Beverage blurring: Natural, hydration and energy 'important drivers' in Brazil, says Mintel

Beverage blurring is on the rise globally, as companies look to diversify portfolios with cross-category drinks to draw in bigger business. And in Brazil, just over half of consumers (55%) cite 'natural' as a choice driver for a beverage blurring, according to data from Mintel's report Beverage Blurring – Brazil –January 2019​. In addition, 42% of Brazilian consumers say 'improves energy' is a key purchase driver and 39% cite 'fast hydration' as important.

Ana Paula Gilsogamo, food and drink consumer and market analyst at Mintel, told NutraIngredients-LATAM that in Brazil, these three factors were “important drivers for Brazilian consumers to try or purchase a new beverage”.​

Therefore, Gilsogamo said companies could specifically “invest in these claims to target these consumers”.​

Coconut water as a base​

Marina Ferreira, food and drink specialist at Mintel, said coconut water presented a strong base for developing a healthy beverage blurring in Brazil, particularly given the continued popularity of the category.

According to Mintel's January report, 48% of consumers would use coconut water as a base for beverage blurring.

Ferreira added that Coca-Cola's recent move into Brazil's coconut water space under its Del Valle brand also indicated there was “space for this market to grow”.​

Tom Vierhile, a Fairport NY-based new products expert, agreed and said newer brands like Brazil's Obrigado had been able to “make a big splash”,​ proving that whilst coconut water was “no longer the new kid on the plant-water block”,​ it was certainly not a saturated category.

However, Ferreira said introducing a healthy beverage into Brazil would not be without challenges.

“Especially for Brazil, competing with fruit juice – a category with high market penetration – can be a great challenge,” ​she said.

Sustainability and packaging​

But, Ferreira said looking at what juice drinkers in Brazil looked for provided a good indication of what strategies could be used to succeed.

“Investing in claims related to sustainability can be a strategy, as 35% of Brazilian juice drinkers said they would pay more for juices with an eco-friendly production, according to Mintel report Juice – Brazil – June 2018.​

“Investing in transparent bottles is also something that can add value to products, as consumers can see the content (…) before they purchase it. According to the same report, 21% of Brazilian juice drinkers believe 'juices/juice drinks in transparent packaging are of better quality than those in opaque ones, e.g. clear plastic bottles versus cans,”​ she said.

Developing fortified juice variants is also now an option in Brazil. In September last year, fortification of 100% juices or 'full juices' with vitamins, fibers and other nutrients was written into law by Brazil's Ministry of Agriculture​ under its normative instruction 49/2018 [Article 14].