry. Executive Juan Gabriel Sison concurs.
Sison, executive vice president of Pepsi-Cola Products Philippines Inc., told the BusinessMirror that the company’s “year to-date sales to the convenience stores shows a double-digit growth in volume, which can be partly attributed to sales to employees of the BPO sector.”
Sison explained: “With the increasing population of BPO employees working the graveyard shift, their lifestyle calls for frequent visits to nearby retail stores, most especially convenience stores, to purchase beverage products that are high in caffeine, such as coffee, soda, energy drink, among others, to keep them awake and alert as they work overnight.”
Indeed, according to Nielsen’s report, “Instant coffee mixes experienced the fastest growth among the top 50 categories with a 56-percent value increase, moving up four notches to ninth place this year.”
But the report credited this not to BPOs but to the category’s “expanding reach among households and larger media spend with a slew of new launches via different brands.”
However, tea didn’t perform as much, even posting the “steepest decline,” according to Nielsen.
“Also on decline mode are ready-to-drink juices and powdered juice categories.”