An evolving market

Throughout Latin America, you can find a diverse range of energy drinks. The market seeks energy drinks with low or no caffeine, as well as sugar-free options with no artificial additives.

To meet consumers’ evolving demand, companies like Red Bull, Monster, and Coca-Cola are innovating by reducing the amount of sugar, caffeine, and taurine in their products. New beverages are tapping into Latin America’s desire for natural products to provide the same benefits as caffeine or taurine, but in a healthier form. That’s the case of OCA, a plant-based energy drink powered by tapioca, an extract from the cassava root that taps into the richness of the region’s flavors and culture.

FI Latam recently interviewed Reinaldo Padua, OCA’s chief brand officer, to analyze the Latin American energy drink market.

What are the biggest challenges of the Latin American market?

Reinaldo: Even though energy drinks are one of the fastest-growing categories in the industry, one significant challenge involves the competition from substitute products. The growing need for energy among consumers has been satisfied by an increasing number of offerings from categories other than energy drinks, including: sports drinks, juices, RTD tea, etc; these products have included energy ingredients, giving consumers more alternatives to consider when they need a boost of energy.

Another important challenge is the negative perception and concerns surrounding traditional energy drinks. Concerns are mainly around the quality and naturalness of ingredients and the jitters and crash experienced with these products.

Addressing these challenges involves bringing products that truly deliver a healthier alternative, but also changing the generalized perception about the category.

What strategies have you taken to make OCA appealing to Latin American consumers?

Reinaldo: OCA breaks the consumption barriers of traditional energy drinks. We stand out as the “better for you” energy drink in the market. We are present in most Latin American countries, we are the first natural energy drink with no jitter and no crash, which sets us apart as a unique offer in the market.

Moreover, our availability in modern trade, gyms, and convenience stores across the region ensures easy access for our consumers. Offering a range of distinct flavors different from the standards available in the category helps us capture the attention and diverse preferences of Latin American consumers.

How are you setting your brand up for long-term success?

Reinaldo: First, we remain dedicated to closely listening to (customers’) requirements and energy drink consumption barriers. This enables us to develop product line extensions that become the ideal solution for their energy demands throughout the day, with natural ingredients.

We’re committed to offering energy levels that precisely fit (consumers’) daily needs, adapting to each key moment and situation, such as night consumption, exercise, etc. We’re also very focused on our approach to continue to grow our global footprint.

The non-alcoholic, ready-to-drink beverage category appears poised for significant growth. Consider: in 2023 the revenue in the non-alcoholic drinks market amounts to $53.1 billion dollars.

Beliv, a fast-growing, better-for-you beverage brand, is eager to seize opportunity in the Latin American market.

As a result, The Food Institute caught up with Reinaldo Padua, Beliv’s chief brand officer, to discuss the current state of the segment. The brand recently acquired a 78% stake in High Brew, a leading brand in the cold brew coffee RTD category that’s exhibiting rapid growth in the U.S. The following interview was lightly edited, for brevity.

The Food Institute: What opportunities does Beliv’s alliance with High Brew provide, and what does it mean for the North American and Latin American markets?

Reinaldo Padua: There are two main opportunities from this acquisition:

First, High Brew strengthens our natural energy portfolio. High Brew provides another way to offer natural energy with coffee through the cold brew process, which gives you the refreshing and indulgent energy of the RTD Coffee with a less acidic product. Our vision is to keep expanding this great product into more places and channels in the U. S. then to consumers around the world.

The second one is that High Brew, with its excellent commercial team and capabilities, provides Beliv with an amazing platform to increase the availability of our portfolio of brands, including OCA, Mighty Pop, Big Easy and Guitig, to more places and to more channels in the U.S.

FI: What does it take to appeal to Latin American consumers these days?

Padua: In our experience, it’s very similar to what it takes to appeal to consumers around the world.

Taste continues to be king in terms of appealing to consumers; particularly with products coming from Latin America, where consumers have an expectation of an indulgent taste from our rich nature.

The point that has been evolving is the expectation about what the beverage does for me; consumers are looking more and more for functional benefits that they can get from their beverages. Also, they want that with the minimal calories and a positive impact to society.

The second element that we look for is to create a ritual with consumers. It’s not only about bringing the product, but also giving it a role in your day-to-day life. The third point has to do with having our products available at the location when that ritual is happening and at the right price, providing affordability. Pricing is directly connected to the first point; the more unique and relevant the benefit of the brand, the stronger the ability of the brand to command a premium in the market.

FI: What’re the next key steps or strategies for Beliv?

Padua: There are four main fronts in our growth strategy: First is renovation. This is all about keeping our iconic brands current. We do this by understanding the physical and emotional tensions of consumers and making sure our brands stay relevant to them. In a recent initiative, we renovated our zero-sugar fruit flavor soda, Frutaris, reconnecting it to post-covid teenagers’ tensions, including Frutaris Instagram.

Next is innovation. A great example of that is Guitig Limonada, made with Guitig naturally sparkling volcanic water and natural lemon essence, which offers a healthier and more natural alternative to traditional lemon-lime sodas.

The third strategy is incubation, it refers to more disruptive products which create new propositions to the industry. An ideal example of this strategy is Mighty Pop, which offers superior gut health functionality through the combination of pre-, pro- and post-biotics.

The fourth strategy is acquisition. When we identify an unsatisfied consumer need, we first try to tackle it. However, in some instances, it’s faster or less expensive to do it through acquiring an existing brand. That’s the case of High Brew.

There’s no doubt that innovation, sustainability, health and culture/rituals are the main pillars that the beverage industry has to consider in order to grow in the Latin American and North American markets.

Energy Drink Brands Making Inroads in Latin America